Byrna Technologies, Inc.

Good morning. Welcome to Berna's Fiscal Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Kevin and I'll be your operator for today's call. Joining us for today's presentation are the company's CEO, Brian Ganz, and CFO, Lori Kearns. Following their remarks, we'll open the call to questions. Earlier today, Berna released results for its Fiscal Fourth Quarter and Full Year ended November 30th, 2024. A copy of the press release is available on the company's website. Before turning the call over to Brian Gans, Berna Technologies' Chief Executive Officer, I will read the Safe Harbor statement. Some discussions held today include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Berna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligations to update forward-looking statements as a result of new information, future events, or otherwise. As this call will include references to non-GAAP results, please see the press release in the Investor Relations section of our website, ir.berna.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results. Now I'd like to turn the call over to Berna's CEO, Brian Gans. Sir, please proceed.

Thank you, Kevin, and thank you, everyone, for joining us today. We will be filing our 10-K with the SEC today. We're not sure if it's going to get out before the open or after the close, but it is in for filing. And as Kevin mentioned, we've issued a press release providing our financial results and business highlights for the fiscal fourth quarter and for the full year ended November 30, 2024. I'm going to start by turning the call over to our CFO, Laurie Kerns, who will review our financial results for the period. Following her remarks, I'll discuss the operational highlights that drove our record $28 million in revenue and continued GAAP and non-GAAP EBITDA profitability for the fourth quarter. I'll then offer insights into our strategy moving forward before we open the call to questions from our covering research analyst. Laurie.

Thank you, Brian, and good morning, everyone. Let's review our financial results for the fiscal fourth quarter and the full year ended November 30th, 2024. Net revenue for the fourth quarter was $28 million, a 79% increase from the $15.6 million reported in the fiscal fourth quarter of 2023. This $12.4 million increase is primarily due to the transformational shift in our advertising strategy which we began in September 2023, and the resulting normalization of BRNA and the less lethal space generally. In Q4, direct-to-consumer revenues increased by $8.9 million through BRNA.com and Amazon.com compared to the prior year period. For the full year 2024, net revenue totaled $85.8 million up 101% from $42.6 million in 2023. Gross profit for Q4 2024 was $17.6 million or 62.8% of net revenue compared to $9 million or 57.8% of net revenue for Q4 2023. For the full year 2024, gross profit was $52.8 million or 61.5% of net revenue compared to $23.6 million or 55.5% of net revenue for the same period in 2023. The improvement in gross profit margin is largely attributable to additional sales through our higher margin DTC channels and intensive cost component reduction effort spearheaded by Berna's engineering team and the economies of scale resulting from increased production volumes. Operating expenses for Q4 2024 were $13.5 million compared to $9.7 million for Q4 2023. For the full year 2024, operating expenses were $46.1 million compared to $31.4 million for the same period in 2023, reflecting a 47% increase year-over-year. The increase in operating expenses was driven by an increase in our variable selling costs, such as freight and third-party processing fees, credit card fees, increased marketing spend, and higher payroll expenses in marketing and engineering as the company has scaled to handle increased sales and production volumes. Net income for Q4 2024 was $9.7 million, compared to a net loss of $0.8 million for Q4 2023, a $10.5 million improvement. This increase was driven by higher revenue and a $5.6 million income tax benefit. The tax benefit arose from the release of tax valuation allowances related to net operating loss carry forwards and other tax assets. For the full year 2024, net income was $12.8 million, a $21 million improvement from a net loss of $8.2 million in the prior year. The increase in net income was driven by higher revenue and included a $5.7 million income tax benefit due to the full release of U.S. tax valuation allowances. Adjusted EBITDA, a non-GAAP metric for Q4 2024, totaled $5.2 million compared to $400,000 for Q4 2023. This brings adjusted EBITDA for the full year to 11.5 million compared to a negative 2 million in the prior year. Cash and cash equivalents at November 30th, 2024 totaled 16.8 million compared to 20.5 million at November 30th, 2023. The change in cash and cash equivalents is primarily due to an $8.9 million investment into marketable securities. Cash and short-term marketable securities totaled 25.7 million which is an increase of $5.2 million compared to November 30th, 2023. Inventory at November 30th, 2024 totaled $20 million compared to $13.9 million at November 30th, 2023. The company has no current or long-term debt. I'll now turn it back to Brian.