US Lighting Group Reports Significant Financial Losses Amid RV Industry Downturn

US Lighting Group, Inc. reported significant financial challenges in its latest 10-Q filing for the third quarter of 2024, revealing a net loss of $338,981, compared to a loss of $640,835 in the same period last year. For the nine months ending September 30, 2024, the company experienced a net loss of $1,201,387, a notable increase from the $791,108 loss reported for the first nine months of 2023. Revenue for the quarter was $151,798, a sharp decline from $755,152 in the third quarter of 2023, while year-to-date revenue plummeted to $517,235 from $3,092,722 in the prior year.

The decline in revenue is attributed to a downturn in the recreational vehicle (RV) industry, which saw a 38.5% decrease in sales during 2023, as reported by the RV Industry Association. This downturn has led to reduced orders from dealers, who are currently managing existing inventory. Despite these challenges, the company noted an increase in dealer sales, with 44 campers sold from dealer inventory in the first nine months of 2024, compared to 17 in the same period of 2023. The backlog of units on order has also grown, rising from $440,000 on June 30, 2024, to $525,000 by November 11, 2024.

Operationally, US Lighting Group has been focusing on expanding its product offerings and market presence. The company has transitioned its production to the new Cortes 18 model, which features a fully integrated molded composite frame, and is developing additional models, including the Cortes 22 and Cortes 27. As of September 30, 2024, the company has established a network of 35 dealer locations across the U.S. and Canada for its Cortes Campers brand. Additionally, the company is exploring opportunities in private label manufacturing and custom fiberglass products.

In terms of organizational changes, US Lighting Group has undergone leadership transitions, with the resignation of CEO Joseph Matozzo and CFO Michael Coates in September 2024. The board is currently managing operations while searching for new executives. Interim leadership is being provided by board member Olga Smirnova and director Patricia A. Salaciak. The company has acknowledged weaknesses in its internal controls due to limited personnel, which may impact financial reporting.

Looking ahead, US Lighting Group aims to enhance its manufacturing capabilities and expand its product lines in the RV, marine, and composite housing sectors. The company is also focused on increasing revenues and may seek additional capital to support its operations. However, the ongoing challenges in the RV market and the need for strategic adjustments raise uncertainties about the company's ability to achieve its financial goals in the near term.