LAFAYETTE,
LOUISIANA -- November
18, 2020
-- InvestorsHub NewsWire -- RedHawk Holdings
Corp. (OTC:
SNDD) ("RedHawk" or the
"Company"), a diversified holding
company primarily engaged in sales and
distribution of medical devices, announced today its financial results for
the three months and fiscal year ended June 30,
2020.
For the three month
period ended June 30, 2020, on revenues of
$916,203,
the Company
reported net income from operations
of
$38,534. Starting from reported net
income from operations of $38,534 for the three month
period,
and excluding $34,326 of research and
development charges for the now completed
SANDD
Pro™ reverse
engineering project, $40,153 of expenses
for a
now
completed marketing consulting agreement, and
$7,656 of costs necessary to update the RedHawk Medical Products
website,
RedHawk's adjusted net income from operations
was
$120,769
for the quarter
ended June 30, 2020. As previously announced,
revenues for the quarter ended June 30, 2020
increased more than 500% when compared to
revenues for
the
immediate
preceding quarter ended March 31,
2020.
For the
fiscal year
ended June
30, 2020,
on revenues
of $1,134,192, RedHawk reported a net loss from operations
of
$779,777.
Starting
from a reported net
loss
from operations of
$779,777 for the fiscal year, and excluding $118,327 of research and development
charges for the now completed
SANDD
Pro™ reverse
engineering project, $153,921 of marketing
expenses for a now completed consulting relationship, and $39,352 of costs
necessary
to update the
RedHawk Medical Products website, the Company's adjusted net loss from operations
was
$468,177 for the fiscal year ended June 30,
2020.
For the fiscal year
ended
June 30,
2019,
RedHawk
previously
reported a net loss
from operations of $661,943 on revenues of $129,006.
The increase in
year over year revenues was primarily attributable to
the Company's decision
in the fiscal year
ended June 30, 2019, to temporarily exit its
primary
marketing focus on pharmaceutical sales
in the United Kingdom and instead deploy its available working
capital to develop and expand its
more profitable
lines of medical devices in the United
States.
Additionally,
RedHawk announced today that it has executed a non-binding letter
of intent to acquire certain cannabis assets, including licenses to grow,
manufacture and sell in the State of Oklahoma, with an
anticipated initial focus on "craft"
cultivation and distribution of product. Closing of the acquisition
is contingent upon, among other
things, completion of satisfactory due
diligence, approval by RedHawk's board of
directors, the negotiation, acceptance and
execution of
a definitive purchase agreement, acceptance and approval by
the requisite shareholders, satisfactory
completion of legal, regulatory
and financial due
diligence, and the closing of the required amount of
acquisition financing. Accordingly, RedHawk
cannot
provide any assurance that a definitive agreement will be reached
on acceptable terms or at all, that due diligence will be
satisfactory, that the required acquisition financing will be
obtained by RedHawk on acceptable terms or at all, or that the
acquisition
will ultimately be completed in any particular time frame or at
all.
# # #
About RedHawk Holdings Corp.
RedHawk Holdings 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 a line of Personal Protection equipment
including face masks and shields, digital non-contact thermometers
and portable UV Sterilization lights.
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
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures,
including adjusted net income from operations and adjusted
net loss from operations. These are important financial
measures for us but are not financial measures as defined by
generally accepted accounting principles ("GAAP"). The presentation
of this financial information is not intended to be
considered in isolation of or as a substitute for, or superior to,
the financial information prepared and presented in accordance with
GAAP.
We use these non-GAAP financial measures for financial and
operational decision making and as a means to evaluate
period-to-period comparisons. We believe these measures provide
useful information about operating results, enhance the overall
understanding of past financial performance and future prospects
and allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. By disclosing these non-GAAP financial measures,
we believe we offer investors a greater understanding of, and an
enhanced level of transparency into, the means by which
our management operates the company.
These non-GAAP financial measures are not measures presented in
accordance with GAAP, and our use of these terms may vary from that
of others in our industry. These non-GAAP financial measures should
not be considered as an alternative to net income from
operations, net loss from operations or any other measures derived
in accordance with GAAP as measures of operating performance or
liquidity.
Adjusted net income (loss) from operations - We define
Adjusted net income (loss) from operations as net income (loss)
from operations with adjustments to reflect the addition
or elimination of certain statement of earnings items including,
but not limited to:
• research and development charges;
• expenses for a now completed marketing consulting
agreement; and
• costs necessary to update the RedHawk Medical
Products website
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,
including any potential completion of the acquisition of the
cannabis assets described herein, may differ materially
from that projected or suggested herein due to certain risks and
uncertainties including, but not limited to, the negotiation,
acceptance and execution of a final definitive purchase agreement,
acceptance and approval by the board of directors and the
shareholders of the seller, satisfactory completion of legal and
financial due diligence, RedHawk obtaining the required amount of
acquisition financing, and the obtainment of all necessary consents
and approvals of any third parties. 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,
CEO 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
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