NEWARK, N.J., April 23, 2018 /PRNewswire/ -- Solbright Group, Inc. (OTCQB: SBRT), an industrial automation and energy management company providing Industrial Internet of Things (IoT) solutions that help commercial and industrial facilities increase efficiency and reduce cost, today announced financial results for the third quarter of fiscal 2018 ended February 28, 2018.
Revenue for the third quarter of fiscal year 2018 was $2,496,544, an increase of over 900% compared to revenue of $263,800 in the third quarter of fiscal year 2017, while gross profit increased to $928,036 from $212,440 year over year, an increase of over 430%. Gross profit margin was 37% for the third quarter of fiscal 2018 compared to 84% in the third quarter of fiscal 2017. The increase in revenue and gross profit as well as decrease in gross margin reflect the growth in the Energy Solutions segment of our business year over year. The Company posted a loss from operations of $609,463 in the period versus a loss from operations $107,276 in the third quarter of fiscal year 2017.
Net cash used in operating activities was $363,088 for the nine months ended February 28, 2018, versus $497,746 for the same period in fiscal 2017.
"We remain very encouraged by our results this quarter, particularly as we manage through some short-term macroeconomic headwinds in the solar industry. We are pleased with the continued growth in our pipeline as well as the traction we are seeing with our technology solutions," said CEO Terrence DeFranco. "Fiscal 2018 is a transitional year for Solbright as we position the service segment of our business as a source of growing revenue and an enabler for sales of our technology solutions. Increased market penetration through our Energy Solutions segment increases sales opportunities for our technology, so it is very encouraging to see this continued growth. Commercial and industrial facilities owners--particularly in retail, health care, education, specialty agriculture and data centers--can benefit from the bundling of our robust Industrial Internet of Things (IIoT) platform for energy management and predictive maintenance with our solar and LED lighting installations by lowering energy consumption and maintenance costs, extending asset life, increasing efficiency and productivity and realizing their sustainability goals. Overall, we are very pleased with our results and remain optimistic about the direction of our company and our commitment to drive value for our customers and shareholders."
Total operating expenses were $1,537,499 compared to $319,716 in the third quarter of fiscal 2017. The increase was primarily due to the increase in personnel related to the SolBright acquisition. Other income/expenses, which totaled $1,832,245, included interest expense of $1,291,919 and non-cash charges for modification of beneficial conversion features on convertible notes and amortization of debt discount and deferred finance costs, both related to the Company's long-term debt, which totaled $540,326.
The net loss was $2,442,183 or ($0.09) per basic and diluted share for the third quarter of fiscal 2018 compared to a net loss of $271,550, or ($0.02) per basic and diluted share, for the third quarter of fiscal 2017. Basic and diluted per share results are based on weighted average shares outstanding of 26,663,305 and 13,998,191 for the third quarters of fiscal 2018 and fiscal 2017, respectively.
About Solbright Group, Inc.:
Solbright Group, Inc. is an industrial automation and energy management company providing Industrial Internet of Things (IoT) solutions that help commercial and industrial facilities increase efficiency and reduce cost. We deliver technology solutions for building and machine automation and energy conservation that complement our energy conservation services such as LED lighting retrofits, HVAC system retrofits and solar engineering, procurement and construction services. Our focus is towards the development and commercialization of an Internet of Things software platform that supports Big Data applications that complement our energy management services. More information is available at www.Solbrightgroup.com.
This press release may contain "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. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to the acquisition and integration of the Solbright assets, risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Solbright Group, Inc.