LOS ANGELES, Aug. 15, 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 fiscal year 2024. Highlights for Fiscal Year Ended May 31, 2024 All comparisons are to the full year of the prior year, unless otherwise noted. Consolidated net sales (revenue) increased 17% to a record $27.5 million compared to $23.5 million in the prior year primarily due to the increase in marketing and sales initiatives in our hearing protection and enhancement segment.  Cost of sales increased by $1,494,386 or 26%, as compared to the comparable period in 2023 due to increases in our branding and marketing initiatives which increased our sales, thereby leading to an increased cost of sales. Cost of sales as a percentage of net revenues for the fiscal year ended May 31, 2024 was 26.6% as compared to 24.7% for the comparable period in 2023. Gross profit as a percentage of sales was 73.4% for the fiscal year ended May 31, 2024, compared to 75.3% for the prior year. The decrease in gross profit, as a percentage of sales, was primarily attributable to costs associated with expansion into new retail and distribution channels. Operating expenses as a percentage of net revenues were 68.0% for the fiscal year ended May 31, 2024, compared to 66.9% for the full year 2023. The increase was primarily due to higher marketing and selling expenses, increased compensation, and a rise in general and administrative expenses, including expenses associated with our listing on the NYSE American exchange. Net income per common share on fully diluted basis was $0.21, including $0.08 of gain on redemption of preferred shares, compared to $0.10 for the prior year. Net income per common share on basic basis was $0.57, including $0.23 gain on redemption of preferred shares, compared to $0.32 for the prior year. Diluted earnings per share for 2024 reflects weighed average outstanding shares on a diluted basis of 16,168,181. As of August 13, 2024, the weighted average outstanding shares on a diluted basis were 8,290,277 or a 49% reduction of our weighted average outstanding on a fully diluted basis. "We are making continued progress in areas that should contribute to our sustainable, long-term growth and profitability. The impressive results underscore our team's relentless dedication and the successful execution of our strategic initiatives," commented Jeff Toghraie, Chairman and Chief Executive Officer of AXIL. "For 2025, our strategic initiatives are geared towards enhancing our global presence, fostering strategic partnerships, and adapting our offerings to meet diverse market needs. This emphasis on international expansion not only broadens our market reach but also strengthens our competitive position on the global stage, in our view, driving sustainable growth and maximizing our potential for success in new and dynamic markets." "We concluded the fiscal year with record revenues of $27.5 million, reflecting a solid 17% year-over-year growth, largely driven by our strategic focus on expanding distribution and retail channels," remarked Jeff Brown, Chief Financial Officer of AXIL Brands. "For the fiscal year, our fully diluted EPS reflects a weighted average of 16,168,181 outstanding shares on a diluted basis. As of August 13, 2024, the number of weighted average outstanding shares on a diluted basis was approximately 8,90,277, representing a 49% reduction from the weighted average outstanding shares on a fully diluted basis. Maintaining the quality of our revenue is a key priority this year as we focus on optimizing our existing partnerships and establishing new ones. There was no single customer that accounted for greater than 10% of total sales in our hearing protection and enhancement segment which accounted for approximately 95% of our total revenue for fiscal year 2024." AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS                       May 31,2024   May 31,2023           ASSETS                 CURRENT ASSETS:                 Cash   $ 3,253,876     $ 4,832,682   Accounts receivable, net     509,835       417,016   Inventory, net     3,394,023       1,311,864   Prepaid expenses and other current assets     809,126       801,360                     Total Current Assets     7,966,860       7,362,922                     OTHER ASSETS:                 Property and equipment, net     260,948       157,463   Deferred tax asset     231,587           Intangible assets, net     309,104       382,674   Right of use asset     36,752       101,845   Other assets     16,895       12,195   Goodwill     2,152,215       2,152,215                     Total Other Assets     3,007,501       2,806,392                     TOTAL ASSETS   $ 10,974,361     $ 10,169,314                     LIABILITIES AND STOCKHOLDERS' EQUITY                                   CURRENT LIABILITIES:                 Accounts payable   $ 967,596     $ 908,606   Customer deposits     154,762       183,688   Equipment payable, current     -       2,200   Contract liabilities- current     905,311       827,106   Notes payable     146,594       172,588   Due to related party     11,798       158,072   Lease liability, current     36,752       65,824   Income tax liability     242,296       230,913   Other current liabilities     332,936       305,664                     Total Current Liabilities     2,798,045       2,854,661                     LONG TERM LIABILITIES:                 Lease liability- long term     -       36,752   Contract liabilities- long term     480,530       605,942                     Total Long Term Liabilities     480,530       642,694                     Total Liabilities     3,278,575       3,497,355                     Commitments and contingencies (see Note 11)     -       -                     STOCKHOLDERS' EQUITY:                 Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 42,251,750 and 250,000,000 shares issued and outstanding as of May 31, 2024 and 2023, respectively     4,225       25,000   Common stock, $0.0001 par value: 450,000,000 shares authorized; 5,908,939 and 5,863,939 shares issued, issuable and outstanding as of May 31, 2024 and 2023, respectively     591       586   Additional paid-in capital     7,825,240       10,113,365   Accumulated deficit     (134,270 )     (3,466,992 )                   Total Stockholders' Equity     7,695,786       6,671,959                     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 10,974,361     $ 10,169,314   AXIL BRANDS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED MAY 31, 2024 AND 2023                       2024   2023           Sales, net   $ 27,498,539     $ 23,521,027                     Cost of sales     7,304,602       5,810,216                     Gross profit