Market Overview

Solis Tek Provides Shareholder Update

Share:

CARSON, Calif., Aug. 15, 2018 (GLOBE NEWSWIRE) -- Solis Tek Inc. (OTCQB: SLTK) ("Solis Tek"), a vertically integrated cannabis technology innovator, manufacturer and distributor, is pleased to provide a business update to its shareholders and the Wall Street community.

First Half 2018 Financial Highlights:

  • Lighting and nutrient revenue of $1.7 million for the six months ended June 30, 2018;
  • Total assets increased to $7.1 million at June 30, 2018, from $4.1 million at December 31, 2017; and
  • Cash balance increased to $2.8 million at June 30, 2018, from $1.0 million at December 31, 2017.

Solis Tek Chief Executive Officer, Alan Lien, commented, "In the second half of 2018, we expect our lighting and nutrient divisions to have increased revenues as compared to the first half of the year. With no significant actions taken to date by Federal prosecutors and President Trump's recent comments that he will probably support States' positions on cannabis, we are seeing investors and operators jumping back in with their pre-2018 aggressive investment plans. Starting in June, we began to see a pick up in requests and orders for lighting and nutrients."

The newly acquired cultivation and processing facility, currently under build-out construction, is anticipated to become revenue generating in the second quarter of 2019. The 70,000-square foot facility is operating under a current Arizona licensee with Solis Tek having complete operational, management and sales control. Production and oil extraction are in the process of build-out with equipment to be acquired in the third quarter of this year.  Solis Tek is working with the local municipalities and power companies to ensure the proper power feeds and utilities are available for its facility.

Solis Tek continues to capitalize on its extensive relationships throughout China, as it is extending its product line to manufacture and distribute cultivation products, such as rolling benches and green houses. 

In 2018, Solis Tek re-positioned its sales focus in order to take advantage of growing opportunities it sees within the legalized jurisdictions of cannabis. The previous efforts centered upon targeting the retail home and hobbyist growers have been replaced with the sales force targeting the commercial side of the cannabis sector. Currently, Solis Tek has five regional commercial cultivation account managers covering North America, with new marketing strategies, pricing and inventory fulfillment processes.

About Solis Tek Inc.
Solis Tek Inc. (OTCQB: SLTK) is a vertically integrated technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial and retail cannabis growers in both the medical and adult use 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. Solis Tek's Zelda Horticulture nutrient division, launched in 2018, has expanded the product mix and offerings. Solis Tek's lighting and nutrient customers include retail stores, distributors and commercial growers. In 2018, Solis Tek expanded into the "touch-the-plant" side of the cannabis business under a contract with an Arizona licensee and its ongoing build-out of a cultivation and processing facility in Phoenix, AZ. For more information, please visit Solis Tek's 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 Solis Tek's current plans and expectations, as well as future results of operations and financial condition. Solis Tek undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investors Contact:
Hayden IR
917-658-7878
hart@haydenir.com

 
 
SOLIS TEK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
  June 30, 2018     December 31, 2017  
  (Unaudited)        
ASSETS              
Current Assets              
Cash $ 2,843,996     $ 967,943  
Accounts receivable, net of allowance for doubtful accounts and returns of $284,532
and $396,499, respectively
  196,783       417,484  
Inventories, net   1,607,212       1,684,463  
Advances to suppliers – formerly a related party   529,850       735,730  
Prepaid expenses and other current assets   205,168       134,374  
Total Current Assets   5,383,009       3,939,994  
               
Property and equipment, net   153,980       138,243  
Intangible assets, net   1,437,174       -  
Other assets   102,580       37,980  
TOTAL ASSETS $ 7,076,743     $ 4,116,217  
               
LIABILITIES AND SHAREHOLDERS' DEFICIT              
Current Liabilities              
Accounts payable and accrued expenses $ 1,514,559     $ 1,124,349  
Due to former related party vendor   -       381,457  
Contract obligations, current portion   290,909       -  
Note payable - related parties   640,000       1,145,000  
Note payable to related party, current portion, net of discount of $1,247,032 and $0,
respectively
  252,968       -  
Convertible note payable to related party, current portion, net of discount of $0 and
$1,055,556, respectively
  -       194,444  
Due to related parties   118,210       146,534  
Capital lease obligations, current portion   1,883       9,665  
Loans payable, current portion   21,416       8,476  
Total Current Liabilities   2,839,945       3,009,925  
               
Loans payable, net of current portion   857       17,481  
Contract obligations, net of current portion   481,909       -  
Convertible note payable, net of current portion, net of discount of $0 and $500,000,
respectively
  -       -  
Derivative liability   4,092,050       7,415,000  
Total liabilities   7,414,761       10,442,406  
               
Series-A Convertible Preferred Shares, net of no discount and $351,000, no par
value, none and 351,000 shares issued and outstanding at June 30, 2018 and
December 31, 2017, respectively
  -       -  
               
Commitments and Contingencies              
               
Shareholders' Deficit              
Preferred stock, no par value, 20,000,000 shares authorized; no shares issued and
outstanding at June 30, 2018 and December 31, 2017
  -       -  
Common stock, $0.001 par value, 100,000,000 shares authorized; 44,826,564 and
38,522,034 shares issued and outstanding at June 30, 2018 and December 31, 2017,
respectively
  44,827       38,522  
Additional paid-in-capital   25,511,529       9,077,690  
Accumulated deficit   (25,894,374 )     (15,442,401 )
Total Shareholders' Deficit   (338,018 )     (6,326,189 )
               
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 7,076,743     $ 4,116,217  
 


 
SOLIS TEK INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
    Three months ended
June 30,
    Six months ended
June 30,
 
    2018     2017     2018     2017  
                                 
Sales   $ 701,626     $ 2,441,289     $ 1,713,375     $ 5,343,115  
Cost of goods sold (1)     584,916       1,521,410       1,118,841       3,302,714  
Gross profit     116,710       919,879       594,534       2,040,401  
                                 
Operating expenses                                
Selling, general and administrative expenses     2,650,018       2,391,231       6,098,289       7,155,886  
Research and development     62,706       82,500       114,584       165,270  
Excess cost of acquisition From a related party over historical basis     4,450,000       -       4,450,000       -  
Total operating expenses     7,162,724       2,473,731       10,662,873       7,321,156  
                                 
Loss from operations     (7,046,014 )     (1,553,852 )     (10,068,339 )     (5,280,755 )
                                 
Other income (expenses)                                
Financing costs (2)     (7,317,406 )     -       (7,317,406 )     -  
Change in fair value of derivative liability     4,181,874       -       6,811,926       -  
Gain on extinguishment of derivative liability     1,715,173       -       2,389,427       -  
Interest expense (3)     (1,611,695 )     (31,649 )     (2,264,381 )     (55,820 )
Total other income (expenses)     (3,032,054 )     (31,649 )     (380,434 )     (55,820 )
                                 
Loss before income taxes     (10,078,068 )     (1,585,501 )     (10,448,773 )     (5,336,575 )
                                 
Provision for income taxes     3,200       3,200       3,200       4,113  
                                 
Net loss   $ (10,081,268 )   $ (1,588,701 )   $ (10,451,973 )   $ (5,340,688 )
                                 
BASIC AND DILUTED LOSS PER SHARE   $ (0.24 )   $ (0.04 )   $ (0.25 )   $ (0.15 )
                                 
WEIGHTED - AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED     42,370,311       37,011,893       41,820,127       36,807,540  
                                 
(1) Included in cost of goods sold are these amounts from a former related party   $ 137,080     $ 1,247,897     $ 549,802     $ 2,688,893  
(2) Included in financing costs are these amounts from a related party     6,177,406       -       6,177,406       -  
(3) Included in interest expense are these amounts from related parties   $ 16,868     $ 30,487     $ 39,781     $ 54,109  

View Comments and Join the Discussion!