Slinger Announces First Quarter Fiscal 2021 Results
Slinger (OTCQB: SLBG) reported a strong first quarter for fiscal 2021, with net sales increasing by 349% to $2.5 million. New orders reached $3.7 million, driven by heightened demand for the Slinger Bag. However, the company faced $1.1 million in delayed revenue due to global shipping challenges. Gross profit improved to $0.8 million, up from a loss of ($0.4 million) a year prior, despite a net loss of ($3.4 million) and a loss per share of ($0.12). The company is pursuing an uplisting to NASDAQ to enhance capital access and brand visibility.
- Net sales surged 349% to $2.5 million.
- Gross profit improved to $0.8 million from a loss of ($0.4 million).
- New orders totaled $3.7 million, indicating strong demand.
- Expansion into China, Hong Kong, and Macau markets.
- Acquired Foundation Tennis, enhancing SaaS capabilities.
- Faced a net loss of ($3.4 million) with a loss per share of ($0.12).
- Delayed revenue of $1.1 million due to global shipping issues.
Net sales increased
New orders totaled
Boosted inventory production to meet increased demand through April 2022
Commenced application process to uplist to the NASDAQ
BALTIMORE, Sept. 15, 2021 (GLOBE NEWSWIRE) -- Slinger (OTCQB: SLBG) a sports brand focused on innovating game improvement technology and equipment, today announced results for the first quarter of fiscal 2021, the Company’s strongest quarter to date.
“We are thrilled to see demand for the Slinger Bag continue to accelerate and expect this trend to continue in the US direct-to-consumer channel and internationally through our strong distribution networks,” said Mike Ballardie, Slinger CEO. “However, we were impacted by the global shipping and logistics issues facing many companies with production in Asia, which pushed out
First Quarter Highlights
- Revenue was
$2.5 million versus$0.6 million last year; - Gross profit was
$0.8 million versus a loss of ($0.4) million last year; - Net loss and loss per share were (
$3.4) million and ($0.12) respectively; - Appointed Jason Seifert as new CFO;
- Expanded distribution into China, Hong Kong, and Macau markets;
- Acquired Foundation Tennis, a SaaS technology company;
- Signed brand ambassador agreements with Darren Cahill, Genie Bouchard, and Dustin Brown;
- Entered strategic partnership with renowned hospitality innovator David Grutman;
- Partnered with the Ultimate Tennis Showdown (UTS).
Uplisting to NASDAQ
Slinger recently began the process for uplisting its shares to the NASDAQ stock market. The Company has engaged Lucosky Brookman LLP as counsel to advise the Company through this process.
“As we look to the future, we have taken the initial steps towards transforming Slinger from an innovative tennis hardware company into a disruptive connected sports technology company. The first phase is ramping-up rapidly as we drive distribution and brand awareness for our flagship product, the Slinger Bag, while simultaneously investing in a variety of ‘smart’ technologies including Artificial Intelligence (AI), video analytics and first-party data, setting the Company on a path to provide a suite of analytics and services all aimed at generating future recurring revenue, SaaS and subscription offerings.
Our Foundation Tennis acquisition was one such example, bringing commercial SaaS applications focused on tennis club/facility administration, management and booking systems, along with over 1 million club members already active within their ecosystem. As we look beyond this initial phase, we see additional opportunities to repeat this model across multiple sports including Pickleball, Padel and Soft Tennis, as well as Baseball, Softball and Cricket.
The second phase of this process will incorporate a roll-out of our AI driven technology giving players access to deep insights and biomechanical feedback aimed at helping them optimize their game in a way that has never been available before.
To support this strategy, we have embarked on the application process to list our shares on the NASDAQ, which will, in turn, enhance awareness of Slinger within the investment community, increasing liquidity and providing broader access to investor capital. We are very excited about the opportunities ahead of us to build a world-class, growth orientated connected sports company,” concluded Ballardie.
The Slinger Bag is available to order now - to find out more about Slinger Bag, visit https://slingerbag.com.
About Slinger
Slinger® is a new sports brand focused on delivering innovative, game improvement technologies and equipment across all ball sport categories. With the vision to become a leading connected sports company, Slinger® enhances the skill and enjoyment levels of players of all ages and abilities. Slinger® is initially focused on building its brand within the global tennis market, through its Slinger Bag® Tennis Ball Launcher and Accessories. Slinger Bag® has underpinned its proof of concept with over
Disclaimer
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company's products and services, the ability to complete development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company's most recent periodic filings with the Securities and Exchange Commission, including its fiscal 2020 Annual Report on Form 10-K and quarterly reports on Form 10-Q. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the Company's product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.
These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential, "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Contacts:
Investors: www.slingerbagir.com
investors@slingerbag.com
(443) 407-7564
Press:
US:
Brittany Zoet, Uproar PR
bzoet@uproarpr.com
EU and UK:
Joe Murgatroyd
Brandnation
Press@slingerbag.com
+44(0)207 940 7294
SLINGER BAG INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| July 31, 2021 | April 30, 2021 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 1,013,309 | $ | 928,796 | ||||
| Accounts receivable, net | 524,787 | 762,487 | ||||||
| Inventories, net | 5,169,994 | 3,693,216 | ||||||
| Prepaid inventory | 768,066 | 140,047 | ||||||
| Prepaid expenses and other current assets | 417,381 | 60,113 | ||||||
| Total current assets | 7,893,537 | 5,584,659 | ||||||
| Goodwill | 1,240,000 | - | ||||||
| Other intangible assets, net | 2,381,684 | 112,853 | ||||||
| Total assets | $ | 11,515,221 | $ | 5,697,512 | ||||
| Liabilities and Shareholders’ Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 3,999,363 | $ | 2,050,476 | ||||
| Accrued payroll and bonuses | 1,736,177 | 1,283,464 | ||||||
| Deferred revenue | 1,239,083 | 99,531 | ||||||
| Accrued interest - related party | 803,869 | 747,636 | ||||||
| Notes payable - related party, net | 500,000 | 6,143,223 | ||||||
| Derivative liabilities | 14,539,039 | 13,813,449 | ||||||
| Total current liabilities | 22,817,531 | 24,137,779 | ||||||
| Long-term liabilities | ||||||||
| Note payable, net | 20,414 | 10,477 | ||||||
| Total liabilities | 22,837,945 | 24,148,256 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Shareholders’ deficit | ||||||||
| Common stock, | 29,980 | 27,643 | ||||||
| Additional paid-in capital | 20,939,079 | 10,365,056 | ||||||
| Accumulated other comprehensive loss | (33,198 | ) | (20,170 | ) | ||||
| Accumulated deficit | (32,258,585 | ) | (28,823,273 | ) | ||||
| Total shareholders’ deficit | (11,322,724 | ) | (18,450,744 | ) | ||||
| Total liabilities and shareholders’ deficit | $ | 11,515,221 | $ | 5,697,512 | ||||
SLINGER BAG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
| For the Three Months Ended | ||||||||
| July 31, | July 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net sales | $ | 2,537,573 | $ | 564,985 | ||||
| Cost of sales | 1,752,351 | 936,900 | ||||||
| Gross income (loss) | 785,222 | (371,915 | ) | |||||
| Operating expenses: | ||||||||
| Selling and marketing expenses | 707,097 | 302,018 | ||||||
| General and administrative expenses | 2,394,799 | 759,268 | ||||||
| Research and development costs | 174,048 | 28,110 | ||||||
| Total operating expenses | 3,275,944 | 1,089,396 | ||||||
| Loss from operations | (2,490,722 | ) | (1,461,311 | ) | ||||
| Other expense (income): | ||||||||
| Amortization of debt discounts | 21,216 | 233,708 | ||||||
| Loss (gain) on extinguishment of debt | 5,118,435 | (566,667 | ) | |||||
| Gain on change in fair value of derivatives | (4,327,344 | ) | - | |||||
| Interest expense - related party | 56,233 | 172,464 | ||||||
| Interest expense, net | 76,050 | 73,210 | ||||||
| Total other expense (income) | 944,590 | (87,285 | ) | |||||
| Loss before income taxes | (3,435,312 | ) | (1,374,026 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net loss | $ | (3,435,312 | ) | $ | (1,374,026 | ) | ||
| Other comprehensive loss, net of tax | ||||||||
| Foreign currency translation adjustments | (13,028 | ) | (1,393 | ) | ||||
| Total other comprehensive loss, net of tax | (13,028 | ) | (1,393 | ) | ||||
| Comprehensive loss | $ | (3,448,340 | ) | $ | (1,375,419 | ) | ||
| Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.05 | ) | ||
| Weighted average number of common shares outstanding, basic and diluted | 29,128,427 | 26,090,623 | ||||||
SLINGER BAG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended | ||||||||
| July 31, | July 31, | |||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (3,435,312 | ) | $ | (1,374,026 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization expense | 41,169 | - | ||||||
| Gain on change in fair value of derivatives | (4,327,344 | ) | - | |||||
| Shares and warrants issued in connection with services | 618,554 | 65,826 | ||||||
| Share-based compensation | 187,803 | - | ||||||
| Loss (gain) on extinguishment of debt | 5,118,435 | (566,667 | ) | |||||
| Amortization of debt discounts | 21,216 | 233,708 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 235,886 | (63,527 | ) | |||||
| Inventories, net | (1,478,547 | ) | (865,794 | ) | ||||
| Prepaid expenses and other current assets | (685,519 | ) | 262,752 | |||||
| Accounts payable and accrued expenses | 1,960,177 | (123,958 | ) | |||||
| Accrued payroll and bonuses | 443,014 | 199,463 | ||||||
| Deferred revenue | 1,139,552 | 465,273 | ||||||
| Accrued interest - related party | 56,233 | 172,464 | ||||||
| Net cash used in operating activities | (104,683 | ) | (1,594,486 | ) | ||||
| Cash flows from investing activities | ||||||||
| Note receivable issuance | (300,000 | ) | - | |||||
| Net cash used in investing activities | (300,000 | ) | - | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from notes payable - related party | 500,000 | 1,500,000 | ||||||
| Proceeds from note payable | - | 120,000 | ||||||
| Net cash provided by financing activities | 500,000 | 1,620,000 | ||||||
| Effect of exchange rate fluctuations on cash and cash equivalents | (10,804 | ) | (1,393 | ) | ||||
| Net change in cash and cash equivalents | 84,513 | 24,121 | ||||||
| Cash and cash equivalents, beginning of the period | 928,796 | 79,847 | ||||||
| Cash and cash equivalents, end of the period | $ | 1,013,309 | $ | 103,968 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 50,833 | $ | 50,000 | ||||
| Income taxes paid | 2,817 | - | ||||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Shares issued for conversion of notes payable – related party | $ | 6,220,003 | $ | - | ||||
| Shares issued in connection with acquisition | 3,550,000 | - | ||||||
FAQ
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