ALUULA Reports Fourth Quarter and Fiscal Year 2024 Financial Results Achieving 53% Year-Over-Year Revenue Growth - Seite 2

• Sales for FY 2024 were $6,359,229 compared to $4,161,686 in FY 2023, which represents a 53% year over year increase.
• The increase in annual sales was primarily due to the Performance Outdoor channel.
  • The windsport vertical market reported a 36% increase as a growing number of brand partners commercialized kites and wings featuring ALUULA materials.
  • The pack and bag vertical market reported an increase in sales of approximately $800,000 which represents a 16.5x increase over the prior year as customers moved from field testing and prototype production to commercial scale.
  • Eight windsports brands launched new products while two bag and pack companies announced their in-market launch of high-performance packs.
• Cost of sales increased to $3,756,656 compared to $2,893,813 for FY 2023.
• Gross margins increased to 41% in FY 2024 from 30% in FY 2023.
• Other income reported during FY 2024 includes a realized gain of $562,043 from the sale of the Company's investment in Xlynx Materials Inc.
• Net and comprehensive loss from Ocean Rodeo's discontinued operations was $1,302,590 in FY 2024 compared to $1,522,611 in FY 2023 representing a decrease of $220,021. If income tax and deferred taxes were excluded, Ocean Rodeo's loss before taxes decreased from $1,787,009 in FY 2023 to $723,232 in FY2024.

Outlook

The Company continues to work with its growing list of brand partners, developing products that are lighter, stronger, and recycle-ready. These partnerships are built on the mutual understanding that performance and circularity can be synonymous in the outdoor industry and beyond. The products that are born from these partnerships work to change the industry for the better.

The windsports and performance outdoor categories are still the core drivers of ALUULA's growth as more new companies move from concept into commercialization launching new ALUULA enabled products in these areas. Collaborative research and development programs with other industrial partners, such as Michelin Inflatable Solutions and AirSeas, continue to advance the materials' development as these opportunities move closer to commercial viability.

Product innovation, strength, weight, and circularity are key areas of focus for ALUULA and its brand partners. Focusing on these areas, as well as continued improvements to the patented manufacturing process, will continue to improve efficiencies and profitability. The Company continues to focus on stabilizing the corporate foundation to enable a strong base for future sales pipeline, revenue and gross margin growth.