Byrna Technologies Reports Fiscal Third Quarter 2023 Results.

ANDOVER, Mass: Byrna Technologies Inc. ("Byrna" or the "Company") (Nasdaq: BYRN), a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions, today reported select financial results for its fiscal third quarter ("Q3 2023") ended August 31, 2023.

Fiscal Third Quarter 2023 and Recent Operational Highlights

Partnered with Sean Hannity, a loyal customer and supporter of Byrna, to amplify the Company's less-lethal security solutions through his nationally syndicated radio show and various Hannity platforms. Through the first five weeks of the partnership, Byrna.com has seen a 94% increase in web traffic compared to the preceding five-week period.

Launched Byrna LE, the Company's flagship product, on Amazon. In the month of September, Byrna LE contributed $8,924 per day to Amazon daily sales.

Expanded premier dealer count to 16 in Q3 2023, building on the success of brick-and-mortar stores that derive more than 50% of their revenue from Byrna products.

Sold 1,000 launchers to the Cordoba Provincial Police and 500 to the City of Buenos Aires, expanding Byrna's presence in Argentina as the country shifts towards less-lethal alternatives.

Fiscal Third Quarter 2023 Financial Results

Results compare the 2023 fiscal third quarter ended August 31, 2023 to the 2022 fiscal third quarter ended August 31, 2022 unless otherwise indicated.

Net revenue for Q3 2023 was $7.1 million compared to $12.4 million in the fiscal third quarter of 2022 ("Q3 2022"). The decrease in revenue is primarily attributed to challenges in the Company's direct-to-consumer ("DTC") marketing efforts, resulting from advertising bans on Meta and Google platforms, and reduced international sales to South Africa, Asia, and Latin America.

Gross profit for Q3 2023 was $3.2 million (45% of net revenue) compared to $6.9 million (55% of net revenue) for Q3 2022. The decrease in gross margin is primarily due to $0.6 million of charges to costs of goods sold for inventory write-downs and additions to reserves for excess and obsolete inventory recorded during Q3 2023. Taking these one-time adjustments into consideration, gross margins are consistent with the prior year period.

Operating expenses for Q3 2023 were $7.3 million compared to $8.3 million for Q3 2022. The decrease in operating expenses was primarily due to reduced marketing spend and ongoing cost management efforts.

Net loss for Q3 2023 was $(4.1)...