The Company Continues to Postpone Reporting Fourth Quarter and Full Year 2019 Results Due to Delays Caused by COVID-19
Production Resumes as Company Deemed a Provider of Essential Services
Wakefield, Massachusetts–(Newsfile Corp. – April 28, 2020) – Byrna Technologies Inc. (OTCQB: BYRN) (CSE: BYRN) (“Byrna” or the “Company”) announced that the Company’s production facilities, which were temporarily closed in March, have been reopened as they were certified an “essential service” by the Government. The Company reports that production should be sufficient to fulfill all backorders and meet continued growing demand. While shipments of finished goods have continued to be delayed by the Government mandated shutdowns put in place in response to the COVID-19 pandemic, Byrna expects to fulfill all open orders by the middle of May.
Management Sees Strong Demand for Byrna Products Continuing
As of the end of April the Company is selling the Byrna HD Personal Security Device in over 50 “brick and mortar” locations primarily in the western United States as the Company continues to sign up dealers. As the Company increases production of the Byrna HD it seeks to sign up dealers in the Midwest, Southeast and Mid-Atlantic states. Most of the Company’s 50 new locations are deemed to be providers of essential services and have remained open through the COVID-19 related shutdowns.
Online demand has also remained strong for the Company’s products. “We continue to see strong demand for our products even as some of the panic seems to have settled down and quarantines became the new normal,” noted Reilly Schueler, Director of Sales and Marketing. Added Schueler, “Because gun shows, state fairs, NASCAR events, and other large public gatherings were subject to closures, we were able to redeploy product intended for sale at such events to our waiting customers. We are seeing tremendous growth in online interest, measured by daily website visits, which climbed from a daily average of 541 in December to 3,127 in April. [see chart below]. This is translating directly in substantially higher orders volume. Management expects these visits to lead to even higher rates of conversion as the Company works through its back order and resumes same-day shipping.”
|Implied Daily Sessions||541||853||951||1,884||3,127|
|Implied Daily Visitors||432||711||811||1,539||2,572|
Bryan Ganz, the Company’s CEO projected that revenues for April will be $20,000 lower than March’s sales of approximately $280,000, due to the COVID-19 related difficulties in getting product from the factory to the distribution center. With more than a $250,000 backlog, however, the Company expects May to be an extremely strong sales month allowing the Company to book close to $1.0 million in sales in for the 2nd Quarter, ending May 31, 2020. “We hate to disappoint customers who are waiting for Byrna HD’s even a little,” mused Schueler, “but most of them are hanging in there and supporting Byrna. We are aiming to have launchers in all our customers’ hands in the next few weeks and be able to return to next day shipping.”
Financial Reporting Delays Continue due to COVID-19 Complications
The Company announced that it will take full advantage of the extension of the deadline for reporting its fourth quarter and full year 2019 results, associated filings and its Annual Information Form (the “Annual Filings”) due to logistics caused by the COVID-19 pandemic. The Company is continuing to work diligently and expeditiously to file the Annual Filings and expects them to be filed shortly. The Company, which trades on the Canadian Stock Exchange, is afforded a 45-day extension until May 14, 2020 by the Ontario Securities Commission under the “Ontario Instrument 51-502”, dated March 23, 2020 (the “Extension”).
Ensuring a safe and healthy working environment for our workforce is a primary focus for Byrna and we continue to implement and enforce additional precautionary health and safety measures. The Company confirms that there have been no material business developments since April 1, 2020 when the Company first announced that they were relying on the Extension, other than as announced in the Form 8-K dated April 15, 2020 and the press releases dated April 9, 2020 and April 20, 2020.
About Byrna Technologies Inc. (OTCQB: BYRN) (CSE: BYRN)
Byrna is an emerging non-lethal technology company, specializing in the development and manufacture of innovative less lethal equipment and munitions. For more information on the Company, please visit the corporate website here or the company’s investor relations site here. The Company recently launched its breakthrough Byrna HD personal security device, which looks to be the leading choice in the consumer and private security markets for non-lethal home protection, personal safety, and security.
Forward Looking Information
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might,” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). Forward-looking information is also identifiable in statements of currently occurring matters which may continue in the future, such as “providing the Company with”, “is currently”, “allows/allowing for”, “will advance” or “continues to” or other statements that may be stated in the present tense with future implications. All of the forward-looking information in this news release is qualified by this cautionary note.
Forward-looking information in this news release includes, but is not limited to, statements regarding the Company’s ability to continue to meet demand, ability to eliminate backorders and resume next day shipping by mid-May, its projections for the full Second Quarter, its expectation that increased site visits will lead to increased conversions when delivery lag is reduced, its ability to file its fourth quarter and full year financial statements for year ended November 30, 2019 and associated filings in the time frame projected and required, and its ability provide a healthy work environment under the conditions triggered by the COVID-19 pandemic. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Byrna at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Byrna identified and were applied by Byrna in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to the continued availability of funds to implement existing and new marketing plans, competition from existing or new products, interruptions in production or in the Company’s ability to deliver products for any reason including interruptions due to parts availability, illness or quarantines, or delays in deliveries or new or expanded shutdowns related to the Coronavirus (including reclassification of or extension of shutdowns to stores selling essential goods) or extended trade halts or embargos that disrupt the production or shipment of parts or finished goods, parts or finished goods product recalls, legal developments that impact the sale of or market for the Company’s products or prevent or threaten to prevent the Company’s sales, reduced demand due to quarantines, inability to fill orders promptly, increased costs of sales and one time transaction costs whether related to the pandemic or otherwise, negative market response to the Company’s products, or any negative events or publicity related to any Company product, spokesperson, announcement or endorsement that negatively impacts the Company’s marketing plans or reputation, reliance on third parties for audit related services, health and availability of employees and consultants working on the financial statements and audit, continued access to all the Company’s books and records notwithstanding office closures, and the Company’s ability to complete the filing of its financials for the year ended November 30, 2019 and its associated filings, and the financial and product market conditions and other events including those related to the COVID-19 pandemic.
Should one or more risk, uncertainty, contingency, or other factor materialize, or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Byrna does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
For further information contact:
Lisa Wager, CLO
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