Company Realizes Impressive $2.7 Million in Q1 Revenue at Strong 21.7% Gross Margin Profile; Generates $(0.1) Million in Net Income
FORT LAUDERDALE, FL / ACCESSWIRE / May 25, 2021 / SFLMaven Corp. (OTC PINK:SFLM), ("SFLMaven" or the "Company"), a leading provider of high-end luxury goods, today reported its unaudited financial and operational results for the first quarter of 2021.
First Quarter 2021 and Subsequent Operational Highlights
- Revenues totaled $2.7 million, driving a healthy 21.7% gross margin and $(0.1) million in net income.
- Strengthened relationship with eBay corporate through promotional partnership around Mother's Day holiday, providing preferred placement for SFLMaven products on the eBay homepage.
- Engaged international investor relations specialists MZ Group to lead a comprehensive, strategic investor relations and financial communications program across all key markets.
- Launched revamped corporate and IR website as part of a new commitment to the capital markets, providing up-to-date information for current and prospective investors.
- Selected Heather Krug PR & Marketing as the Company's Public Relations agency, with the goal of driving elevated media attention and consumer interest in SFLMaven's product listings.
Management Commentary
"We are pleased to announce SFLMaven's first reported quarter as a standalone public company, having realized an incredibly strong margin profile - driven by competitive bidding dynamics for our one-of-a-kind products - while standing on the cusp of profitability," said Joseph Ladin, Chief Executive Officer of SFLMaven. "We continue to see strong macroeconomic trends supporting the jewelry industry, with many pockets of newfound wealth created through stimulus efforts as well as stock and cryptocurrency capital gains being deployed into high-end jewelry.
"Our differentiated jewelry sourcing capabilities, when paired with our strong relationship with eBay corporate and select suppliers, presents unique opportunities to further build the SFLMaven brand - including preferred product placements during major sale events on the eBay homepage and exclusive invitations to top-eBay seller events.
"We launched a first-of-kind advertising campaign in the first quarter of 2021, which drove ‘bidding wars' through increased visibility for our listings and therefore significantly higher gross margins as compared to the prior year. As we refine our campaigns to reduce our expenses, improve advertising efficiency and scale our quantity of listings, we believe we will reach profitability in the near-term.
"As we look ahead, our goal is to complete an audit, file a Form 10, uplist to the OTCQB and emerge as a profitable, fully reporting public company with a pathway to an eventual Nasdaq-listing and other complimentary growth opportunities. Given our strong results thus far, I firmly believe that we are on a path to create significant value for our shareholders over the long-term," concluded Ladin.
First Quarter 2021 Unaudited Financial Results
Revenues totaled $2,721,596 in the first quarter of 2021, as compared to $2,859,920 in the same year-ago quarter.
Gross profit in the first quarter of 2021 increased 290% to $590,511, or 21.7% of revenues, compared to gross profit of $203,758, or 7.1% of revenues, in the same year-ago quarter. The increase in gross profit was primarily driven by improved supplier relationships, volume discounts and the initiation of advertising campaigns through eBay which drove competitive bidding dynamics for the Company's products.
Operating expenses in the first quarter of 2021 were $706,701, as compared to $101,164 in the same year-ago quarter. The increase was primarily attributable to the initiation of advertising campaigns through eBay, which management believes increase gross margins through more competitive bidding dynamics.
Net income in the first quarter of 2021 totaled $(116,100), as compared $102,654 in the same year-ago quarter.
To provide a relevant year-over-year comparison, the year-ago comparative figures are from SFLMaven Corp., the private company prior to its merger with Sun Kissed Industries and the renaming to SFL maven.
About SFLMaven
SFLMaven Corp. (OTC PINK:SFLM), is a premium provider of high-end luxury goods to discerning clientele globally. SFLMaven has driven over $130 million in sales and 98,000 positive reviews since inception, famous for its Thursday Night Auction events on its top-rated eBay store. For more information, please visit the Company's website at https://www.sflmaven.com/ or follow the Company on Twitter at @sflmaven.
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of SFLMaven Corp.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of SFLMaven, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on SFLMaven's future results. The forward-looking statements included in this press release are made only as of the date hereof. SFLMaven cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SFLMaven undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by SFLMaven.
Public Relations Contact:
EDM Media, LLC
https://edm.media
Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
[email protected]
www.mzgroup.us
SOURCE: SFLM