CARSON, CA--(Marketwired - November 14, 2017) - Solis Tek Inc. SLTK, a vertically integrated technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial cannabis growers in legal markets across the U.S., today reported financial results for the quarter and nine month period ended September 30, 2017.

Financial Update

• Third Quarter 2017 revenues of $1.99 million; up 6% over the same period in 2016
• Revenues of $7.34 million for the first nine months of 2017; up 11.4% over the same period in 2016
• Third Quarter 2017 gross profit of $671 thousand; up 5% over the same period in 2016
• Gross profit of $2.71 million for the first nine months of 2017; up 14.5% over the same period in 2016

Business Update

• Successful launch of proprietary Digital Lighting Controller to unprecedented market response and demand
• Testing initialized for second Zelda Horticulture, Inc. nutrient product
• Independent, third party test of six lighting companies scored Solis Tek's Digital Lighting solution highest in terms of overall efficiency and value for cultivators

Subsequent Event

• In November, 2017, Solis Tek closed on a financing that provided $2.5 million in new capital to support supply chain fulfillment and nutrient line automation

"We've significantly expanded our product portfolio in the third quarter and the increased demand for our products has continued," commented Dennis G. Forchic, Chief Executive Officer of Solis Tek. "We are particularly excited about the response to our new Digital Lighting Controller. This device complements our existing upgraded product line and enables cultivators to schedule and monitor their grow rooms, thus increasing the grower's yield and ROI. Initial demand for the Controller exceeded expectations. With the recent funding round now complete we are excited to be able to increase inventory levels across the board to meet projected demands."

Mr. Forchic continued, "With the successful completion of our recently announced financing transaction that resulted in more than $2 million in capital, Solis Tek is well positioned to realize sustained supply chain execution, thus maintaining healthy inventory levels of key products across our product portfolio to support continued revenue growth. We also plan to use the proceeds from this financing to automate production of our Nutrient Line, which is rapidly moving towards introducing its second commercial product. We remain excited by the demand trends we are seeing across both our lighting and nutrient units, which will leverage the same distribution-supply channels and client base, spearheading our planned drive toward significant revenue growth and expanded margins for Solis Tek. We see tremendous opportunity for Solis Tek as we position the Company for dynamic growth in 2018 and beyond."

Financial Results for the Quarter Ended September 30, 2017

For the third quarter of 2017, revenues were $1.99 million, representing a 6% increase over the same period in 2016. These increases were driven by increased market penetration among hydroponic customers and commercial facilities. Cost of revenues increased 7% over the same period in 2016, modestly lowering gross margin to 33.7%, compared with 34.1% for the same period in 2016.

Selling, general, and administrative expenses were $2.05 million in the third quarter of 2017, up 167% over the same period in 2016, due primarily to cash and stock-based compensation expenses to support a broad campaign to increase Solis Tek's industry and investment community visibility and, to a lesser extent, increased marketing and payroll related expenses.

Stock compensation expense was $556,000 for the third quarter of 2017, compared with $25,000 in the same period in 2016. Research and development expenses were $82,500, 42% higher than the same period in 2016.

Net loss for the third quarter of 2017 was $1.49 million, or $0.04 per share, compared with a net loss of $173,460, or $0.01 per share for the same period in 2016, again due primarily to cash and stock-based compensation expenses.

As of September 30, 2017, the Company had $194,000 in cash, compared with $276,000 at December 31, 2016.

Financial Results for the Nine Month Period Ended September 30, 2017

For the nine months ended September 30, 2017, revenues were $7.34 million, representing an 11.4% increase over the same period in 2016. These increases were driven by increased market penetration among hydroponic customers and commercial facilities. Cost of revenues increased 9.6% over the same period in 2016, resulting in gross margin of 37%, up from 35.9% for the same period in 2016.

Selling, general, and administrative expenses were $9.21 million in the nine months ended September 30, 2017, up 303% over the same period in 2016, due primarily to cash and stock-based compensation expenses to support a broad campaign to increase Solis Tek's industry and investment community visibility and, to a lesser extent, increased marketing and payroll related expenses.

Stock compensation expense was $5,361,046 for the nine months ended September 30, 2017, compared with $86,000 in the same period in 2016. Research and development expenses were $247,770 in the nine months ended September 30, 2017, 44% higher than the same period in 2016.

Net loss for the nine months ended September 30, 2017 was $6.83 million, or $0.18 per share, compared with a net loss of $163,657, or $0.01 per share for the same period in 2016, again due primarily to cash and stock-based compensation expenses.

To be added to the Solis Tek email distribution list, please email SLTK@kcsa.com with SLTK in the subject line.

About Solis Tek

Solis Tek is a vertically integrated technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial cannabis growers in both the medical and recreational space in legal markets across the U.S. For nearly a decade, growers have used Solis Tek's lighting solutions to increase yield, lower costs and grow better to maximize their return on investment. The Company's customers include retail stores, distributors and commercial growers in the United States and abroad. For more information, please visit our website, www.solis-tek.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.