BYRNA, Byrna Technologies Inc. Ticker symbol (CNSX: BYRNA). The company specializes in the development and manufacturing of innovative non-lethal solutions. BYRNA offers a range of products from handheld personal security devices to security devices for civilians and private security professionals. The company operates throughout the United States, South Africa, and Canada. The company was formed in 2005 and is headquartered in Andover, Massachusetts.
BYRNA Fiscal Results for 2020 And Overview And Objectives
The results call for solid revenue growth, driven by the demand for innovative products, significant production, and dynamic marketing campaigns.
- Total revenues were $16,566,295
- Gross margin increased to 45.3%
This was a transformative year for BYRNA; delivering strong revenues and adjusting recurring and non-cash charges all played a positive role in the positive net income in the company’s history. During this period, the company made changes in essential enhancements to the corporate platform, including human capital, manufacturing assets, and the new highly experienced marketing officer. Now that the company’s production capacity can meet the demand, the company will work through the backorders within the next few weeks.
2020 Business Overview
BYRNA revenues were at $11,029,154 during the fourth quarter of 2020. The significant increase was due to strong growth in orders for the company’s innovative product, Byrna HD, from enhanced market awareness.
The company’s gross profit was $4,896,610, with a gross margin of 44.4%. This increase was due to higher significant production levels, spreading its fixed production overheads across the production base.
The company’s operating expenses were $6,172,482 for the year, reflecting more significant investment in infrastructure to support the company’s growth in production and sales. The increase includes investments in employee-related expenses, bank fees, auditing costs, and marketing costs.
BYRNA Outlook
Looking into the balances for 2021, the revenues are expected to be approximately $9.2 million. The figure is slightly below BYRNA’s expectations due to the company suspending shipments during the last few weeks of the quarter because of technical issues, carrying out inspections of launchers. Since then, every launcher leaving the factory has been reinspected with procedures and protocols to prevent any technical issues. The company is going into the second quarter with an order backlog of roughly $3 million.
BYRNA Commence Trading On Nasdaq
The organization expects to trade on the Nasdaq exchange from May 5, 2021, under the ticker symbol BYRN. The organization will continue to trade on the OTCQB until May 4, 2021, and will continue to trade on the Canadian Stock Exchange.
The listing is a crucial milestone for the company and testifies BYRNA’s growth and evolution as a public company. The company is enthusiastic about its listing, as it will help the company evaluate its public profile, expand the shareholder base, shareholder value, and improve liquidity.
BYRNA Acquires Mission Less Lethal Assets
Mission Less lethal is a leading U.S manufacturer of shoulder-fired, non-lethal launchers domestically and internationally, from KORE, a leader in design, manufacturing, and development of 68 caliber launchers in the paintball industry.
Mission Less Lethal is a strategic acquisition for the company. Mission’s technology is first class, including its products. Its product lines are complementary to BYRNA’s; Simultaneously, BYRNA is focused on the consumer market; Mission’s focus has been on security professionals, including law enforcement, private security, and prisons, domestically and internationally.
The acquisition of the Mission product line is unrivaled in none lethal applications. This will position BYRNA to significantly progress into law enforcement, school safety markets, and private security. The company believes that their leading product, the TCR, powered by readily available 12-gram CO2 canisters, does not require an external air tank and will significantly appeal to over 120,00 members of the nation.
BYRNA Reverse Stock Split, Sales, And Profitability
The board’s director determined that a stock split is necessary to meet requirements for a listing on a national exchange. The reverse split is an essential step for the company’s growth.
The national exchange will provide greater exposure and visibility in the market. It will provide greater liquidity to investors and greater shareholder value. The reverse split will be effective on April 27, 2021; the company expects to begin trading on the Canadian Stock Exchange and OTCQB under the existing ticker symbol.
BYRNA Self Defense Weapon With Strong Sales
The company mainly develops the BYRNA HD, a handheld device dispensing chemical irritants; the lightweight caliber is equipped with a five-round magazine, capable of hitting a target at 60 feet and not causing serious injury. It is designed to burn the eyes and respiratory system.
BYRNA’s range of products includes 40-millimetre Blunt Impact Projectile, using pain compliance to control the target. The company has already created eight versions of the projectile, seven containing a payload and one lower cost. A payload is an internal medium containing pepper spray or tear gas.
How is the company Moving Forward
The company has many products on its innovative portfolio, covering a wide range of designs for non-lethal technologies. The company holds 7 U.S patents and international patents. It also has 13 pending patents, along with a U.S trademark.
BYRNA reported $8.9 million for months ending February 28, 2021, and the gross margin was 53.3%. At the end of February, they had $4.1 million in cash, which includes 2.2million restricted cash, released as backorders are completed.
Taking the company forward, the revenues projected are between $33 million and $38 million ending November 30, 20121. This is a good forecast for year-over-year growth of roughly 100% to 130%, primarily based on the order backlog, projected growth, and order flow.
The company’s increase in sales was driven by increased order growth for the leading product BYRNA HD device and the backorder log reduction, which resulted in an increased production volume.
In 2022 the company plans to introduce an innovative product BYRNA CP, a compact launcher designed to be carried more discreetly, or consumers who have smaller hands.
Will They Become Profitable?
BYRNA has demonstrated major achievements within its business, so it would be good to shine some light on the company. The company manufactures and develops less-lethal devices. The company’s market cap of $452 million posted a loss in the recent financial year of $13 million, primarily shrinking the gap between loss and breakeven. Investors are concerned about the company’s profitability, and when will it breakeven? So, what are the expectations for company growth, and when do the analysts expect it to be profitable?
According to 2 American Aerospace and Defence, Analysts BYRNA is bordering on breakeven. They will expect the company to deliver a final loss in 2021, before they turn into profit in 2022, with an estimated $13 million. That indicates that the company will breakeven in a year. But what rate does the company have to grow to breakeven?
An annual growth rate of 169%, suggesting high confidence from analysts. If the rate is too aggressive, the company might become profitable much later than the analysts’ predictions.
Summary
BYRNA’s production capabilities have continued to improve, with the ramp of the Fort Wayne facility opened in September 2020. The team has performed excellently, along with the South Africa employees. They have demonstrated commitment and working to a deadline to get the products to the customers, working through the backlog orders. When the company fulfills the backlogs, they will be focusing on expanding the dealer network, pursuing relationships with sporting stores, outdoor stores, and gun stores. The company believes the outlets present a growth opportunity for the company.
The Reverse split was an essential step in the company’s growth, providing greater exposure and visibility in the market, providing greater liquidity to investors, and increasing shareholder value. Listing the stock on a national exchange is crucial for onwards company growth.
The nation continues to experience tragic events, preventing people from going about their daily lives. The company’s Mission is to provide civilians and law enforcement agencies an effective and safe alternative to lethal firearms, enabling customers to protect themselves, gain a sense of security and confidence in controlling their environment, and live safely.
The leading product BYRNA HD is a game-changer in the market for personal security devices. The product innovations have been developed to solidify the company’s position as a leader in the marketplace. The innovative product is driven by the growing demand from civilians and law enforcement professionals, giving them an efficient and safe alternative to lethal firearms. The rapid sales growth over the year reflects the brand appeal to a broader audience. The company is well-positioned for growth and knowing that they have the financial resources to support the growth.
The developments in the company do imply that growth is not the focus on the broad overview. Still, you should also consider that a high forecast growth rate is typical in a company undergoing an investment period.
BYRNA has no debt on the balance sheet, and that is rare in a loss-making growth stock, which usually displays high levels of debt concerning its equity. This ultimately means that the company has been operating on its equity investment, having no debt burden. The assessment reduces the risk around the loss-making company.
The company believes that KORE patents, combined with the company’s extensive portfolio, will allow the team to create more innovative non-lethal products in the years to come, including a pump-action launcher, achieving accuracy at 150 feet. The existing product line of Mission is a huge step forward for the company, providing a highly strategic acquisition, with the tactile Compact Rifle soon to be released in the market.
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