• The Company anticipates achieving positive operating cash flow by Q3 2024.

• Contributing factors include:

  • Launching multiple products in revenue generating categories.

  • Streamlining operations, improving cost-savings, and exercising cutbacks.

  • Increasing prices, where necessary.
    

IRVINE, Calif., Feb. 13, 2024 (GLOBE NEWSWIRE) -- ToughBuilt Industries, Inc. ("ToughBuilt” or the “Company”) (NASDAQ: TBLT), announced today its goal of achieving positive operating cash flow by the third quarter of fiscal 2024. The Company intends to focus on generating revenue through the sales of newly launched products in various categories, implementing cost-saving measures, and considering price adjustments where necessary. ToughBuilt is also exploring expansion into new markets and engaging with online and brick-and-mortar global retail partners.

Michael Panosian, ToughBuilt Chief Executive and Co-Founder, expressed optimism about the Company’s progress, stating, “I am pleased to see our revenue and gross margins growing, and the Company approaching the point of covering its SG&A expenses. By focusing on the continued sales of our new products in revenue-generating categories, attracting new customers, and implementing efficiency measures while making careful adjustments to pricing, we anticipate achieving positive operating cash flow by Q3 2024.”

Mr. Panosian continued, “Our SG&A cost savings come as the result of lowered shipping rates, consolidated 3PL operations and cutbacks in overhead. We anticipate implementing additional workforce reductions and senior management salary reductions which will contribute to our goal of achieving operating cash flow positivity.” He further acknowledged the Company’s dedicated team, steadfast retail partners, and committed shareholders for their ongoing support during this phase of growth.

ABOUT TOUGHBUILT INDUSTRIES, INC.

ToughBuilt is an innovative advanced product developer, manufacturer, and distributor with emphasis on innovative products, currently focused on tools and other accessories for the professional and do-it-yourself construction industries. We market and distribute various home improvement and construction product lines for both the do-it-yourself and professional markets under the TOUGHBUILT brand name, within the global multibillion dollar per year tool market industry. All our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line includes three major categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Our mission is to provide products to the building and home improvement communities that are innovative, of superior quality derived in part from enlightened creativity for our end users while enhancing performance, improving well-being, and building high brand loyalty. Additional information about the Company is available at: https://www.toughbuilt.com/.