REDHAWK ANNOUNCES THIRD QUARTER FY
2020 RESULTS
Q3 Year-Over-Year Quarterly Gross
Revenues Increase 77%, Net Revenues
Double
Projected Fourth Quarter Revenues on
Record Pace
LAFAYETTE, LA -- June
29, 2020 -- InvestorsHub NewsWire
-- RedHawk Holdings Corp. (OTC:
SNDD) ("RedHawk" or the "Company")
a diversified
holding company engaged in sales and distribution of medical
devices, announced
today
financial results for the three month period of
fiscal year 2020, ended March 31,
2020.
For the third
quarter of
fiscal year 2020, gross revenues of $201,533
($148,674 after introductory customer discounts)
represented an
increase of 77% year-over-year
compared to the
third quarter ended March 31,
2019.
For the third
quarter of fiscal year 2020, net loss from
operations was $214,446, primarily due to expenses
including
approximately
$53,000 for introductory customer
discounts, approximately $40,000 of non-cash marketing
consulting fees,
approximately
$20,000 in non-recurring website
and mass
communication development
costs,
approximately $20,000 of non-recurring
quality
control system development costs
and approximately
$30,000 of non-recurring
engineering and legal costs associated with the redesign on
the Company's SANDD Pro™ needle incineration device.
Excluding
introductory
customer discounts, gross profit margins from the sale of medical devices
during the fiscal
third quarter remained
strong at
approximately 80%.
RedHawk expects the introductory
customer
discounts to become
less significant going forward
as
market
awareness of its products increases.
For the comparable
three month period ended March 31, 2019, RedHawk
reported a net loss from operations of $134,203 on
gross
revenues of
$113,551 ($73,556 after introductory customer
discounts).
Commenting on
the third quarter results, Philip C. Spizale,
RedHawk's Chief Executive Officer, said, "We believe the quarter ended
March 31, 2020 positions RedHawk to continue advancing the execution of the Company's
business model. In fact, quarterly revenues for
the fiscal
fourth
quarter ending June 30, 2020 are
projected to
approach
record
levels with a more diverse
mix of medical
device sales, including our newly
offered line
of
Personal
Protection
Equipment. We expect revenue growth to
continue as we build product awareness
through
increased marketing and promotional activities. As we previously announced,
we
look forward to
Sheriff Bud Torres joining RedHawk and
assisting
us in
developing environmentally safe
product kits and
critical response packages designed specifically for first
responders and law enforcement agencies."
"Current
market conditions for medical products and medical
devices
have created business opportunities for us to capitalize upon while facing
related
challenges for us to overcome.
With this
anticipated
increase in
business activity, we have also gained access to a more
efficient supply chain of
high-quality domestic and
international manufacturers and suppliers for our various
lines
of
products. These collaborative relationships
support
timely
deliveries in our effort to meet current market demands for
medical products and medical devices as we also develop specific product bundles to assist in the
environmentally
safe
re-opening of schools, restaurants, hospitality venues and healthcare
facilities," concluded Mr.
Spizale
# # #
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy
Corp., is a diversified holding company
which, through its subsidiaries, is engaged
in the 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, please visit: http://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.
Company
Contact:
G. Darcy
Klug, Chairman and CFO
(337)
269-5933
darcy.klug@redhawkholdingscorp.com
Philip C.
Spizale, CEO
(337)
269-5933
philip.spizale@redhawkholdingscorp.com
Investor
Relations:
Stephanie
Prince, Managing Director
PCG
Advisory
(646)
762-4518
sprince@pcgadvisory.com
Media
Contact:
Valerie
Allen
Valerie Allen
Public Relations
(310)
382-7800
valerie@valerieallenpr.com