AMMO, Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results


SCOTTSDALE, Ariz., June 14, 2023 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), the owner of, the largest online marketplace serving the firearms and shooting sports industries, and a leading vertically integrated producer of high-performance ammunition and components, today reported results for its Fourth Quarter and Fiscal Year 2023, ended March 31, 2023.

Fiscal Year 2023 Overview

Net Revenues of $191.4 million, a 20.3% decrease.
Gross profit margin of approximately 28.9%.
Adjusted EBITDA of $26.4 million, compared to $60.8 million.
Net loss of ($4.6) million, compared to net income of $33.2 million.
Diluted EPS of ($0.07), compared to $0.27.
Adjusted EPS of $0.16, compared to $0.46. “Marketplace” Metrics – Fiscal Year 2023

Marketplace revenue of approximately $63.1 million.
New user growth averaged 38,000 per month.
Average take rate increased to 5.6% compared to 5.1% in fiscal 2022.

Fourth Quarter 2023 Overview

Net Revenues decreased 37.7% to $43.7 million.
Gross profit margin of approximately 27.3%.
Adjusted EBITDA of $3.8 million compared to $10.7 million.
Net loss of ($2.9) million, compared to net income of $0.5 million.
Diluted EPS of ($0.03), compared to $0.00.
Adjusted EPS of $0.03, compared to $0.07. “Marketplace” Metrics – Fourth Quarter 2023

Marketplace revenue of approximately $16.7 million.
New user growth averaged 40,000 per month.
Average take rate increased to 6.0% compared to 5.4% in fiscal 2022.

Fred Wagenhals, AMMO’s Chairman & CEO, commented that “[w]e believe the increase in production capacity at our state-of-the-art Wisconsin plant, coupled with the continuing enhancement rollout to the Marketplace site, has positioned our Company to effectively navigate current market-wide headwinds resulting from the current inflationary and recessionary drivers impacting the consumer.

“We are primed to take hold of these opportunities. The addition of our newest executive management team member, Jared Smith, President & COO, supports the high level of confidence I have in AMMO’s future. Jared’s experience, the wealth of his relationships, intellect and drive are all valuable assets for our organization as we chart our path forward to a bright future through the balance of this fiscal year and beyond,” Mr. Wagenhals concluded.

Fourth Quarter and Fiscal Year 2023 Results

We ended the Fiscal 2023 with cash generated from operations of approximately $35.6M and a cash balance of $39.1M. We were able to reduce our total inventories by $12.8M in our fourth fiscal quarter as we shifted our direction to a leaner operating model focusing on higher margin classes of ammunition and increased brass sales, which also afford us higher margins. Additionally, we continue to push forward on the improvements to our Marketplace,, and expect the payment suite and cart platform to launch in the first half of our 2024 fiscal year, which should drive growth and profitability to the site.

We ended our fourth quarter with total revenues of approximately $43.7M in comparison to approximately $70.1M in the prior year quarter - this was a decrease of 37.7% from the prior year quarter. For the fiscal year, total revenues were $191.4M, decreasing 20.3% from the prior year. The decrease in revenue was mainly attributable to our ammunition segment and the inflationary impacts that are currently affecting the market. These market conditions also impacted the revenue of our Marketplace segment effecting a 7% decrease from the prior year quarter and a 2% decrease from the prior year in total. However, operating performance of our Marketplace, still remained strong and although our top line revenues were slightly impacted, our margins are still comparable to historical performance.

Our cost of revenues was approximately $31.8M for the quarter compared to $49M in the comparable prior year quarter. Cost of revenues for the full fiscal year was $136M compared to $151.5M in the prior year. This decrease was related to reduced sales volume and increased commodity costs. Accordingly, this resulted in a gross margin of $11.9M compared to $21.1M in the prior year quarter and $55.4M for the year compared to $88.8 in the prior fiscal year. As our sales volume fell in the reported period, our transition to more profitable sales activity is currently in effect for first quarter of our 2024 fiscal year by shifting our focus to more sales of our premium brass and large caliber ammunition rounds, all of which drive improved margin.  

Our balance sheet remains strong with our total current liabilities decreasing by 29% since our previous year end and our total current assets virtually unchanged, but our cash position increased $15.8M since the prior fiscal year or 68%.

For the quarter, we recorded adjusted EBITDA of approximately $3.8M, compared to prior year quarter adjusted EBITDA of $10.7M. For our fiscal year, our adjusted EBITDA was $26.4M compared to $60.8M in the prior fiscal year.

This resulted in a loss per share of $0.04 for the quarter or Adjusted Net Income per Share of $0.03 in comparison to a net income per share of $0.00 in the prior year quarter or Adjusted Net Income per Share of $0.07. For our fiscal year, a loss per share of $0.07 or Adjusted Net Income per Share of $0.16 in comparison to Net Income per share of $0.27 or Adjusted Net Income per Share of $0.46 in the prior year.

Conference Call

Management will host a conference call to discuss the Company’s Fourth Quarter and FY 2023 results at 5:00 p.m. ET today, June 14th, 2023.

Investors interested in participating in the live conference call or audio-only webcast, may join by dialing 1-866-777-2509 (domestic), 1-412-317-5413 (international), or via webcast at

Please join at least 5-10 minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for “AMMO, Inc. Fourth Quarter and Fiscal Year 2023 Conference Call.”

About AMMO, Inc.

With its corporate offices headquartered in Scottsdale, Arizona, AMMO designs and manufactures products for a variety of aptitudes, including law enforcement, military, sport shooting and self-defense. The Company was founded in 2016 with a vision to change, innovate and invigorate the complacent munitions industry. AMMO promotes branded munitions as well as its patented STREAK Visual Ammunition, /stelTH/subsonic munitions, and specialty rounds for military use via government programs. For more information, please visit:
About is the largest online marketplace dedicated to firearms, hunting, shooting and related products. Aside from merchandise bearing its logo, currently sells none of the items listed on its website. Third-party sellers list items on the site and Federal and state laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed using licensed firearms dealers as transfer agents. Launched in 1999, is an informative, secure and safe way to buy and sell firearms, ammunition, air guns, archery equipment, knives and swords, firearms accessories and hunting/shooting gear online. promotes responsible ownership of guns and firearms. For more information, please visit:

Forward Looking Statements

This document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.

Forward looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words, or the negative thereof. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Reports filed on Form 8-K.

Investor Contact:
Phone: (212) 655-0924

Source: AMMO, Inc. 

AMMO, Inc.


  March 31, 2023  March 31, 2022 
Current Assets:        
Cash and cash equivalents $39,134,027  $23,281,475 
Accounts receivable, net  29,346,380   43,955,084 
Due from related parties  -   15,000 
Inventories  54,344,819   59,016,152 
Prepaid expenses  5,126,667   3,423,925 
Current portion of restricted cash  500,000   - 
Total Current Assets  128,451,893   129,691,636 
Property and Equipment, net  55,963,255   37,637,806 
Other Assets:        
Deposits  7,028,947   11,360,322 
Patents, net  5,032,754   5,526,218 
Other intangible assets, net  123,726,810   136,300,387 
Goodwill  90,870,094   90,870,094 
Right of use assets - operating leases  1,261,634   2,791,850 
TOTAL ASSETS $412,335,387  $414,178,313 
Current Liabilities:        
Accounts payable $18,079,397  $26,817,083 
Factoring liability  -   485,671 
Accrued liabilities  4,353,354   6,178,814 
Inventory credit facility  -   825,675 
Current portion of operating lease liability  470,734   831,429 
Current portion of note payable related party  180,850   684,639 
Current portion of construction note payable  260,429   - 
Insurance premium note payable  2,118,635   - 
Total Current Liabilities  25,463,399   35,823,311 
Long-term Liabilities:        
Contingent consideration payable  140,378   204,142 
Notes payable related party, net of current portion  -   181,132 
Construction note payable, net of unamortized issuance costs  10,922,443   38,330 
Operating lease liability, net of current portion  903,490   2,091,351 
Deferred income tax liability  2,309,592   1,536,481 
Total Liabilities  39,739,302   39,874,747 
Shareholders’ Equity:        
Series A cumulative perpetual preferred Stock 8.75%, ($25.00 per share, $0.001 par value) 1,400,000 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively  1,400   1,400 
Common stock, $0.001 par value, 200,000,000 shares authorized 118,562,806 and 116,485,747 shares issued and 118,294,478 and 116,485,747 outstanding at March 31, 2023 and March 31, 2022, respectively  118,294   116,487 
Additional paid-in capital  391,940,374   385,426,431 
Accumulated deficit  (18,941,825)  (11,240,752)
Treasury Stock  (522,158)  - 
Total Shareholders’ Equity  372,596,085   374,303,566 

AMMO, Inc.

  For the Three Months Ended
March 31,
  For the Years Ended
March 31,
  2023  2022  2023  2022 
Net Revenues                
Ammunition sales $23,508,227  $48,829,370  $114,116,044  $161,459,025 
Marketplace revenue  16,662,831   17,962,465   63,149,673   64,608,516 
Casing sales  3,512,664   3,309,728   14,174,084   14,201,625 
   43,683,722   70,101,563   191,439,801   240,269,166 
Cost of Revenues  31,773,675   49,047,882   136,031,204   151,505,657 
Gross Profit  11,910,047   21,053,681   55,408,597   88,763,509 
Operating Expenses                
Selling and marketing  742,326   3,083,399   4,729,540   7,310,216 
Corporate general and administrative  7,059,882   6,010,056   24,980,079   16,986,344 
Employee salaries and related expenses  4,264,701   5,672,363   15,679,135   13,615,439 
Depreciation and amortization expense  3,328,010   3,657,154   13,278,762   13,702,148 
Total operating expenses  15,394,919   18,422,972   58,667,516   51,614,147 
Income/(Loss) from Operations  (3,484,872)  2,630,709   (3,258,919)  37,149,362 
Other Expenses                
Other income/(expense)  (3,012)  52   25,181   21,840 
Interest expense  (93,871)  (169,393)  (632,062)  (637,797)
Total other expense  (96,883)  (169,341)  (606,881)  (615,957)
Income/(Loss) before Income Taxes  (3,581,755)  2,461,368   (3,865,800)  36,533,405 
Provision for Income Taxes  (639,189)  1,933,971   730,238   3,285,969 
Net Income/(Loss)  (2,942,566)  527,397   (4,596,038)  33,247,436 
Preferred Stock Dividend  (765,625)  (765,683)  (3,105,034)  (2,668,649)
Net Income/(Loss) Attributable to Common Stock Shareholders $(3,708,191) $(238,286) $(7,701,072) $30,578,787 
Net Income/(Loss) per share                
Basic $(0.03) $(0.01) $(0.07) $0.27 
Diluted $(0.03) $0.00  $(0.07) $0.27 
Weighted average number of shares outstanding                
Basic  117,874,162   115,507,063   117,177,885   112,328,680 
Diluted  117,874,162   117,174,098   117,177,885   114,189,720 

AMMO, Inc.


  2023  2022 
Cash flows from operating activities:        
Net Income/(Loss)  (4,596,038)  33,247,436 
Adjustments to reconcile Net Loss to Net Cash provided by (used in) operations:        
Depreciation and amortization  17,519,949   17,339,093 
Debt discount amortization  83,253   38,330 
Employee stock awards  5,807,779   5,759,000 
Stock grants  179,094   252,488 
Stock for services  -   4,200 
Contingent consideration payable fair value  (63,764)  (385,750)
Allowance for doubtful accounts  191,299   2,748,250 
(Gain)/loss on disposal of assets  -   (12,044)
Reduction in right of use asset  629,140   720,491 
Warrant issued for services  213,819   718,045 
Deferred income taxes  773,111   1,536,481 
Stock issued in lieu of cash payments  -   - 
Interest on convertible promissory notes  -   - 
Paycheck protection program note forgiveness  -   - 
Loss on Jagemann Munition Components  -   - 
Stock and warrants for note conversion  -   - 
Changes in Current Assets and Liabilities        
Accounts receivable  14,417,405   (20,707,052)
Due to (from) related parties  15,000   657 
Inventories  4,671,333   (43,149,234)
Prepaid expenses  2,763,855   1,996,287 
Deposits  4,306,375   (8,826,504)
Accounts payable  (8,737,686)  9,930,191 
Accrued liabilities  (1,947,078)  2,374,686 
Operating lease liability  (647,480)  (732,468)
Net cash provided by (used in) operating activities  35,556,366   2,852,583 
Cash flows from investing activities:        
Gemini acquisition  -   (50,517,840)
Purchase of equipment  (12,541,325)  (19,218,982)
Proceeds from disposal of assets  -   59,800 
Net cash used in investing activities  (12,541,325)  (69,677,022)
Cash flow from financing activities:        
Payments on inventory facility, net  (825,675)  (265,422)
Proceeds from factoring liability  57,300,000   121,488,045 
Payments on factoring liability  (57,785,671)  (122,844,562)
Payments on assumed debt from Gemini  -   (50,000,000)
Payments on note payable - related party  (684,921)  (625,147)
Payments on insurance premium note payment  (2,134,143)  (2,208,369)
Proceeds from construction note payable  1,000,000   - 
Payments on construction note payable  (150,743)  - 
Payments on note payable  -   (4,000,000)
Sale of preferred stock  -   35,000,000 
Common stock issued for exercised warrants  101,506   943,907 
Common stock issuance costs  -   (3,199,922)
Preferred stock dividends paid  (2,960,416)  (2,524,087)
Common stock repurchase plan  (522,426)  - 
Sale of common stock  -   - 
Proceeds from paycheck protection program notes  -   - 
Proceeds from note payable related party issued  -   - 
Proceeds from note payable  -   - 
Proceeds from convertible promissory notes  -   - 
Payments on common stock repurchase and cancellation  -   - 
Net cash used in financing activities  (6,662,489)  (28,235,557)
Net increase/(decrease) in cash  16,352,552   (95,059,996)
Cash, beginning of period  23,281,475   118,341,471 
Cash and restricted cash, end of period $39,634,027  $23,281,475 

Non-GAAP Financial Measures

We analyze operational and financial data to evaluate our business, allocate our resources, and assess our performance. In addition to total net sales, net loss, and other results under accounting principles generally accepted in the United States (“GAAP”), the following information includes key operating metrics and non-GAAP financial measures we use to evaluate our business. We believe these measures are useful for period-to-period comparisons of the Company. We have included these non-GAAP financial measures in this Quarterly Report on Form 10-Q because they are key measures we use to evaluate our operational performance, produce future strategies for our operations, and make strategic decisions, including those relating to operating expenses and the allocation of our resources. Accordingly, we believe these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Reconciliation of GAAP net income to Adjusted EBITDA

  For the Three Months Ended  For the Year Ended 
   31-Mar-23   31-Mar-22   31-Mar -23   31-Mar -22 
Reconciliation of GAAP net income to Adjusted EBITDA                
Net Income (Loss) $(2,942,566) $527,397  $(4,596,038) $33,247,436 
Provision for Income Taxes  (639,189)  1,933,971   730,238   3,285,969 
Depreciation and amortization  4,568,977   4,560,990   17,519,949   17,339,093 
Interest expense, net  93,871   169,393   632,062   637,797 
Employee stock awards  1,349,806   2,860,750   5,807,779   5,759,000 
Stock grants  43,750   55,378   179,094   252,488 
Stock for services  -   -   -   4,200 
Warrants issued for services  106,910   572,537   213,819   718,045 
Other expenses, net  3,012   (52)  (25,181)  (21,840)
Contingent consideration fair value  (18,192)  (22,997)  (63,764)  (385,750)
Proxy contest fees(1)  -   -   4,724,385   - 
Other nonrecurring expenses(2)  1,248,865   -   1,248,865   - 
Adjusted EBITDA $3,815,244  $10,657,367  $26,371,208  $60,836,438 

 (1)Includes proxy contention fees of $910,000 for Employee Stock Awards issued as a result of the Settlement Agreement as discussed in our Quarterly Report on Form 10-Q.
 (2)Other nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature.

  For the Three Months Ended 
   31-Mar-23       31-Mar-22   
Reconciliation of GAAP net income to Fully Diluted EPS                 
Net Income (Loss) $(2,942,566) $(0.02) $527,397  $0.01 
Depreciation and amortization  4,568,977   0.04   4,560,990   0.04 
Interest expense, net  93,871   -   169,393   - 
Employee stock awards  1,349,806   0.01   2,860,750   0.02 
Stock grants  43,750   -   55,378   - 
Stock for services  -   -   -   - 
Warrants issued for services  106,910   -   572,537   0.01 
Contingent consideration fair value  (18,192)  -   (22,997)  - 
Proxy contest costs  -   -   -   - 
Nonrecurring expenses  1,248,865   0.01   -   0.04 
Tax effect(1)    (1,566,604)  (0.01)  (1,253,551)  (0.01)
Adjusted Net Income $3,202,556  $0.03  $8,723,448  $0.07 


 (1)Tax effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment.

  For the Years Ended 
  31-Mar-23  31-Mar-22 
Reconciliation of GAAP net income to Fully Diluted EPS                
Net Income (Loss) $(4,596,038) $(0.04) $33,247,436  $0.29 
Depreciation and amortization  17,519,949   0.15   17,339,093   0.15 
Interest expense, net  632,062   0.01   637,797   - 
Employee stock awards  5,807,779   0.05   5,759,000   0.05 
Stock grants  179,094       252,488   - 
Stock for services  -   -   4,200   - 
Warrants issued for services  213,819   -   718,045   0.01 
Contingent consideration fair value  (63,764)      (385,750)  - 
Proxy contest costs  4,724,385   0.04   -   - 
Nonrecurring expenses  1,248,865   0.01   -   - 
Tax effect(1)  (6,393,194)  (0.06)  (4,763,876)  (0.04)
Adjusted Net Income $19,272,957  $0.16  $52,808,433  $0.46 

 (1)Tax effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment.

  For the Three Months Ended
March 31,
  For the Years Ended
March 31,
  2023  2022  2023  2022 
Weighted average number of shares outstanding            
Basic  117,874,162   115,507,063   117,177,885   112,328,680 
Diluted  117,874,162   117,174,098   117,177,885   114,189,720