LOS ANGELES, April 10, 2024 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. ("AXIL," "we," "us," "our," or the "Company") (NYSE:AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® hair and skin care products, today announced financial and operational results for the third quarter ended February 29, 2024. Highlights for the Quarter Ended February 29, 2024 Net Sales (revenue) increased 14.4% to approximately $6.47 million in the third quarter, as compared to the prior year period. Gross profit as a percentage of sales was 71.5% in the third quarter, as compared to 74.6% for the prior year period. Operating expenses as a percentage of net revenue were 73.1% in the third quarter, compared to 70.7% for the prior year period. Loss before provision for income taxes was $46,345 and benefit provision from income taxes was $827,436 in the third quarter. Reported third quarter net income of $781,091 or $0.04 on a fully diluted basis compared to $162,048 or $0.01 for the prior year period. Key Updates Since AXIL's Last Quarterly Earnings Release As part of our rebranding the Company changed its name to AXIL Brands, Inc. and stock ticker symbol to "AXIL". Completed uplist to the NYSE American Stock Exchange. In March 2024, AXIL repurchased 207,748,250 shares of Series A preferred stock equivalent, in the aggregate, to 10,387,413 shares of the Company's common stock on an as converted basis resulting in the reduction of approximately 83% of the Company's outstanding Series A preferred shares or approximately 55% of the Company's total outstanding shares on a fully diluted basis. "We are extremely pleased with our business performance and the significant objectives achieved during this quarter. Our successful listing on the NYSE American stock exchange and recent repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy and unlock value for our shareholders." Commented Jeff Toghraie, Chairman and Chief Executive Officer. "Looking ahead, we remain committed to expansion into new markets, optimizing operations and creating sustainable long term growth." AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS                       February 29, 2024   May 31, 2023     (Unaudited)               ASSETS                 CURRENT ASSETS:                 Cash   $ 4,887,567     $ 4,832,682   Accounts receivable, net     719,504       417,016   Inventory, net     3,443,293       1,311,864   Due from related party     18,536       —   Prepaid expenses and other current assets     656,328       801,360   Deferred tax asset     234,161       —                     Total Current Assets     9,959,389       7,362,922                     OTHER ASSETS:                 Property and equipment, net     212,146       157,463   Intangible assets, net     324,549       382,674   Right of use asset     53,224       101,845   Other assets     12,195       12,195   Goodwill     2,152,215       2,152,215                     Total Other Assets     2,754,329       2,806,392                     TOTAL ASSETS   $ 12,713,718     $ 10,169,314                     LIABILITIES AND STOCKHOLDERS' EQUITY                                   CURRENT LIABILITIES:                 Accounts payable   $ 1,890,844     $ 908,606   Customer deposits     37,140       183,688   Equipment payable, current     —       2,200   Contract liabilities, current     880,450       827,106   Notes payable, current     3,310       172,588   Due to related party     —       158,072   Lease Liability, current     54,322       65,824   Income Tax Liability     68,019       230,913   Other current liabilities     307,794       305,664                     Total Current Liabilities     3,241,879       2,854,661                     LONG TERM LIABILITIES:                 Notes payable, long term     143,840       —   Lease liability, long term     —       36,752   Contract liabilities, long term     541,108       605,942                     Total Long Term Liabilities     684,948       642,694                     Total Liabilities     3,926,827       3,497,355                     Commitments and contingencies (see Note 11)     —       —                     STOCKHOLDERS' EQUITY:                 Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 250,000,000 shares issued and outstanding as of February 29, 2024 and May 31, 2023, respectively     25,000       25,000   Common stock, $0.0001 par value: 450,000,000 shares authorized; 5,878,939 and 5,863,939 shares issued, and outstanding as of February 29, 2024 and May 31, 2023, respectively     588       586   Additional paid-in capital     10,274,677       10,113,365   Accumulated deficit     (1,513,374 )     (3,466,992 )                   Total Stockholders' Equity     8,786,891       6,671,959                     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 12,713,718     $ 10,169,314   AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)                                       For the Three Months Ended   For the Nine Months Ended     February 29,   February 28,   February 29,   February 28,     2024   2023   2024   2023                   Sales, net   $ 6,469,343     $ 5,656,461     $ 20,997,289     $ 16,625,818                                     Cost of sales     1,845,017       1,437,976       5,467,458       4,085,645                 25 %     26 %     25 % Gross profit     4,624,326       4,218,485       15,529,831       12,540,173                 75 %     74.0 %     75 % OPERATING EXPENSES:                                 Sales and marketing     3,398,949       3,173,383       10,278,570       8,250,257   Compensation and related taxes     228,869       360,802       713,504       1,214,213   Professional and consulting     552,922       216,687       1,471,025       832,958   General and administrative     547,465       251,025       1,732,942       841,761                                     Total Operating Expenses     4,728,205       4,001,897       14,196,041       11,139,189                 71 %     68 %     67 % (LOSS) INCOME FROM OPERATIONS     (103,879 )     216,588       1,333,790       1,400,984                                     OTHER INCOME (EXPENSE):                                 Gain on debt settlement     —       —       79,182       50,500   Other income