Boss Holdings Announces Current Status of Operations under COVID-19 Conditions

KEWANEE, Ill., March 27, 2020 /PRNewswire/ -- Boss Holdings, Inc. announced today that several of its subsidiaries remain open for business as essential operations despite state government "stay-at-home" orders in Illinois and Nevada. Galaxy Balloons operations in Cleveland, Ohio, however, are temporarily suspended due to the stay-at-home order issued this week by the State of Ohio. While we have experienced decreased levels of incoming orders across all business lines and it is uncertain what effect worldwide COVID-19 conditions eventually may have on results of operations, company management is focused first on protecting the safety and health of its employees, customers and suppliers and on preserving its cash resources.

Our pet supply and cell phone accessory segments remain open for business. The distribution centers in Reno, Nevada and Kewanee, Illinois are deemed essential infrastructure or otherwise permitted to continue operations with due attention to employee social distancing and workplace sanitization requirements. We currently are able to accept and fulfill incoming orders for both pet products and cell phone accessories in a safe and timely manner.

Under the Ohio stay-at-home order, Galaxy Balloons is deemed a non-essential business. Galaxy closed normal operations on Tuesday, March 23rd and under the existing Ohio order will stay closed until at least April 6th. Galaxy employees essential for minimum business operations continue to work remotely or under social distancing conditions at our facility as permitted to secure inventory, maintain and preserve the physical plant and equipment, process payroll and employee benefits and related functions. Due to the widespread imposition of stay-at-home orders by states, counties and municipalities and resulting cancellation of events which drive the promotional product industry, such as conventions, tradeshows, school activities, sporting events and restaurant promotions, we anticipate that Galaxy's business and our other businesses will be adversely impacted until the U.S. economy recovers and normal social activities resume. Although we cannot predict when that will occur, management is monitoring conditions closely and will act accordingly.

Boss Holdings, Inc. currently holds approximately $23.7 million in cash and cash equivalents with no borrowed debt. Much of our cash position is due to the proceeds from the December 2019 sale of our gloves, boots and rainwear business to Protective Industrial Products, Inc. (PIP), a leader in the personal protective equipment industry. Boss has substantially completed all transition tasks related to the PIP transaction, including temporary warehouse and fulfillment services. As part of the sale transaction, Boss acquired a minority equity interest in PIP.

Following the PIP sale, the informational website previously associated with our business (bossgloves.com) was transferred to PIP. We are implementing a new informational website for Boss Holdings and will have that site up and running in the next several weeks. We also are in the process of completing our audited 2019 fiscal year-end financial statements and will post those to the new website as soon as the audit is completed.

FORWARD-LOOKING STATEMENTS
This press release may contain various forward-looking statements. Such forward-looking statements involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from those matters expressed in or implied by such forward-looking statements. They involve known and unknown risks, uncertainties, and other factors, which are in some cases beyond the control of the company.

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SOURCE Boss Holdings, Inc.