Business
American Aires Inc. Provides Corporation Update
Toronto, Ontario--(Newsfile Corp. - March 20, 2023) - American Aires Inc. (CSE: WIFI) (OTC Pink: ...
About this update from American Aires, Inc.
[{"type":"text","content":"American Aires Inc. Provides Corporation UpdateToronto, Ontario--(Newsfile Corp. - March 20, 2023) - American Aires Inc. (CSE: WIFI) (OTC Pink: AAIRF) (the \"Company\" or \"Aires\"), a provider of scientifically-proven EMF modulation technology, provides an update to investors on its activities and important developments that took place in 2022 following the recent announcement of the revocation of the Ontario Securities Commission's Cease-Trade Order and the resumption of trading of the Company's shares on the Canadian Securities Exchange.During Q3/2022, the Company continued to enjoy the tailwinds from the marketing strategy revamp which commenced in August 2021 and remained on track for a continuous and gradual increase in advertising spend. Based on preliminary and unaudited financial results, the Company continued to build on the strength in demand and realized 2022 sales of $5.8 million, a 128% increase on a year-over-year (\"YOY\") basis. Advertising expenses increased 57% YOY during 2022 to $4.8 million. The Company achieved record monthly sales surpassing CAD$900,000 (up 124% YOY) in November 2022, despite facing inventory challenges during the last two quarters of the year. Advertising expenses increased 91% YOY in November 2022. The gross profit margin during 2022 was 60% versus 39% a year ago.\"We are incredibly proud of our team's resilience and determination to achieve its sales numbers, particularly during the crucial Q4 period, despite the supply challenges. Consumer demand, even during out-of-stock situations, attests to the genuine market need for our product offerings. This accomplishment highlights our capacity to evolve and innovate. Our success in this period underscores the team's commitment to our vision and further bolsters management's confidence in our ability to drive growth in a challenging and volatile market landscape,\" said Josh Bruni, CEO.In addition, along with the Company's long-term strategy of disciplined geographic expansion, sales during 2022 continued to benefit from the launch of fulfillment centres in Australia and Europe in Q1 and Q2, respectively. Through reduced fulfillment time and cost, the new fulfillment centres had a net positive impact on sales in the respective regions. The Australian location helped open up the Oceania geography while the location in Poland, having a much sma...