Endexx Announces Fiscal 2021 Year-End Audited Financial Results

Rhea-AI Summary

Endexx Corporation (OTC: EDXC) reported a 360% increase in Q4 sales compared to Q3, following a challenging fiscal year marked by a 43% revenue decline due to the pandemic and retail market slowdowns. Key milestones include the launch of the Blesswell men’s skincare line with DJ Khaled, international expansion in Jamaica, and significant retail growth with expanded shelf space. The company has also reduced long-term debt by 13.5% and derivative liability by 68%. With these adjustments, Endexx aims to accelerate growth into fiscal 2022.

Positive

• Sales rebounded sharply with a 360% increase in Q4 over Q3.
• Launch of Blesswell men’s skincare line with DJ Khaled increases brand visibility.
• Expanded international presence with a retail store in Jamaica.
• Doubled retail footprint in mass retail drug stores.
• Successful placement of new products in 4,000 stores.
• Reduced long-term debt by 13.5% and derivative liability by 68%.

Negative

• 43% reduction in top line revenue in fiscal 2021.
• First revenue pullback since entering the Hemp industry in 2014.
• Challenges from pandemic-related supply chain issues.

Endexx Q4 Sales Rebounded Increasing 360% Above Q3 Revenues

CAVE CREEK, AZ, April 01, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Endexx Corporation (OTC: EDXC), a provider of innovative Hemp-derived wellness and nutritional products, today announced its audited fiscal 2021 annual report.  Endexx faced multiple challenges associated with the Pandemic and a slowdown in the retail markets during the first three quarters of its fiscal 2021. Ongoing supply chain issues impacted packaging and individual ingredient availability delaying production runs in key product sets during the fiscal year.  Consumer foot-traffic declines and retail store closings affected the revenue growth curve in 2021. Endexx reported its first revenue pullback since entering the Hemp Industry in 2014. The company had a 43% reduction in top line revenue in fiscal 2021. However, sales rebounded significantly in Q4, establishing an upward trend accelerating into fiscal 2022.

2021 Milestones and Highlights:

Blesswell™ Men’s Skincare and Grooming line launched

• Endexx, with partner DJ Khaled, launched the new CBD Brand and Category May 2021

International Expansion

• Jamaica’s CLA granted a Retail License to Go Green Global.
• Retail Herb House opened in Ocho Rios, Jamaica in August 2021

Increased F/D/M shelf space

• Endexx doubled retail footprint in Mass Retail Drug stores

Product Innovation

• Endexx placed two new “Core Value Line” SKUs in 4,000 stores in July reaching a wider audience with more accessible price point options.

Form 10 Registration

• Endexx completed Form 10 Registration and is now a fully reporting SEC filer
• Endexx executing plan to up-list to OTCQB and subsequently to Nasdaq
• Endexx prepared a Reg A filing for future funding options

Endexx Restructured

• Reduced Long Term Debt by 13.5%
• Reduced Derivative Liability by 68%
• Reduced annual debt interest by 50% forward-looking
• Reduced net loss by 26%

Endexx Invested in Brand and Consolidated offerings·

• Endexx invested in “Blesswell” its new Men’s Grooming and SkinCare Line
• Endexx invested in its “Core Value Line” for Mass Retail
• Endexx invested in product upgrades and cost reductions
• Endexx reformulated its pet product offering for new launch
• Endexx invested in ecommerce and Brand differentiation

“Fiscal 2021, the “Year of Delays,” impacted production, professional services and health issues that affected every aspect of the Company’s timing and execution of its business plan,” stated CEO Todd Davis. Davis added, “Endexx’s team collaborated and made challenging decisions in 2021 that kept the engine running and started the successful execution of its business plan in Q4, that is accelerating into Fiscal 2022.” Davis concluded, “We successfully placed the new line in 4,000 doors and watched the “Muscle and Joint” balm and cream products become the top two SKUs in volume and sales in their first 26 weeks on shelf.”

In summary, the financials indicated evidence of a slow decline in sales during the height of the Covid Pandemic. Then strongly reversed trend in Q4 with accelerated growth into fiscal 2022. Endexx has taken steps to solidify its balance sheet and execute the Company’s  long  term business objectives.  

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001109486/000149315222008591/form10-k.htm

www.endexx.com & www.cbdunlimited.com

About Endexx Corporation

Endexx Corporation, through its operating division CBD Unlimited, develops and distributes all-natural CBD products derived from cannabis sativa plant (Hemp), containing less than 0.01% THC. Its products range from oils, capsules, topicals, and pet products, all with the shared purpose of therapeutic and pain relief for humans and pets. Phyto-Bites are CBD soft chews for animal use that are formulated to promote health and support the reduction of separation anxiety, pain, and inflammation. The science behind these products involves over half a decade of clinical research in the field and lab work to provide accuracy in dosage and delivery of optimal absorption per serving.

Safe Harbor Notice

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the company’s business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements.

Contact:

For further investor and media information, contact:

Endexx Corporation
Todd Davis
Chairman & CEO
Endexx@endexx.com
480-595-6900

FAQ

What is Endexx Corporation's Q4 sales growth compared to Q3?

Endexx Corporation reported a 360% increase in Q4 sales compared to Q3.

How much did Endexx's revenue decline in fiscal 2021?

Endexx experienced a 43% reduction in revenue during fiscal 2021.

What new product line did Endexx launch in 2021?

Endexx launched the Blesswell men’s skincare and grooming line in May 2021.

What steps has Endexx taken to improve its financial position?

Endexx reduced long-term debt by 13.5% and derivative liability by 68%.

What are Endexx's future plans following the Q4 sales increase?

Endexx aims to accelerate growth into fiscal 2022 after a strong Q4 rebound.