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 September 30, 2019.
Michael Panosian, Chief Executive Officer of
ToughBuilt commented, “We are pleased to announce a 38.3% increase
in revenues for the third quarter of 2019 over the third quarter of
2018 and a 22.1% increase in revenues year over year for the nine
months ended September 30, 2019, which continues to demonstrate our
sustainable growth model. We continue to expand our e-commerce
platform.
We have had a busy third quarter in addition to
our marked revenue increase. In addition to our continued growth in
our big box store clients in the U.S., we demonstrated significant
growth in Canada and also online throughout Europe including the
launch of Amazon storefronts in Germany, France, Spain and Italy,
as part of our global e-commerce initiative. We also opened a
European base of operations in London, UK to better service our
international clients. These measures have become significant
drivers of demand for our products. We will continue to expand the
number of SKUs represented and aggressively market to big box
stores in North America and abroad and to our Amazon storefronts.
Building on this success, we are now preparing to launch a much
broader business-to-consumer global e-commerce platform, as well as
continue our aggressive big box programs.”
Highlights of Third Quarter 2019 and Nine-Month
Financial Results
Revenues for the three months ended September
30, 2019 and 2018 were $4,784,087 and $3,460,150, respectively.
Revenues increased in 2019 over 2018 by $1,313,937, or 38.3%. Gross
profit for the three months ended September 30, 2019 was $1,479,970
compared to $654,109 for the three months ended September 30, 2018.
The Company reported a net loss of $2,689,342 for the three months
ended September 30, 2019, as compared to a net loss of $3,008,675
for the three months ended September 30, 2018, a decrease in net
loss of 10.6%.
Revenues for the nine months ended September 30,
2019 were $14,560,898 an increase of $2,635,269, or 22.1% over the
first nine months of 2018. Gross profit for the nine months ended
September 30, 2019 was $3,434,606 compared to $2,704,558 for the
nine months ended September 30, 2018. The Company reported a net
loss for the nine months ended September 30, 2019 and 2018 of
$2,181,707 and $7,137,615 respectively, a decrease in net loss of
69.4%.
About ToughBuilt Industries, Inc.
ToughBuilt is a 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 professional and
do-it-yourself 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) delays in
bringing products to key markets, (iii) an inability to secure
regulatory approvals for the ability to sell our products in
certain markets, (iv) intense competition in the 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) our efforts
to successfully obtain and maintain intellectual property
protection covering our products, which may not be successful, (ix)
our reliance on single suppliers for certain product components,
(x) 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 (xi) 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 Investor Relations Counsel
admin@amatoandpartners.com Source: Toughbuilt Industries, Inc
© 2019 GlobeNewswire, Inc.
TOUGHBUILT INDUSTRIES,
INC.CONDENSED BALANCE SHEETS
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
|
|
(UNAUDITED) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
2,455,323 |
|
|
$ |
5,459,884 |
|
Accounts receivable, net |
|
|
1,674,896 |
|
|
|
985,854 |
|
Factor receivables, net |
|
|
944,964 |
|
|
|
1,542,835 |
|
Inventory |
|
|
1,774,439 |
|
|
|
379,915 |
|
Prepaid assets |
|
|
214,514 |
|
|
|
222,000 |
|
Total Current Assets |
|
|
7,064,136 |
|
|
|
8,590,488 |
|
Other Assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
718,339 |
|
|
|
224,196 |
|
Note receivable |
|
|
4,780,000 |
|
|
|
- |
|
Other assets |
|
|
102,429 |
|
|
|
36,014 |
|
Total Assets |
|
$ |
12,664,904 |
|
|
$ |
8,850,698 |
|
Liabilities and Shareholders’ Equity Deficit |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,045,019 |
|
|
$ |
1,962,901 |
|
Accrued expenses |
|
|
385,735 |
|
|
|
927,569 |
|
Deferred revenue |
|
|
- |
|
|
|
107,776 |
|
Factor loan payable |
|
|
680,668 |
|
|
|
1,304,512 |
|
Warrant derivative |
|
|
482,489 |
|
|
|
23,507,247 |
|
Convertible notes payable – current |
|
|
3,625,556 |
|
|
|
- |
|
Total Current Liabilities |
|
|
7,219,467 |
|
|
|
27,810,005 |
|
Convertible notes payable - net of current portion |
|
|
5,273,357 |
|
|
|
- |
|
Total Liabilities |
|
|
12,492,824 |
|
|
|
27,810,005 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity
(Deficit) |
|
|
|
|
|
|
|
|
Series C Preferred Stock, $.0001 par value, 3,268 and 0 shares
authorized, issued, and outstanding at September 30, 2019 and
December 31, 2018, respectively. No liquidation preference. |
|
|
- |
|
|
|
- |
|
Common stock, $0.0001 par value, 100,000,000 shares authorized,
28,120,293 and 9,870,873 shares issued and outstanding at September
30, 2019 and December 31, 2018, respectively |
|
|
2,800 |
|
|
|
987 |
|
Additional paid-in capital |
|
|
41,463,387 |
|
|
|
20,152,107 |
|
Accumulated deficit |
|
|
(41,294,108 |
) |
|
|
(39,112,401 |
) |
Total Shareholders’ Equity (Deficit) |
|
|
172,079 |
|
|
|
(18,959,307 |
) |
Total Liabilities and
Shareholders’ Equity (Deficit) |
|
$ |
12,664,903 |
|
|
$ |
8,850,698 |
|
TOUGHBUILT INDUSTRIES,
INC.CONDENSED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues, net of
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal goods |
|
$ |
2,527,734 |
|
|
$ |
1,510,873 |
|
|
$ |
6,443,984 |
|
|
$ |
5,369,713 |
|
Soft goods |
|
|
2,256,353 |
|
|
|
1,949,277 |
|
|
|
8,116,914 |
|
|
|
6,555,916 |
|
Total revenues, net of
allowances |
|
|
4,784,087 |
|
|
|
3,460,150 |
|
|
|
14,560,898 |
|
|
|
11,925,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal goods |
|
|
1,759,091 |
|
|
|
1,268,825 |
|
|
|
4,733,524 |
|
|
|
4,325,522 |
|
Soft goods |
|
|
1,545,027 |
|
|
|
1,537,216 |
|
|
|
5,992,769 |
|
|
|
4,895,549 |
|
Total cost of goods sold |
|
|
3,304,118 |
|
|
|
2,806,041 |
|
|
|
10,726,293 |
|
|
|
9,221,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,482,969 |
|
|
|
654,109 |
|
|
|
3,834,605 |
|
|
|
2,704,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
3,549,480 |
|
|
|
1,918,613 |
|
|
|
8,807,483 |
|
|
|
4,641,290 |
|
Litigation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,192,488 |
|
Research and development |
|
|
391,460 |
|
|
|
591,489 |
|
|
|
1,521,503 |
|
|
|
1,446,913 |
|
Total operating expenses |
|
|
3,940,940 |
|
|
|
2,510,102 |
|
|
|
10,328,986 |
|
|
|
7,280,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,460,970 |
) |
|
|
(1,885,993 |
) |
|
|
(6,494,380 |
) |
|
|
(4,576,133 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(288,152 |
) |
|
|
(1,152,681 |
) |
|
|
(456,690 |
) |
|
|
(2,561,482 |
) |
Change in fair value of
warrant derivative |
|
|
59,780 |
|
|
|
- |
|
|
|
4,769,363 |
|
|
|
- |
|
Total other income
(expense) |
|
|
(228,372 |
) |
|
|
(1,152,681 |
) |
|
|
4,312,673 |
|
|
|
(2,561,482 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
|
(2,689,342 |
) |
|
|
(3,008,675 |
) |
|
|
(2,181,707 |
) |
|
|
(7,137,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(2,689,342 |
) |
|
|
(3,008,675 |
) |
|
|
(2,181,707 |
) |
|
|
(7,137,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per common
share |
|
$ |
(0.09 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.97 |
) |
Basic weighted average common
shares outstanding |
|
|
30,844,557 |
|
|
|
7,359,000 |
|
|
|
19,061,790 |
|
|
|
7,359,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per common
share |
|
$ |
(0.09 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.97 |
) |
Diluted weighted average
common shares outstanding |
|
|
30,844,557 |
|
|
|
7,359,000 |
|
|
|
19,061,790 |
|
|
|
7,359,000 |
|
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