# EDGAR Filing Document

**Accession Number:** 0001718500
**File Stem:** 0001520138-25-000276
**Filing Date:** 2025-8
**Character Count:** 24384
**Document Hash:** 180f0db505195a1d33d61e6469ab94f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001520138-25-000276.hdr.sgml**: 20250821

**ACCESSION NUMBER**: 0001520138-25-000276

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250821

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250821

**DATE AS OF CHANGE**: 20250821

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Axil Brands, Inc.
- **CENTRAL INDEX KEY:** 0001718500
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 474125218
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41958
- **FILM NUMBER:** 251238418

**BUSINESS ADDRESS:**
- **STREET 1:** 9150 WILSHIRE BOULEVARD
- **STREET 2:** UNIT 245
- **CITY:** BEVERLY HILLS
- **STATE:** CA
- **ZIP:** 90212
- **BUSINESS PHONE:** 888-638-8883

**MAIL ADDRESS:**
- **STREET 1:** 9150 WILSHIRE BOULEVARD
- **STREET 2:** UNIT 245
- **CITY:** BEVERLY HILLS
- **STATE:** CA
- **ZIP:** 90212

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Reviv3 Procare Co
- **DATE OF NAME CHANGE:** 20171003

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): August 21, 2025**

**AXIL BRANDS, INC.**

(Exact name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41958** | **47-4125218** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**9150 Wilshire Boulevard, Suite 245, Beverly Hills, California 90212**

(Address of principal executive offices, including ZIP code)

**(888) 638-8883**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | AXIL | The NYSE American LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On August 21, 2025, AXIL Brands, Inc. (the "Company") issued a press release announcing its consolidated financial results for the fiscal year ended May 31, 2025. A copy of the Company's press release is furnished as [Exhibit 99.1](axil-20250821_8kex99z1.htm) to this Current Report on Form 8-K and is incorporated herein by reference.

Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and in this Item 2.02 have been furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing regardless of any general incorporation language.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](axil-20250821_8kex99z1.htm) | [Press Release of AXIL Brands, Inc., dated August 21, 2025.](axil-20250821_8kex99z1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **AXIL BRANDS, INC.** | **AXIL BRANDS, INC.** |
| Date: August 21, 2025 | By: | /s/ Jeff Toghraie |
|  | Name: | Jeff Toghraie |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**AXIL Brands, Inc. Reports Strong Fiscal Year 2025 Financial Results**

LOS ANGELES, **August 21, 2025** (GLOBE NEWSWIRE) – AXIL Brands, Inc. ("AXIL," "we," "us," "our," or the "Company") (NYSE American: AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® hair and skin care products, today announced financial and operational results for fiscal year ended May 31, 2025.

**Financial Highlights for Fiscal Year Ended May 31, 2025**

All comparisons are to the full year of the prior year, unless otherwise noted.

&nbsp;&nbsp;&nbsp;&nbsp;· Net sales in fiscal 2025 were $26.3 million, as compared to $27.5 million in fiscal 2024

&nbsp;&nbsp;&nbsp;&nbsp;· Gross profit as a percentage of sales was 71.0% for fiscal 2025, compared to 73.4% in the prior year

&nbsp;&nbsp;&nbsp;&nbsp;· Operating expenses were 66.6% of net sales in fiscal 2025, an improvement from 67.9% in fiscal 2024

&nbsp;&nbsp;&nbsp;&nbsp;· Net income in fiscal 2025 was $0.9 million, as compared to $2.0 million in fiscal 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA in fiscal 2025 was $2.4 million, an 21.3% increase from $2.0 million in fiscal 2024

&nbsp;&nbsp;&nbsp;&nbsp;· Net cash provided by operating activities for fiscal 2025 was $1.9 million, compared to $3 thousand in
fiscal 2024

&nbsp;&nbsp;&nbsp;&nbsp;· Cash on hand as of May 31, 2025 was $4.8 million, up from $3.3 million as of May 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;· Basic and diluted earnings per share for fiscal 2025 were approximately $0.13 and $0.10, respectively,
compared to $0.57 and $0.21, respectively, in the prior year

**Recent Business Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;· Secured a significant wholesale agreement with a leading membership-based national retailer, with an initial
purchase order made in the first quarter of FY2026 — a major step in expanding our retail footprint and consumer reach

&nbsp;&nbsp;&nbsp;&nbsp;· Appointed a veteran contractor with deep industry experience to lead our hair and skin care division,
strengthening our capabilities and working to accelerate brand growth

&nbsp;&nbsp;&nbsp;&nbsp;· Remained on target with our supply chain transition plan, advancing domestic manufacturing development
and operational realignment to reduce tariff exposure and build long-term resilience

&nbsp;&nbsp;&nbsp;&nbsp;· Incorporated new subsidiary

&nbsp;&nbsp;&nbsp;&nbsp;· Featured in leading military publications including *Military Times*, *Air Force Times*, *Marine Corps Times*, and *Navy Times*, spotlighting the brand's innovation in hearing protection and further strengthening its
position among tactical and professional users

"Fiscal 2025 was a pivotal year for AXIL as we continued to execute our strategic plan and delivered solid results amid a dynamic operating environment," said Jeff Toghraie, Chairman and Chief Executive Officer of AXIL Brands, Inc. "Despite global trade challenges, we achieved our third consecutive year of profitability, generating $0.9 million in net income and an 21% increase in Adjusted EBITDA year-over-year. These results reflect our disciplined approach to growth — optimizing marketing and operating expenses without compromising on innovation or customer engagement. Our core business remained resilient, evidenced by gross margins of 71% and significantly improved operating cash flow.

"To reduce tariff exposure and enhance stability in our expansion plans, we have accelerated efforts to relocate a substantial portion of our manufacturing and operations to the United States. We believe these changes will deliver significant long-term benefits.

"Equally important, we secured a major wholesale partnership with one of the nation's largest membership-based retailers — a milestone that we expect will drive meaningful top-line growth beginning in fiscal 2026. Beyond the immediate financial impact, we believe this relationship will substantially expand our national reach and elevate brand visibility at scale — a powerful endorsement of our product strength and market readiness.

"We also launched Sharper Vision Marketing, a wholly-owned subsidiary designed with the intent to turn our internal digital marketing expertise into an external revenue stream while lowering our own customer acquisition costs. At the same time, we advanced our supply chain transition strategy — hitting key milestones in our shift toward U.S.-based manufacturing, which is already helping us offset new tariff pressures and reduce reliance on overseas suppliers.

"In our Reviv3® hair and skin care segment, we added seasoned leadership in an effort to accelerate expansion. Early traction is encouraging, and we expect that this segment will become an increasingly meaningful contributor to our growth story.

"We enter fiscal 2026 with strong momentum, a solid balance sheet, and the flexibility to invest in growth without relying on outside capital," concluded Mr. Toghraie. "While we remain mindful of broader macroeconomic uncertainty, we're focused on scaling our multi-channel distribution and product innovation to drive sustainable, long-term value for shareholders."

**Use of Non-GAAP Financial Measures**

The Company calculates EBITDA by taking net income calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), and adjusting for income taxes, interest income or expense, and depreciation and amortization. The Company calculates adjusted EBITDA as EBITDA, further adjusted for stock-based compensation. Adjusted EBITDA is also presented as a percentage of revenue, which is calculated by dividing the non-GAAP Adjusted EBITDA for a period by revenue for the same period. Other companies may calculate EBITDA and adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. The Company believes that these non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to the Company's financial condition and results of operations, and management considers EBITDA and adjusted EBITDA important indicators in evaluating the Company's business on a consistent basis across various periods for trend analyses. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements and are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors should not rely on any single financial measure to evaluate our business. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measure, net loss, calculated in accordance with GAAP is included in a schedule to this press release.

**AXIL BRANDS, INC. AND SUBSIDIARIES**

**CONSOLIDATED EBITDA and ADJUSTED EBITDA**

**FOR THE YEARS ENDED MAY 31, 2025 and MAY 31, 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net income (GAAP) | $854988 | $2003134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (benefit) for income taxes | 453828 | (220205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income, net | (135915) | (177833) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 148498 | 130610 |
| **Total EBITDA (Non-GAAP)** | 1321399 | 1735706 |
| **Adjustments:** |  |  |
| Stock-based compensation | 1108934 | 267183 |
| **Total Adjusted EBITDA (Non-GAAP)** | $2430333 | $2002889 |
| Sales, net (GAAP) | $26257522 | $27498539 |
| **Adjusted EBITDA as a percentage of Sales, net (Non-GAAP)** | 9.3% | 7.3% |

---

**AXIL BRANDS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **May 31, 2025** | **May 31, 2024** |
| ASSETS |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $4769854 | $3253876 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 1003945 | 509835 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 2533658 | 3394023 |
| &nbsp;&nbsp;&nbsp;Due from related party | 222 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 947969 | 809126 |
| &nbsp;&nbsp;&nbsp;Total Current Assets | 9255648 | 7966860 |
| OTHER ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 412261 | 260948 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 403591 | 309104 |
| &nbsp;&nbsp;&nbsp;Right of use asset | 579121 | 36752 |
| &nbsp;&nbsp;&nbsp;Deferred tax asset | 46239 | 231587 |
| &nbsp;&nbsp;&nbsp;Other assets | 20720 | 16895 |
| &nbsp;&nbsp;&nbsp;Goodwill | 2152215 | 2152215 |
| &nbsp;&nbsp;&nbsp;Total Other Assets | 3614147 | 3007501 |
| TOTAL ASSETS | $12869795 | $10974361 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $866573 | $967596 |
| &nbsp;&nbsp;&nbsp;Customer deposits | 67412 | 154762 |
| &nbsp;&nbsp;&nbsp;Contract liabilities- current | 757355 | 905311 |
| &nbsp;&nbsp;&nbsp;Note payable- current | 3574 | 146594 |
| &nbsp;&nbsp;&nbsp;Due to related party |  | 11798 |
| &nbsp;&nbsp;&nbsp;Lease liability, current | 212543 | 36752 |
| &nbsp;&nbsp;&nbsp;Income tax liability | 310369 | 242296 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 244998 | 332936 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities | 2462824 | 2798045 |
| LONG TERM LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability, long term | 404669 |  |
| &nbsp;&nbsp;&nbsp;Note payable, long term | 136655 |  |
| &nbsp;&nbsp;&nbsp;Contract liabilities- long term | 205939 | 480530 |
| &nbsp;&nbsp;&nbsp;Total Long Term Liabilities | 747263 | 480530 |
| Total Liabilities | 3210087 | 3278575 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies |  |  |
| STOCKHOLDERS' EQUITY: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value; 28,000,000 and 300,000,000 shares authorized as of May 31, 2025 and May 31, 2024, respectively; 27,773,500 and 42,251,750 shares issued and outstanding as of May 31, 2025 and May 31, 2024, respectively | 2777 | 4225 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value: 15,000,000 and 450,000,000 shares authorized as of May 31, 2025 and May 31, 2024, respectively; 6,657,717 and 5,908,939 shares issued and outstanding as of May 31, 2025 and May 31, 2024, respectively | 666 | 591 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 8935547 | 7825240 |
| &nbsp;&nbsp;&nbsp;Retained Earnings (Accumulated deficit) | 720718 | (134270) |
| Total Stockholders' Equity | 9659708 | 7695786 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $12869795 | $10974361 |

---

**AXIL BRANDS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE YEARS ENDED MAY 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Sales, net | $26257522 | $27498539 |
| Cost of sales | 7615954 | 7321838 |
| Gross profit | $18641568 | $20176701 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | $11653942 | $13449054 |
| &nbsp;&nbsp;&nbsp;Compensation and related taxes | 847150 | 949387 |
| &nbsp;&nbsp;&nbsp;Professional and consulting | 3275731 | 2705557 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1703380 | 1569323 |
| &nbsp;&nbsp;&nbsp;Total Operating Expenses | $17480203 | $18673321 |
| INCOME FROM OPERATIONS | $1161365 | $1503380 |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;Gain on settlement |  | 79182 |
| &nbsp;&nbsp;&nbsp;Other income | 11536 | 22534 |
| &nbsp;&nbsp;&nbsp;Interest income | 139813 | 182225 |
| &nbsp;&nbsp;&nbsp;Interest expense and other finance charges | (3898) | (4392) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | $147451 | $279549 |
| INCOME BEFORE PROVISION FOR INCOME TAXES | $1308816 | $1782929 |
| Provision (benefit) for income taxes | 453828 | (220205) |
| NET INCOME | $854988 | $2003134 |
| Deemed dividend on preferred stock buyback | $— | $1329588 |
| Net income available to common shareholders | $854988 | $3332722 |
| NET INCOME PER COMMON SHARE: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.13 | $0.57 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.10 | $0.21 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 6440476 | 5868570 |
| &nbsp;&nbsp;&nbsp;Diluted | 8217083 | 16168181 |

---

**AXIL BRANDS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE YEARS ENDED MAY 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $854988 | $2003134 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 148498 | 130610 |
| &nbsp;&nbsp;&nbsp;(Recovery)/provision for credit losses | (4519) | 25471 |
| &nbsp;&nbsp;&nbsp;(Reversal of inventory obsolescence)/Inventory Obsolescence | (46895) | 46895 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 1108934 | 267183 |
| &nbsp;&nbsp;&nbsp;Gain on forgiveness of account payable | (218699) |  |
| &nbsp;&nbsp;&nbsp;Gain on settlement |  | (79182) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 187922 | (231587) |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (489591) | (118290) |
| &nbsp;&nbsp;&nbsp;Inventory | 907260 | (2129054) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (142668) | (7766) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 117677 | 138172 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | (71699) | 4298 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | (422547) | (47207) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1928661 | 2677 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of intangibles | (180815) | (22080) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (213483) | (138445) |
| NET CASH USED IN INVESTING ACTIVITIES | (394298) | (160525) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Repurchase of preferred stock |  | (1246490) |
| &nbsp;&nbsp;&nbsp;Repayment of equipment financing |  | (2200) |
| &nbsp;&nbsp;&nbsp;Repayment of note payable | (6365) | (25994) |
| &nbsp;&nbsp;&nbsp;Advances from a related party | 6950210 | 8939403 |
| &nbsp;&nbsp;&nbsp;Reayments to a related party | (6962230) | (9085677) |
| NET CASH USED IN FINANCING ACTIVITIES | (18385) | (1420958) |
| NET INCREASE (DECREASE) IN CASH | 1515978 | (1578806) |
| CASH - Beginning of year | 3253876 | 4832682 |
| CASH - End of year | $4769854 | $3253876 |

---

**About AXIL Brands**

AXIL Brands (NYSE American: AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL® brand and premium hair and skincare products under its in-house Reviv3® brand - selling products in the United States, Canada, the European Union, and throughout Asia.

To learn more, please visit the Company's AXIL® website at <u>www.axilbrands.com</u> and its Reviv3® website at <u>www.reviv3.com</u>

**Forward-Looking Statements** 

This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as "anticipate," "believe," "expect," "continue," "will," "may," "prepare," "should," and "focus," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management's beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management's control and may cause the Company's results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company's ability to grow its net sales and operations, including developing new and improved products, diversifying and expanding its distribution and retail channels, and expanding internationally, and perform in accordance with any guidance; (ii) the Company's ability to generate sufficient revenue to support the Company's operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays the Company may experience in implementing its cost savings and efficiency initiatives; (iv) the Company's ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of the Company's customers, potentially increasing the negative impact to the Company by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which the Company operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase the Company's product costs and other costs of doing business, and reduce the Company's earnings; (vii) the Company's ability to engage in acquisitions, investments, partnerships, strategic alliances or dispositions when desired; (viii) the Company's ability to successfully accelerate its supply chain transition strategy and achieve the intended benefits; and (ix) the impact of unstable market and general economic conditions on the Company's business, financial condition and stock price, including inflationary cost pressures, the possibility of an economic recession and other macroeconomic factors, geopolitical events, and uncertainty, increased tariffs and other trade restrictions and barriers, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, including the effects of the Ukraine-Russia conflict and conflict in the Middle East, and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

**Investor Relations:**

Todd McKnight

+1 (917) 349-2175

<u>investors@goaxil.com</u>