AXIL Brands Reports Third Quarter Fiscal Year 2025 Financial Results
AXIL Brands (NYSE: AXIL) reported its Q3 FY2025 financial results, showing revenue growth to $6.9 million from $6.5 million year-over-year. The company maintained a strong gross profit margin of 71.7% while reducing operating expenses to 63.3% of sales from 73.1% in the prior year.
Q3 net income was $0.6 million with basic EPS of $0.09, compared to $0.8 million and $0.13 EPS in Q3 FY2024. Notably, Adjusted EBITDA improved significantly to $0.9 million from a loss of $11,000 in the prior year period. Cash position strengthened to $4.7 million from $3.3 million at fiscal year-end.
The company expanded into new geographic markets and enhanced retail distribution while benefiting from Cyber Monday's timing. AXIL is also implementing strategic changes to address U.S. trade policy risks by relocating operational leadership and planning domestic manufacturing capabilities.
AXIL Brands (NYSE: AXIL) ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2025, evidenziando una crescita dei ricavi a 6,9 milioni di dollari rispetto ai 6,5 milioni di dollari dell'anno precedente. L'azienda ha mantenuto un forte margine di profitto lordo del 71,7% riducendo nel contempo le spese operative al 63,3% delle vendite, rispetto al 73,1% dell'anno precedente.
Il reddito netto del terzo trimestre è stato di 0,6 milioni di dollari con un utile per azione base di 0,09 dollari, rispetto a 0,8 milioni di dollari e 0,13 dollari di utile per azione nel terzo trimestre dell'anno fiscale 2024. È importante notare che l'EBITDA rettificato è migliorato significativamente a 0,9 milioni di dollari rispetto a una perdita di 11.000 dollari nello stesso periodo dell'anno precedente. La posizione di liquidità è migliorata a 4,7 milioni di dollari rispetto ai 3,3 milioni di dollari alla fine dell'anno fiscale.
L'azienda si è espansa in nuovi mercati geografici e ha migliorato la distribuzione al dettaglio beneficiando anche della tempistica del Cyber Monday. AXIL sta anche implementando cambiamenti strategici per affrontare i rischi legati alla politica commerciale degli Stati Uniti, trasferendo la leadership operativa e pianificando capacità di produzione domestica.
AXIL Brands (NYSE: AXIL) reportó sus resultados financieros del tercer trimestre del año fiscal 2025, mostrando un crecimiento de ingresos a 6,9 millones de dólares desde 6,5 millones de dólares en comparación con el año anterior. La compañía mantuvo un sólido margen de ganancia bruta del 71,7% mientras reducía los gastos operativos al 63,3% de las ventas desde el 73,1% del año anterior.
El ingreso neto del tercer trimestre fue de 0,6 millones de dólares con un EPS básico de 0,09 dólares, en comparación con 0,8 millones de dólares y 0,13 dólares de EPS en el tercer trimestre del año fiscal 2024. Notablemente, el EBITDA ajustado mejoró significativamente a 0,9 millones de dólares desde una pérdida de 11,000 dólares en el mismo período del año anterior. La posición de efectivo se fortaleció a 4,7 millones de dólares desde 3,3 millones de dólares al cierre del año fiscal.
La compañía se expandió a nuevos mercados geográficos y mejoró la distribución minorista, beneficiándose también del momento del Cyber Monday. AXIL también está implementando cambios estratégicos para abordar los riesgos de política comercial de EE. UU. trasladando el liderazgo operativo y planificando capacidades de fabricación nacional.
AXIL Brands (NYSE: AXIL)은 2025 회계연도 3분기 재무 결과를 발표하며, 매출이 지난해 6.5백만 달러에서 6.9백만 달러로 증가했다고 보고했습니다. 이 회사는 71.7%의 강력한 총 이익률을 유지하면서 운영 비용을 지난해 73.1%에서 매출의 63.3%로 줄였습니다.
3분기 순이익은 60만 달러로 기본 주당순이익(EPS)은 0.09달러로, 지난해 3분기의 80만 달러와 0.13달러 EPS에 비해 감소했습니다. 특히, 조정된 EBITDA는 지난해 같은 기간의 11,000달러 손실에서 90만 달러로 크게 개선되었습니다. 현금 보유액은 회계연도 말의 330만 달러에서 470만 달러로 강화되었습니다.
회사는 새로운 지리적 시장으로 확장하고 소매 유통을 개선했으며 사이버 먼데이의 시기 덕분에 혜택을 보았습니다. AXIL은 또한 미국 무역 정책 위험에 대응하기 위해 운영 리더십을 이전하고 국내 제조 능력을 계획하는 전략적 변화를 시행하고 있습니다.
AXIL Brands (NYSE: AXIL) a publié ses résultats financiers du troisième trimestre de l'exercice 2025, montrant une croissance des revenus à 6,9 millions de dollars contre 6,5 millions de dollars l'année précédente. L'entreprise a maintenu une forte marge brute de 71,7 % tout en réduisant les dépenses opérationnelles à 63,3 % des ventes, contre 73,1 % l'année précédente.
Le revenu net du troisième trimestre s'élevait à 0,6 million de dollars avec un BPA de base de 0,09 dollar, comparé à 0,8 million de dollars et 0,13 dollar de BPA au troisième trimestre de l'exercice 2024. Notamment, l'EBITDA ajusté s'est considérablement amélioré à 0,9 million de dollars par rapport à une perte de 11 000 dollars au cours de la même période l'année précédente. La position de trésorerie s'est renforcée à 4,7 millions de dollars contre 3,3 millions de dollars à la fin de l'exercice.
L'entreprise s'est étendue à de nouveaux marchés géographiques et a amélioré la distribution au détail tout en bénéficiant également du moment du Cyber Monday. AXIL met également en œuvre des changements stratégiques pour faire face aux risques liés à la politique commerciale américaine en déplaçant le leadership opérationnel et en planifiant des capacités de fabrication nationales.
AXIL Brands (NYSE: AXIL) hat seine finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 veröffentlicht und ein Umsatzwachstum auf 6,9 Millionen Dollar im Vergleich zu 6,5 Millionen Dollar im Vorjahr verzeichnet. Das Unternehmen hielt eine starke Bruttogewinnmarge von 71,7% aufrecht und reduzierte die Betriebskosten auf 63,3% des Umsatzes, im Vergleich zu 73,1% im Vorjahr.
Das Nettoergebnis im dritten Quartal betrug 0,6 Millionen Dollar mit einem Basis-EPS von 0,09 Dollar, verglichen mit 0,8 Millionen Dollar und 0,13 Dollar EPS im dritten Quartal des Geschäftsjahres 2024. Bemerkenswert ist, dass das bereinigte EBITDA erheblich auf 0,9 Millionen Dollar von einem Verlust von 11.000 Dollar im Vorjahreszeitraum verbessert wurde. Die Liquiditätsposition stärkte sich auf 4,7 Millionen Dollar von 3,3 Millionen Dollar zum Ende des Geschäftsjahres.
Das Unternehmen expandierte in neue geografische Märkte und verbesserte die Einzelhandelsverteilung, während es auch von dem Zeitpunkt des Cyber Monday profitierte. AXIL implementiert auch strategische Änderungen, um Risiken der US-Handelspolitik zu adressieren, indem es die operative Führung verlagert und die nationalen Produktionskapazitäten plant.
- Revenue increased 7% year-over-year to $6.9 million
- Adjusted EBITDA improved significantly to $0.9 million from a loss
- Operating expenses reduced to 63.3% of sales from 73.1%
- Cash position strengthened by 46% to $4.7 million
- Gross profit margin improved to 71.7%
- Net income decreased to $0.6 million from $0.8 million year-over-year
- Basic EPS declined to $0.09 from $0.13 in prior year period
- New tariffs forcing supply chain restructuring and additional costs
Insights
AXIL Brands delivered a mixed but operationally improving Q3 FY2025. Revenue increased
The standout metric is Adjusted EBITDA, which swung from a
Despite these operational improvements, net income declined from
The company's proactive supply chain strategy to address new tariffs by relocating leadership and developing domestic manufacturing capabilities shows forward-thinking management adapting to trade policy challenges. This transition may create short-term disruptions but positions AXIL for potentially greater cost control and operational resilience long-term.
AXIL's Q3 results demonstrate significant operational leverage with the
Their inventory management shows particular strength – inventory levels decreased from
The company's announced supply chain transition strategy is particularly noteworthy. Relocating operational leadership to the U.S. and developing domestic manufacturing capabilities represents a significant shift in their operating model. While this transition will require upfront investment and may temporarily pressure margins, it creates a more resilient supply chain less vulnerable to tariff fluctuations and international disruptions. Implementing this transition while maintaining profitability and cash flow growth demonstrates operational maturity and effective execution capabilities.
The
LOS ANGELES, April 08, 2025 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (“AXIL” or the “Company”) (NYSE American: AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® hair and skin care products, announces financial and operational results for the third quarter ended February 28, 2025 (3Q25).
Financial Highlights for the Quarter Ended February 28, 2025
- Revenue in 3Q25 was
$6.9 million , as compared to$6.5 million in the prior year period
- Gross profit as a percentage of sales was
71.7% in 3Q25, as compared to71.5% for the prior year period
- Operating expenses as a percentage of sales were
63.3% in 3Q25, as compared to73.1% for the prior year period
- Net income in 3Q25 was
$0.6 million , as compared to$0.8 million in the prior year period
- Adjusted EBITDA in 3Q25 was
$0.9 million , as compared Adjusted EBITDA loss of$11 thousand for the prior year period
- Net cash provided by operating activities for the nine months ended February 28, 2025 was
$1.7 million , as compared to$0.3 million for the nine months ended February 29, 2024
- Cash as of February 28, 2025 was
$4.7 million , as compared to$3.3 million as of May 31, 2024
- Basic and diluted earnings per share for 3Q25 were
$0.09 and$0.07 , respectively, compared to$0.13 and$0.04 , respectively, in the prior year period
“Q325 was a strong quarter for AXIL as we continued to execute on our multi-channel growth strategy. We expanded into new geographic markets, deepened our retail distribution, and capitalized on Cyber Monday’s timing shift to drive meaningful growth in direct-to-consumer revenue,” said Jeff Toghraie, AXIL Chairman and Chief Executive Officer.
“Equally important, this quarter marked a meaningful inflection point in our operational performance. We delivered
“We’ve also taken decisive action to proactively address risks tied to evolving U.S. trade policy. With new tariffs now in effect, we are accelerating our supply chain transition strategy—relocating key operational leadership to the U.S. and initiating plans to build out domestic manufacturing capabilities. These moves are designed not just to manage near-term disruptions, but to enhance AXIL’s long-term resilience and control over its cost structure. We believe these steps will better position the company to navigate volatility and capitalize on future growth opportunities.”
Use of Non-GAAP Financial Measures
The Company calculates EBITDA by taking net income calculated in accordance with accounting principles generally accepted in the United States (“GAAP”), and adjusting for income taxes, interest income or expense, and depreciation and amortization. The Company calculates adjusted EBITDA as EBITDA, further adjusted for stock-based compensation. Adjusted EBITDA is also presented as a percentage of revenue, which is calculated by dividing the non-GAAP Adjusted EBITDA for a period by revenue for the same period. Other companies may calculate EBITDA and adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. The Company believes that these non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to the Company’s financial condition and results of operations, and management considers EBITDA and adjusted EBITDA important indicators in evaluating the Company’s business on a consistent basis across various periods for trend analyses. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements and are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors should not rely on any single financial measure to evaluate our business. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measure, net loss, calculated in accordance with GAAP is included in a schedule to this press release.
AXIL BRANDS, INC. AND SUBSIDIARY | ||||||||||||||||
CONSOLIDATED EBITDA and ADJUSTED EBITDA | ||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2025 AND FEBRUARY 29, 2024 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
February 28, 2025 | February 29, 2024 | February 28, 2025 | February 29, 2024 | |||||||||||||
Net income (GAAP) | $ | 576,662 | $ | 781,091 | $ | 1,100,563 | $ | 1,953,618 | ||||||||
Provision (benefit) for income taxes | 53,085 | (827,436 | ) | 120,335 | (397,054 | ) | ||||||||||
Interest income, net | (42,920 | ) | (51,420 | ) | (97,595 | ) | (124,454 | ) | ||||||||
Depreciation and amortization | 45,666 | 27,614 | 93,001 | 83,634 | ||||||||||||
Total EBITDA (Non-GAAP) | 632,493 | (70,151 | ) | 1,216,304 | 1,515,744 | |||||||||||
Adjustments: | ||||||||||||||||
Stock-based compensation | 258,053 | 59,099 | 860,517 | 161,314 | ||||||||||||
Total Adjusted EBTIDA (Non-GAAP) | $ | 890,546 | $ | (11,052 | ) | $ | 2,076,821 | $ | 1,677,058 | |||||||
Sales, net (GAAP) | $ | 6,922,367 | $ | 6,469,343 | $ | 20,506,213 | $ | 20,997,289 | ||||||||
Adjusted EBITDA as a percentage of Sales, net (Non-GAAP) | 12.9 | % | (0.2 | )% | 10.1 | % | 8.0 | % |
AXIL BRANDS, INC. AND SUBSIDIARY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
February 28, 2025 | May 31, 2024 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 4,743,470 | $ | 3,253,876 | ||||
Accounts receivable, net | 801,390 | 509,835 | ||||||
Inventory, net | 2,744,436 | 3,394,023 | ||||||
Prepaid expenses and other current assets | 961,876 | 809,126 | ||||||
Total Current Assets | 9,251,172 | 7,966,860 | ||||||
OTHER ASSETS: | ||||||||
Property and equipment, net | 375,035 | 260,948 | ||||||
Intangible assets, net | 357,793 | 309,104 | ||||||
Right of use asset | 672,221 | 36,752 | ||||||
Deferred tax asset | 121,791 | 231,587 | ||||||
Other assets | 20,720 | 16,895 | ||||||
Goodwill | 2,152,215 | 2,152,215 | ||||||
Total Other Assets | 3,699,775 | 3,007,501 | ||||||
TOTAL ASSETS | $ | 12,950,947 | $ | 10,974,361 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 896,365 | $ | 967,596 | ||||
Customer deposits | 38,586 | 154,762 | ||||||
Contract liabilities – current | 786,834 | 905,311 | ||||||
Notes payable | 140,958 | 146,594 | ||||||
Due to related party | 28,576 | 11,798 | ||||||
Lease liability, current | 227,418 | 36,752 | ||||||
Income tax liability | 120,335 | 242,296 | ||||||
Other current liabilities | 210,679 | 332,936 | ||||||
Total Current Liabilities | 2,449,751 | 2,798,045 | ||||||
LONG TERM LIABILITIES: | ||||||||
Lease liability, long term | 482,842 | – | ||||||
Contract liabilities – long term | 361,488 | 480,530 | ||||||
Total long term liabilities | 844,330 | 480,530 | ||||||
Total Liabilities | 3,294,081 | 3,278,575 | ||||||
Commitments and contingencies | – | – | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock, | 2,777 | 4,225 | ||||||
Common stock, | 666 | 591 | ||||||
Additional paid-in capital | 8,687,130 | 7,825,240 | ||||||
Retained Earnings/(Accumulated deficit) | 966,293 | (134,270 | ) | |||||
Total Stockholders’ Equity | 9,656,866 | 7,695,786 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 12,950,947 | $ | 10,974,361 |
AXIL BRANDS, INC. AND SUBSIDIARY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2025 AND FEBRUARY 29, 2024 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
February 28, 2025 | February 29, 2024 | February 28, 2025 | February 29, 2024 | |||||||||||||
Sales, net | $ | 6,922,367 | $ | 6,469,343 | $ | 20,506,213 | $ | 20,997,289 | ||||||||
Cost of sales | 1,955,939 | 1,845,017 | 5,888,090 | 5,467,458 | ||||||||||||
Gross profit | $ | 4,966,428 | $ | 4,624,326 | $ | 14,618,123 | $ | 15,529,831 | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Sales and marketing | $ | 2,994,052 | $ | 3,398,949 | $ | 9,041,283 | $ | 10,278,570 | ||||||||
Compensation and related taxes | 200,156 | 228,869 | 667,478 | 713,504 | ||||||||||||
Professional and consulting | 796,689 | 687,138 | 2,480,707 | 1,990,426 | ||||||||||||
General and administrative | 392,422 | 413,249 | 1,313,377 | 1,213,541 | ||||||||||||
Total Operating Expenses | $ | 4,383,319 | $ | 4,728,205 | $ | 13,502,845 | $ | 14,196,041 | ||||||||
INCOME (LOSS) FROM OPERATIONS | $ | 583,109 | $ | (103,879 | ) | $ | 1,115,278 | $ | 1,333,790 | |||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Gain on settlement | – | – | – | 79,182 | ||||||||||||
Other income | 3,718 | 6,114 | 8,025 | 19,138 | ||||||||||||
Interest income | 44,191 | 52,915 | 100,162 | 129,233 | ||||||||||||
Interest expense and other finance charges | (1,271 | ) | (1,495 | ) | (2,567 | ) | (4,779 | |||||||||
Other income (expense), net | $ | 46,638 | $ | 57,534 | $ | 105,620 | $ | 222,774 | ||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ | 629,747 | $ | (46,345 | ) | $ | 1,220,898 | $ | 1,556,564 | |||||||
Provision (benefit) for income taxes | 53,085 | (827,436 | ) | 120,335 | (397,054 | |||||||||||
NET INCOME | $ | 576,662 | $ | 781,091 | $ | 1,100,563 | $ | 1,953,618 | ||||||||
NET INCOME PER COMMON SHARE: | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.13 | $ | 0.17 | $ | 0.33 | ||||||||
Diluted | $ | 0.07 | $ | 0.04 | $ | 0.13 | $ | 0.11 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
Basic | 6,516,852 | 5,863,939 | 6,373,502 | 5,863,939 | ||||||||||||
Diluted | 8,202,402 | 18,576,914 | 8,196,605 | 18,569,140 |
AXIL BRANDS, INC. AND SUBSIDIARY | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2025 AND FEBRUARY 29, 2024 | |||||||||
(UNAUDITED) | |||||||||
For the Nine Months Ended | |||||||||
February 28, 2025 | February 29, 2024 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net income | $ | 1,100,563 | $ | 1,953,618 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 93,001 | 83,634 | |||||||
Provision for credit losses | 31,834 | 143,395 | |||||||
Reversal of inventory obsolescence | (23,448 | ) | – | ||||||
Stock-based compensation | 860,517 | 161,314 | |||||||
Gain on forgiveness of account payable | (218,699 | ) | – | ||||||
Gain on settlement | – | (79,182 | ) | ||||||
Deferred income taxes | 109,796 | (397,054 | ) | ||||||
Change in operating assets and liabilities: | |||||||||
Accounts receivable | (323,389 | ) | (445,883 | ) | |||||
Inventory | 673,034 | (2,131,429 | ) | ||||||
Prepaid expenses and other current assets | (156,574 | ) | 145,032 | ||||||
Accounts payable | 147,472 | 1,061,420 | |||||||
Other current liabilities | (322,358 | ) | (144,052 | ) | |||||
Contract liabilities | (237,519 | ) | (11,490 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,734,230 | 339,323 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Purchase of intangibles | (101,690 | ) | – | ||||||
Purchase of property and equipment | (154,088 | ) | (80,192 | ) | |||||
NET CASH USED IN INVESTING ACTIVITIES | (255,778 | ) | (80,192 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Repayment of equipment financing | – | (2,200 | ) | ||||||
Repayment of note payable | (5,636 | ) | (25,438 | ) | |||||
Advances from (payments to) a related party | 16,778 | (176,608 | ) | ||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 11,142 | (204,246 | ) | ||||||
NET INCREASE IN CASH | 1,489,594 | 54,885 | |||||||
CASH – Beginning of period | 3,253,876 | 4,832,682 | |||||||
CASH – End of period | $ | 4,743,470 | $ | 4,887,567 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||
Cash paid during the period for: | |||||||||
Interest | $ | 2,567 | $ | 4,681 | |||||
Income taxes | $ | 132,500 | $ | – | |||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | |||||||||
Initial recognition of right of use assets recognized as lease liability | $ | 767,269 | $ | – | |||||
About AXIL Brands
AXIL Brands (NYSE American: AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL® brand and premium hair and skincare products under its in-house Reviv3® brand - selling products in the United States, Canada, the European Union, and throughout Asia.
To learn more, please visit the Company's AXIL® website at www.axilbrands.com and its Reviv3® website at www.reviv3.com.
Forward-Looking Statements
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as “anticipate,” “believe,” “expect,” “continue,” “will,” “prepare,” “should,” and “focus,” among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management’s beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management’s control and may cause the Company’s results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company’s ability to grow its net sales and operations, including developing new and improved products, diversifying and expanding its distribution and retail channels, and expanding internationally, and perform in accordance with any guidance; (ii) the Company’s ability to generate sufficient revenue to support the Company’s operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays the Company may experience in implementing its cost savings and efficiency initiatives; (iv) the Company’s ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of the Company’s customers, potentially increasing the negative impact to the Company by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which the Company operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase the Company’s product costs and other costs of doing business, and reduce the Company’s earnings; (vii) the Company’s ability to engage in acquisitions, investments, partnerships, strategic alliances or dispositions when desired, including the potential divestiture of the Company’s hair and skin care business; (viii) the Company’s ability to successfully accelerate its supply chain transition strategy and achieve the intended benefits; and (ix) the impact of unstable market and general economic conditions on the Company’s business, financial condition and stock price, including inflationary cost pressures, the possibility of an economic recession and other macroeconomic factors, geopolitical events, and uncertainty, increased tariffs and other trade restrictions and barriers, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, including the effects of the Ukraine-Russia conflict and conflict in the Middle East, and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s filings with the U.S. Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
Investor Relations:
Todd McKnight
(917) 349-2175
investors@goaxil.com
