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ToughBuilt Industries Inc. (TBLT) has filed its Form 10-K filing for the fiscal year ended December 31, 2023.
The filing reports a decrease in revenues to $76.3 million from $95.3 million in the previous year, attributed to inventory shortages and reduced working capital.
Cost of goods sold was $59.9 million, representing 78.5% of sales, compared to 73.5% in the previous year, due to increased manufacturing costs.
Operating expenses, including selling, general, and administrative expenses, totaled $73.6 million, down from $77.5 million, reflecting cost management efforts.
The company reported a net loss of $46.4 million, compared to a net loss of $39.3 million the previous year, impacted by reduced revenues and increased cost ratios.
Cash used in operating activities was $5.1 million, with cash balances of $1.2 million at year-end. The company has a working capital deficit of $26.6 million.
ToughBuilt is seeking additional financing to support operations and address its working capital shortfall, with plans to raise capital through debt or equity offerings.
The company continues to focus on expanding its product lines and increasing market penetration, with new product launches and distribution agreements in 2023.
Significant business developments include the launch of over 40 SKUs in the handheld screwdrivers segment and expansion into European and UK markets.
Management has identified material weaknesses in internal controls over financial reporting, particularly related to IT system implementations, and is working on remediation plans.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ToughBuilt Industries Inc. annual 10-K report dated December 23, 2024. To report an error, please email earnings@qz.com.