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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): February 8, 2024
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
February 8, 2024, Ammo, Inc. (the “Company”) reported its financial results for the fiscal quarterly period ended December
31, 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:
February 8, 2024 |
By: |
/s/
Robert D. Wiley |
|
|
Robert
D. Wiley |
|
|
Chief
Financial Officer |
Exhibit
99.1
AMMO,
Inc. Reports Third Quarter 2024 Financial Results
SCOTTSDALE,
Ariz., February 8, 2024 (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 third quarter of fiscal 2024, ended
December 31, 2024.
Third
Quarter Fiscal 2024 vs. Third Quarter Fiscal 2023
● |
Net
Revenues of $36.0 million |
● |
Gross
profit margin of approximately 30.3% compared to 32.4% |
● |
Adjusted
EBITDA of $5.4 million compared to $6.2 million |
● |
Net
loss of ($1.6) million, compared to a net loss of ($4.1) million |
● |
Diluted
EPS of ($0.02), compared to ($0.04) |
● |
Adjusted
EPS of $0.04, compared to $0.04 |
GunBroker.com
“Marketplace” Metrics – Third Quarter 2024
● |
Marketplace
revenue of approximately $14.0 million |
● |
New
user growth averaged approximately 37,000 per month |
● |
Average
take rate increased to 5.9% compared to 5.7% in fiscal 2023 |
Jared
Smith, AMMO’s CEO, commented “Despite the challenges we faced in calendar 2023 for our industry, Ammo Inc. continues to transition
its business to a stronger and leaner operating model. We have emerged from this time with an impeccable balance sheet and remain encouraged
about the significant opportunities we have before us here in the fourth quarter and going forward.
“We
continue to see increasing demand as the ammunition and firearms market recovers from 2022 and 2023’s post pandemic slump. As we
look at opportunities going into fiscal 2025, we will focus on the transformation of our marketplace platform. We will also continue
to transition our manufacturing model to one of pursuing higher margin, premium rifle and pistol ammunition opportunities as well as
embracing the growing OEM brass business.,” Mr. Smith concluded.
Third
Quarter 2024 Results
We
experienced an improvement in the marginality of our ammunition segment while the margins of the GunBroker.com marketplace segment remain
strong. We continue to see positive demand trends building for our ammunition product and activity continues to increase on GunBoker.com
as we enter into the final quarter of our fiscal year.
We
ended the third quarter with total revenues of approximately $36.0 million in comparison to $38.7 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 a change in
the US commercial ammunition market from the comparable prior year quarter. Our casing sales, however, which afford us higher gross margins,
increased to $4.7 million up from $3.0 million in the prior year period. Our marketplace revenue was $14.0 million for the reported quarter,
compared to $15.4 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 $25.1 million for the quarter compared to $26.2 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 $10.9 million or 30.3% compared to $12.5 million or 32.4% in the prior year period. The decrease in
gross profit margin was related to the shift in our sales mix.
Our
cost cutting measures are paying off, there was a 5.4% decrease in operating expenses as a percentage of sales from the prior year quarter
adjusted to exclude nonrecurring expenses.
There
were approximately $1.5 million of nonrecurring expenses related to legal and professional fees which we have included as addbacks to
Adjusted EBITDA.
For
the quarter, we recorded Adjusted EBITDA of approximately $5.4 million, compared to prior year quarter Adjusted EBITDA of $6.2 million.
This
resulted in a net loss per share of ($0.02) or adjusted net income per share of $0.04, compared to the prior year period of net loss
per share of ($0.04) or adjusted net income per share of $0.04.
Our
improvements to our marketplace, GunBroker.com, continue as our cart platform is on schedule to launch on April 1st.
We
repurchased approximately 145,000 shares of our common stock under our repurchase plan in the reported quarter bringing us to just over
1.3 million shares repurchased in total under the plan since repurchases began in December 2022.
Conference
Call
Management
will host a conference call at 5:00 PM ET on February 8, 2024, 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/10185867/fb6f640d8c
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 1-844-481-2698 (domestic) or 1-412-317-0655 (international).
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. Third Quarter 2024 Conference Call.”
The
conference call will also be available through a live webcast at the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=mnSsDVht,
which is also available through the Company’s website.
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 Current Reports
filed on Form 8-K.
Investor
Contact:
CoreIR
Phone: (212) 655-0924
IR@ammo-inc.com
Source:
AMMO, Inc.
AMMO,
Inc.
CONDENSED
CONSOLIDATED BALANCE SHEETS
| |
December
31, 2023 | | |
March
31, 2023 | |
| |
| (Unaudited) | | |
| | |
ASSETS | |
| | | |
| | |
Current
Assets: | |
| | | |
| | |
Cash
and cash equivalents | |
$ | 54,679,868 | | |
$ | 39,134,027 | |
Accounts
receivable, net | |
| 21,121,450 | | |
| 29,346,380 | |
Inventories | |
| 49,502,732 | | |
| 54,344,819 | |
Prepaid
expenses | |
| 3,708,865 | | |
| 5,126,667 | |
Current
portion of restricted cash | |
| - | | |
| 500,000 | |
Total
Current Assets | |
| 129,012,915 | | |
| 128,451,893 | |
| |
| | | |
| | |
Equipment,
net | |
| 57,278,603 | | |
| 55,963,255 | |
| |
| | | |
| | |
Other
Assets: | |
| | | |
| | |
Deposits | |
| 2,265,932 | | |
| 7,028,947 | |
Patents,
net | |
| 4,662,656 | | |
| 5,032,754 | |
Other
intangible assets, net | |
| 114,296,627 | | |
| 123,726,810 | |
Goodwill | |
| 90,870,094 | | |
| 90,870,094 | |
Right
of use assets - operating leases | |
| 2,113,943 | | |
| 1,261,634 | |
Deferred
income tax asset | |
| 115,908 | | |
| - | |
TOTAL
ASSETS | |
$ | 400,616,678 | | |
$ | 412,335,387 | |
| |
| | | |
| | |
LIABILITIES
AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
Current
Liabilities: | |
| | | |
| | |
Accounts
payable | |
$ | 19,146,138 | | |
$ | 18,079,397 | |
Accrued
liabilities | |
| 6,570,668 | | |
| 4,353,354 | |
Current
portion of operating lease liability | |
| 463,059 | | |
| 470,734 | |
Note
payable related party | |
| - | | |
| 180,850 | |
Current
portion of construction note payable | |
| 265,977 | | |
| 260,429 | |
Insurance
premium note payable | |
| 173,029 | | |
| 2,118,635 | |
Total
Current Liabilities | |
| 26,618,871 | | |
| 25,463,399 | |
| |
| | | |
| | |
Long-term
Liabilities: | |
| | | |
| | |
Contingent
consideration payable | |
| 80,080 | | |
| 140,378 | |
Construction
note payable, net of unamortized issuance costs | |
| 10,797,696 | | |
| 10,922,443 | |
Operating
lease liability, net of current portion | |
| 1,737,615 | | |
| 903,490 | |
Deferred
income tax liability | |
| - | | |
| 2,309,592 | |
Total
Liabilities | |
| 39,234,262 | | |
| 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
December 31, 2023 and March 31, 2023, respectively | |
| 1,400 | | |
| 1,400 | |
Common
stock, $0.001 par value, 200,000,000 shares authorized 119,994,033 and 118,562,806 shares issued and 118,643,593 and 118,294,478
outstanding at December 31, 2023 and March 31, 2023, respectively | |
| 118,644 | | |
| 118,294 | |
Additional
paid-in capital | |
| 395,449,082 | | |
| 391,940,374 | |
Accumulated
deficit | |
| (31,513,554 | ) | |
| (18,941,825 | ) |
Treasury
Stock | |
| (2,673,156 | ) | |
| (522,158 | ) |
Total
Shareholders’ Equity | |
| 361,382,416 | | |
| 372,596,085 | |
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 400,616,678 | | |
$ | 412,335,387 | |
AMMO,
Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| |
For
the Three Months Ended December 31, | | |
For
the Nine Months Ended December 31, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Net
Revenues | |
| | | |
| | | |
| | | |
| | |
Ammunition
sales(1) | |
$ | 17,322,967 | | |
$ | 20,250,965 | | |
$ | 46,945,585 | | |
$ | 90,607,817 | |
Marketplace
revenue | |
| 13,985,034 | | |
| 15,419,202 | | |
| 40,371,952 | | |
| 46,486,842 | |
Casing
sales | |
| 4,698,463 | | |
| 3,041,327 | | |
| 17,315,888 | | |
| 10,661,420 | |
| |
| 36,006,464 | | |
| 38,711,494 | | |
| 104,633,425 | | |
| 147,756,079 | |
| |
| | | |
| | | |
| | | |
| | |
Cost
of Revenues | |
| 25,096,088 | | |
| 26,184,315 | | |
| 71,410,243 | | |
| 104,257,529 | |
Gross
Profit | |
| 10,910,376 | | |
| 12,527,179 | | |
| 33,223,182 | | |
| 43,498,550 | |
| |
| | | |
| | | |
| | | |
| | |
Operating
Expenses | |
| | | |
| | | |
| | | |
| | |
Selling
and marketing | |
| 236,565 | | |
| 1,010,543 | | |
| 822,098 | | |
| 3,987,214 | |
Corporate
general and administrative | |
| 5,803,255 | | |
| 7,835,201 | | |
| 21,606,442 | | |
| 17,920,197 | |
Employee
salaries and related expenses | |
| 3,390,153 | | |
| 4,705,636 | | |
| 13,096,468 | | |
| 11,414,434 | |
Depreciation
and amortization expense | |
| 3,401,156 | | |
| 3,309,074 | | |
| 10,117,001 | | |
| 9,950,752 | |
Total
operating expenses | |
| 12,831,129 | | |
| 16,860,454 | | |
| 45,642,009 | | |
| 43,272,597 | |
Income/(Loss)
from Operations | |
| (1,920,753 | ) | |
| (4,333,275 | ) | |
| (12,418,827 | ) | |
| 225,953 | |
| |
| | | |
| | | |
| | | |
| | |
Other
Expenses | |
| | | |
| | | |
| | | |
| | |
Other
income/(loss) | |
| 4,576 | | |
| (170,403 | ) | |
| 376,186 | | |
| 28,193 | |
Interest
expense | |
| (193,046 | ) | |
| (320,439 | ) | |
| (609,561 | ) | |
| (538,191 | ) |
Total
other expense, net | |
| (188,470 | ) | |
| (490,842 | ) | |
| (233,375 | ) | |
| (509,998 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss
before Income Taxes | |
| (2,109,223 | ) | |
| (4,824,117 | ) | |
| (12,652,202 | ) | |
| (284,045 | ) |
| |
| | | |
| | | |
| | | |
| | |
Provision
for Income Taxes | |
| (465,234 | ) | |
| (721,125 | ) | |
| (2,419,883 | ) | |
| 1,369,427 | |
| |
| | | |
| | | |
| | | |
| | |
Net
Loss | |
| (1,643,989 | ) | |
| (4,102,992 | ) | |
| (10,232,319 | ) | |
| (1,653,472 | ) |
| |
| | | |
| | | |
| | | |
| | |
Preferred
Stock Dividend | |
| (782,639 | ) | |
| (782,639 | ) | |
| (2,339,410 | ) | |
| (2,339,409 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net
Loss Attributable to Common Stock Shareholders | |
$ | (2,426,628 | ) | |
$ | (4,885,631 | ) | |
$ | (12,571,729 | ) | |
$ | (3,992,881 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net
Loss per share | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.02 | ) | |
$ | (0.04 | ) | |
$ | (0.11 | ) | |
$ | (0.03 | ) |
Diluted | |
$ | (0.02 | ) | |
$ | (0.04 | ) | |
$ | (0.11 | ) | |
$ | (0.03 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted
average number of shares outstanding | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 118,447,154 | | |
| 117,348,511 | | |
| 118,110,943 | | |
| 116,950,013 | |
Diluted | |
| 118,447,154 | | |
| 117,348,511 | | |
| 118,110,943 | | |
| 116,950,013 | |
(1) |
Included
in revenue for the three months ended December 31, 2023 and 2022 are excise taxes of $1,498,429 and $1,669,206, respectively. Included
in revenue for the nine months ended December 31, 2023 and 2022 are excise taxes of $3,958,391 and $7,816,598, respectively. |
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| |
For
the Nine Months Ended December 31, | |
| |
2023 | | |
2022 | |
| |
| | |
| |
Cash
flows from operating activities: | |
| | | |
| | |
Net
Loss | |
$ | (10,232,319 | ) | |
$ | (1,653,472 | ) |
Adjustments
to reconcile Net Loss to Net Cash provided by operations: | |
| | | |
| | |
Depreciation
and amortization | |
| 14,047,216 | | |
| 12,950,972 | |
Debt
discount amortization | |
| 62,440 | | |
| 62,440 | |
Employee
stock awards | |
| 2,977,845 | | |
| 4,457,973 | |
Stock
grants | |
| 152,250 | | |
| 135,344 | |
Common
stock purchase options | |
| 380,045 | | |
| - | |
Warrants
Issued for Services | |
| - | | |
| 106,909 | |
Contingent
consideration payable fair value | |
| (60,298 | ) | |
| (45,572 | ) |
Allowance
for doubtful accounts | |
| 1,117,565 | | |
| 1,327,419 | |
Reduction
in right of use asset | |
| 362,402 | | |
| 512,063 | |
Deferred
income taxes | |
| (2,425,500 | ) | |
| 1,283,481 | |
Changes
in Current Assets and Liabilities | |
| | | |
| | |
Accounts
receivable | |
| 7,107,365 | | |
| 12,208,054 | |
Due
from related parties | |
| - | | |
| 15,000 | |
Inventories | |
| 4,842,087 | | |
| (8,129,249 | ) |
Prepaid
expenses | |
| 2,474,001 | | |
| 1,941,206 | |
Deposits | |
| 4,763,015 | | |
| 1,678,415 | |
Accounts
payable | |
| 1,066,741 | | |
| (5,852,397 | ) |
Accrued
liabilities | |
| 2,072,696 | | |
| (2,044,248 | ) |
Operating
lease liability | |
| (388,261 | ) | |
| (522,917 | ) |
Net
cash provided by operating activities | |
| 28,319,290 | | |
| 18,431,421 | |
| |
| | | |
| | |
Cash
flows from investing activities: | |
| | | |
| | |
Purchase
of equipment | |
| (5,562,283 | ) | |
| (10,566,182 | ) |
Net
cash used in investing activities | |
| (5,562,283 | ) | |
| (10,566,182 | ) |
| |
| | | |
| | |
Cash
flow from financing activities: | |
| | | |
| | |
Proceeds
from factoring liability | |
| 37,252,869 | | |
| 57,300,000 | |
Payments
on factoring liability | |
| (37,252,869 | ) | |
| (56,107,221 | ) |
Payments
on inventory facility, net | |
| - | | |
| (825,675 | ) |
Payments
on note payable - related party | |
| (180,850 | ) | |
| (507,508 | ) |
Payments
on insurance premium note payment | |
| (3,001,805 | ) | |
| (1,916,070 | ) |
Proceeds
from construction note payable | |
| - | | |
| 1,000,000 | |
Payments
on construction note payable | |
| (181,639 | ) | |
| (66,586 | ) |
Preferred
stock dividends paid | |
| (2,194,792 | ) | |
| (2,195,075 | ) |
Common
stock repurchase plan | |
| (2,152,080 | ) | |
| (291,011 | ) |
Common
stock issued for exercised warrants | |
| - | | |
| 56,046 | |
Net
cash used in financing activities | |
| (7,711,166 | ) | |
| (3,553,100 | ) |
| |
| | | |
| | |
Net
increase in cash | |
| 15,045,841 | | |
| 4,312,139 | |
Restricted
cash, beginning of period | |
| 500,000 | | |
| - | |
Cash,
beginning of period | |
| 39,134,027 | | |
| 23,281,475 | |
Cash
and restricted cash, end of period | |
$ | 54,679,868 | | |
$ | 27,593,614 | |
Restricted
cash, end of period | |
$ | - | | |
$ | 500,000 | |
Cash,
end of period | |
$ | 54,679,868 | | |
$ | 27,093,614 | |
(Continued)
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| |
For
the Nine Months Ended December 31, | |
| |
2023 | | |
2022 | |
| |
| | |
| |
Supplemental
cash flow disclosures: | |
| | | |
| | |
Cash
paid during the period for: | |
| | | |
| | |
Interest | |
$ | 548,118 | | |
$ | 433,761 | |
Income
taxes | |
$ | - | | |
$ | 1,302,811 | |
| |
| | | |
| | |
Non-cash
investing and financing activities: | |
| | | |
| | |
Operating
lease liability | |
$ | 1,214,711 | | |
$ | 901,076 | |
Insurance
premium note payment | |
$ | 1,056,199 | | |
$ | 2,035,519 | |
Dividends
accumulated on preferred stock | |
$ | 144,618 | | |
$ | 144,334 | |
Construction
note payable | |
$ | - | | |
$ | 10,237,032 | |
Warrants
issued for services | |
$ | - | | |
$ | 427,639 | |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
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
Adjusted
EBITDA
| |
For
the Three Months Ended | | |
For
the Nine Months Ended | |
| |
31-Dec-23 | | |
31-Dec-22 | | |
31-Dec-23 | | |
31-Dec-22 | |
| |
| | |
| | |
| | |
| |
Reconciliation
of GAAP net income to Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | |
Net
Loss | |
$ | (1,643,989 | ) | |
$ | (4,102,992 | ) | |
$ | (10,232,319 | ) | |
$ | (1,653,472 | ) |
Provision
for Income Taxes | |
| (465,234 | ) | |
| (721,125 | ) | |
| (2,419,883 | ) | |
| 1,369,427 | |
Depreciation
and amortization | |
| 4,753,650 | | |
| 4,356,004 | | |
| 14,047,216 | | |
| 12,950,972 | |
Interest
expense, net | |
| 193,046 | | |
| 320,439 | | |
| 609,561 | | |
| 538,191 | |
Employee
stock awards | |
| 687,099 | | |
| 2,106,535 | | |
| 2,977,845 | | |
| 4,457,973 | |
Stock
grants | |
| 50,750 | | |
| 43,750 | | |
| 152,250 | | |
| 135,344 | |
Common
stock purchase options | |
| 380,045 | | |
| - | | |
| 380,045 | | |
| - | |
Warrant
Issuance | |
| - | | |
| 106,909 | | |
| - | | |
| 106,909 | |
Other
(income) expense, net | |
| (4,576 | ) | |
| 170,403 | | |
| (376,186 | ) | |
| (28,193 | ) |
Contingent
consideration fair value | |
| (39,274 | ) | |
| (20,326 | ) | |
| (60,298 | ) | |
| (45,572 | ) |
Other
nonrecurring expenses(1) | |
| 1,498,684 | | |
| 3,983,254 | | |
| 8,126,102 | | |
| 4,724,385 | |
Adjusted
EBITDA | |
$ | 5,410,201 | | |
$ | 6,242,851 | | |
$ | 13,204,333 | | |
$ | 22,555,964 | |
|
1) |
For
the three and nine months ended December 31, 2023, other nonrecurring expenses consist of professional and legal fees that are nonrecurring
in nature. For the three and nine months ended December 31, 2022, other nonrecurring expenses consist of proxy contest fees. |
Reconciliation
of GAAP net income to Fully Diluted EPS
| |
For
the Three Months Ended | |
| |
31-Dec-23 | | |
31-Dec-22 | |
Reconciliation
of GAAP net income to Fully Diluted EPS | |
| | | |
| | | |
| | | |
| | |
Net
Loss | |
$ | (1,643,989 | ) | |
$ | (0.01 | ) | |
$ | (4,102,992 | ) | |
$ | (0.03 | ) |
Depreciation
and amortization | |
| 4,753,650 | | |
| 0.04 | | |
| 4,356,004 | | |
| 0.04 | |
Interest
expense, net | |
| 193,046 | | |
| - | | |
| 320,439 | | |
| - | |
Employee
stock awards | |
| 687,099 | | |
| 0.01 | | |
| 2,106,535 | | |
| 0.02 | |
Stock
grants | |
| 50,750 | | |
| - | | |
| 43,750 | | |
| - | |
Common
stock purchase options | |
| 380,045 | | |
| - | | |
| - | | |
| - | |
Warrant
issuance | |
| - | | |
| - | | |
| 106,909 | | |
| - | |
Contingent
consideration fair value | |
| (39,274 | ) | |
| - | | |
| (20,326 | ) | |
| - | |
Nonrecurring
expenses | |
| 1,498,684 | | |
| 0.01 | | |
| 3,983,254 | | |
| 0.03 | |
Tax
effect(1) | |
| (1,708,026 | ) | |
| (0.01 | ) | |
| (2,294,820 | ) | |
| (0.02 | ) |
Adjusted
Net Income | |
$ | 4,171,985 | | |
$ | 0.04 | | |
$ | 4,498,753 | | |
$ | 0.04 | |
| |
For
the Nine Months Ended | |
| |
31-Dec-23 | | |
31-Dec-22 | |
Reconciliation
of GAAP net income to Fully Diluted EPS | |
| | | |
| | | |
| | | |
| | |
Net
Loss | |
$ | (10,232,319 | ) | |
$ | (0.09 | ) | |
$ | (1,653,472 | ) | |
$ | (0.01 | ) |
Depreciation
and amortization | |
| 14,047,216 | | |
| 0.12 | | |
| 12,950,972 | | |
| 0.11 | |
Interest
expense, net | |
| 609,561 | | |
| - | | |
| 538,191 | | |
| - | |
Employee
stock awards | |
| 2,977,845 | | |
| 0.03 | | |
| 4,457,973 | | |
| 0.04 | |
Stock
grants | |
| 152,250 | | |
| - | | |
| 135,344 | | |
| - | |
Common
stock purchase options | |
| 380,045 | | |
| | | |
| - | | |
| - | |
Warrant
issuance | |
| - | | |
| | | |
| 106,909 | | |
| - | |
Contingent
consideration fair value | |
| (60,298 | ) | |
| - | | |
| (45,572 | ) | |
| - | |
Nonrecurring
expenses | |
| 8,126,102 | | |
| 0.07 | | |
| 4,724,385 | | |
| 0.04 | |
Tax
effect(1) | |
| (6,037,463 | ) | |
| (0.05 | ) | |
| (4,826,590 | ) | |
| (0.04 | ) |
Adjusted
Net Income | |
$ | 9,962,939 | | |
$ | 0.08 | | |
$ | 16,388,140 | | |
$ | 0.14 | |
|
(1) |
Tax
effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment. |
| |
For
the Three Months Ended December 31, | | |
For
the Nine Months Ended December 31, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Weighted
average number of shares outstanding | |
| | |
| | |
| | |
| |
Basic | |
| 118,447,154 | | |
| 117,348,511 | | |
| 118,110,943 | | |
| 116,950,013 | |
Diluted | |
| 118,447,154 | | |
| 117,348,511 | | |
| 118,110,943 | | |
| 116,950,013 | |
v3.24.0.1
Cover
|
Feb. 08, 2024 |
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Feb. 08, 2024
|
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
|
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false
|
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false
|
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|
Entity Emerging Growth Company |
false
|
Common Stock, $0.001 par value |
|
Title of 12(b) Security |
Common
Stock, $0.001 par value
|
Trading Symbol |
POWW
|
Security Exchange Name |
NASDAQ
|
8.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value |
|
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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