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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): November 9, 2023
AMMO,
INC.
(Exact
name of registrant as specified in its charter)
Delaware |
|
001-13101 |
|
83-1950534 |
(State
or other jurisdiction of
incorporation
or organization) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
7681
E. Gray Rd.
Scottsdale,
Arizona 85260
(Address
of principal executive offices)
(480)
947-0001
(Registrant’s
telephone number, including area code)
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Common
Stock, $0.001 par value |
|
POWW |
|
The
Nasdaq Stock Market LLC (Nasdaq Capital Market) |
8.75%
Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value |
|
POWWP |
|
The
Nasdaq Stock Market LLC (Nasdaq Capital Market) |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02 Results of Operations and Financial Condition.
On
November 9, 2023, Ammo, Inc. (the “Company”) reported its financial results for the fiscal quarterly period ended September
30, 2023. A copy of the press release issued by the Company in this connection is furnished herewith as Exhibit 99.1.
The
information in this Item in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished and shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject
to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or
the Exchange Act, regardless of any general incorporation language in such filing.
Item
9.01 Financial Statements and Exhibits.
(d)
Exhibits
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
AMMO, INC. |
|
|
|
Dated: November 9, 2023 |
By: |
/s/ Robert
D. Wiley |
|
|
Robert D. Wiley |
|
|
Chief Financial Officer |
Exhibit 99.1
AMMO,
Inc. Reports Second Quarter 2024 Financial Results
SCOTTSDALE,
Ariz., November 9, 2023 (GLOBE NEWSWIRE) — AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”),
the owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, and a leading vertically
integrated producer of high-performance ammunition and components, today reported results for its second quarter of fiscal 2024, ended
September 30, 2023.
Second
Quarter Fiscal 2024 vs. Second Quarter Fiscal 2023
● |
Net Revenues
of $34.4 million |
● |
Gross profit margin of
approximately 24.1% compared to 26.6% |
● |
Adjusted EBITDA of $1.2
million compared to $5.7 million |
● |
Net loss of ($7.5) million,
compared to a net loss of ($0.8) million |
● |
Diluted EPS of ($0.07),
compared to ($0.01) |
● |
Adjusted EPS of $0.00,
compared to $0.04 |
GunBroker.com
“Marketplace” Metrics – Second Quarter 2024
● |
Marketplace revenue of
approximately $12.5 million |
● |
New user growth averaged
approximately 26,000 per month |
● |
Average take rate increased
to 6.0% compared to 5.3% in fiscal 2023 |
Jared
Smith, AMMO’s CEO, commented “Our fiscal second quarter was a very difficult quarter for our industry and due to mechanical
and supply issues we are roughly one quarter behind where we thought we would be by now. However, we continue to transition our business
to a leaner and more profitable operating model and remain focused on addressing operational inefficiencies. With that said, the market
is moving very quickly based on recent international and domestic events.
“Events
in October have completely flipped the market on its head. We see strong demand for our brass casings and even stronger demand internationally.
While we have had delays in bringing the factory on-line, we continue to make investments to secure future predictability, profitability,
and capacity. The fundamentals of the industry are improving. Gunbroker.com is starting to see the payoff of payment processing capabilities
on the platform as we continue to transition GunBroker.com from an auction house to an Amazon-like model for firearms and accessories,”
Mr. Smith concluded.
Second
Quarter 2024 Results
The
margins in our marketplace segment remain strong and although our gross margins have decreased in our ammunition segment due to the aforementioned
operational struggles, we are optimistic on the future performance of this segment. While challenges continue in the market today, the
demand for our brass casings remain robust. We are beginning to see positive trends in the demand for our ammunition product and we are
seeing the activity on GunBoker.com increase as we enter into our third fiscal quarter.
We
are positioned to capitalize on these positive trends given our strong financial position as we have reported $129.5 million in current
assets including $49.6 million of cash and cash equivalents, in comparison to $27.6 million in current liabilities. Additionally, we
generated $18.2 million in cash from operations through the midpoint of our fiscal year.
We
ended the first quarter with total revenues of approximately $34.4 million in comparison to $48.3 million in the prior year quarter.
The decrease in revenue was primarily related to a decrease in sales activity from our ammunition segment as a result of the state of
the US commercial ammunition market during the reported quarter. Our casing sales, however, which afford us higher gross margins, increased
to $6.4 million up from $4.3 million in the prior year period. Our marketplace revenue was $12.5 million, for the reported quarter, compared
to $14.6 million in the prior year quarter, which decreased as a result of the current macroeconomic environment impacting our industry
as well as others.
Cost
of goods sold was approximately $26.1 million for the quarter compared to $35.5 million in the comparable prior year quarter. The decrease
in cost of goods sold was related to the decrease in sales volume.
Our
gross margin for the quarter was $8.3 million or 24.1% compared to $12.8 million or 26.6% in the prior year period. The decrease in gross
profit margin was related to the shift in our sales mix but was also related to higher costs associated with our manufacturing process
in our ammunition segment. Primarily, our cost absorption suffered due to the setbacks we experienced in the reported quarter as a result
of rifle casing presses going down.
There
were approximately $3.9 million of nonrecurring expenses related to legal and professional fees and accruals for contingencies from activities
commencing in our 2021 and 2022 fiscal years. There was also $0.9 million of additional stock compensation expense as a result of change
in control, and $0.4 million of write-offs incurred in our second fiscal quarter. All of these items, among others, are included as addbacks
to Adjusted EBITDA.
For
the quarter, we recorded Adjusted EBITDA of approximately $1.2 million, compared to prior year quarter Adjusted EBITDA of $5.7 million.
This
resulted in a net loss per share of ($0.07) or adjusted net income per share of $0.00, compared to the prior year period of net loss
per share of ($0.01) or adjusted net income per share of $0.04.
We
continue to push forward on the improvements to our marketplace, GunBroker.com. We have formally launched OutdoorPay, our payment processing
platform, and are in the process of onboarding our userbase to this platform, which will enable us to launch our cart platform soon thereafter.
We
repurchased approximately 198,000 shares of our common stock under our repurchase plan in the reported quarter bringing us to just over
1.2 million shares repurchased in total under the plan.
Conference
Call
Management
will host a conference call at 5:00 PM ET on November 9, 2023, to review financial results and provide an update on corporate developments.
Following management’s formal remarks there will be a question-and-answer session.
Participants
are asked to preregister for the call at the following link: https://dpregister.com/sreg/10183047/fa923d6953.
Please
note that registered participants will receive their dial-in number upon registration and will dial directly into the call without delay.
Those without Internet access or who are unable to pre-register may dial in by calling 1-866-777-2509 (domestic) or 1-412-317-5413 (international).
All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Ammo Inc call.
The
conference call will also be available through a live webcast at the following link: which is also available through the company’s
website.
https://event.choruscall.com/mediaframe/webcast.html?webcastid=kAqERLpp,
Please
join at least 5-10 minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for
“AMMO, Inc. Second Quarter 2024 Conference Call.”
About
AMMO, Inc.
With
its corporate offices headquartered in Scottsdale, Arizona, AMMO designs and manufactures products for a variety of aptitudes, including
law enforcement, military, sport shooting and self-defense. The Company was founded in 2016 with a vision to change, innovate and invigorate
the complacent munitions industry. AMMO promotes branded munitions as well as its patented STREAK™ Visual Ammunition,
/stelTH/™ subsonic munitions, and specialty rounds for military use via government programs. For more information, please
visit: www.ammo-inc.com.
About
GunBroker.com
GunBroker.com
is the largest online marketplace dedicated to firearms, hunting, shooting and related products. Aside from merchandise bearing its logo,
GunBroker.com currently sells none of the items listed on its website. Third-party sellers list items on the site and Federal and state
laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed using licensed firearms
dealers as transfer agents. Launched in 1999, GunBroker.com is an informative, secure and safe way to buy and sell firearms, ammunition,
air guns, archery equipment, knives and swords, firearms accessories and hunting/shooting gear online. GunBroker.com promotes responsible
ownership of guns and firearms. For more information, please visit: www.gunbroker.com.
Forward
Looking Statements
This
document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking
statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue
or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements
concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance;
any statements or belief; and any statements of assumptions underlying any of the foregoing.
Forward
looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,”
“believe,” “expect” or “anticipate” or other similar words, or the negative thereof. These forward-looking
statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update
forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however,
consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Reports filed
on Form 8-K.
Investor
Contact:
CoreIR
Phone: (212) 655-0924
IR@ammo-inc.com
AMMO,
Inc.
CONDENSED
CONSOLIDATED BALANCE SHEETS
| |
September 30, 2023 | | |
March 31, 2023 | |
| |
(Unaudited) | | |
| |
ASSETS | |
| | | |
| | |
Current Assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 49,564,868 | | |
$ | 39,134,027 | |
Accounts receivable, net | |
| 23,030,851 | | |
| 29,346,380 | |
Inventories | |
| 53,014,205 | | |
| 54,344,819 | |
Prepaid expenses | |
| 3,920,007 | | |
| 5,126,667 | |
Current portion of restricted cash | |
| - | | |
| 500,000 | |
Total Current Assets | |
| 129,529,931 | | |
| 128,451,893 | |
| |
| | | |
| | |
Equipment, net | |
| 55,821,414 | | |
| 55,963,255 | |
| |
| | | |
| | |
Other Assets: | |
| | | |
| | |
Deposits | |
| 3,189,518 | | |
| 7,028,947 | |
Patents, net | |
| 4,786,022 | | |
| 5,032,754 | |
Other intangible assets, net | |
| 117,440,022 | | |
| 123,726,810 | |
Goodwill | |
| 90,870,094 | | |
| 90,870,094 | |
Right of use assets - operating leases | |
| 1,017,982 | | |
| 1,261,634 | |
TOTAL ASSETS | |
$ | 402,654,983 | | |
$ | 412,335,387 | |
| |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
Current Liabilities: | |
| | | |
| | |
Accounts payable | |
$ | 19,598,548 | | |
$ | 18,079,397 | |
Accrued liabilities | |
| 6,250,164 | | |
| 4,353,354 | |
Current portion of operating lease liability | |
| 370,980 | | |
| 470,734 | |
Note payable related party | |
| - | | |
| 180,850 | |
Current portion of construction note payable | |
| 265,977 | | |
| 260,429 | |
Insurance premium note payable | |
| 1,157,745 | | |
| 2,118,635 | |
Total Current Liabilities | |
| 27,643,414 | | |
| 25,463,399 | |
| |
| | | |
| | |
Long-term Liabilities: | |
| | | |
| | |
Contingent consideration payable | |
| 99,302 | | |
| 140,378 | |
Construction note payable, net of unamortized issuance costs | |
| 10,830,663 | | |
| 10,922,443 | |
Operating lease liability, net of current portion | |
| 744,616 | | |
| 903,490 | |
Deferred income tax liability | |
| 349,327 | | |
| 2,309,592 | |
Total Liabilities | |
| 39,667,322 | | |
| 39,739,302 | |
| |
| | | |
| | |
Shareholders’ Equity: | |
| | | |
| | |
Series A cumulative perpetual preferred Stock 8.75%, ($25.00 per share, $0.001 par value) 1,400,000 shares issued and outstanding as of September 30, 2023 and March 31, 2023, respectively | |
| 1,400 | | |
| 1,400 | |
Common stock, $0.001 par value, 200,000,000 shares authorized 119,665,700 and 118,562,806 shares issued and 118,460,743 and 118,294,478 outstanding at September 30, 2023 and March 31, 2023, respectively | |
| 118,461 | | |
| 118,294 | |
Additional paid-in capital | |
| 394,331,516 | | |
| 391,940,374 | |
Accumulated deficit | |
| (29,086,926 | ) | |
| (18,941,825 | ) |
Treasury stock | |
| (2,376,790 | ) | |
| (522,158 | ) |
Total Shareholders’ Equity | |
| 362,987,661 | | |
| 372,596,085 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 402,654,983 | | |
$ | 412,335,387 | |
AMMO,
Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| |
For the Three Months Ended
September 30, | | |
For the Six Months Ended
September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Net Revenues | |
| | | |
| | | |
| | | |
| | |
Ammunition sales(1) | |
$ | 15,516,589 | | |
$ | 29,386,969 | | |
$ | 29,622,618 | | |
$ | 70,356,852 | |
Marketplace revenue | |
| 12,474,716 | | |
| 14,562,694 | | |
| 26,386,918 | | |
| 31,067,640 | |
Casing sales | |
| 6,381,081 | | |
| 4,338,896 | | |
| 12,617,425 | | |
| 7,620,093 | |
| |
| 34,372,386 | | |
| 48,288,559 | | |
| 68,626,961 | | |
| 109,044,585 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of Revenues | |
| 26,084,120 | | |
| 35,452,850 | | |
| 46,314,155 | | |
| 78,073,214 | |
Gross Profit | |
| 8,288,266 | | |
| 12,835,709 | | |
| 22,312,806 | | |
| 30,971,371 | |
| |
| | | |
| | | |
| | | |
| | |
Operating Expenses | |
| | | |
| | | |
| | | |
| | |
Selling and marketing | |
| 289,952 | | |
| 1,068,501 | | |
| 585,533 | | |
| 2,976,671 | |
Corporate general and administrative | |
| 7,855,624 | | |
| 5,055,699 | | |
| 15,803,187 | | |
| 10,084,996 | |
Employee salaries and related expenses | |
| 5,590,035 | | |
| 3,923,700 | | |
| 9,706,315 | | |
| 6,708,798 | |
Depreciation and amortization expense | |
| 3,371,802 | | |
| 3,291,322 | | |
| 6,715,845 | | |
| 6,641,678 | |
Total operating expenses | |
| 17,107,413 | | |
| 13,339,222 | | |
| 32,810,880 | | |
| 26,412,143 | |
Income/(Loss) from Operations | |
| (8,819,147 | ) | |
| (503,513 | ) | |
| (10,498,074 | ) | |
| 4,559,228 | |
| |
| | | |
| | | |
| | | |
| | |
Other Income/(Expenses) | |
| | | |
| | | |
| | | |
| | |
Other income | |
| (321,341 | ) | |
| 5,098 | | |
| 371,610 | | |
| 198,596 | |
Interest expense | |
| (212,314 | ) | |
| (97,265 | ) | |
| (416,515 | ) | |
| (217,752 | ) |
Total other income/(expense) | |
| (533,655 | ) | |
| (92,167 | ) | |
| (44,905 | ) | |
| (19,156 | ) |
| |
| | | |
| | | |
| | | |
| | |
Income/(Loss) before Income Taxes | |
| (9,352,802 | ) | |
| (595,680 | ) | |
| (10,542,979 | ) | |
| 4,540,072 | |
| |
| | | |
| | | |
| | | |
| | |
Provision for Income Taxes | |
| (1,857,505 | ) | |
| 207,827 | | |
| (1,954,649 | ) | |
| 2,090,552 | |
| |
| | | |
| | | |
| | | |
| | |
Net Income/(Loss) | |
| (7,495,297 | ) | |
| (803,507 | ) | |
| (8,588,330 | ) | |
| 2,449,520 | |
| |
| | | |
| | | |
| | | |
| | |
Preferred Stock Dividend | |
| (782,639 | ) | |
| (782,639 | ) | |
| (1,556,771 | ) | |
| (1,556,771 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Income/(Loss) Attributable to Common Stock Shareholders | |
$ | (8,277,936 | ) | |
$ | (1,586,146 | ) | |
$ | (10,145,101 | ) | |
$ | 892,749 | |
| |
| | | |
| | | |
| | | |
| | |
Net Income/(Loss) per share | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.07 | ) | |
$ | (0.01 | ) | |
$ | (0.09 | ) | |
$ | 0.01 | |
Diluted | |
$ | (0.07 | ) | |
$ | (0.01 | ) | |
$ | (0.09 | ) | |
$ | 0.01 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of shares outstanding | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 118,167,228 | | |
| 116,927,607 | | |
| 117,941,755 | | |
| 116,744,972 | |
Diluted | |
| 118,167,228 | | |
| 116,927,607 | | |
| 117,941,755 | | |
| 118,063,619 | |
(1) |
Included in revenue for
the three months ended September 30, 2023 and 2022 is excise taxes of $1,284,166 and $2,435,051, respectively. Included in revenue
for the six months ended September 30, 2023 and 2022 is excise taxes of $2,459,962 and $6,147,392, respectively. |
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| |
For the Six Months Ended September 30, | |
| |
2023 | | |
2022 | |
| |
| | |
| |
Cash flows from operating activities: | |
| | | |
| | |
Net Income/(Loss) | |
$ | (8,588,330 | ) | |
$ | 2,449,520 | |
Adjustments to reconcile Net Income/(Loss) to Net Cash provided by operations: | |
| | | |
| | |
Depreciation and amortization | |
| 9,293,566 | | |
| 8,594,968 | |
Debt discount amortization | |
| 41,626 | | |
| 41,626 | |
Employee stock awards | |
| 2,290,746 | | |
| 2,351,438 | |
Stock grants | |
| 101,500 | | |
| 91,594 | |
Contingent consideration payable fair value | |
| (41,076 | ) | |
| (25,246 | ) |
Allowance for doubtful accounts | |
| 1,047,587 | | |
| 934,135 | |
Reduction in right of use asset | |
| 243,652 | | |
| 398,033 | |
Deferred income taxes | |
| (1,960,265 | ) | |
| 817,310 | |
Changes in Current Assets and Liabilities | |
| | | |
| | |
Accounts receivable | |
| 5,267,942 | | |
| 12,590,905 | |
Due from related parties | |
| - | | |
| 9,000 | |
Inventories | |
| 1,330,614 | | |
| (9,590,856 | ) |
Prepaid expenses | |
| 2,262,859 | | |
| 1,130,589 | |
Deposits | |
| 3,839,429 | | |
| 2,633,655 | |
Accounts payable | |
| 1,519,151 | | |
| (3,017,415 | ) |
Accrued liabilities | |
| 1,760,716 | | |
| (1,295,829 | ) |
Operating lease liability | |
| (258,628 | ) | |
| (403,184 | ) |
Net cash provided by operating activities | |
| 18,151,089 | | |
| 17,710,243 | |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Purchase of equipment | |
| (2,618,205 | ) | |
| (8,405,180 | ) |
Net cash used in investing activities | |
| (2,618,205 | ) | |
| (8,405,180 | ) |
| |
| | | |
| | |
Cash flow from financing activities: | |
| | | |
| | |
Proceeds from factoring liability | |
| 26,047,370 | | |
| 45,600,000 | |
Payments on factoring liability | |
| (26,047,370 | ) | |
| (45,291,282 | ) |
Payments on inventory facility, net | |
| - | | |
| (825,675 | ) |
Payments on note payable - related party | |
| (180,850 | ) | |
| (334,374 | ) |
Payments on insurance premium note payment | |
| (2,017,089 | ) | |
| (1,334,183 | ) |
Proceeds from construction note payable | |
| - | | |
| 1,000,000 | |
Payments on construction note payable | |
| (127,858 | ) | |
| - | |
Preferred stock dividends paid | |
| (1,420,677 | ) | |
| (1,420,727 | ) |
Common stock repurchase plan | |
| (1,855,569 | ) | |
| - | |
Common stock issued for exercised warrants | |
| - | | |
| 24,242 | |
Net cash used in financing activities | |
| (5,602,043 | ) | |
| (2,581,999 | ) |
| |
| | | |
| | |
Net increase in cash | |
| 9,930,841 | | |
| 6,723,064 | |
Restricted cash, beginning of period | |
| 500,000 | | |
| - | |
Cash, beginning of period | |
| 39,134,027 | | |
| 23,281,475 | |
Cash and restricted cash, end of period | |
$ | 49,564,868 | | |
$ | 30,004,539 | |
Restricted cash, end of period | |
$ | - | | |
$ | 1,000,000 | |
Cash, end of period | |
$ | 49,564,868 | | |
$ | 29,004,539 | |
(Continued)
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| |
For the Six Months Ended September 30, | |
| |
2023 | | |
2022 | |
| |
| | |
| |
Supplemental cash flow disclosures: | |
| | | |
| | |
Cash paid during the period for: | |
| | | |
| | |
Interest | |
$ | 375,885 | | |
$ | 141,131 | |
Income taxes | |
$ | - | | |
$ | 1,302,811 | |
| |
| | | |
| | |
Non-cash investing and financing activities: | |
| | | |
| | |
Insurance premium note payment | |
$ | 1,056,199 | | |
$ | 2,035,519 | |
Dividends accumulated on preferred stock | |
$ | 136,094 | | |
$ | 136,044 | |
Construction note payable | |
$ | - | | |
$ | 9,804,580 | |
Non-GAAP
Financial Measures
We
analyze operational and financial data to evaluate our business, allocate our resources, and assess our performance. In addition to total
net sales, net loss, and other results under accounting principles generally accepted in the United States (“GAAP”), the
following information includes key operating metrics and non-GAAP financial measures we use to evaluate our business. We believe these
measures are useful for period-to-period comparisons of the Company. We have included these non-GAAP financial measures in this Current
Report on Form 8-K because they are key measures we use to evaluate our operational performance, produce future strategies for our operations,
and make strategic decisions, including those relating to operating expenses and the allocation of our resources. Accordingly, we believe
these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner
as our management and board of directors.
Reconciliation
of GAAP net income to Adjusted EBITDA
| |
For the Three Months Ended | | |
For the Six Months Ended | |
| |
30-Sep-23 | | |
30-Sep-22 | | |
30-Sep-23 | | |
30-Sep-22 | |
| |
| | |
| | |
| | |
| |
Reconciliation of GAAP net income to Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | |
Net Income (Loss) | |
$ | (7,495,297 | ) | |
$ | (803,507 | ) | |
$ | (8,588,330 | ) | |
$ | 2,449,520 | |
Provision for Income Taxes | |
| (1,857,505 | ) | |
| 207,827 | | |
| (1,954,649 | ) | |
| 2,090,552 | |
Depreciation and amortization | |
| 4,673,479 | | |
| 4,294,845 | | |
| 9,293,566 | | |
| 8,594,968 | |
Interest expense, net | |
| 212,314 | | |
| 97,265 | | |
| 416,515 | | |
| 217,752 | |
Employee stock awards | |
| 1,467,949 | | |
| 1,176,375 | | |
| 2,290,746 | | |
| 2,351,438 | |
Stock grants | |
| 50,750 | | |
| 43,750 | | |
| 101,500 | | |
| 91,594 | |
Other (income) expense, net | |
| 321,341 | | |
| (5,098 | ) | |
| (371,610 | ) | |
| (198,596 | ) |
Contingent consideration fair value | |
| (20,052 | ) | |
| (23,944 | ) | |
| (41,076 | ) | |
| (25,246 | ) |
Other nonrecurring expenses(1) | |
| 3,867,692 | | |
| 741,131 | | |
| 6,627,418 | | |
| 741,131 | |
Adjusted EBITDA | |
$ | 1,220,671 | | |
$ | 5,728,644 | | |
$ | 7,774,080 | | |
$ | 16,313,113 | |
|
1) |
For
the three and six months ended September 30, 2023, other nonrecurring expenses consist of professional and legal fees that are nonrecurring
in nature. For the three and six months ended September 30, 2022, other nonrecurring expenses consist of proxy contest fees. |
Reconciliation
of GAAP net income to Fully Diluted EPS
| |
For the Three Months Ended | |
| |
30-Sept-23 | | |
30-Sept-22 | |
Reconciliation of GAAP net income to Fully Diluted EPS | |
| | | |
| | | |
| | | |
| | |
Net Income/(Loss) | |
$ | (7,495,297 | ) | |
$ | (0.06 | ) | |
$ | (803,507 | ) | |
$ | (0.01 | ) |
Depreciation and amortization | |
| 4,673,479 | | |
| 0.04 | | |
| 4,294,845 | | |
| 0.04 | |
Interest expense, net | |
| 212,314 | | |
| - | | |
| 97,265 | | |
| - | |
Employee stock awards | |
| 1,467,949 | | |
| 0.01 | | |
| 1,176,375 | | |
| 0.01 | |
Stock grants | |
| 50,750 | | |
| - | | |
| 43,750 | | |
| - | |
Contingent consideration fair value | |
| (20,052 | ) | |
| - | | |
| (23,944 | ) | |
| - | |
Nonrecurring expenses | |
| 3,867,692 | | |
| 0.03 | | |
| 741,131 | | |
| 0.01 | |
Tax effect(1) | |
| (2,319,673 | ) | |
| (0.02 | ) | |
| (1,360,309 | ) | |
| (0.01 | ) |
Adjusted Net Income | |
$ | 437,161 | | |
$ | - | | |
$ | (803,507 | ) | |
$ | 0.04 | |
| |
For the Six Months Ended | |
| |
30-Sept-23 | | |
30-Sept-22 | |
Reconciliation of GAAP net income to Fully Diluted EPS | |
| | | |
| | | |
| | | |
| | |
Net Income/(Loss) | |
$ | (8,588,330 | ) | |
$ | (0.07 | ) | |
$ | 2,449,520 | | |
$ | 0.02 | |
Depreciation and amortization | |
| 9,293,566 | | |
| 0.08 | | |
| 8,594,968 | | |
| 0.07 | |
Interest expense, net | |
| 416,515 | | |
| - | | |
| 217,752 | | |
| - | |
Employee stock awards | |
| 2,290,746 | | |
| 0.02 | | |
| 2,351,438 | | |
| 0.02 | |
Stock grants | |
| 101,500 | | |
| - | | |
| 91,594 | | |
| - | |
Contingent consideration fair value | |
| (41,076 | ) | |
| - | | |
| (25,246 | ) | |
| - | |
Nonrecurring expenses | |
| 6,627,418 | | |
| 0.06 | | |
| 741,131 | | |
| 0.01 | |
Tax effect(1) | |
| (4,329,437 | ) | |
| (0.04 | ) | |
| (2,531,771 | ) | |
| (0.02 | ) |
Adjusted Net Income | |
$ | 5,770,902 | | |
$ | 0.05 | | |
$ | 11,889,386 | | |
$ | 0.10 | |
|
(1) |
Tax
effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment. |
| | |
For the Three Months Ended September 30, | | |
For the Six Months Ended September 30, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Weighted
average number of shares outstanding | | |
| | | |
| | | |
| | | |
| | |
Basic | | |
| 118,167,228 | | |
| 116,927,607 | | |
| 117,941,755 | | |
| 116,744,972 | |
Diluted | | |
| 118,167,228 | | |
| 116,927,607 | | |
| 117,941,755 | | |
| 118,063,619 | |
v3.23.3
Cover
|
Nov. 09, 2023 |
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Nov. 09, 2023
|
Entity File Number |
001-13101
|
Entity Registrant Name |
AMMO,
INC.
|
Entity Central Index Key |
0001015383
|
Entity Tax Identification Number |
83-1950534
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
7681
E. Gray Rd.
|
Entity Address, City or Town |
Scottsdale
|
Entity Address, State or Province |
AZ
|
Entity Address, Postal Zip Code |
85260
|
City Area Code |
(480)
|
Local Phone Number |
947-0001
|
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false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Common Stock 0. 001 Par Value [Member] |
|
Title of 12(b) Security |
Common
Stock, $0.001 par value
|
Trading Symbol |
POWW
|
Security Exchange Name |
NASDAQ
|
Sec 8. 75 Series Cumulative Redeemable Perpetual Preferred Stock 0. 001 Par Value [Member] |
|
Title of 12(b) Security |
8.75%
Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value
|
Trading Symbol |
POWWP
|
Security Exchange Name |
NASDAQ
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AMMO (NASDAQ:POWWP)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
AMMO (NASDAQ:POWWP)
Gráfica de Acción Histórica
De May 2023 a May 2024