TX HOLDINGS REPORTS RESULTS FOR 2022 FISCAL YEAR

ASHLAND, Ky., Oct. 18, 2022 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE:                                            

• Revenue for year ended September 30, 2022, increased 14% as compared to 2021
  
  

• Net income for the year ended September 30, 2022, was $380,871 as compared to net income of $133,803 in 2021
  
  

• Gross profit for year ended September 30, 2022, increased 51% as compared to 2021
  
  

• Fourth consecutive year in which the company has posted net income
  
  

• First year of operation the Company’s earnings per share rounds to $0.01
  
  

TX Holdings, Inc. (OTC Markets PINK: TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for the 2022 fiscal year. During the fiscal year 2022, the company reported annual revenue of $3,908,031, a 13.6% increase when compared to the same period the prior year. Net income for fiscal year 2021 was $380,871 an income increase of $247,067, when compared to a net income of $133,803 for the prior fiscal year.

Mr. Shrewsbury, the company’s CEO and Chairman, stated that:

“Our 9/30/22 fiscal year represents the fourth consecutive year in which the Company was successful in achieving positive net income and second consecutive year in realizing positive cash flows from operating activities. We are very pleased by our improved operational results, driven by our efforts to increase product demand, and focusing our sales efforts on our higher margins’ products. The increase in sales and gross profit of 14% and 51%, respectively, during the current fiscal year over the prior year, reflects the success of the Company’s ongoing operational strategy.”

Fiscal Year 2022 - Financial Summary

Revenue for the fiscal year ended September 30, 2022, was $3,908,031 as compared to $3,440,763 for the same period in the prior year, an increase of $467,268 or 13.6%.

Cost of goods sold was $2,917,197 as compared to cost of goods sold of $2,785,813 for the same period the prior year, an increase of $132,384 or 4.8 %.

Gross profit for the fiscal year ended September 30,2022 was 25.3% as a percentage of revenue compared to 19.0% the prior fiscal year.

Operating expenses for the fiscal year ended September 30, 2022, were $572,251 as compared to $512,088 for the fiscal year ended September 30, 2021, an increase of $60,163 or 11.7%.

Other income/expense for the fiscal year ended September 30, 2022, resulted in a loss of $36,712 as compared to a loss of $9,059 in the same period the prior year. The loss variance of $27,653 was the result of a $20,000 charitable donation during the current fiscal year.

Net income for the current fiscal year was $380,871, compared to net income of $133,803, incurred in the 2021 fiscal year.

At September 30, 2022, cash and cash equivalents were $108,966 compared to $59,267 at September 30,2021. Net cash provided by operating activities was $146,456 during the fiscal year ended September 30, 2022 as compared to $23,138 during the same fiscal period in the prior year. During the current fiscal year ended September 30, 2022, net cash used by financing activities was $96,757 due to repayment of bank loan, and stockholder’s advances. Net cash provided by financing activities from stockholder’s advances was $19,342 during the same period in the prior fiscal year.

Accounts receivable were $604,173 as of September 30, 2022, as compared to $430,803 as of September 30, 2021, an increase of $173,370 or 40.2%. The higher sales during the current fiscal year account for the increase in receivables.

Inventory was $2,236,175 as of September 30, 2022, an increase of $369,754 or 19.8% as compared to September 30, 2021.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law.  When used, the words "believe", "anticipate", "estimate", "project", "should", "expect," “plan”, “assume” and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance.  Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: reliance upon indebtedness furnished or guaranteed by our CEO; risks related to substantial indebtedness; our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in “penny stocks;” the continued availability of certain financing provided by our CEO. Any forward-looking statement in this release speaks only as of the date on which it is made.  We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be apply to us at certain times.

CONTACT: Contact: William “Buck” Shrewsbury Chairman and CEO TX Holdings, Inc. (606) 928-1131