Q3 2021 Slinger Bag Inc Earnings Call
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Greetings and welcome to the Slinger Third Quarter Fiscal 2021 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Greetings and welcome to the <unk> third quarter fiscal 2021 earnings results conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Siegel, Senior Managing Director of Hayden IR. Thank you, Brian . You may begin.
As a reminder, this conference is being recorded it is now my pleasure to introduce your host Brian Siegel Senior managing director of Hayden IR. Thank you Brian you may begin.
Brian Siegel: Thank you. Good morning, everyone. Welcome to our third quarter fiscal 2021 financial results and strategic update call hosting the call today are Slinger CEO Mike Bilardi and CFO Jason Seifert.
Thank you good morning, everyone welcome to our third quarter of fiscal 2021 financial results and strategic update call.
So on the call today are senior CEO , Mike <unk> and CFO , Jason <unk>.
Brian Siegel: After their prepared remarks, we will take questions through the webcast portal, and we'll do our best to answer as many as we can.
After their prepared remarks, we will take questions through the webcast portal and we will do our best to answer as many as we can be.
Speaker Change: Before beginning, I would like to remind everyone that except for the historical information, the matters discussed in the presentation are forward looking statements involving number of risks and uncertainties. Words like expect, believe, anticipate mean that these are our best estimates at this time, but that there can be no assurances that expected or anticipated results or events will take place. So our factual results could differ significantly from those statements.
Before beginning I would like to remind everyone that except for the historical information. The matters discussed in the presentation are forward looking statements involve a number of risks and uncertainties words like expect believe anticipate mean that these are our best estimates at this time, but that there can be no assurances that expected or anticipated result.
Our events will take place or actual results could differ significantly from those statements.
Speaker Change: Factors that could cause or contribute to such differences include, but are not limited to our ability to maintain our competitive advantages.
That could cause or contribute to such differences include but are not limited to our ability to maintain our competitive advantages.
Speaker Change: acceptance of existing and new products by our customers, the general economics of our end markets, our ability to finance growth, our ability to continue to attract and retain highly qualified employees, and our ability to identify, close, and integrate acquisitions.
<unk> of existing and new products by our customers. The general economics of our end markets, our ability to finance growth our ability to continue to attract and retain highly qualified employees and our ability to identify close and integrate acquisitions further information on our risk factors is contained in our.
Speaker Change: Further information on our risk factors is contained in our quarterly and annual reports filed with the USSEC. With that said, I would like to turn over the call to Mike Bilardi, Slinger CEO . Mike? One moment.
Quarterly and annual reports filed with the U S. SEC with that said I would like to turn over the call to Mike Boulardii Slinger CEO Mike.
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We apologize for the Tech glare, Mike you may begin.
Okay. Thank you Brian .
Good morning, and thank you all for joining US today welcome to our second Investor call as a public company.
Speaker Change: Good morning, and thank you all for joining us today. Welcome to our second investor call as a public company. I'm Mike Bilardi, CEO of SlingerBag. And as you heard earlier, with me is our Chief Financial Officer, Jason Seifert.
Mike <unk> CEO of <unk>.
As you heard earlier with me is our Chief Financial Officer, Jason Seafood.
Jason Seifert: I will provide an update on our corporate vision and our business transformation, including a watch, play, learn strategy, and the remainder of our fiscal 2021 year and beyond. Then Jason will review our third quarter results and update our
I will provide an update on our corporate vision and our business transformation, including our watch play land strategy and the remainder of our fiscal 2021 year and beyond then Jason will look at that.
We will review our third quarter result results an update.
Jason Seifert: and our updated financial outlook. Then we'll be happy to take your questions.
Our updated financial outlook, then we'll be happy to take your questions.
During the third quarter and the first days of the fourth quarter, we officially closed our transformational game face AI and play site acquisition.
Jason Seifert: During the third quarter and the first days of the fourth quarter, we officially closed our transformational game face AI and play site acquisitions.
Jason Seifert: While we have been working with them closely throughout this whole process on synergies and strategy, we now have the ability to start executing on the development of our connected platform as well as realizing cost synergies.
While we have been working with them closely throughout this whole process on synergies and strategy. We now have the ability to start executing on the development of our connected platform as well as realizing cost synergies.
Jason Seifert: For those of you who are new to the Slinger story, it has been one of disruption and transformation.
For those of you who are new to the <unk> story. It has been one of disruption and transformation playing.
Jason Seifert: Glinger began as a sports equipment brand, targeting the global tennis player market, aiming to reach the hundred plus million active players across the globe.
<unk> began as a sports equipment brand targeting the global tennis player market aiming to reach the 100 plus million active players across the globe.
Jason Seifert: Today, we've evolved into a disruptive sports technology company with the ability to build the unified, connected platform that will enable our watch, play, and learn strategies.
Today, we've evolved into a disruptive sports technology company with the ability to build the unified connected platform that will enable all watch play and learn strategy. This platform will provide unique biomechanical analysis and feedback through automated video and data capture performance AI and professional level.
Jason Seifert: This platform will provide unique biomechanical analysis and feedback through automated video and data capture.
Jason Seifert: performance AI and professional level insights and drills to improve the performance of the sports enthusiast.
Sites and drills to improve the performance of the sports enthusiasts.
Jason Seifert: We began with tennis and are quickly moving into other racquet sports including pickleball and padel later this year.
We began with tennis and are quickly moving into other racquet sports, including Pickle ball and pedal later this year.
Jason Seifert: followed by baseball and softball in the early parts of 2023.
Followed by baseball and softball, and the early parts of 2023.
Jason Seifert: To date, Slinger Bag Launcher is our most prominent product. It is a disruptive product, offering tennis players a high-performance ball launcher built into a typical roller trolley bag at an affordable price compared to other traditional ball machines.
To date Swinger bag launch here is our most prominent product. It is a disruptive product offering tennis players the high performance ball launcher built into a typical rollout <unk> at an affordable price compared to other traditional bullet machine.
Jason Seifert: This solution provides easy-to-transport, versatile, and affordable piece of tennis equipment that facilitates play anytime, anywhere, across players of all ages and all abilities.
Our solution provides easy to transport versatile and afforded an affordable piece of tennis equipment that facilitates play anytime anywhere across players of all ages and all abilities.
Jason Seifert: Over the past eight quarters since its release, we've sold over 40,000 launches, including 7,200 in our third fiscal quarter and 21,000 year-to-date.
Over the past eight quarters since its release, we sold over 40 size and launches, including 7200, and also third fiscal quarter and 21000 year to date.
Jason Seifert: These sales have been mainly direct-to-consumer through our Slinger website in North America.
These sales have been mainly direct to consumer through sling website in North America.
Jason Seifert: Globally, we sell through a network of third-party sporting goods distributors and also have a strategic partnership with key tennis brands such as Dunlop.
Globally, we sell through a network of third party sporting goods distributors and also have a strategic partnerships with key tenants brands such as Dunlop.
Jason Seifert: In total, this group of distributors has committed to over $250 million in consumer sales of the slingy bag collectively over the next several years.
In total this group of distributors has committed to over $250 million in consumer sales of the <unk> <unk>.
Actively over the next several years.
Jason Seifert: We market the Slinger bag through an extensive social and digital media platform.
We market to swing it back through an extensive social and digital media platform.
Jason Seifert: strategic partnerships, tennis ambassadors and by leveraging the support of multiple governing bodies such as the USTA in making tennis more accessible more often.
T J partnerships tennis ambassadors and by leveraging the support of multiple governing bodies, such as the USDA and making tenants more accessible more often.
Jason Seifert: Our marketing programs increase awareness and engagement with tennis players through content creation and advertising throughout the tennis ecosystem.
Our marketing programs increase awareness and engagement with tenants plays through content creation and advertising throughout the tennis ecosystem.
Jason Seifert: This strategy has been quite successful for us, as over the past 12 months, our ROAS, or return on ad spend, has an average of 10X.
This strategy has been quite successful for us over the past 12 months.
Ross will return on AD spend has an average of 10 X.
A very impressive number.
Jason Seifert: And we are now looking at how we can scale this program effectively for more expensive investments.
And we are now looking at how we can scale. This program effectively for more extensive investment.
Jason Seifert: While this business on its own has impressive growth and profitability potential, we have a much bigger vision for the company. And with the acquisitions of Foundation Tennis, Game Face AI, and PlaySight now closed, we are positioned to turn this vision into reality.
While this business on its own has impressive growth and profitability potential we have a much bigger vision for the company and with the acquisitions of Foundation tennis game face AI and play site now closed we are positioned to turn this vision into reality.
The vision is simple.
Jason Seifert: to create a differentiated, connected sports platform that serves as a key enabler and beneficiary of the smart courts by integrating technologies including performance AI, automated video capture, and advanced analytics.
Creates a differentiated connected sports platform.
<unk> is a key enabler and beneficiary of the smart codes buy in.
Integrating technologies, including performance AI automated video capture and advanced analytics.
Jason Seifert: Coupled with this vision is the rapid acceleration of sport courts, fields, pitches, and surfaces becoming smart, all enabled by 5G.
Coupled with this vision is the rapid acceleration of sport coats fields pitches and surfaces, becoming smart roll.
All enabled by five G.
The first product of this vision, the sling, app, which leverages getting face Aia's proprietary AI software.
Jason Seifert: The first product of this vision, the Slinger app, which leverages GameFace AI's proprietary AI software.
Jason Seifert: which generates fast, accurate, and relevant insights leading to smarter decisions and better outcomes.
Which generates fast accurate and relevant insights leading to smarter decisions and better outcomes.
Jason Seifert: The app is almost ready for release into the tennis market with the beta version being available over the next couple of weeks. This app will become a multi-tier subscription offering and will provide AI-based performance analysis on a biomechanical level, drill and fitness recommendations, as well as e-coaching tips.
<unk> is almost ready for release into the Chinese market with the beta version being available over the next couple of weeks. These that will become a multi tiered subscription offering and we will provide AI based performance analysis on the bio mechanical level drill and fitness recommendations as well as E coaching tips.
Jason Seifert: With the acquisition of PlaySight, we are leveraging their work to enable smart courts with their advanced automated video capture and AI technologies used on tennis courts to capture content and data.
With the acquisition of play site, we are leveraging that work to enable smart pools with their advanced automated video capture and AI technologies used on tennis courts to capture content and data.
Jason Seifert: We plan on leveraging this technology to further enhance our performance and offering to the consumer.
We plan on leveraging this technology to further enhance our performance and offering to the consumer.
Jason Seifert: Along with Game Face AI's technology, we plan to integrate this into our connected platform on a device that tennis players can use to improve their game.
Along with game face AI technology, we plan to integrate this into a connected platform on a device that tennis players can use to improve their game.
Jason Seifert: Playfight has also had success in penetrating the basketball vertical and is now used by over 50% of the NBA team.
Play sites has also had success in penetrating the basketball vertical and is now used by over 50% of the NBA teams.
Jason Seifert: We plan to explore opportunities to leverage their position here in the years to come.
We plan to explore opportunities to leverage that position.
EBITDA in the years to come.
Jason Seifert: Foundation Tennis supports our connected strategy by providing a specialized software as a service or SaaS platform that uniquely addresses the needs of membership-based facilities, such as tennis clubs, whether they be private or public.
Foundation tennis supports our connected strategy by providing a specialized.
Software as a service or SaaS platform that uniquely addresses the needs of membership base facilities, such as tennis clubs, whether they be private or public I.
Jason Seifert: I believe Foundation Tennis is a unique asset, as it is by far the most robust offering targeted at these types of clubs in the market today, and it will play two roles within our portfolio.
I believe foundation tenants is a unique asset as it is by far the most robust offering targeted at these types of clubs in the market today and it will play two roles within our portfolio.
Jason Seifert: On its own, this platform provides facility managers with one-stop shopping for critical business management tools, including websites.
On its own this platform provides facility managers with one stop shopping for our critical business management tools, including website.
Jason Seifert: and app templates, member community features such as chat, booking schedulers, and as an affiliate partner of Square, a POS integrated payment option. The market.
And up templates member community features such as chat bookings schedulers and as an affiliate partner of square Pos integrated payment option.
The market opportunity is large.
Jason Seifert: There are 17,000 tennis facilities in the United States market, and currently only 100 of these use the Foundation Tennis Platform.
There are 17000 tenants facilities in the United States market and currently only 100 of these use the foundation tenants platform.
Jason Seifert: So there is a huge market penetration opportunity to expand the SaaS business, which we believe is also viable longer term for other verticals, such as golf clubs, health, fitness, and other sports in the future.
So there is a huge market penetration opportunity to expand the SaaS business, which we believe is also viable longer term for other verticals such as golf clubs, how fitness another well.
Sports in the future.
Jason Seifert: With respect to the Connected Platform and our Watch, Play and Learn strategy, the Foundation Tennis Database currently has over 1 million users that we can now directly access.
With respect to the connected platform and I'll watch play and learn strategy. The foundation tenants database currently has over 1 million users that we can now directly access.
Jason Seifert: This number will continue to grow as more facilities and members sign on to use the SAS platform.
This number will continue to grow as more facilities amendment sign on to use the SaaS platform.
Jason Seifert: With a compelling product portfolio and direct access, Blinger's goal is to convert these members from users to subscribers of our new connected services at what I believe will be a significant conversion rate.
With a compelling product portfolio and direct access.
<unk> goal is to convert these members from users see subscribers of our new connected services, what I believe will be a significant conversion rate.
Jason Seifert: We believe we have the pieces to position the new slinger at the center of a connected sports world in our planned core verticals of racquet sports, baseball, softball, basketball, and cricket, the latter of which is one of the highest participation sports outside of the United States, as well as, you know, us getting involved in several other ball sport categories.
We believe we have the pieces to position the new sling are at the center of a connected sports world.
Planning core verticals of racket sports baseball softball, basketball and cricket the latter of which he is one of the highest participation sports outside of the United States as well.
I was getting involved in several other pools four categories.
Jason Seifert: Additionally, we believe there is a potential to license our data and content in a variety of areas beyond our core market.
Additionally, we believe there is a potential to license our data and content in a variety of areas beyond our core market.
Jason Seifert: One in particular is the online sports gambling market, where PlaySight and GameFace's technology is very suitable for the needs of this industry, as these types of companies operate as intermediaries between rights holders and brands, and require strategic partnerships with brands such as PlaySight and GameFace to facilitate the high-quality live stream required, and to provide the betting community with real-time match analytics.
One in particular is the online sports gambling market, where play citing games faces technology is very suitable for the needs of this industry. As these types of companies operate as intermediate rates between rights holders and brands and require strategic partnerships with brands such as play site in game face to facilitate the high quality.
Livestream required and to provide the bedroom community with real time match analytics.
Jason Seifert: Moving on to our integration plans, across our company, we have begun implementing a structure to improve efficiency, to drive revenue, and to enhance the customer, user, and service experience.
Moving onto our integration plans across our company, we have begun implementing a structure to improve efficiency to drive revenue and to enhance the customer user and service experiences.
Jason Seifert: With the foundation set, we are now in the process of ensuring that our new corporate vision is easily understood and demonstrable to both our current shareholders and our future investors.
With the foundation set we are now in the process of ensuring that our new co provision is easily understood and demonstrate <unk> for both our current shareholders and our future investors.
Jason Seifert: Having set the foundation for our long-term vision, I will now talk to our key strategic priorities for 2022 and beyond.
Having set the foundation for our long term vision I will now talk to our key strategic priorities for 2022 and beyond.
Jason Seifert: Our top priority is to integrate with our newly acquired companies under the SlingerBag umbrella over the next six months by identifying key operating synergies while constantly improving our customer user journey and experience.
Our top priority is to integrate our.
Newly acquired companies under the Slingo bag umbrella over the next six months by identifying key operating synergies, while constantly improving our customer user journey and experience.
Jason Seifert: This will involve implementing a new operating matrix, building on common sales, marketing, and supply chain teams, and centralizing all finance, legal, and HR responsibilities within the corporate umbrella.
This will involve implementing a new operating matrix building on common sales marketing and supply chain teams and centralizing all finance legal and HR responsibilities within the corporate umbrella.
Jason Seifert: Next, we will identify the parts of the business that require further investment.
Next we will identify the parts of the business that require further investment for <unk>.
Jason Seifert: For Slinger, this means investment in our new baseball and softball launch plan for 2023.
This means investment and our new baseball and softball launch planned for 2023.
Jason Seifert: For PlaySight, it means investment in advancing the future market leadership in its video technology platform.
Poor play site, it means investment and advancing the future market leadership and its video technology platform.
Jason Seifert: For GameFace AI, it means investment in engineers to facilitate the expansion into new sports projects.
We're gaining phase II it means investment in engineers to facilitate the expansion into useful projects.
Jason Seifert: Investment in Foundation Tennis will focus on sales and marketing activity.
Investment in foundation tennis will focus on sales and marketing activity to.
Jason Seifert: to drive awareness of this unique software platform and to facilitate sales call to core facilities across the United States.
To drive awareness of this unique software platform and to facilitate sales call to call.
<unk> facilities across the United States.
Jason Seifert: As a next step in achieving our vision to create a connected platform based on watch, play and learn activities,
As a next step in achieving our vision to create a connected platform based on watch play in loan activity.
Jason Seifert: We are committed to identifying, launching, and marketing our subscription-based suite of services for tennis players, beginning with
We are committed to identifying launching and marketing our subscription base.
<unk> services.
For Chinese players beginning with the sling app.
Jason Seifert: We will then continue to innovate and look to create value-added bundles like exclusive content and enhanced features and ultimately introduce a multi-product subscription across all of our brands.
We will then continue to innovate and look to create value added bundles like exclusive content and enhanced features and ultimately introduce our multi product subscription across all of our brands.
Jason Seifert: In our release, we updated our revenue guidance to $16 to $17 million for fiscal 2021.
In our release, we updated.
Our revenue guidance to $16 million to $17 million for fiscal 2021.
Jason Seifert: This guidance accounts for potential COVID-related slowdowns in China, South Africa, India, and other distributor-led markets.
This guidance accounts for all potential COVID-19 related slowdowns in China, South Africa, India, another distributor led market.
Jason Seifert: Over recent months, we have deliberately built up inventory.
The recent months, we have deliberately built up inventory.
Jason Seifert: in the United States in anticipation of the impact of Chinese New Year on the production process, ensuring that we will be in good shape over the next quarter or two to deliver launches heading into the tennis season in many of our core markets.
The United States in anticipation of the impact of Chinese new year on the production process, ensuring that we will be in good shape over the next quarter or two to deliver launches heading into the Chinese season in many of our core markets.
Jason Seifert: In closing, we have had a strong first three quarters of this year, with revenue up 66%.
In closing we have had a strong first three quarters of this year with revenue up 66%.
Jason Seifert: and having sold more Slinger launches already than we did in all of 2020.
Having sold more selling of launches already than we did in all of 2020.
Jason Seifert: I would like to thank the Slinger team across the globe for their hard work.
I would like to sign this linger team across the globe for their hard work.
Jason Seifert: you have continued to deliver in a more difficult global macro environment.
You have continued to deliver in a more difficult global macro environment.
Jason Seifert: Before taking questions, I would like to thank you, our investors, for your continued support, especially in the past six weeks, when the entire market, especially in microcaps, have been taking some heavy losses.
Before taking questions I would like to thank you our investors for your continued support especially in the past six weeks when the entire market, especially in Microcap.
<unk> taken some heavy losses. Despite these near term stock moving stock market driven challenges. We believe we have the right strategy assets and people to deliver strong returns over the next few years.
Jason Seifert: Despite these near-term stock market driven challenges, we believe we have the right strategy, assets and people to deliver strong returns over the next few years.
Speaker Change: I want to thank our expanding team of talented people who work at Slinger and who go above and beyond to execute this vision. Thank you.
I want to thank our expanding team of talented people who work at slinger.
Who go above and beyond to execute this vision.
<unk>.
I'll hand over now to adjacency for the CFO .
Thanks, Mike.
Speaker Change: Thanks, Mike. First, I'd like to welcome everyone for our third quarter earnings call.
First I'd like to welcome everyone to our third quarter earnings call I'm.
Speaker Change: I'm going to take you through the quarter and then we'll open the floor for questions.
Im going to take you through the quarter and then we will open the floor for questions.
Speaker Change: Before I begin, I want to remind everyone that our fiscal year ends on April 30th and our third quarter ended on January 31st.
Before I begin I want to remind everyone that our fiscal year ends on April 30, and our third quarter ended on January 31.
Speaker Change: All comparisons I'll be commenting on are compared to the same period a year ago, unless otherwise noted.
All comparisons I'll be commenting on or compared to the same period, a year ago unless otherwise noted.
Speaker Change: Our underlying operating results were impacted by several factors this quarter.
Our underlying operating results were impacted by several factors this quarter.
Speaker Change: Revenue for Q3 increased by approximately $100,000 to $4.2 million.
Revenue for Q3 increased by approximately $100000 to $4 2 million.
Speaker Change: Last year, we had a supplied bottleneck in the first and second quarters that was resolved in Q3, leading to an incremental $700,000 in revenue for Q3 2020.
Last year, we had a supply bottleneck in the first and second quarter is that was that was resolved in Q3, leading to an incremental $700000 in revenue for Q3 2020.
Speaker Change: Excluding the $700,000 in the prior year, revenue would have been up approximately 23% over the prior year quarter.
Excluding the $700000 in the prior year revenue would have been up approximately 23% over the prior year quarter.
Speaker Change: Despite this, year-to-date revenue is still up over 66% over the prior year.
Despite the year to date revenue was still up over 66% over the prior year.
Gross profit also increased to $100000 to $1 million.
Speaker Change: Gross profit also increased $100,000 to $1 million.
Speaker Change: and gross margin was up 170 basis points to 23%.
Gross margin was up 170 basis points to 23%.
Speaker Change: Gross profit and margin were negatively impacted by two items in the current quarter.
Gross profit and margin were negatively impacted by two items in the current quarter.
Speaker Change: First, as Mike mentioned, we built up inventory ahead of the Chinese New Year in anticipation of supply chain.
As Mike mentioned, we built up inventory ahead of the Chinese new year in anticipation of supply chain.
Speaker Change: Unfortunately, the global supply chain issues have not been cleared up and logistics costs negatively impacted gross margin by approximately 400 basin.
Unfortunately, the global supply chain issues have not been cleared up and logistics costs negatively impacted gross margin by approximately 400 basis points.
Additionally, we ran holiday promotions this year.
Speaker Change: Additionally, we were in holiday promotions this year, which did not drive the volumes we had hoped, and also impacted growth margin negatively by approximately 400 basis.
It did not drive the volumes, we had hoped and also impacted gross margin negatively by approximately 400 basis points.
Speaker Change: Going forward, our equipment growth margin should generally be in the range of 30 to 35% as we scale this part of our business and continue to expand our distributor network.
Going forward, our equipment gross margins should generally be in the range of 30% to 35% as we scale. This part of our business and continue to expand our distributor network.
Speaker Change: Moving to our operating expenses, operating losses, net loss, and loss per share, I'll discuss both GAAP and non-GAAP .
Moving to our operating expenses operating losses, net loss and loss per share.
I'll discuss both GAAP and non-GAAP measures.
Speaker Change: For non-GAAP measures, we exclude non-cash, non-operating items, including share-based compensation, costs associated with financing transactions.
For non-GAAP measures exclude noncash nonoperating items, including share based compensation costs associated with financing transactions.
Speaker Change: conversions and debt extinguishments, amortization of both intangibles and debt discounts, and acquisition-related expenses.
Conversion from debt extinguishment amortization of both intangibles and debt discount and acquisition related expenses.
Speaker Change: Gap operating expenses for the quarter were $4.1 million.
GAAP operating expenses for the quarter were $4 1 million.
Speaker Change: leading to a gap operating loss of $3.2 million as compared to $1 million in the prior year.
Leading to a GAAP operating loss of $3 2 million as compared to $1 million in the prior year.
Speaker Change: non-GAAP operating expenses excluded $500,000 in acquisition-related expenses.
non-GAAP operating expenses excluded $500000 in acquisition acquisition related expenses.
Speaker Change: $300,000 in share-based compensation for equity issued in exchange for services, and $100,000 for the amortization of NPSG.
$300000 and share based compensation for equity issued in exchange for services and.
$100000 for the amortization of intangibles.
Speaker Change: Excluding all of these items, non-GAAP operating loss was $2.3 million for the quarter.
Excluding all of these items non-GAAP operating loss was $2 3 million for the quarter.
Speaker Change: Moving to other income and expenses, this quarter we saw several non-cash and transactional expenses.
Moving to other income and expenses.
This quarter, we saw several noncash and transactional expenses and.
Speaker Change: including $2.8 million for amortization of debt discounts.
Including a $2 8 million for amortization of debt discount.
Speaker Change: a $5.9 million mark-to-market gain related to derivatives.
A $5 9 million mark to market gain related to derivatives.
Speaker Change: a $2.2 million loss on the issuance of convertible notes and $200,000
$2 $2 million loss on the issuance of convertible notes and $200000 in interest expense.
Speaker Change: We excluded all these items for our non-GAAP net loss and EPS.
We excluded all these items from our non-GAAP net loss and EPS numbers.
Speaker Change: Our gap net loss was 2.4 million dollars and our loss per share was six cents for the quarter.
Our GAAP net loss was $2 4 million and our loss per share was $6 for the quarter.
Speaker Change: Adjusting for these non-operating and other expense line items I just mentioned.
Adjusting for these non operating and other expense line items I just mentioned.
Speaker Change: Q3-21 non-GAAP net loss and loss per share was $2.3 million or $0.05 per share compared to $700,000 or $0.02 per share last year.
Q3, 'twenty, one non-GAAP net loss and loss per share was $2 $3 million or <unk> <unk> per share.
Third to $700000 or <unk> <unk> per share last year.
Speaker Change: Moving on to the balance sheet, we finish the quarter with cash and cash equivalents of $1.1 million.
Moving on to the balance sheet, we finished the quarter with cash and cash equivalents of $1 1 million.
Speaker Change: We had $8.7 million of finished goods inventory.
We had $8 $7 million of finished goods inventory.
Speaker Change: and $1.8 million in prepaid inventory at the end of the course.
And $1 $8 million in prepaid inventory at the end of the quarter.
As we look to the rest of fiscal 2021 I'll comment on the current expectations for the player business.
Speaker Change: As we look to the rest of fiscal 2021, I'll comment on the current expectations for the Slinger business.
As Mike noted.
Speaker Change: Keeping in mind the headwinds mentioned about China, South Africa, and India, we're still expecting revenue to be in the range of $16 to $17 million, or an increase of 48 to 57% over last year's $10.8 million.
Keeping in mind, the headwinds mentioned about China, South Africa, and India, we're still expecting revenue to be in the range of $16 million to $17 million or an increase of 48% to 57% over last year's $10 8 million.
Speaker Change: The vast majority of this revenue will be from our sales of the slinger bag into the tennis market.
The vast majority of this revenue will be from our sales of display airbag and other tenants market.
Speaker Change: With that, I want to thank everyone for attending our earnings call and look forward to speaking with you again at the end of our fiscal year. We'll now move on to Q&A. Operator. Thank you. Thank you. We will now be conducting a question and answer
With that I want to thank everyone for attending our earnings call and look forward to speaking with you again at the end of our fiscal year, we will now move onto Q&A.
Operator, thank you.
Thank you we will now be conducting a question and answer session. You may submit any questions you have through the webcast at this time.
We have one question.
Speaker Change: Why have your fundraising plans changed since you said last year you wanted to raise $40 million and then $5 million plus on the last call?
Why have your fund raising plans changed.
She said last year, you wanted to raise $40 million.
And then 5 million plus on the last call.
Speaker Change: and you're down to about one million cash and how are you planning on operating the business in that environment?
And you're down to about 1 million cash.
And how are you planning on operating the business in that environment.
Yeah.
Speaker Change: So, if you're following our filings, we have obviously filed an S1 for an uplist. And so, we are still considering, you know, the options that we have in front of us, you know, that that could bring in terms of a capital raise, you know, and so at the moment that's our, you know, main route that we're thinking that will generate the capital we need to take the business forward.
So if you're following our filings we have obviously filed an S. One for an uplift.
So we are still considering the options that we have in front of us that could bring in terms of a capital raise.
At the moment that's made.
Main routes that we are thinking that will generate the capital we need to take the business forward.
Speaker Change: We were originally planning, you know, an earlier uplift.
We originally we were originally planning and earlier uplifts.
Speaker Change: in December of last year, but the acquisition of PlaySight, which is quite a significant acquisition, required a fully-fledged SEC audit, and that took a little longer than we anticipated. That meant that we were not able to activate or take the up-list filing that we've replaced any further at that time, so we're now reviewing that situation.
In December of last year, but the acquisition of play site, which was quite is quite a significant acquisition.
It required a fully fledged SEC audits and that took a little longer than we anticipated.
And that meant that we were not able to.
Activates will take the up list filing.
Filing that we've replaced any further at that time, so we would now reviewing that situation.
Speaker Change: looking at options to re-engage with our bankers on an uplift in the near future.
Looking at looking at options to to Reengage.
With our bankers on an up listing.
In the near future.
Okay.
That is all the questions.
Operator, we can close out the call.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
Thank you operator.