LAFAYETTE, La., Dec. 18, 2020 /PRNewswire/ -- RedHawk Holdings Corp. (OTC: SNDD) ("RedHawk" or the "Company"), a diversified holding company primarily engaged in sales and distribution of medical devices, announced today financial results for the quarter ended September 30, 2020, including an 800% increase in revenues for the quarter ended September 30, 2020 when compared to the comparable three month period ended September 30, 2019.
For the twelve month period ended September 30, 2020, revenues totaled $1,530,258 as compared to $132,896 for the comparable twelve month period ended September 30, 2019. The increase in revenues between periods was primarily a result of increased sales of the Company's SANDD mini™ to school systems and first responders, and expansion of the Company's product line to include Personal Protection Equipment ("PPE"). The Company expects this trend of increased revenues to continue into the immediate future.
For the quarter ended September 30, 2020, RedHawk announced a net loss from operations of $107,145 on revenues of $447,339 as compared to a net loss from operations of $197,898 on revenues of $50,558 for the comparable three month period ended September 30, 2019. The net loss for the September 30, 2020 quarter resulted primarily from increased general and administrative expense from the addition of the Company's new Chief Executive Officer, lower sales margins on certain of the Company's PPE products and continued research and development cost on the re-designed SANDD Pro™. In November 2020, the Company announced it was reducing the levels of certain of its PPE inventory in order to increase its marketing focus on its line of needle incineration devices including the recent launch of the SANDD Pro™.
Commenting on the results for the September 30, 2020 quarter, G. Darcy Klug, RedHawk's Chairman and Chief Financial Officer, said, "A key objective of the September 30, 2020 quarter was to re-position the marketing focus of our medical device sales. As businesses, schools and first responders began to re-open during the quarter, we started re-directing our marketing attention away from the inventory of our PPE soft goods and returned our primary marketing focus to our SANDD™ line of needle incineration devices, especially the newly launched SANDD Pro™. At this time, however, we do expect to continue offering our line of UV sterilization products.
The decision to reduce our inventory levels of PPE soft goods resulted in lower profit margins for the three month period ended September 30, 2020 (40.3%) when compared to the immediately previous quarter ended June 30, 2020 (49.1%). The increased focus on SANDD™, our needle incineration products, during this three month period ended September 30, 2020, however, allowed us to develop marketing strategies to resume offering for sale our line of the SANDD mini™, the SANDD HP™ and the SANDD FR™ needle incineration devices. It also allowed us to complete the re-engineering of the SANDD Pro™ culminating with its production launch in November 2020. We believe the timing of our launch of the SANDD Pro™ will be very beneficial to the future execution of our business model."
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy Corp., is a diversified holding company which, through its subsidiaries, is engaged in the 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, please visit: http://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 Annual Report on Form 10-K. 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.
G. Darcy Klug, Chairman and CFO
Philip C. Spizale, CEO
Stephanie Prince, Managing Director
SOURCE RedHawk Holdings Corp.