REDHAWK ANNOUNCES FIRST
QUARTER FISCAL 2020
RESULTS
LAFAYETTE, LA
-- November 19, 2019 --
InvestorsHub NewsWire -- RedHawk Holdings
Corp. (OTC:
SNDD) ("RedHawk" or the "Company")
a diversified
holding company engaged in sales and distribution of medical
devices, branded generic pharmaceutical drugs, commercial real
estate investment and leasing, point
of entry full-body security systems, and specialized financial
services, announced today
financial results
for its first quarter of fiscal 2020, which ended September 30,
2019.
RedHawk
reported a
net loss from operations of $194,685 on revenues of
$65,098
($50,558 net of introductory
discounts) for the first quarter
ended September 30,
2019,
compared to a net loss from operations
of $108,014
on revenues of $46,668 for the comparable first quarter
ended September 30,
2018. The net operating loss
for the quarter
ended September 30, 2019 was principally attributable to
approximately
$151,000 of certain start-up costs and
non-recurring
expenses
costs associated
with the launch and continuing development of the Company's line of Sharps and Needle Destruction
Devices -
SANDD mini™,
SANDD
Pro™ and the newly released
SANDD-HP™ (collectively the
"SANDD™ Products").
The
Company previously announced that it had successfully completed a
limited marketing campaign into the Texas
Independent
School Systems during the first quarter
ended September
30, 2019, designed to evaluate
the
anticipated
interest in,
and the potential sales and
profitability of, its
SANDD
mini™ needle incineration unit. Revenue for the first quarter of fiscal
2020 included Texas marketing
campaign
sales
of the
Company's SANDD mini™ of $55,348 ($40,808 net of
introductory
discounts). The gross profit margin on
these
sales of the Company's
SANDD
mini™ was 82.2% (75.9% after introductory
discounts). There were no branded
generic pharmaceutical sales for the
first quarter ended September 30, 2019.
Sales for the first
quarter ended September 30, 2018 included $36,918 in sales of the Company's
branded generic
pharmaceutical products with a gross profit margin of
only
27.0%. Sales of the Company's
SANDD
mini™
were nominal during the first quarter
ended September 30,
2018.
Commenting on
the first
quarter results, G. Darcy Klug,
Chairman and Interim Chief Executive Officer said "During the 2019
fiscal
year, we shifted our revenue focus away from lower
margin
branded generic pharmaceutical sales in the United
Kingdom and started deploying our available capital to the
development and launch of our line of
higher margin
needle incineration medical devices. While we may return our focus on branded generic
pharmaceuticals sales in the future, the results of our limited marketing
campaign confirmed our decision to temporarily deploy our available working
capital
to
the
development
and launch
of our complete line
of
SANDD™ Products. As such, we are finalizing the development of
the
SANDD
Pro™ and executing on our plan to build a network of independent
marketing representatives in order to geographically expand our
marketing efforts into Texas, Southern California, Missouri and
along the Gulf Coast."
"We
are thrilled with the profit margins on the initial sales of the
SANDD
mini™. The launch and
continue development of the
SANDD™ Products did result in significant start-up and non-recurring
costs during
the first quarter," continued Mr. Klug. "In addition to the
introductory discounts of $15,000, we incurred $151,000 of start-up and development
costs
including
$24,000
for
continuing
research and
development, $25,000 for the limited marketing campaign
in Texas
and
the
implementation of ISO
13485
quality control compliance, $29,000 for start-up business and website development costs, $39,000 for marketing and investor relations
advisory services and $34,000 for non-recurring
professional
services."
Other
recent announcements:
Today,
RedHawk also announced that it has
completed testing, and is now accepting
orders, for its new
SANDD-HP™.
This
unit operates with
both AC and/or DC power and is designed
specifically
for healthcare
professionals for use in both a
clinical/office or portable
setting. The
major electronic components of the
SANDD-HP™ will be manufactured in the United
States.
RedHawk
also announced
today that it has started video production of its social
media campaign with Dr. Drew Pinsky (commonly known as
"Dr.
Drew"). In July 2019, the Company named Dr. Drew as its
exclusive
spokesperson
for the
SANDD™
Products and any related products and/or accessories.
The
social media
campaign will include, among other things,
product video testimonials, infomercials,
direct
response television commercials,
audiovisual digital platforms, search engine marketing, social
media public relations, and e-mails to existing customers
of RedHawk
or third party agencies.
In
September 2019, the
Company announced that it has
retained PCG
Advisory Inc., a leading investor
relations and digital strategies firm, to serve as an
advisor for investor relations and strategic
communications.
For
additional
information regarding the Company's quarterly results of
operation, see the Company's
Form
10-Q for the first quarter
ended September 30,
2019,
as filed
with the
Securities and Exchange Commission and posted on the Company's
website.
# # #
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy
Corp., is a diversified holding company which,
through its subsidiaries, is engaged in sales and
distribution of medical devices, sales of branded
generic pharmaceutical drugs, commercial real
estate investment and leasing, sales of point of
entry full-body security systems,
and specialized financial services. Through
its medical products business unit, the
Company sells the Sharps and Needle Destruction
Device (SANDD™), WoundClot Surgical - Advanced
Bleeding Control, and the Carotid Artery
Digital Non-Contact Thermometer. Through our
United Kingdom based subsidiary, we manufacture and
market branded generic pharmaceuticals. RedHawk Energy
holds the exclusive U.S. manufacturing and distribution
rights for the Centri Controlled Entry System, a unique,
closed cabinet, nominal dose transmission
full-body x-ray scanner. For more information,
visit www.redhawkholdingscorp.com
Cautionary Statement Regarding Forward-Looking
Statements
This release may contain forward-looking statements.
Forward-looking statements are all statements
other than statements of historical fact. Statements
contained in this release that are not historical facts
may be deemed to be forward-looking statements. The words
"anticipate," "may," "can," "plans," "believes," "estimates,"
"expects," "projects," "targets," "intends,"
"likely," "will," "should," "to be," "potential" and any
similar expressions are intended to identify those assertions as
forward-looking statements.
Investors are cautioned that forward-looking statements
are inherently uncertain. Actual performance
and results may differ materially from that projected
or suggested herein due to certain risks and uncertainties.
In evaluating forward-looking statements, you should
consider the various factors which may cause actual
results to differ materially from any
forward-looking statements including those listed in the
"Risk Factors" section of our latest 10-K report. Further,
the Company may make changes to its business plans that
could or will affect its results. Investors are cautioned
that the Company will undertake no obligation to
update any forward-looking statements.
Media
Contact:
Julie
Calzone
(337)
235-2924
jcalzone@calzone.com
Company
Contacts:
G. Darcy
Klug, Chairman,
CEO and CFO
(337)
269-5933
darcy.klug@redhawkholdingscorp.com
Investor
Relations:
Stephanie
Prince, Managing Director
PCG
Advisory
(646)
762-4518
sprince@pcgadvisory.com
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