Sign in

You're signed outSign in or to get full access.

UL

U.S. Lighting Group, Inc. (USLG)·Q3 2022 Earnings Summary

Executive Summary

  • Q3 2022 revenue was $0.516M, a record since the company’s transformation; management pre-announced “approximately $0.5 million” in an Oct 4 press release and later reported $0.516M in the 10‑Q .
  • Despite the revenue ramp (all sales from Cortes Campers), gross profit was negative ($-0.012M) and loss from operations widened to $-0.616M on higher SG&A and product development costs .
  • Net loss from continuing operations was $-0.663M; diluted EPS from continuing operations was $0.00 (rounded), with 98.65M shares outstanding .
  • Management signaled a “great fourth quarter” setup and the start of earnings calls around Oct 25, but no transcript was found; authorized common shares were increased to 500M in late October as a corporate action .

What Went Well and What Went Wrong

  • What Went Well

    • Record quarterly revenue post-transformation, driven by Cortes Campers shipments: “record sales since company transformation,” “highest level of units,” and “on pace to have a great fourth quarter” .
    • Vertical integration via Mig Marine acquisition under common control, improving manufacturing control and flexibility .
    • All Q3 sales from Cortes Campers, demonstrating product-market traction and focus .

  • What Went Wrong

    • Negative gross profit ($-0.012M) as cost of goods sold ($0.528M) exceeded sales ($0.516M), reflecting early-stage manufacturing inefficiencies and scaling costs .
    • Operating loss widened to $-0.616M and SG&A increased to $0.526M, primarily from added administrative staffing and professional fees; product development was $0.078M .
    • Liquidity tightness: cash $0.068M; significant related-party debt ($6.911M) from the Mig Marine promissory note and other loans; material weaknesses in internal controls persisted .

Financial Results

Metric (USD)Q3 2021Q2 2022Q3 2022
Revenue$0.021M $0.049M $0.516M
Cost of Goods Sold$0.000M $0.044M $0.528M
Gross Profit (Loss)$0.021M $0.005M $-0.012M
SG&A$0.240M $0.325M $0.526M
Product Development$0.002M $0.000M $0.078M
Loss from Operations (EBIT)$-0.221M $-0.320M $-0.616M
Net Loss (Continuing Ops)$-0.204M $-0.400M $-0.663M
Diluted EPS – Continuing Ops$0.00 $0.00 $0.00
Weighted Avg Diluted Shares97.98M 97.85M 97.85M

Segment breakdown (Q3 2022):

SegmentRevenue
Cortes Campers$0.516M (all sales in Q3)
Fusion X Marine$0.000M (no sales)
Futuro Houses$0.000M (no revenues as of Q3)

KPIs (balance sheet/financing, Q3 2022):

KPIValue
Cash and Equivalents$0.068M
Accounts Receivable$0.032M
Inventory$0.177M
Loans Payable (non‑related)$0.381M
Loans Payable – Related Party$6.911M
Common Shares Outstanding98,648,735

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/OutlookQ4 2022None“On pace to have a great fourth quarter” (qualitative) Raised (qualitative)
Earnings CallsQ3/Q4 2022NoneBegin hosting earnings calls around Oct 25 New Initiative
Share AuthorizationOngoing100M common shares authorized Increased to 500M common shares (via amendment) Raised Capacity

Note: No numeric revenue/EPS/margin guidance disclosed for Q3/Q4; commentary only .

Earnings Call Themes & Trends

(No Q3 transcript found; themes drawn from 10‑Qs and press releases.)

TopicPrevious Mentions (Q1 2022)Previous Mentions (Q2 2022)Current Period (Q3 2022)Trend
Production ramp (Cortes Campers)First camper delivered Feb 19; early sales start Sales ramp; all revenue from Cortes Campers Record revenue; all Q3 sales from Cortes Campers Accelerating
Manufacturing integrationN/AN/AAcquired Mig Marine (common control); vertical integration Strategic integration
Liquidity/capitalCash $0.404M; securities $0.817M; plan to liquidate securities Cash $0.119M; securities $0.367M, liquidated in early July Cash $0.068M; heavy related-party debt; share authorization increased Tight liquidity; capital flexibility
Internal controlsMaterial weaknesses disclosed Material weaknesses persist Material weaknesses persist Unchanged (needs remediation)
Regulatory/legalDiscontinued ops from 2021 sale; former CEO indictment noted Indictment note repeated N/A in Q3 filing sections; focus on operations Background risk
Outlook/guidanceN/AN/A“Great fourth quarter” and start of earnings calls Constructive tone

Management Commentary

  • “As promised, we have continued to ramp up production and accelerate top line growth as the year has progressed – with third quarter revenue coming in at record levels.” – Anthony Corpora, CEO .
  • “This puts us on pace to have a great fourth quarter and positions us for even better results in 2023, as we strive to meet demand and focus the Company on bottom line profitability.” – Anthony Corpora, CEO .
  • Strategic rationale: vertical integration via Mig Marine to improve control and flexibility in manufacturing and supply .

Q&A Highlights

  • No Q3 earnings call transcript found; management indicated an earnings call would occur around Oct 25, 2022, but no transcript is available in the document set .

Estimates Context

  • Wall Street consensus (S&P Global) for USLG Q3 2022 EPS and revenue was unavailable due to missing CIQ mapping; as a result, no estimate comparison is provided [SpgiEstimatesError].

Key Takeaways for Investors

  • Revenue inflected to $0.516M, all from Cortes Campers; trajectory is positive but still early-stage scale .
  • Gross margin pressure (negative in Q3) highlights manufacturing ramp inefficiencies; focus on process scaling and cost discipline is critical near term .
  • Operating losses widened with higher SG&A and product development; near-term profitability depends on throughput gains and overhead absorption .
  • Liquidity is constrained (cash $0.068M) and leverage high (related-party debt $6.911M); watch capital actions (authorized shares raised to 500M) and financing plans .
  • Vertical integration via Mig Marine should improve manufacturing control; monitor evidence of cost-downs and margin normalization in subsequent quarters .
  • Persistent internal control weaknesses remain a governance risk; remediation progress could be a catalyst for investor confidence .
  • With no published consensus estimates, stock reaction is likely to track operational milestones (unit shipments, margin, liquidity moves) and any future, formal guidance updates .

Additional Document Notes

  • 8‑K 2.02 (Oct 4): preliminary revenue (~$0.5M) and call timing .
  • Q3 2022 10‑Q (Nov 18): full financials including $0.516M sales and $-0.663M net loss (continuing ops) .
  • Other press releases/actions in Q3 window: Amendment increasing authorized common shares to 500M (Oct 25 filing) .
  • Prior quarters for trend analysis: Q1 (first camper delivered; $0.076M sales) ; Q2 ($0.049M sales; liquidation of securities in July) .