As previously announced, revenues for the quarter ended June 30, 2020 increased more than 500% when compared to revenues for the immediate preceding quarter ended March 31, 2020.
RedHawk's adjusted net income from operations was $120,769 for the quarter ended June 30, 2020.
LAFAYETTE, LOUISIANA -- November 18, 2020 -- InvestorsHub NewsWire -- RedHawk Holdings Corp. (OTC: SNDD) ("RedHawk" or the "Company"), a diversified holding company primarily engaged in sales and distribution of medical devices, announced today its financial results for the three months and fiscal year ended June 30, 2020.
For the three month period ended June 30, 2020, on revenues of $916,203, the Company reported net income from operations of $38,534. Starting from reported net income from operations of $38,534 for the three month period, and excluding $34,326 of research and development charges for the now completed SANDD Pro™ reverse engineering project, $40,153 of expenses for a now completed marketing consulting agreement, and $7,656 of costs necessary to update the RedHawk Medical Products website, RedHawk's adjusted net income from operations was $120,769 for the quarter ended June 30, 2020. As previously announced, revenues for the quarter ended June 30, 2020 increased more than 500% when compared to revenues for the immediate preceding quarter ended March 31, 2020.
For the fiscal year ended June 30, 2020, on revenues of $1,134,192, RedHawk reported a net loss from operations of $779,777. Starting from a reported net loss from operations of $779,777 for the fiscal year, and excluding $118,327 of research and development charges for the now completed SANDD Pro™ reverse engineering project, $153,921 of marketing expenses for a now completed consulting relationship, and $39,352 of costs necessary to update the RedHawk Medical Products website, the Company's adjusted net loss from operations was $468,177 for the fiscal year ended June 30, 2020. For the fiscal year ended June 30, 2019, RedHawk previously reported a net loss from operations of $661,943 on revenues of $129,006.
The increase in year over year revenues was primarily attributable to the Company's decision in the fiscal year ended June 30, 2019, to temporarily exit its primary marketing focus on pharmaceutical sales in the United Kingdom and instead deploy its available working capital to develop and expand its more profitable lines of medical devices in the United States.
Additionally, RedHawk announced today that it has executed a non-binding letter of intent to acquire certain cannabis assets, including licenses to grow, manufacture and sell in the State of Oklahoma, with an anticipated initial focus on "craft" cultivation and distribution of product. Closing of the acquisition is contingent upon, among other things, completion of satisfactory due diligence, approval by RedHawk's board of directors, the negotiation, acceptance and execution of a definitive purchase agreement, acceptance and approval by the requisite shareholders, satisfactory completion of legal, regulatory and financial due diligence, and the closing of the required amount of acquisition financing. Accordingly, RedHawk cannot provide any assurance that a definitive agreement will be reached on acceptable terms or at all, that due diligence will be satisfactory, that the required acquisition financing will be obtained by RedHawk on acceptable terms or at all, or that the acquisition will ultimately be completed in any particular time frame or at all.
