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Solis Tek Inc. Announces Financial Results for First Quarter of 2017
Company records 12% increase in year-over-year revenue; Increased Gross Margins to 38.6% from 35.8%
CARSON, CA–(Marketwired – May 08, 2017) – Solis Tek Inc. (OTCQB: SLTK), a leading provider of digital lighting equipment for hydroponic cannabis cultivation, reported record revenues for the quarter ended March 31, 2017 of $2,901,826 compared to revenue of $2,584,668 in the first quarter of 2016. This represents a 12% increase in revenue year-over-year. Gross profit for the quarter ended March 31, 2017 and 2016, was $1,120,522 and $925,957, respectively. The gross profit increase of $194,565, or 21%, was primarily due to an increase in revenue and continued focus on internal efficiencies.
Business and Financial Summary for Q1 2017
- Company had revenues of $2,901,826 for Q1 2017; up 12% from first quarter of 2016;
- Net loss of $3,751,987 for Q1 2017 due to significant non-cash costs of $3,663,154;
- SG&A expenses increased $4,010,961 to $4,764,655 due to a one-time stock compensation expense of $3,638,154;
- Gross Profit of $1,120,522 for first quarter of 2017; up 21% from same period in 2016;
- Gross Margins increased to 38.6% in 2017 up from 35.8% in the first quarter of 2016;
- Cash balances increased 50.4% since December 31, 2016;
- Non-GAAP Adjusted EBITDA loss of $(46,004);
- Dennis G. Forchic named Chief Executive Officer;
- Co-Founder Alan Lien named Chairman of Board, in addition to his prior roles of President and Chief Financial Officer
Dennis G. Forchic, Chief Executive Officer of Solis Tek commented, “In the first quarter of 2017, we delivered record top line revenue and significantly improved gross margins. Our strong revenue performance drove record gross profit for Solis Tek and although net income was negative according to GAAP, on a Non-GAAP adjusted basis we were almost break-even for the quarter.”
As a company focused on providing products and solutions to commercial and non-commercial cannabis cultivators, we are uniquely positioned to capitalize on the rapid growth of the cannabis market. Solis Tek is a strong nationally recognized brand in lighting for the cannabis industry and has established itself as a supplier of lighting to top growers for nearly a decade. Our first quarter of 2017 was highlighted by a number of new clients acquiring our digital lighting products as well as a number of significant expansion projects from our existing customers.
Dennis G. Forchic, Chief Executive Officer of Solis Tek
I believe Solis Tek is poised to continue to build market share within the cannabis industry and I am excited to have joined the Company at an inflection point in its growth and path towards maximizing its potential.
The Company reported selling, general and administrative (“SG&A”) expenses for the first quarter of 2017 of $4,764,655 compared to $753,694 during the same period in 2016, an increase of $4,010,961 or 532%. The increase in SG&A expense was primarily due to increases in stock compensation costs, payroll, and marketing to support the increase in revenues and increase in bad debt expense. Stock compensation expense for the first quarter of 2017 was $3,638,154 compared to $36,000 for the same period in 2016.
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About Solis Tek:
Solis Tek is a vertically integrated technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial cannabis growers in both the medical and recreational space in legal markets across the U.S. For nearly a decade, growers have used Solis Tek’s digital lighting solutions to increase yield and lower costs to maximize their return on investment. The Company’s customers include retail stores, distributors and commercial growers in the United States and abroad. For more information please visit our website www.solis-tek.com.
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