TOCCOA, GA / ACCESSWIRE / August 4, 2021 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ('Galaxy' or the 'Company), a provider of interactive learning technology solutions, is pleased to provide the following Shareholder Update Letter.
As always, it is of upmost importance to me and the other executives of Galaxy to provide continued communication and transparency to our shareholders. There is tremendous buzz around the U.S. education market given the influx of resources made available to schools through the multiple stimulus grants assigned in assistance with the Covid-19 pandemic. Most of the nation is coming into a new school year and after experiencing our busiest summer to-date, we are excited to see our students benefiting from our technology getting delivered and installed before they return. With the busy season still among us, I felt it best to summarize some of our most recent milestones and create a combined message on the progress we continue to make with our brand, our sales, and our product development.
Before jumping into the operational progress and the actual successes in sales and corporate gains, I feel that it is also necessary to address several ‘market' questions that have been asked as of late. In terms of GAXY and the new rule affecting certain non-current OTC stocks (SEC's Amendments to Rule 15c2-11), GAXY is a fully compliant and fully reporting OTCQB company and therefore will not be affected by any changes being implemented by brokers in accordance with the amendment. We continue to take our compliance very serious. Our next financial report is our annual 10K due by September 30th. The audit team and I are working hard to make sure that this report is not only filed but filed early. We will be able to speak more at this time on financial updates and balance sheet milestones and will post a date for the next earnings call along with the 10K.
There has also been a lot of talk and questions concerning dilution. In January (in a previous shareholder update letter) we announced the elimination of all toxic convertible debt. The Company has held by our promise to not add any convertible debt back to the balance sheet and has no intentions of doing so moving forward. So, the previous statements still hold true. There has been no issuance of stock (minus small consultancy fees) outside the previously recorded form S-1 which introduced back on January 19th, 2021. This equity investor has been paramount in ensuring we are able to fund the growth experienced in our fiscal year 2021 and has provided us with the necessary resources needed to ‘clean up' remaining items on the balance sheet as well as fund the necessary projects and product development for our continued long-term success. The incremental increase in shares outstanding is due to these previously announced and registered shares being placed in the market. Our partner in investment has allowed the Company to disperse the shares at our discretion so that they were not introduced to the market all at one time, which would have led to a much more impactful effect on stock price. The Company's increase in sales has allowed us to have more internal cash resources available to us and we will continue to trend in this direction.
Some of the recent operational milestones have included the addition of new sales and marketing members to our team, the addition of new resellers, success in new contracts and bids, and new product development and securing that intellectual property.
Just since July 1 2021, we have added 3 new members to the sales and marketing team and continue to search for the perfect candidate for the Mid-West Regional Sales Manager job posting.
- Carrie Amelio joined the team as the Northeast Regional Sales Manager based in PA and carrying ~13 states in the Northeast/New England territory. Carrie joined us with years of experience in medical sales, both hardware and software. She brings not only experience in relational sales but brings insight into the Medical/Hospital market which is one of our business objectives as we break into new verticals.
- Walt Mischley has been with Galaxy since our asset purchase of CTS in a consulting role related to bids and contracts. However, Walt has years of sales experience running his own company, as well as a reseller of several lines and a manufacturer's representative of specific ed tech products. Walt is now heading up our Texas market as a full-time employee as our expansion there of both resellers and contracts has been extensive.
- Also joining our team in a full-time position is Pam Fisher who also originally joined Galaxy when we purchased the assets of CTS. She will be heading up our internal marketing efforts and will be the liaison between management and the efforts being made by CB&A (our previously announced marketing firm). Pam has extensive experience in both Marketing and Sales and is a huge addition to the team for support in email campaigns, marketing messaging, and product demonstrations.
In addition to our previously announced contracts and bids for the upcoming school years purchasing needs (which most are available to start purchasing off of at the return of this school year); Region 18, TX (National bid), White Settlement ISD, TX, Arlington ISD, TX, Abilene ISD, TX, Northwest ISD, TX, Richland County School District, SC, Charlotte County Schools, FL, and St Johns County Schools, FL, we have also secured the following that have not been previously announced.
- Buy Board- Audio Video, National
- TIPS, National
- Good Buy Co-Op, National
- Rockwall ISD, TX
- Harlingen ISD, TX
- Killeen ISD, TX
- McAllen ISD, TX
- Mansfield ISD, TX
- Channel View ISD, TX
- Edinburg ISD, TX
- Eagle Mountains/Saginaw ISD, TX
- Sherman IDD, TX
In terms of other sales and fulfillment, we have made great strides in overcoming component and product shortages due to Covid-19 backlog issues. We have a constant flow of inventory for our Interactive Flat Panel line of products and have seen a steady increase of orders in relation to classroom upgrades to support the needs of our clients.
We have also secured (in excess) the components needed to manufacture and assemble our audio amplification system and have shipped over 700 units to an OEM partner since July 1. As part of our overall business plan and revenue strategy, this product family will be a more consistent source of income to stabilize the seasonality of historical products sales.
Our products and our people are what makes us a success and the continuation of improvements on both are starting to reflect in our overall performance. More sales staff leads to more sales. More contracts and bid awards lead to more opportunities. More products and new technologies lead to more customers and sales become proprietary to Galaxy. We have invested this past year in both our people (not having any lay-offs during the pandemic period) and our products, to ensure we are leading the market in innovative ways, and it IS paying off.
As we continue to move in the direction of a bigger and better company, we also continue to move towards a bigger and more respected listing exchange. This maintains to be a goal for us, and we have been analyzing all the options available to us to address the stock price requirements. These conversations are ongoing within our board meetings and no decisions have been reached at this time. We are excited to share our upcoming annual report with you and will address Q4 individually in the management analysis section in order to maximize the progress that has been made since our last quarterly report.
We appreciate your patience as we move at such a fast pace. I understand your desire for constant (daily) updates and will do my best to provide new and exciting partnerships, sales, and developments as they unfold.
My confidence is greater than ever on what my team can achieve.
Magen McGahee, CFO
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB:GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales.
For additional information, please visit our website at: www.galaxynext.us
Safe Harbor Statement
This press release contains 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. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. 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.
SOURCE: Galaxy Next Generation, Inc.
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