iGo Reports Second Quarter Financial Results

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iGo, Inc. (OTC PINK: IGOI), today announced operating results for the second quarter and six months ended June 30, 2020.

Financial Overview

Second quarter of 2020 compared with second quarter of 2019

Revenue for the second quarter of 2020 was $15.4 million, as compared to revenue of $14.9 million in the same period of the prior year.
Net income was $0.8 million, or $0.11 per share, for the second quarter of 2020, as compared to net income of $0.4 million, or $0.05 per share, in the same period of the prior year.

Six months ended June 30, 2020 compared with six months ended June 30, 2019

Revenue for the six months ended June 30, 2020 was $30.6 million, as compared to revenue of $30.5 million in the same period of the prior year.
Net income was $1.3 million, or $0.16 per share, for the six months ended June 30, 2020, as compared to net income of $0.5 million, or $0.06 per share, in the same period of the prior year.

The spread of the COVID-19 outbreak has caused significant disruptions in the U.S. and global economies. The Company continues to evaluate the global risks and the slowdown in business activity related to COVID-19, including the potential impacts on its employees, customers, suppliers, and financial results. As the situation surrounding COVID-19 remains fluid, it is difficult to predict the duration of the pandemic and its continued impact on the Company’s business, operations, financial condition, and cash flows. As the COVID-19 pandemic progressed, the Company initiated cost reduction actions, including hiring freezes, employee furloughs, staffing and force reductions, salary reductions, bonus payment deferrals, and 401(k) match suspension to help mitigate the financial impact of the COVID-19 pandemic. The Company also froze all discretionary spend, implemented strict approvals for capital expenditures, and is aggressively managing working capital. The Company continues to evaluate further actions as circumstances warrant.

While the Company developed and implemented, and continues to develop and implement, health and safety protocols, business continuity plans, and crisis management protocols in an effort to try to mitigate the negative impact of COVID-19 to its employees and business, the severity of the impact of the COVID-19 pandemic on the Company’s business in the remaining quarters of 2020 and beyond will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, governmental actions that have been taken, or may be taken in the future, in response to the pandemic, and the extent and severity of the impact on the Company’s customers and suppliers, all of which are uncertain and cannot be predicted.

About iGo

iGo, Inc. was previously a provider of mobile accessories and is evaluating alternative strategies for uses of its capital and the iGo brand. iGo’s Kasco subsidiary provides metallic blade products for the meat cutting, food cutting, and wood cutting industries to the global market. Its route distribution unit provides the U.S. and Canada retail grocery and retail food industries with quality butcher supplies, resupply products, and seasonings. Headquartered in St. Louis and founded in 1901, Kasco has manufacturing, sales, and warehouse operations in St. Louis, Canada, Mexico, Wales, and Germany.

Forward-Looking Statements

Certain information in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated. Such forward-looking statements do not guaranty future performance and are subject to various factors that could cause actual results to differ materially. Undue reliance should not be placed on such forward-looking statements. Due to the continued uncertainty of the impact of COVID-19 on the global economy, it is difficult to predict the duration of the pandemic and its impact on the Company’s business, operations, and financial condition. iGo undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, iGo does not undertake any responsibility to provide updates on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.

iGo, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except common shares)

	June 30, 2020		December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	1,852	$	1,687
Accounts receivable, net	7,869		7,731
Inventories	5,158		4,844
Prepaid expenses and other current assets	1,081		1,012
Total current assets	15,960		15,274
Property, plant and equipment, net	11,195		11,498
Operating lease right-of-use assets	986		1,225
Intangible assets, net	989		1,070
Deferred tax assets	1,408		1,408
Total Assets	$	30,538	$	30,475
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,433	$	2,974
Accrued expenses	4,299		3,051
Short-term debt	92		570
Payable to related parties	409		301
Operating lease liabilities	464		478
Total current liabilities	8,697		7,374
Long-term debt	5,500		7,600
Long-term operating lease liabilities	511		734
Other non-current liabilities	1,928		1,928
Total Liabilities	16,636		17,636
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.01 par value: authorized 10,000,000 shares; 7,877,278 shares issued and outstanding	79		79
Accumulated other comprehensive loss	(1,060)		(867)
Capital deficit	(20,608)		(20,608)
Retained earnings	35,491		34,235
Total Stockholders’ Equity	13,902		12,839
Total Liabilities and Stockholders’ Equity	$	30,538	$	30,475

iGo, Inc.
Consolidated Statements of Income
(unaudited)
(in thousands, except common shares and per common share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenue	$	15,366	$	14,925	$	30,562	$	30,548

Costs and expenses
Cost of goods sold	7,863		7,528		15,772		15,462
Selling, general and administrative expenses	6,203		6,589		12,797		14,124
Restructuring charges	—		—		(28)		—
Interest expense	71		130		147		251
Gain from asset dispositions	(32)		(56)		(62)		(133)
Other (income) loss, net	(72)		7		(109)		29
Total costs and expenses	14,033		14,198		28,517		29,733
Income before income taxes	1,333		727		2,045		815
Income tax provision	505		312		789		342
Net income	$	828	$	415	$	1,256	$	473
Net income per common share – basic and diluted	$	0.11	$	0.05	$	0.16	$	0.06
Weighted average common shares outstanding – basic and diluted	7,877,278		7,877,278		7,877,278		7,877,278

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