RedHawk Reports Fiscal Year 2019 Results
LAFAYETTE, Louisiana, Oct. 16, 2019 /PRNewswire/ -- RedHawk Holdings Corp. (OTC: SNDD) ("RedHawk" or the "Company") a diversified holding company engaged in sales and distribution of medical devices, branded generic pharmaceutical drugs, commercial real estate investment and leasing, point of entry full-body security systems, and specialized financial services, announced today financial results for the fiscal year 2019, ended June 30, 2019.
For the full 2019 fiscal year, RedHawk reported a net loss from operations of $661,943 and net revenues of $129,006. For the comparable twelve-month period ended June 30, 2018, RedHawk reported a net loss from operations of $437,664 and net revenues of $275,845. Lower revenues in the 2019 fiscal year versus the 2018 fiscal year resulted from the Company's mid-year strategic decision to use its available capital to settle certain ongoing litigation and redirect its business focus from lower profit margin generic pharmaceuticals to the research, development and launch of the Company's line of SANDD™ needle incineration units.
The fiscal 2019 results included approximately $210,000 of non-recurring legal, engineering and research and development costs related primarily to the Company's launch of its line of SANDD™ needle incineration devices.
Including approximately $600,000 of non-recurring litigation costs associated with the resolution of certain litigation, RedHawk reported a net loss of $1,215,884 for the fiscal year ended June 30, 2019 as compared to a net loss of $910,062 for the comparable twelve-month period ended June 30, 2018.
"We ended the 2019 fiscal year by closing old doors and opening exciting new doors," said G. Darcy Klug, Chairman and Interim Chief Executive Officer. "Some of the highlights for 2019 include:
- In March 2019, we settled certain protracted litigation and returned more than 52 million shares of our common stock back into our treasury;
- In May 2019, we completed an exchange agreement to return approximately 114 million shares back into our treasury and use a comparable number of shares to convert approximately $575,000 of debt into equity;
- In July 2019, Dr. Drew Pinsky (commonly known as "Dr. Drew") signed an agreement to become the Company's exclusive spokesperson for its Sharps and Needle Destruction Device ("SANDD") mini™ and its SANDD Pro™ needle incineration devices (collectively the "SANDD™ Products") and any related products and/or accessories;
- In September 2019 we successfully completed $500,000 in debt financing. The proceeds are being used to retire certain existing debt and provide working capital for organic growth;
- In September 2019 we completed a limited, but very successful, marketing campaign designed to evaluate potential interest sales of, the SANDD mini™ needle incineration unit into the Texas Independent School Systems. We are now positioned to initiate similar campaigns in California and across the Gulf Coast;
- In September 2019 we engaged PCG Advisory to assist us in delivering the RedHawk message to the investment community;
- In October 2019, we began to expand the number of contracted independent sales representatives in order to launch the sale of our SANDD mini™ into the State of California and across the Gulf Coast;
- In October 2019, we added a seasoned industry supply chain and medical device veteran to our Board of Directors who will be instrumental in the economical production and profitable sale of our line SANDD™ Products;
- Today, we launched our newly redesigned corporate website at www.redhawkholdingscorp.com
"We believe that RedHawk is now well positioned for the year ahead and beyond and we look forward to increasing the distribution of our innovative and affordable SANDD™ line of needle incineration devices," concluded Mr. Klug.
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy Corp., is a diversified holding company which, through its subsidiaries, is engaged in 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 the Carotid Artery Digital Non-Contact Thermometer. 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, go to: www.redhawkholdingscorp.com.
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 may differ materially from that projected or suggested herein due to certain risks and uncertainties. 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.
+1 (337) 235-2924
G. Darcy Klug, Chairman, CEO and CFO
+1 (337) 269-5933
Stephanie Prince, Managing Director
+1 (646) 762-4518
SOURCE RedHawk Holdings Corp.