Enters Calendar Year 2020 in a Much Stronger Financial and Business Position
TOCCOA, GA / ACCESSWIRE / December 17, 2019 / Galaxy Next Generation, Inc. (OTCQB:GAXY) (“Galaxy” or the “Company), a provider of interactive learning technology solutions, is pleased to provide the following shareholder update as it looks to close out the calendar year 2019 and enter 2020 in a much stronger financial and business position.
For its fiscal year ended June 30, 2020, Galaxy expects to generate revenue growth of at least 400% or $8 million in consolidated revenue. Galaxy also expects to continue to decrease operating losses as it increases revenue. The expected revenue growth is partly related to its acquisition of Interlock Concepts and Ehlert Solutions Group on September 4, 2019. For the years ended June 30, 2019 and June 30, 2018, Interlock Concepts and Elhert Solutions Group generated $4.4 million and $4.1 million of revenues, respectively. The combined operating losses of Interlock Concepts and Ehlert Solutions Group were reduced by $0.8 million or 60%, to $0.5 million for the year ended June 30, 2019, from $1.3 million for the year ended June 30, 2018.
Recap of Recent Financings
In mid-November, the Company closed on a $1.5 million equity financing from an existing shareholder. The majority of the proceeds were used to fully repay and satisfy $1.5 million of convertible notes. The notes were initially issued in May 1, 2019 and were convertible into common stock at a discount to market.
In late-November, the Company closed on a $1.0 million senior secured convertible note financing from an institutional investor. The note bears interest at the rate of 8.0% per annum and matures on November 25, 2020. primarily for the acquisition of Interlock Concepts and Ehlert Solutions Group.
Also in late-November, the company was able to eliminate approximately $400,000 in additional convertible debt. The two notes were originally issued in November and December and were convertible into common stock at a discount to market.
Gary LeCroy, Galaxy’s Chief Executive Officer, commented, “Our management team and Board believe that these recent financings and repayments were important to avoid and/or minimize the dilution of the shareholders. These balance sheet transactions, coupled with our recently closed Interlock Concepts and Ehlert Solutions Group acquisition and growing customer demand have put us in a much stronger position entering calendar 2020.”
Other Key Recent Business Highlights
- Launched and highlighted new products G2 Spoke, G2 SLIM and G2 Overlay at ISTE, InfoComm, Future in Educational Technology Conferences
- Executed agreements with various new resellers, expanding geographically and vertically, including AIOS Group and J.D.B. and Associates
- Awarded contract from Lamar County, Georgia
- Awarded contract from Stephen County, Georgia
- Awarded commitment from Brooks County, Georgia school district
- Awarded contract from Marshall County, Alabama
- Awarded contract from Newtown County, Georgia school district
- Awarded district-wide deployment from Thompson School District in Loveland, Colorado
- Completes install with the International School of Louisiana
Recap of Interlock Concepts Key Products
- Phoenix Software Suite (Notification and building communication platform)
- Classroom Audio Product Suite (Amplifier, Lanyard Microphone, Handheld Microphone and speakers)
- Intercom Product Suite (Call Buttons, Microphones and Alert Buttons)
- IP Notification Devices (Clock and Speakers)
- Notification Software
- Speakers (Soundbar, In-ceiling and Wall)
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB: GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy’s products include Galaxy’s own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy’s distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company’s products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products – comprising nearly 90% of Galaxy’s sales.
For additional information, please visit our website at: www.galaxynext.us
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. A more extensive listing of risks and factors that may affect the company’s business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. 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.
SOURCE: Galaxy Next Generation, Inc.
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