Element 21 Golf Company, a manufacturer of advanced Scandium Alloy golf and biofiber fishing equipment, reported revenues of $4.0 million for fiscal 2009, an increase of 218% compared to revenue of $1.8 million for fiscal 2008. The company said the increase in revenues was primarily a result of the launch of fishing line in 2008.
Net loss for fiscal 2009 was $1.6 million, or 19 cents per diluted share, as compared to a net loss of $2.9 million, or 44 cents per diluted share (before the effect of the preferred stock dividend) for fiscal 2008. The company said the decrease in the net loss is largely attributable to the increased gross margin from increased revenue, combined with lower selling, general and administrative expenses.
Costs of sales in 2009 were $2.4, or 58% of total revenues, compared to $1.5 million, or 80% of total revenue, a year ago. An appropriate provision of $178,000 of slow moving inventory is included in cost of sales as a result affecting the margins. General and administrative costs were $3.1 million as compared to $5.6 million in 2008. The company said these costs primarily consisted of marketing expenses, including trade shows, legal and accounting expenses necessary to maintain the company’s reporting requirements to be a publicly traded entity, and consulting fees which were satisfied primarily through the issuance of common stock.
Gross profit increased from $362,000 in 2008 to $1.7 million in 2009. Loss from operations for the year decreased to $1.4 million in 2009 from $5.248 million in 2008.
