Company aligns itself with business expectations, reducing G&A expenses and removing costs unnecessary to future success
SAN DIEGO, March 12, 2024 (GLOBE NEWSWIRE) -- Dalrada Financial Corporation (OTCQB: DFCO, “Dalrada,” “the Company”), announced today that it has taken a series of intensive initiatives to reduce costs and drive efficiency in order to accelerate a path to profitability.
"As I have discussed in prior conversations with the public and our shareholders, our initial goal during fiscal 2024 was to cut costs by approximately $3 million and to reach profitability by the fourth quarter. I am happy to report that not only have we met our cost-cutting milestone, we’ve exceeded it, saving well over $4 million so far during the fiscal year. Now, we can be laser-focused on obtaining overall profitability," said Brian Bonar, Chief Executive Officer and Founder of Dalrada.
During the first quarter alone of the 2024 calendar year, the Company has taken additional cost-cutting measures totaling approximately $2.8 million, ultimately reducing general and administrative (G&A) costs by $4.5 million for the fiscal year ending June 2024.
Dalrada is committed to concentrating on the core businesses that it has heavily invested its resources in, while continuing to identify expenses unnecessary to the success of the Company.
In alignment with the strategic changes of fiscal 2024, the Company has conducted the following actions:
- Implemented NetSuite Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) across its global operations to enhance operating efficiency, accounting, and sales functions;
- Rightsized indirect costs and generating efficiencies across the Company's supply chain and procurement;
- Aligned G&A with short-term business expectations by reducing third-party professional fees and operating costs;
- Streamlined the organization to drive process-related efficiencies through ISO 9001 certification;
- Shuttered or spin-off legacy operating businesses that have not scaled toward profitability;
- Restructured the Board of Directors to become compliant with NASDAQ requirements.
Because of the critical actions taken, Bonar expects Dalrada to be cash flow-positive by the end of the calendar year, mentioning his bold prediction and much more in a recent video with SmallCapVoice.
The Company is primed to realize profitability with a clear focus on the companies that have the greatest potential. "Achieving profitability in our core business segments of Dalrada Climate Technology and Genefic is crucial to the success of Dalrada and will support the long-term sustainability of the Company," added Bonar.
About Dalrada Corporation
Dalrada Financial Corporation (OTCQB: DFCO, “Dalrada”) is a publicly-traded company and multi-national conglomerate that focuses on solving complex, multi-disciplinary global challenges in clean energy innovation and personalized healthcare solutions. Dalrada operates through two main subsidiaries: Dalrada Climate Technology and Genefic.
Dalrada Climate Technology develops and distributes innovative and eco-friendly heating and cooling solutions for various types of buildings. Genefic creates improved health outcomes through redesigned health systems and specialty pharmacy solutions. Dalrada aims to create positive social and environmental impact through its products and services, while delivering value to its shareholders.
For more information, please visit www.dalrada.com, and follow us on LinkedIn, Facebook, and Twitter.
Forward-Looking Statements
Statements contained in this press release, other than statements of historical fact, particularly statements relating to cost reductions and the anticipated pre-tax savings from the cost reduction program, restructuring costs, footprint rationalization, simplifying and streamlining our operations, reducing complexity, enhancing the speed of decision-making, leveraging our sourcing capabilities and the timing of implementation and completion of the cost reduction program, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Forward-looking statements are subject to the occurrence of many events outside the Company’s control and actual results and the timing of events may differ materially from those suggested or implied by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the US Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K.
Media contact: Michael Eslinger (meslinger@dalrada.com)
