Slinger Bag Inc (SLBG) Q1 2024 Earnings Report

Slinger Bag Inc reported a difficult QQ1 2024, with revenue of $704,899, a 77.41% year-over-year decline and a 22.74% quarter-over-quarter decline. Gross profit was $272,121 (gross margin 38.6%), but the company remained severely unprofitable, posting EBITDA of -$3.255 million and a net loss of -$4.2207 million, or -$1.91 per share, on 2.2058 million weighted average shares. Operating expenses dominated the cost structure (SG&A and operating expenses of $3.527 million), driving an operating loss of -$3.255 million and an interest burden of $0.966 million, contributing to a negative pre-tax result of -$4.2207 million. Cash burn from operations persisted, with operating cash flow at -$72,646 and free cash flow at -$72,650, while financing activities provided a cash inflection of +$1.614 million driven by equity financing (common stock issued of $1.618 million) and a net increase in cash of $1.481 million, leaving cash at period-end of $1.711 million. Compared with Q4 2023, revenue and gross margins deteriorated meaningfully (Q4 2023 revenue $912,341 and gross margin 61.5% vs. Q1 2024 revenue $704,899 and gross margin 38.6%), underscoring a material step-down in demand and a heavier cost base relative to current scale. The earnings mix reflects persistent overhead absorption challenges and limited operating leverage; the company continues to incur a substantial SG&A burden relative to sales, suggesting the near-term cash flow and profitability path hinges on a revenue rebound and/or meaningful cost optimization. Management commentary was not provided in the supplied transcript data, limiting the ability to quote specific guidance or strategic remarks for QQ1 2024. The data imply a liquidity-sensitive profile, with the company relying on financing to fund operating losses until revenue growth or margin improvements materialize.