Outdoor Holding Company Announces Settlement and Leadership Transition

SEC Investigation Settlement: Outdoor Holding (POWW) has settled an SEC investigation regarding disclosure failures and accounting violations without facing civil penalties or monetary sanctions.

Disclosure Failures: The company failed to disclose a former executive's role, related party transactions, and had issues with equity issuance costs, stock compensation expenses, adjusted EBITDA calculations, and internal accounting controls.

Management Changes: The order noted that Outdoor Holding is now under new senior management, distinct from those involved in the previous violations.

Remediation Efforts: The company has implemented a multi-phase remediation program, including an independent investigation and restatement of financial results for fiscal years 2022-2025, overseen by its board and committees.

Dividend Announcement: Outdoor Holding Company will pay a cash dividend of $0.546875 per share on its 8.75% Series A Preferred Stock to holders of record as of December 1, 2025, with payment scheduled for December 15, 2025.

Company Overview: Outdoor Holding Company, based in Atlanta, owns GunBroker.com, the largest online marketplace for firearms and related products, and is a producer of high-performance ammunition.

GunBroker.com Details: Launched in 1999, GunBroker.com facilitates the sale of firearms and shooting sports equipment through third-party sellers, adhering to federal and state laws regarding firearm sales.

Forward-Looking Statements: The announcement includes forward-looking statements regarding the company's future operations and financial projections, cautioning readers against placing undue reliance on these estimates.

Dividend Announcement: Outdoor Holding Company will pay a cash dividend of $0.546875 per share to holders of its 8.75% Series A Preferred Stock on September 15, 2025, for those recorded as of August 31, 2025.

Company Overview: Outdoor Holding Company owns GunBroker.com, the largest online marketplace for firearms and related products, promoting responsible gun ownership while adhering to federal and state laws regarding firearm sales.

Leadership Changes: Steve Urvan, founder of GunBroker.com and the largest shareholder, has been appointed as Chairman and CEO of Outdoor Holding Company, effective May 30, 2025, following a settlement of litigation and the divestiture of the ammunition manufacturing division.

Compliance Update: The company has regained compliance with Nasdaq's reporting requirements after filing its Forms 10-Q, and plans to file its annual report on Form 10-K for fiscal year 2025 in a timely manner.

AMMO's Strategic Shift: AMMO, Inc. has sold its ammunition manufacturing assets to Olin Winchester, allowing the company to focus on its e-commerce platform, GunBroker.com, and enhance profitability through innovation and user engagement.

Rebranding and Future Plans: Following the sale, AMMO plans to rebrand as Outdoor Holding Company to better align with its e-commerce identity in the outdoor lifestyle sector, while also addressing compliance requirements with Nasdaq.

Compliance Issues with Nasdaq: AMMO, Inc. received a deficiency notification from Nasdaq due to its failure to timely file its Quarterly Report for the quarter ending December 31, 2024, which requires restatement of financial statements and is under investigation.

Regaining Compliance Timeline: The company has until March 6, 2025, to submit a plan to regain compliance, with the possibility of an extension up to 180 days if accepted by Nasdaq; however, there are no guarantees that compliance will be achieved or maintained.