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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): June 13, 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
June 13, 2024, Ammo, Inc. (the “Company”) reported its financial results for the fiscal
quarterly period ended and fiscal year ended March 31, 2024. 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:
June 13, 2024 |
By: |
/s/
Robert D. Wiley |
|
|
Robert
D. Wiley |
|
|
Chief
Financial Officer |
Exhibit
99.1
AMMO,
Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
SCOTTSDALE,
Ariz., June 13, 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 Fourth Quarter and Fiscal Year 2024,
ended March 31, 2024.
Fiscal
Year 2024 Overview
● |
Net
Revenues of $145.1 million, a 24.2% decrease. |
● |
Gross
profit margin of approximately 29.4%. |
● |
Adjusted
EBITDA of $15.4 million compared to $26.4 million. |
● |
Net
loss of ($15.6) million, compared to net loss of ($4.6) million. |
● |
Diluted
EPS of ($0.16), compared to ($0.07). |
● |
Adjusted
EPS of $0.09, compared to $0.16. |
GunBroker.com
“Marketplace” Metrics – Fiscal Year 2024
● |
Marketplace
revenue of approximately $53.9 million. |
● |
New
user growth averaged 30,000 per month. |
● |
Average
take rate increased to 5.9% compared to 5.6% in fiscal 2023. |
Fourth
Quarter 2024 Overview
● |
Net
Revenues of $40.4 million, a 7.5% decrease |
● |
Gross
profit margin of approximately 23.3%. |
● |
Adjusted
EBITDA of $2.2 million compared to $3.8 million. |
● |
Net
loss of ($5.3) million, compared to net loss of ($2.9) million. |
● |
Diluted
EPS of ($0.05), compared to ($0.04). |
● |
Adjusted
EPS of $0.01, compared to $0.02. |
GunBroker.com
“Marketplace” Metrics – Fourth Quarter 2024
● |
Marketplace
revenue of approximately $13.6 million. |
● |
New
user growth averaged 32,000 per month. |
● |
Average
take rate increased to 6.0% |
Jared
Smith, AMMO’s CEO, commented “Sales increased sequentially despite a slower market environment. We continued to make progress
this quarter and ended the fiscal year with a strong pipeline of rifle ammunition and casing sales while accelerating our buildout of
GunBroker’s capabilities. This is most evident as we start to deliver on our ZRO Delta contract, while continuing the advancement
in financing, cross selling, and carting of accessories that will take place with GunBroker in Fiscal 2025.
“AMMO
is at a pivotal point as we finish the first quarter of our 2025 fiscal year. We believe we have changed the trajectory of the business
in these past 12 months in a way that will lead to increased shareholder value. Our ongoing transition from low margin pistol ammo to
high margin rifle cases will sustain a more stable and profitable business model going forward. In addition, GunBroker’s multi
seller, multi-item checkout process will enable us to capture a higher margin accessory business, while streamlining the checkout process.
As we sit here in June, we believe we have never been more poised for success,” Mr. Smith concluded.
Fourth
Quarter and Fiscal Year 2024 Results
We
experienced sequential revenue growth in our ammunition segment in the final quarter of our fiscal year in comparison to our third quarter
while the margins of the GunBroker marketplace segment remain robust.
We
ended the fourth quarter of our 2024 fiscal year with total revenues of approximately $40.4 million in comparison to $43.7 million in
the prior year quarter. The decrease in revenue was primarily related to a decrease in activity in our marketplace segment, which we
believe decreased as a result of the current macroeconomic environment impacting our industry as well as others. Our casing sales, however,
which afford us higher gross margins, increased to $0.9 million up from the prior year period. Revenues for our ammunition segment decreased
$0.2 million from the prior year quarter but increased $4.8 million or 21.9% quarter-over-quarter as a result of increased ammunition
sales in our fourth fiscal quarter.
Cost
of goods sold was approximately $31.0 million for the quarter compared to $31.8 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 $9.4 million or 23.3% compared to $11.9 million or 27.3% in the prior year period. The decrease in gross
profit margin was related to the shift in sales mix.
The
robust margins on GunBroker remained steady through our final quarter, but the margins in the ammunition segment did not meet expectations.
We expect improvement as production capacities increase. Our inventory levels continued to decrease, generating $4.3 million in cash
from operations for the quarter, bringing us to $32.6 million for the full fiscal year.
There
was approximately $2.4 million of nonrecurring expenses in the quarter related to legal and professional fees, which we have included
as an addback to adjusted EBITDA.
For
the quarter, we recorded Adjusted EBITDA of approximately $2.2 million, compared to the prior year quarter Adjusted EBITDA of $3.8 million.
We
ended the quarter with a Net Loss of approximately $5.3 million compared with a Net Loss of approximately $2.9 million for the prior
year period. This resulted in a loss per share of $0.05 for the quarter or Adjusted Net Income per Share of $0.01 in comparison to a
loss per share of $0.04 in the prior year quarter or Adjusted Net Income per Share of $0.03. For our fiscal year, a loss per share of
$0.16 or Adjusted Net Loss per Share of $0.09 in comparison to Net Income per share of $0.07 or Adjusted Net Income per Share of $0.16
in the prior year.
Looking
forward, we are focused on increasing our plant capacity with the recent engagement of a global consulting firm, which should improve
the product marginality.
For
GunBroker, we launched our cart platform in March of 2024, and will be bringing other efforts online in Fiscal 2025. These efforts may
include additional customer financing partnerships such as what we built with Gearfire Capital, which will allow retailers the option
to offer flexible financing options to customers. We expect these enhancements will drive sales growth through better functionality and
enhanced purchasing power of buyers.
As
of now, we believe we are financially well positioned into Fiscal 2025 given our strong net working capital position. We reported $131.5
million in current assets including $55.6 million of cash and cash equivalents along with $30.9 million of current liabilities. Additionally,
we generated $32.6 million in cash from operations for the period.
Conference
Call
Management
will host a conference call at 5:00 PM ET today, June 13, 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/10188534/fc5c14c674
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. Fourth Quarter and Fiscal Year 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=FE9IBGzz,
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 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
| |
March 31, 2024 | | |
March 31, 2023 | |
| |
| | |
| |
ASSETS | |
| | | |
| | |
Current Assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 55,586,441 | | |
$ | 39,134,027 | |
Accounts receivable, net | |
| 28,221,321 | | |
| 29,346,380 | |
Inventories | |
| 45,563,334 | | |
| 54,344,819 | |
Prepaid expenses | |
| 2,154,170 | | |
| 5,126,667 | |
Current portion of restricted cash | |
| - | | |
| 500,000 | |
Total Current Assets | |
| 131,525,266 | | |
| 128,451,893 | |
| |
| | | |
| | |
Equipment, net | |
| 58,082,040 | | |
| 55,963,255 | |
| |
| | | |
| | |
Other Assets: | |
| | | |
| | |
Deposits | |
| 349,278 | | |
| 7,028,947 | |
Patents, net | |
| 4,539,290 | | |
| 5,032,754 | |
Other intangible assets, net | |
| 111,049,067 | | |
| 123,726,810 | |
Goodwill | |
| 90,870,094 | | |
| 90,870,094 | |
Right of use assets - operating leases | |
| 2,000,093 | | |
| 1,261,634 | |
Deferred income tax asset | |
| 1,487,088 | | |
| - | |
TOTAL ASSETS | |
$ | 399,902,216 | | |
$ | 412,335,387 | |
| |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
Current Liabilities: | |
| | | |
| | |
Accounts payable | |
$ | 23,156,495 | | |
$ | 18,079,397 | |
Accrued liabilities | |
| 7,030,667 | | |
| 4,353,354 | |
Current portion of operating lease liability | |
| 479,651 | | |
| 470,734 | |
Note payable related party | |
| - | | |
| 180,850 | |
Current portion of construction note payable | |
| 273,459 | | |
| 260,429 | |
Insurance premium note payable | |
| - | | |
| 2,118,635 | |
Total Current Liabilities | |
| 30,940,272 | | |
| 25,463,399 | |
| |
| | | |
| | |
Long-term Liabilities: | |
| | | |
| | |
Contingent consideration payable | |
| 59,838 | | |
| 140,378 | |
Construction note payable, net of unamortized issuance costs | |
| 10,735,241 | | |
| 10,922,443 | |
Operating lease liability, net of current portion | |
| 1,609,836 | | |
| 903,490 | |
Deferred income tax liability | |
| - | | |
| 2,309,592 | |
Total Liabilities | |
| 43,345,187 | | |
| 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 March 31, 2024 and March 31, 2023, respectively | |
| 1,400 | | |
| 1,400 | |
Common stock, $0.001 par value, 200,000,000 shares authorized 120,531,507 and 118,562,806 shares issued and 119,181,067 and 118,294,478 outstanding at March 31, 2024 and March 31, 2023, respectively | |
| 119,181 | | |
| 118,294 | |
Additional paid-in capital | |
| 396,730,170 | | |
| 391,940,374 | |
Accumulated deficit | |
| (37,620,566 | ) | |
| (18,941,825 | ) |
Treasury Stock | |
| (2,673,156 | ) | |
| (522,158 | ) |
Total Shareholders’ Equity | |
| 356,557,029 | | |
| 372,596,085 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 399,902,216 | | |
$ | 412,335,387 | |
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| |
For the Three Months Ended March 31, | | |
For the Years Ended March 31, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| |
| | |
| | |
| | |
| |
Net Revenues | |
| | | |
| | | |
| | | |
| | |
Ammunition sales | |
$ | 22,445,216 | | |
$ | 23,508,227 | | |
$ | 69,390,801 | | |
$ | 114,116,044 | |
Marketplace revenue | |
| 13,570,124 | | |
| 16,662,831 | | |
| 53,942,076 | | |
| 63,149,673 | |
Casing sales | |
| 4,405,807 | | |
| 3,512,664 | | |
| 21,721,695 | | |
| 14,174,084 | |
| |
| 40,421,147 | | |
| 43,683,722 | | |
| 145,054,572 | | |
| 191,439,801 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of Revenues | |
| 31,021,560 | | |
| 31,773,675 | | |
| 102,431,803 | | |
| 136,031,204 | |
Gross Profit | |
| 9,399,587 | | |
| 11,910,047 | | |
| 42,622,769 | | |
| 55,408,597 | |
| |
| | | |
| | | |
| | | |
| | |
Operating Expenses | |
| | | |
| | | |
| | | |
| | |
Selling and marketing | |
| 547,981 | | |
| 742,326 | | |
| 1,370,079 | | |
| 4,729,540 | |
Corporate general and administrative | |
| 7,976,832 | | |
| 7,059,882 | | |
| 29,583,274 | | |
| 24,980,079 | |
Employee salaries and related expenses | |
| 3,607,354 | | |
| 4,264,701 | | |
| 16,703,822 | | |
| 15,679,135 | |
Depreciation and amortization expense | |
| 3,425,790 | | |
| 3,328,010 | | |
| 13,542,791 | | |
| 13,278,762 | |
Total operating expenses | |
| 15,557,957 | | |
| 15,394,919 | | |
| 61,199,966 | | |
| 58,667,516 | |
Loss from Operations | |
| (6,158,370 | ) | |
| (3,484,872 | ) | |
| (18,577,197 | ) | |
| (3,258,919 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other Expenses | |
| | | |
| | | |
| | | |
| | |
Other income/(expense) | |
| (708,779 | ) | |
| (3,012 | ) | |
| (332,593 | ) | |
| 25,181 | |
Interest expense | |
| 163,088 | | |
| (93,871 | ) | |
| (446,473 | ) | |
| (632,062 | ) |
Total other expense | |
| (545,691 | ) | |
| (96,883 | ) | |
| (779,066 | ) | |
| (606,881 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss before Income Taxes | |
| (6,704,061 | ) | |
| (3,581,755 | ) | |
| (19,356,263 | ) | |
| (3,865,800 | ) |
| |
| | | |
| | | |
| | | |
| | |
Provision for Income Taxes | |
| (1,371,180 | ) | |
| (639,189 | ) | |
| (3,791,063 | ) | |
| 730,238 | |
| |
| | | |
| | | |
| | | |
| | |
Net Loss | |
| (5,332,881 | ) | |
| (2,942,566 | ) | |
| (15,565,200 | ) | |
| (4,596,038 | ) |
| |
| | | |
| | | |
| | | |
| | |
Preferred Stock Dividend | |
| (782,639 | ) | |
| (765,625 | ) | |
| (3,122,049 | ) | |
| (3,105,034 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Loss Attributable to Common Stock Shareholders | |
$ | (6,115,520 | ) | |
$ | (3,708,191 | ) | |
$ | (18,687,249 | ) | |
$ | (7,701,072 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Loss per share | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.05 | ) | |
$ | (0.04 | ) | |
$ | (0.16 | ) | |
$ | (0.07 | ) |
Diluted | |
$ | (0.05 | ) | |
$ | (0.04 | ) | |
$ | (0.16 | ) | |
$ | (0.07 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of shares outstanding | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 118,775,757 | | |
| 117,874,162 | | |
| 118,249,486 | | |
| 117,177,885 | |
Diluted | |
| 118,775,757 | | |
| 117,874,162 | | |
| 118,249,486 | | |
| 117,177,885 | |
AMMO,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
| |
For the Year Ended March 31, | |
| |
2024 | | |
2023 | |
| |
| | |
| |
Cash flows from operating activities: | |
| | | |
| | |
Net Loss | |
$ | (15,565,200 | ) | |
$ | (4,596,038 | ) |
Adjustments to reconcile Net Loss to Net Cash provided by operations: | |
| | | |
| | |
Depreciation and amortization | |
| 18,813,897 | | |
| 17,519,949 | |
Debt discount amortization | |
| 83,253 | | |
| 83,253 | |
Employee stock awards | |
| 4,082,108 | | |
| 5,807,779 | |
Stock grants | |
| 203,000 | | |
| 179,094 | |
Common stock purchase options | |
| 430,457 | | |
| - | |
Stock for services | |
| - | | |
| - | |
Contingent consideration payable fair value | |
| (80,540 | ) | |
| (63,764 | ) |
Allowance for credit losses | |
| 419,527 | | |
| 191,299 | |
Loss on disposal of assets | |
| 259,540 | | |
| - | |
Reduction in right of use asset | |
| 476,252 | | |
| 629,140 | |
Warrant issued for services | |
| - | | |
| 213,819 | |
Deferred income taxes | |
| (3,796,680 | ) | |
| 730,238 | |
Changes in Current Assets and Liabilities | |
| | | |
| | |
Accounts receivable | |
| 705,532 | | |
| 14,417,405 | |
Due from related parties | |
| - | | |
| 15,000 | |
Inventories | |
| 8,781,485 | | |
| 4,671,333 | |
Prepaid expenses | |
| 4,028,696 | | |
| 2,763,855 | |
Deposits | |
| 6,679,669 | | |
| 4,306,375 | |
Accounts payable | |
| 5,077,098 | | |
| (8,694,813 | ) |
Accrued liabilities | |
| 2,532,695 | | |
| (1,970,078 | ) |
Operating lease liability | |
| (499,448 | ) | |
| (647,480 | ) |
Net cash provided by operating activities | |
| 32,631,341 | | |
| 35,556,366 | |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Gemini acquisition | |
| - | | |
| - | |
Purchase of equipment | |
| (8,024,765 | ) | |
| (12,541,325 | ) |
Proceeds from disposal of assets | |
| 3,750 | | |
| - | |
Net cash used in investing activities | |
| (8,021,015 | ) | |
| (12,541,325 | ) |
| |
| | | |
| | |
Cash flow from financing activities: | |
| | | |
| | |
Payments on inventory facility, net | |
| - | | |
| (825,675 | ) |
Proceeds from factoring liability | |
| 37,252,869 | | |
| 71,348,761 | |
Payments on factoring liability | |
| (37,252,869 | ) | |
| (71,834,432 | ) |
Payments on assumed debt from Gemini | |
| - | | |
| - | |
Payments on note payable - related party | |
| (180,850 | ) | |
| (684,921 | ) |
Payments on insurance premium note payment | |
| (3,174,834 | ) | |
| (2,134,143 | ) |
Proceeds from construction note payable | |
| - | | |
| 1,000,000 | |
Payments on construction note payable | |
| (257,425 | ) | |
| (150,743 | ) |
Payments on note payable | |
| - | | |
| - | |
Sale of preferred stock | |
| - | | |
| - | |
Common stock issued for exercised warrants | |
| 76,200 | | |
| 101,506 | |
Common stock issuance costs | |
| - | | |
| - | |
Preferred stock dividends paid | |
| (2,968,923 | ) | |
| (2,960,416 | ) |
Common stock repurchase plan | |
| (2,152,080 | ) | |
| (522,426 | ) |
Net cash used in financing activities | |
| (8,657,912 | ) | |
| (6,662,489 | ) |
| |
| | | |
| | |
Net increase in cash | |
| 15,952,414 | | |
| 16,352,552 | |
Cash, beginning of period | |
| 39,134,027 | | |
| 23,281,475 | |
Restricted cash, beginning of period | |
| 500,000 | | |
| - | |
Cash and restricted cash, end of period | |
$ | 55,586,441 | | |
$ | 39,634,027 | |
Restricted cash, end of period | |
$ | - | | |
$ | 500,000 | |
Cash, end of period | |
$ | 55,586,441 | | |
$ | 39,134,027 | |
(Continued)
| |
For the Year Ended March 31, | |
| |
2024 | | |
2023 | |
| |
| | |
| |
Supplemental cash flow disclosures: | |
| | | |
| | |
Cash paid during the period for: | |
| | | |
| | |
Interest | |
$ | 667,063 | | |
$ | 665,043 | |
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 | | |
$ | 4,252,778 | |
Dividends accumulated on preferred stock | |
$ | 144,618 | | |
$ | 144,618 | |
Construction note payable | |
$ | - | | |
$ | 10,237,032 | |
Acquisition stock issuances | |
$ | - | | |
$ | - | |
Warrant issued for services | |
$ | - | | |
$ | - | |
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 Quarterly
Report on Form 10-Q 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 Loss to Adjusted EBITDA
| |
For the Three Months Ended | |
| |
31-Mar-24 | | |
31-Mar-23 | |
| |
| | |
| |
Reconciliation of GAAP Net Loss to Adjusted EBITDA | |
| | | |
| | |
Net Loss | |
$ | (5,332,881 | ) | |
$ | (2,942,566 | ) |
Provision for income taxes | |
| (1,371,180 | ) | |
| (639,189 | ) |
Depreciation and amortization | |
| 4,766,681 | | |
| 4,568,977 | |
Interest expense, net | |
| (163,088 | ) | |
| 93,871 | |
Employee stock awards | |
| 1,104,263 | | |
| 1,349,806 | |
Stock grants | |
| 50,750 | | |
| 43,750 | |
Common stock purchase options | |
| 50,412 | | |
| - | |
Warrants issued for services | |
| - | | |
| 106,910 | |
Other income, net | |
| 708,779 | | |
| 3,012 | |
Contingent consideration fair value | |
| (20,242 | ) | |
| (18,192 | ) |
Other nonrecurring expenses(1) | |
| 2,372,888 | | |
| 1,248,865 | |
Proxy contest fees(2) | |
| - | | |
| - | |
Adjusted EBITDA | |
$ | 2,166,382 | | |
$ | 3,815,244 | |
| (1) | Other
nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature. |
| (2) | Includes
proxy contest fees of $910,000 for Employee Stock Awards issued as a result of the Settlement
Agreement as discussed in Note 17 of our consolidated financial statements. |
| |
For the Year Ended | |
| |
31-Mar-24 | | |
31-Mar-23 | |
| |
| | |
| |
Reconciliation of GAAP Net Loss to Adjusted EBITDA | |
| | | |
| | |
Net Loss | |
$ | (15,565,200 | ) | |
$ | (4,596,038 | ) |
Provision for income taxes | |
| (3,791,063 | ) | |
| 730,238 | |
Depreciation and amortization | |
| 18,813,897 | | |
| 17,519,949 | |
Interest expense, net | |
| 446,473 | | |
| 632,062 | |
Employee stock awards | |
| 4,082,108 | | |
| 5,807,779 | |
Stock grants | |
| 203,000 | | |
| 179,094 | |
Common stock purchase options | |
| 430,457 | | |
| - | |
Warrants issued for services | |
| - | | |
| 213,819 | |
Other income (expense), net | |
| 332,593 | | |
| (25,181 | ) |
Contingent consideration fair value | |
| (80,540 | ) | |
| (63,764 | ) |
Other nonrecurring expenses(1) | |
| 10,498,990 | | |
| 1,248,865 | |
Proxy contest fees(2) | |
| - | | |
| 4,724,385 | |
Adjusted EBITDA | |
$ | 15,370,715 | | |
$ | 26,371,208 | |
| (1) | Other
nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature. |
| (2) | Includes
proxy contest fees of $910,000 for Employee Stock Awards issued as a result of the Settlement
Agreement as discussed in Note 17 of our consolidated financial statements. |
| |
For the Three Months Ended | |
| |
31-Mar-24 | | |
31-Mar-23 | |
Reconciliation of GAAP Net Loss to Fully Diluted EPS | |
| | |
| | |
| | |
| |
Net Loss | |
$ | (5,332,881 | ) | |
$ | (0.05 | ) | |
$ | (2,942,566 | ) | |
$ | (0.03 | ) |
Depreciation and amortization | |
| 4,766,681 | | |
| 0.04 | | |
| 4,568,997 | | |
| 0.04 | |
Interest expense, net | |
| (163,088 | ) | |
| - | | |
| 93,871 | | |
| - | |
Employee stock awards | |
| 1,104,263 | | |
| 0.01 | | |
| 1,349,806 | | |
| 0.01 | |
Stock grants | |
| 50,750 | | |
| - | | |
| 43,750 | | |
| - | |
Warrants issued for services | |
| - | | |
| - | | |
| 106,910 | | |
| - | |
Contingent consideration fair value | |
| (20,242 | ) | |
| - | | |
| (18,192 | ) | |
| - | |
Common stock purchase options | |
| 490,755 | | |
| - | | |
| - | | |
| - | |
Nonrecurring expenses | |
| 2,372,888 | | |
| 0.02 | | |
| 1,248,865 | | |
| 0.01 | |
Tax effect | |
| (1,848,767 | ) | |
| (0.01 | ) | |
| (1,566,604 | ) | |
| (0.01 | ) |
Adjusted Net Income | |
$ | 1,420,359 | | |
$ | 0.01 | | |
$ | 2,884,837 | | |
$ | 0.02 | |
| |
For the Year Ended | |
| |
31-Mar-24 | | |
31-Mar-23 | |
Reconciliation of GAAP Net Loss to Fully Diluted EPS | |
| | | |
| | | |
| | | |
| | |
Net Loss | |
$ | (15,565,200 | ) | |
$ | (0.13 | ) | |
$ | (4,596,038 | ) | |
$ | (0.04 | ) |
Depreciation and amortization | |
| 18,813,897 | | |
| 0.16 | | |
| 17,519,949 | | |
| 0.15 | |
Interest expense, net | |
| 446,473 | | |
| - | | |
| 632,062 | | |
| 0.01 | |
Employee stock awards | |
| 4,082,108 | | |
| 0.03 | | |
| 5,807,779 | | |
| 0.05 | |
Stock grants | |
| 203,000 | | |
| - | | |
| 179,094 | | |
| - | |
Warrants issued for services | |
| - | | |
| - | | |
| 213,819 | | |
| - | |
Contingent consideration fair value | |
| (80,540 | ) | |
| - | | |
| (63,764 | ) | |
| - | |
Common stock purchase options | |
| 430,457 | | |
| - | | |
| - | | |
| - | |
Nonrecurring expenses | |
| 10,498,990 | | |
| 0.09 | | |
| 5,973,250 | | |
| 0.05 | |
Tax effect | |
| (7,886,230 | ) | |
| (0.06 | ) | |
| (6,393,194 | ) | |
| (0.05 | ) |
Adjusted Net Income | |
$ | 10,942,955 | | |
$ | 0.09 | | |
$ | 19,272,957 | | |
$ | 0.16 | |
| |
For the Three Months Ended March 31, | | |
For the Years Ended March 31, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
Weighted average number of shares outstanding | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 118,775,757 | | |
| 117,874,162 | | |
| 118,249,486 | | |
| 117,177,885 | |
Diluted | |
| 118,775,757 | | |
| 117,874,162 | | |
| 118,249,486 | | |
| 117,177,885 | |
v3.24.1.1.u2
Cover
|
Jun. 13, 2024 |
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jun. 13, 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
|
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(480)
|
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947-0001
|
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|
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|
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|
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|
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false
|
Common Stock, $0.001 par value |
|
Title of 12(b) Security |
Common
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|
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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