ToughBuilt Industries, Inc. (“ToughBuilt”) (NASDAQ: TBLT;
TBLTW), a leading designer, manufacturer and distributor
of innovative tools and accessories for the building industry,
today announced financial results for the quarter ended June 30,
2019.
Michael Panosian, Chief Executive Officer of
ToughBuilt commented, “We are pleased to announce a 15.5% increase
in revenues year over year for the six months ended June 30, 2019,
which continues to demonstrate our sustainable growth model.
We continue to expand our e-commerce platform. During the
second quarter, we launched Amazon storefronts in Canada, Australia
and Mexico, in addition to our U.S. Marketplace. These have
become significant drivers of demand for our products. We will
continue to expand the number of SKUs represented and aggressively
market our Amazon storefronts. Building on this success, we
are now preparing to launch a much broader business-to-consumer
global e-commerce platform.”
“We continue to advance our mobile strategy
focused on development of new technologies geared to the demand for
ruggedized mobile devices, with an additional patent granted in the
second quarter, bringing the total to three new patents in 2019. We
are also launching a suite of mobile applications that will
streamline workflow through trade specific solutions, thereby
increasing workforce profitability by cutting time and labor costs
across a wide array of industries.”
Highlights of Second Quarter 2019 and
6-month Financial Results
Revenues for the three months ended June 30,
2019 and 2018 were $4,754,340 and $4,537,354, respectively.
Revenues increased in 2019 over 2018 by $216,986, or 4.8%,
primarily due to an increase in sales orders for metal goods offset
by a decrease in sales of soft goods. Gross profit for the
three months ended June 30, 2019 was $1,176,922 compared to
$1,085,015 for the three months ended June 30, 2018. The Company
reported net income of $7,422 for the three months ended June 30,
2019, as compared to a net loss of $2,716,255 for the three months
ended June 30, 2018.
Revenues for the 6 months ended June 30, 2019
were $9,776,811, an increase of $1,311,332 or 15.5% over the first
six months of 2018. Gross profit for the six months ended
June 30, 2019 was $2,354,636 compared to $2,050,449 for the six
months ended June 30, 2018. The Company reported a net loss for the
six months ended June 30, 2019 and 2018 of $1,629,555 and
$4,128,941 respectively, a decrease in net loss of $2,449,386.
About ToughBuilt Industries,
Inc.
ToughBuilt is a groundbreaking designer,
manufacturer and distributor of innovative tools and accessories to
the building industry. We market and distribute various home
improvement and construction product lines for both the
do-it-yourself and professional markets under the
TOUGHBUILT® brand name, within the global multibillion dollar
per year tool market industry. All of our products are designed by
our in-house design team. Since launching product sales in 2013, we
have experienced significant annual sales growth. Our current
product line includes three major categories, with several
additional categories in various stages of development, consisting
of Soft Goods & Kneepads and Sawhorses & Work Products. Our
mission is to provide products to the building and home improvement
communities that are innovative, of superior quality derived in
part from enlightened creativity for our end users while enhancing
performance, improving well-being and building high brand
loyalty. Additional information about the Company is
available at: https://www.toughbuilt.com.
Forward-Looking Statements
This press release contains “forward-looking
statements.” Such statements may be preceded by the words
“intends,” “may,” “will,” “plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,”
“potential” or similar words. Forward-looking statements are not
guarantees of future performance, are based on certain assumptions
and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company’s control, and
cannot be predicted or quantified and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
without limitation, risks and uncertainties associated with (i)
market acceptance of our existing and new products, (ii) negative
clinical trial results or lengthy product delays in key markets,
(iii) an inability to secure regulatory approvals for the sale of
our products, (iv) intense competition in the medical device
industry from much larger, multinational companies, (v) product
liability claims, (vi) product malfunctions, (vii) our limited
manufacturing capabilities and reliance on subcontractors for
assistance, (viii) insufficient or inadequate reimbursement by
governmental and other third party payers for our products, (ix)
our efforts to successfully obtain and maintain intellectual
property protection covering our products, which may not be
successful, (x) legislative or regulatory reform of the healthcare
system in both the U.S. and foreign jurisdictions, (xi) our
reliance on single suppliers for certain product components, (xii)
the fact that we will need to raise additional capital to meet our
business requirements in the future and that such capital raising
may be costly, dilutive or difficult to obtain and (xiii) the fact
that we conduct business in multiple foreign jurisdictions,
exposing us to foreign currency exchange rate fluctuations,
logistical and communications challenges, burdens and costs of
compliance with foreign laws and political and economic instability
in each jurisdiction. More detailed information about the Company
and the risk factors that may affect the realization of forward
looking statements is set forth in the Company’s filings with the
Securities and Exchange Commission (SEC), including the Company’s
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
Investors and security holders are urged to read these documents
free of charge on the SEC’s web site at http://www.sec.gov. The
Company assumes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future
events or otherwise.
Investor Relations Contact:
Amato and Partners, LLC admin@amatoandparnters.com
(tables follow)
TOUGHBUILT INDUSTRIES,
INC.CONDENSED BALANCE SHEETS
|
|
June 30, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,023,913 |
|
|
$ |
5,459,884 |
|
Accounts receivable, net |
|
|
1,795,397 |
|
|
|
985,854 |
|
Factor receivables, net |
|
|
1,391,840 |
|
|
|
1,542,835 |
|
Inventory |
|
|
1,166,597 |
|
|
|
379,915 |
|
Prepaid assets |
|
|
297,848 |
|
|
|
222,000 |
|
Total Current Assets |
|
|
5,675,595 |
|
|
|
8,590,488 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
398,839 |
|
|
|
224,196 |
|
Other assets |
|
|
39,551 |
|
|
|
36,014 |
|
Total Assets |
|
$ |
6,113,985 |
|
|
$ |
8,850,698 |
|
Liabilities and Shareholders’ Equity (Deficit) |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,805,899 |
|
|
$ |
1,962,901 |
|
Accrued expenses |
|
|
403,192 |
|
|
|
927,569 |
|
Deferred revenue |
|
|
74,111 |
|
|
|
107,776 |
|
Factor loan payable |
|
|
1,085,530 |
|
|
|
1,304,512 |
|
Warrant derivative |
|
|
1,757,408 |
|
|
|
23,507,247 |
|
Total Current Liabilities |
|
|
5,126,140 |
|
|
|
27,810,005 |
|
Total Liabilities |
|
|
5,126,140 |
|
|
|
27,810,005 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity
(Deficit) |
|
|
|
|
|
|
|
|
Series C Preferred Stock, $.0001 par value, 4,268 and 0 shares
authorized, issued, and outstanding at June 30, 2019 and December
31, 2018, respectively. No liquidation preference. |
|
|
- |
|
|
|
- |
|
Common stock, $0.0001 par value, 100,000,000 shares authorized,
23,186,931 and 9,870,873 shares issued and outstanding at June
30, 2019 and December 31, 2018, respectively |
|
|
2,319 |
|
|
|
987 |
|
Additional paid-in capital |
|
|
39,590,292 |
|
|
|
20,152,107 |
|
Accumulated deficit |
|
|
(38,604,766 |
) |
|
|
(39,112,401 |
) |
Total Shareholders’ Equity (Deficit) |
|
|
987,845 |
|
|
|
(18,959,307 |
) |
Total Liabilities and
Shareholders’ Equity (Deficit) |
|
$ |
6,113,985 |
|
|
$ |
8,850,698 |
|
TOUGHBUILT INDUSTRIES,
INC.CONDENSED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues, net of
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal goods |
|
$ |
2,274,978 |
|
|
$ |
1,756,860 |
|
|
$ |
3,916,250 |
|
|
$ |
3,858,840 |
|
Soft goods |
|
|
2,479,362 |
|
|
|
2,780,494 |
|
|
|
5,860,561 |
|
|
|
4,606,639 |
|
Total revenues, net of
allowances |
|
|
4,754,340 |
|
|
|
4,537,354 |
|
|
|
9,776,811 |
|
|
|
8,465,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal goods |
|
|
1,680,762 |
|
|
|
1,428,120 |
|
|
|
2,974,433 |
|
|
|
3,056,697 |
|
Soft goods |
|
|
1,896,656 |
|
|
|
2,024,219 |
|
|
|
4,447,742 |
|
|
|
3,358,333 |
|
Total cost of goods sold |
|
|
3,577,418 |
|
|
|
3,452,339 |
|
|
|
7,422,175 |
|
|
|
6,415,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,176,922 |
|
|
|
1,085,015 |
|
|
|
2,354,636 |
|
|
|
2,050,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
2,528,461 |
|
|
|
1,414,755 |
|
|
|
5,258,003 |
|
|
|
2,743,820 |
|
Litigation expense |
|
|
- |
|
|
|
1,192,488 |
|
|
|
- |
|
|
|
1,192,488 |
|
Research and development |
|
|
666,448 |
|
|
|
470,007 |
|
|
|
1,130,043 |
|
|
|
855,424 |
|
Total operating expenses |
|
|
3,194,909 |
|
|
|
3,077,250 |
|
|
|
6,388,046 |
|
|
|
4,791,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,017,987 |
) |
|
|
(1,992,235 |
) |
|
|
(4,033,410 |
) |
|
|
(2,741,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(86,275 |
) |
|
|
(724,020 |
) |
|
|
(168,538 |
) |
|
|
(1,387,658 |
) |
Change in fair value of warrant derivative |
|
|
2,111,684 |
|
|
|
- |
|
|
|
4,709,583 |
|
|
|
- |
|
Total other income
(expense) |
|
|
2,025,409 |
|
|
|
(724,020 |
) |
|
|
4,541,045 |
|
|
|
(1,387,658 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
7,422 |
|
|
|
(2,716,255 |
) |
|
|
507,635 |
|
|
|
(4,128,941 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock deemed
dividend |
|
|
- |
|
|
|
- |
|
|
|
(2,137,190 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders |
|
$ |
7,422 |
|
|
$ |
(2,716,255 |
) |
|
$ |
(1,629,555 |
) |
|
$ |
(4,128,941 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share attributed to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per common
share |
|
$ |
0.00 |
|
|
$ |
(0.74 |
) |
|
$ |
(0.11 |
) |
|
$ |
(1.12 |
) |
Basic weighted average common
shares outstanding |
|
|
19,042,699 |
|
|
|
3,679,500 |
|
|
|
15,388,342 |
|
|
|
3,679,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per common
share |
|
$ |
0.00 |
|
|
$ |
(0.74 |
) |
|
$ |
(0.41 |
) |
|
$ |
(1.12 |
) |
Diluted weighted average
common shares outstanding |
|
|
19,042,699 |
|
|
|
3,679,500 |
|
|
|
15,516,181 |
|
|
|
3,679,500 |
|
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