Labwire, Inc (OTC: LBWR) Announces Q2 2023 Earning Results and Corporate Updates

Labwire, Inc (OTC: LBWR), a pioneering specialty retailer, is delighted to announce the second quarter of 2023 earnings results:

Labwire Reports Strong Growth and Optimistic Outlook for the Future

Labwire is thrilled to announce its outstanding financial performance during the second quarter of 2023 compared to the same period in 2022. The company achieved a remarkable surge in net sales, reaching an impressive $421,366, a significant increase from the previous year's $0. This phenomenal growth can be attributed to the exceptional performance of Labwire's wholly-owned subsidiary, Super 99 Center, which consistently delivered robust operational results. Looking ahead, Labwire is confident that Super 99 Center will continue to excel in the second half of 2023.

The company's gross profit also experienced noteworthy growth, reaching $112,249, accounting for an impressive 27% of net sales. Moreover, Labwire managed Selling, General & Administrative Expenses (SG&A) of $194,551, which represented 46% of net sales. Additionally, Other Income of $73,481 was generated primarily from lottery ticket sales.

One significant milestone for Labwire was the reduction of its net loss to $8,821 in the second quarter of 2023. This impressive improvement can be attributed to the full realization of acquisition expenses and legal costs associated with the Regulation A+ offering, resulting in a substantial reduction from the net loss recorded in the previous quarter.

Shin Hwang, President & CEO at Labwire, expressed confidence in the company's future prospects, highlighting the consistent operational performance of Super 99 Center as a critical driver of Labwire's projected growth. He stated, "With the continued success of Super 99 Center year over year and quarter over quarter basis, we are confident that Labwire will successfully raise capital in full to accelerate its growth as projected."

Recent Corporate Events

Labwire is actively pursuing various corporate developments, including:

1. Capital Raise: The company is in active discussions with financial service providers and institutional investors to raise capital through its Regulation A+ offering. This capital raise aims to accelerate the expansion of Super 99 Center beyond organic growth.

2. Acquisition Opportunities: Labwire is exploring potential acquisitions and is engaged in discussions with prospective targets. Successful acquisitions could significantly impact the company's operational results and financial condition, potentially increasing annual sales by $15,000,000 to $20,000,000. Labwire intends to finance these deals on a non-dilutive basis, utilizing debt and seller financing in an earn-out structure. The targeted companies have a proven track record of strong cash flow and profitability, promising to enhance shareholder value in addition to the organic growth from Super 99 Center operations. The acquisitions will also allow Super 99 Center to go nationwide faster and increase the Company's tangible assets. Labwire will provide new earning guidance and corporate actions to enhance shareholder value upon acquisition.

3. Negotiations with Dollar Store Operators: Labwire is currently in negotiations with six independently owned dollar store operators located mainly in Phoenix, where the current Super 99 Center stores are located. Expanding the area within proximity is expected to improve inventory management and gross margin. If successful, these negotiations are expected to generate an additional $10,000,000 in annual sales for Super 99 Center, with an operating margin ranging from 8% to 15% depending on fixed costs such as lease amounts.

Labwire emphasizes that while it actively pursues these opportunities, there are no guarantees that they will materialize at this stage. The company remains committed to thoroughly evaluating and pursuing these prospects, understanding that their realization is subject to various factors and uncertainties.

Dollar Store Retailer

Labwire acknowledges the immense potential of dollar store operations, showcasing one of the highest sales turnovers in the non-brand retailer industry. During the first half of 2023, Labwire's own dollar store operation achieved an impressive $851,278 in sales, requiring minimal investment in fixtures and $306,731 in inventory. With no major capital expenditure, the store achieves an outstanding 400% sales turnover annually.

Dollar stores have a unique advantage as they offer essential daily items, ensuring a consistent and high demand from consumers. The key differentiator in this competitive landscape lies in effectively managing costs and providing attractive prices. Notably, as major dollar store chains have raised their base prices, it opens up an opportunity for small dollar stores to capture an additional pool of consumers. Labwire is keenly aware of this dynamic and is strategically positioned to leverage this advantage in the market.

Infographic Video

As part of its efforts to engage with the public, Labwire has released an informative YouTube video titled "Unlock Financial Freedom with Dollar Store Shopping | Under 2 Minutes!" The video series aims to showcase the benefits of shopping at dollar stores, offering consumers financial flexibility. Labwire plans to create various media-rich contents to connect with potential customers and aligns this initiative with its long-term goal of building a nationwide brand with wide accessibility.

Capital Raise

Labwire is now conducting a Regulation A+ capital offering, aiming to raise up to $18 million from the general public and accredited investors. These funds will be utilized to expand its physical storefronts and develop an integrated online network platform, facilitating efficient delivery across all locations. Labwire firmly believes that this presents a remarkable opportunity for investors to participate in the company's growth and prosperity.

As Labwire continues to strive for excellence and explore new avenues for growth, we remain committed to providing exceptional value to our customers, investors, and stakeholders. We look forward to the future with excitement and anticipation as we build upon our success and continue to evolve as a leading retail company.

About Labwire

Labwire is an early-stage specialty retailer committed to revolutionizing the discount retail industry through innovation and cutting-edge technology. With a strong focus on rebranding, financing, and operational efficiencies, Labwire is poised to redefine the retail landscape. Labwire's flagship brand, Super 99 Centers, offers customers an exceptional shopping experience with a wide range of high-quality products at unbeatable prices.

For more information, please contact:

Media Relations

Labwire

Phone: 1 (928) 719-7747

Email: [email protected]

Website: http://www.labwire.co

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and any such forward-looking statements. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management's expectations or could affect the company's ability to achieve its strategic goals.

The company's forward-looking statements in this press release are based on management's current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this release. 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, except as required by the federal securities laws.