REDHAWK ANNOUNCES YEAR END RESULTS
OCTOBER 31, 2016
Youngsville, Louisiana – RedHawk Holdings Corp. (OTCQB: IDNG) (the “Company”) announced today a net loss of $1,267,960 ($nil per diluted share) on revenues of $29,450 for the fiscal year ended June 30, 2016. Included in the reported loss were certain non-recurring costs and expenses, including approximately $450,000 of professional fees associated with certain acquision and litigation costs, approximately $300,000 of management fees principally related to the Company’s investment in a foreign limited liability company, and approximately $50,000 in research, development and testing costs associated with new products being offered by the Company in the future. The net loss for the fiscal year ended June 30, 2016 also included a $55,000 foreign currency loss incurred in connection with the Company’s pharmaceutical and medical device operations in the United Kingdom.
The loss for the fiscal year ended June 30, 2016 compares to a net loss of $396,808 ($nil per diluted share) and $105,615 ($nil per diluted share) for the fiscal year ended January 31, 2015 and the five-month transition period ended June 30, 2015, respectively. In May 2015, the Company’s board of directors approved the change of the Company’s fiscal year from January 31 to June 30.
Commenting on the fiscal year ended June 30, 2016 results, the Company said, “We invested heavily during the twelve-month period ended June 30, 2016 to pursue several strategic acquisitions, invest in critical product development and correct certain past corporate issues. While some of these expenditures will continue into fiscal year 2017, we believe we are now beginning to see the benefits of these investments.”
“During the quarter ended September 30, 2016, sales of EcoGen Europe Ltd.’s branded generic pharmaceuticals and specials topped $400,000. During this same three-month period, we completed the redesign of our Sharps and Needle Destruction Device (“SANDD”) and obtained pre-market clearance from the U.S. Food and Drug Administration to begin selling SANDD in the United States. Manufacturing of the redesigned SANDD has commenced with initial deliveries and sales of the SANDD units expected to begin during the quarter ending December 31, 2016. While initial marketing of SANDD is targeted for the United Kingdom and the Middle East countries, we expect sales of SANDD in the United States to begin during the quarter ending March 31, 2017.”
“Certain unexpected issues have come to our attention during the due diligence process and have resulted in unanticipated delays in closing of certain previously announced transactions. We will continue to pursue these strategic business and other product development opportunities in an effort to resolve these certain business concerns so that we can comfortably complete these transactions.”
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