USLG Reports Fiscal 2022 Third Quarter Results, Record Revenue for Cortes Campers; Outlook Improving
EUCLID, OH / ACCESSWIRE / November 23, 2022 / USLG, Inc. (OTC PINK:USLG) today announced its financial results for the third quarter of 2022, the three months ended September 30, 2022.
Recent Highlights
Net sales for the three months ended September 30, 2022 were approximately $0.5 million, almost 25 times that of the prior-year period
Net loss from continuing operations was $0.7 million, versus $0.2 million in the third quarter of 2021, reflecting investments in staffing, marketing, and expansion
As of September 30, 2022, the Company's backlog was approximately $5.06 million, versus $5.1 million as of June 30, 2022
The Company continues to add new states to its dealership territories - including, most recently, California - and remains on track for increased deliveries of Cortes Campers in the fourth quarter in 2022
USLG met with investors and analysts at the LD Micro Conference on October 26, and the associated webcast presentation is available for viewing on the Company's website
"As promised, we delivered a record number of Cortes Campers during the third quarter and are on track for even higher shipments going forward," said Anthony Corpora, Chief Executive Officer. "Revenue rose to $0.5 million, and we continued to invest in expanding our dealership base to key states across the U.S. including, after the quarter, California, where our partnership with Hamilton & Jackson Investments is already resulting in inquiries and additional orders. We're also on schedule with regard to higher production levels which, we anticipate, will drive the Company to become cash flow positive during the first half of 2023. With our current backlog, manufacturing technology, unique camper attributes and strong demand, we are well positioned to see rapid growth in the quarters to come."
Third Quarter 2022 Results
Net sales for the three months ended September 30, 2022 were $0.5 million compared with $21,000 in the prior-year period, reflecting sales by the Company's Cortes Campers subsidiary. Selling, general, and administrative expenses ("SG&A") were $0.5 million in the third quarter of 2022 versus $0.2 million in 2021 - primarily due to investments in marketing, sales, and staffing - and the Company posted a net loss from continuing operations of $0.7 million in 2022 versus $0.2 million in the prior-year period.
Balance Sheet Highlights
As of September 30, 2022, the Company had approximately $68,000 of cash compared with $286,000 of cash as of December 31, 2021. Total current liabilities as of the end of the third quarter were $1.8 million compared with $2.4 million as of December 31, 2021.
About USLG
US Lighting Group (OTC:USLG) has three subsidiaries which design and market various products: Cortes Campers, LLC, for molded fiberglass travel trailers and campers; Fusion X Marine, LLC, for high-performance boats; Futuro Houses, LLC, for fiberglass houses; and one subsidiary, Mig Marine Corp., which manufacturers composite products. The Company and its subsidiaries have manufacturing and R&D facilities in Cleveland, Ohio. For additional information: uslightinggroup.com
Forward-Looking Statements
Certain statements in this news release, including, but not limited to, reference to distribution, demand, orders, sales goals, design effects, growth of the production and industries, may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934 and are subject to the safe harbor created by those rules. Statements included in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements are typically, but not always, identified by the words: believe, expect, anticipate, intend, estimate, and similar expressions or which by their nature refer to future events. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from those indicated by these statements.
Investor Relations Contact:
Chris Witty
646-438-9385
cwitty@darrowir.com
Tables to Follow
US LIGHTING GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) / (Combined)
For the Three Months ended | For the Nine Months ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 516,000 | $ | 21,000 | $ | 641,000 | $ | 23,000 | ||||||||
Cost of goods sold | 528,000 | - | 754,000 | 3,000 | ||||||||||||
Gross profit (loss) | (12,000 | ) | 21,000 | (113,000 | ) | 20,000 | ||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 526,000 | 240,000 | 1,134,000 | 859,000 | ||||||||||||
Product development costs | 78,000 | 2,000 | 123,000 | 41,000 | ||||||||||||
Total operating expenses | 604,000 | 242,000 | 1,257,000 | 900,000 | ||||||||||||
Loss from operations | (616,000 | ) | (221,000 | ) | (1,370,000 | ) | (880,000 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Other income (expense), net | (4,000 | ) | 3,000 | 60,000 | 3,000 | |||||||||||
Extinguishment of debt - related party | - | - | - | 9,000 | ||||||||||||
Extinguishment of debt | - | 52,000 | - | 52,000 | ||||||||||||
Unrealized gain (loss) | (32,000 | ) | (9,000 | ) | (288,000 | ) | 195,000 | |||||||||
Realized gain (loss) | 18,000 | - | (18,000 | ) | - | |||||||||||
Interest income | 1,000 | 7,000 | 4,000 | 7,000 | ||||||||||||
Interest expense, net | (40,000 | ) | (17,000 | ) | (56,000 | ) | (17,000 | ) | ||||||||
Interest expense, related party | - | (19,000 | ) | - | (75,000 | ) | ||||||||||
Gain on disposal of fixed assets | 10,000 | - | 23,000 | - | ||||||||||||
Total other income (expense) | (47,000 | ) | 17,000 | (275,000 | ) | 174,000 | ||||||||||
Net loss from continuing operations | (663,000 | ) | (204,000 | ) | (1,645,000 | ) | (706,000 | ) | ||||||||
Net income from sale of discontinued operations | - | - | - | 3,915,000 | ||||||||||||
Net loss from discontinued operations | - | (7,000 | ) | - | (158,000 | ) | ||||||||||
Net income (loss) | $ | (663,000 | ) | $ | (211,000 | ) | $ | (1,645,000 | ) | $ | 3,051,000 | |||||
Basic loss per share from continuing operations | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Basic income (loss) per share from discontinued operations | $ | - | $ | (0.00 | ) | $ | - | $ | 0.04 | |||||||
Basic income (loss) per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | 0.03 | |||||
Diluted income (loss) per share from discontinued operations | $ | - | $ | (0.00 | ) | $ | - | $ | 0.03 | |||||||
Weighted average common shares outstanding, basic | 97,848,735 | 97,834,996 | 97,982,618 | 97,310,548 | ||||||||||||
Weighted average common shares outstanding, diluted | 97,848,735 | 97,834,996 | 97,982,618 | 97,310,548 | ||||||||||||
US LIGHTING GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | |||||||
ASSETS | (Unaudited) | (Combined) | ||||||
Current Assets: | ||||||||
Cash | $ | 68,000 | $ | 289,000 | ||||
Accounts Receivable | 32,000 | - | ||||||
Prepaid expenses and other current assets | 82,000 | 157,000 | ||||||
Inventory | 177,000 | 65,000 | ||||||
Deposits and other assets | - | 9,000 | ||||||
Investment in trading securities | - | 1,647,000 | ||||||
Total Current Assets | 359,000 | 2,167,000 | ||||||
Property and equipment, net | 1,982,000 | 1,848,000 | ||||||
Total Assets | $ | 2,341,000 | $ | 4,015,000 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 341,000 | $ | 77,000 | ||||
Accrued expenses | - | 33,000 | ||||||
Customer advance payments | - | 10,000 | ||||||
Accrued payroll to a former officer | 125,000 | 686,000 | ||||||
Convertible notes payable | - | 60,000 | ||||||
Loan payable- current portion | 101,000 | 82,000 | ||||||
Loans payable, related party | 1,202,000 | 1,458,000 | ||||||
Total Current Liabilities | 1,769,000 | 2,406,000 | ||||||
Loans payable, net of current portion, related party | 5,709,000 | - | ||||||
Loans payable, net of current portion | 280,000 | 344,000 | ||||||
Total Liabilities | 7,758,000 | 2,750,000 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity (Deficit): | ||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
Common stock, $0.0001 par value, 100,000,000 shares authorized; 98,648,735 and 97,848,735 shares issued and outstanding, respectively | 10,000 | 10,000 | ||||||
Additional paid-in-capital | 19,519,000 | 17,796,000 | ||||||
Accumulated deficit | (24,946,000 | ) | (16,541,000 | ) | ||||
Total Shareholders' (Deficit) Equity | (5,417,000 | ) | 1,265,000 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ | 2,341,000 | $ | 4,015,000 | ||||
SOURCE: US Lighting Group, Inc.
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