Leatt Corp Announces Results for the Second Quarter 2025

Global revenues increase 61%; Net income increases 208%

Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of head-to-toe protective equipment for MOTO, MTB, and a wide range of extreme and high-velocity sports, today announced financial results for the second quarter ending June 30, 2025. All financial numbers are in U.S. dollars.

Second Quarter 2025 and Recent Highlights

— Revenues were $16.18 million, up 61% compared to the second quarter of 2024.

— Gross profit was $6.89 million, up 76% compared to the second quarter of 2024.

— Income from operations was $1.40 million, up 224% compared to the second quarter of 2024.

— Cash and cash equivalents increased 27% to $15.73 million.

— Cash flows provided by operations for the first six months was $4.11 million.

— Net income was $1.14 million, up 208% compared to the second quarter of 2024.

— 5.0 Gravity Helmet wins gold award atEurobike 2025.

— 6.0HydraDri® Jacket wins award for performance clothing at Eurobike 2025.

Chief Executive Officer Sean Macdonald commented, “The second quarter of 2025 was a fantastic quarter for Leatt, with strong revenue growth and profitability. Total global revenues for the second quarter increased by $6.10 million to $16.18 million, a 61% increase over the second quarter of 2024. This was our fourth consecutive quarter of growth and third consecutive quarter of double-digit growth after the post-Covid inventory surplus overhang and resulting industry-wide revenue contraction.

“In the second quarter of 2025, we achieved global double-digit revenue growth in all of our major product categories as we continue to invest in a pipeline of cutting-edge products and innovations to reach a wider rider community. Body armor revenues that include upper body armor, limb protection and footwear increased by 48%, helmet revenues increased by 117%, other product, parts, and accessory sales that include apparel, goggles, and components increased by 65%, and neck brace sales increased by 19%,compared to the second quarter of 2024.

“Gross profit as a percentage of sales continued to improve, increasing from 39% in the second quarter of 2024 to 43% this quarter,as domestic trading conditions continue to improve despite some tariff uncertainty.

“Consumer direct sales, a channel that remains an encouraging growth engine for us, increased by 35%,compared to the second quarter of 2024. Dealer direct MOTO and MTB sales in the U.S. were another highlight, returning to growth with global dealer sales increasing by 45% in the second quarter. Although U.S. MOTO and MTB brick and mortar dealers continue to manage some areas of elevated inventory levels and industry turmoil that is stabilizing, participation and demand for our products remain strong.

“Our liquidity continues to improve. We do expect working capital investments to increase in the coming periods as ordering patterns at the consumer, dealer, and distributor levels continue to show growth patterns, but we are confident that we have sufficient liquidity to fuel this growth.

“For the first six months of 2025, our revenues increased by $10.85 million or 52% to $31.54 million, and net income increased by $4.13 million or 221%, to $2.26 million. Cash increased by $3.36 million, to $15.73 million for the first six months of the year, with cashflows provided by operations of $4.11 million.

“We remain passionate about our future, with a strong portfolio of innovative products in the global market and in the pipeline, and a multi-channel sales organization that is growing and developing.”

Financial Summary

Total revenues for the second quarter of 2025 were $16.18 million, up 61%, compared to $10.08 million for the second quarter of 2024.

This increase in worldwide revenues is attributable to a $2.70 million increase in body armor sales, a $1.68 million increase in helmet sales, a $1.60 million increase in other products, part and accessory sales and a $0.11 million increase in neck brace sales.

Gross profit for the second quarter was $6.89 million, up 76%, compared to $3.92 million for the second quarter of 2024.

Net income for the second quarter of 2025 was $1.14 million, or $0.18 per basic and $0.18 per diluted share, up 208%, as compared to a net loss of ($1.06) million, or ($0.17) per basic and ($0.16) per diluted share, for the second quarter of 2024.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2025, the Company had cash and cash equivalents of $15.73 million and a current ratio of 7.4:1.

Founder and Research and Development lead, Dr. Christopher Leatt, remarked, “We were honored in June at Eurobike, the world's leading trade fair for cycling and ecomobility, with awards for our ability to consistently develop technical innovations and functional rider protection pieces. Our 5.0 Gravity Helmet won the Gold Award for Technical Highlights, and our 6.0 HydraDri® Jacket won for Performance Clothing.”

Business Outlook

Mr. Macdonald added: “Our entire team is energized by the increasingly strong demand for Leatt products around the world, our consistent revenue growth, and the progress that we are making in working our way out of the industry-wide post-COVID contraction.

“The strong revenue growth is being fueled by international sell-through and re-stocking dynamics and domestic sales outreach programs that are gaining momentum,as we continue to invest in our team selling capabilities and brand. We expect this trend to continue as re-ordering patterns continue to improve and filter through to our revenues.

“Although there are still some challenging geo-political and economic headwinds globally, particularly in the U.S., where tariffs could impact inflation, uncertainty, and demand, inventory continues to be digested, our domestic sales outreach and capabilities are gaining traction, and participation remains strong. We continue to manage our costs of sales actively and are working closely with suppliers and customers to mitigate tariff risks and costs as possible.

“We believe strongly that our strategy of investing in talent, innovative product development, and in the development of Leatt as a global consumer-facing brand that appeals to a wide community of riders around the world, will continue to fuel growth moving forward.

“We remain confident that we are well-positioned for future growth and sustained shareholder value.”

Conference Call

The Company will host a conference call at 10:00 am ET on Thursday, August 7, 2025, to discuss the 2025 second quarter results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-445-7795 (U.S.A) or 1-785-424-1699 (international) to access the call.

Audio Webcast

There will also be a simultaneous live webcast through the Company's website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.

Replay

An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or 1-412-317-6671 (international). The replay passcode is 11159724.

For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company's website.

About Leatt Corp

Driven by the science of thrill, Leatt Corporation develops head-to-toe personal protective gear for various sports, with a focus on mountain biking and extreme motorsports. This includes the award-winning Leatt-Brace®, a neck brace system considered the gold standard for neck protection when worn in conjunction with a helmet. Leatt products are designed for participants in extreme sports that use motorcycles, bicycles, mountain bikes, all-terrain vehicles, snowmobiles, and other open-air vehicles.

For more information, visitwww.leatt.com.

Follow Leatt®onFacebook,Twitter, andInstagram.

Forward-looking Statements

This press release may contain forward-looking statements regarding Leatt Corporation (the “Company”) within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding the significance of the Eurobike awards on the Company's results of operations; the Company's ability to continue the trend of increased sales of body armor, neck braces, helmets, and other product parts and accessories; the general ability of the Company to achieve its commercial objectives, including continued development of a pipeline of innovative products and global industry talent to fuel future growth; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “seeks,” “should,” “could,” “intends,” or “projects” or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a “penny stock” and those listed in other reports posted on The OTC Markets Group, Inc.

[FINANCIAL TABLES TO FOLLOW]

LEATT CORPORATIONCONSOLIDATED BALANCE SHEETSASSETS June 30, 2025 December 31, 2024 Unaudited AuditedCurrent AssetsCash and cash equivalents $ 15,726,188 $ 12,368,100Accounts receivable, net 8,263,662 6,409,610Inventory, net 12,896,024 17,988,737Payments in advance 1,077,477 870,920Income tax receivable 495,168 526,498Prepaid expenses and other current assets 3,419,859 3,003,173Total current assets 41,878,378 41,167,038Property and equipment, net 3,751,778 4,000,225Operating lease right-of-use assets, net 454,217 552,970Accounts receivable, net – 56,391Deferred tax asset, net 675,000 675,000Other AssetsDeposits 44,226 37,322Total Assets $ 46,803,599 $ 46,488,946LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccounts payable and accrued expenses $ 4,408,857 $ 6,906,939Notes payable, current 12,386 28,722Operating lease liabilities, current 300,309 251,946Income tax payable 772,741 -Short term loan, net of finance charges 185,330 733,794Total current liabilities 5,679,623 7,921,401Notes payable, net of current portion – 1,804Operating lease liabilities, net of current portion 153,908 301,024Total liabilities 5,833,531 8,224,229Commitments and contingenciesPreferred stock, $.001 par value, 1,120,000 sharesauthorized, 120,000 shares issued and outstanding 3,000 3,000Common stock, $.001 par value, 28,000,000 sharesauthorized, 6,217,550 and 6,217,550 shares issuedand outstanding 130,555 130,555Additional paid – in capital 11,231,333 10,988,316Accumulated other comprehensive loss (1,249,859) (1,452,335)Retained earnings 30,855,039 28,595,181Total stockholders' equity 40,970,068 38,264,717Total Liabilities and Stockholders' Equity $ 46,803,599 $ 46,488,946The accompanying notes are an integral part of these consolidated financial statements.LEATT CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Three Months Ended Six Months Ended June 30 June 30 2025 2024 2025 2024 Unaudited Unaudited Unaudited UnauditedRevenues $ 16,176,339 $ 10,078,695 $ 31,544,203 $ 20,693,165Cost of Revenues 9,287,146 6,157,282 17,933,997 12,763,419Gross Profit 6,889,193 3,921,413 13,610,206 7,929,746Product Royalty Income 48,306 92,780 133,604 132,083Operating ExpensesSalaries and wages 1,846,237 1,608,372 3,703,617 3,176,643Commissions and consulting expenses 187,434 165,601 345,156 289,817Professional fees 155,345 120,617 515,396 419,588Advertising and marketing 1,152,207 1,183,282 2,044,264 2,075,699Office lease and expenses 176,120 163,190 345,296 314,744Research and development costs 616,795 628,793 1,281,285 1,184,571Bad debt expense (recovery) (31,155) 314 (94,659) 10,278General and administrative expenses 1,101,992 977,160 2,114,641 1,920,048Depreciation 332,606 297,250 659,614 591,384Total operating expenses 5,537,581 5,144,579 10,914,610 9,982,772Income (Loss) from Operations 1,399,918 (1,130,386) 2,829,200 (1,920,943)Other IncomeInterest and other income, net 117,737 98,016 199,884 73,533Total other Income 117,737 98,016 199,884 73,533Income (Loss) Before Income Taxes 1,517,655 (1,032,370) 3,029,084 (1,847,410)Income Taxes 378,921 24,993 769,226 26,632Net Income (Loss) Available to Common Shareholders $ 1,138,734 $ (1,057,363) $ 2,259,858 $ (1,874,042)Net Income (Loss) per Common ShareBasic $ 0.18 $ (0.17) $ 0.36 $ (0.30)Diluted $ 0.18 $ (0.16) $ 0.35 $ (0.29)Weighted Average Number of Common Shares OutstandingBasic 6,217,550 6,215,440 6,217,550 6,215,440Diluted 6,475,942 6,490,828 6,475,942 6,490,828Comprehensive Income (Loss)Net Income (Loss) $ 1,138,734 $ (1,057,363) $ 2,259,858 $ (1,874,042)Other comprehensive income (loss) , net of $0 deferred incometaxes in 2025 and 2024Foreign currency translation 136,096 160,564 202,476 23,012Total Comprehensive Income (Loss) $ 1,274,830 $ (896,799) $ 2,462,334 $ (1,851,030)The accompanying notes are an integral part of these consolidated financial statements.LEATT CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 2025 2024Cash flows from operating activitiesNet income (loss) $ 2,259,858 $ (1,874,042)Adjustments to reconcile net income (loss) to net cash provided byoperating activities:Depreciation 659,614 591,384Stock-based compensation 243,017 3,752Bad debts reserve (100,091) 1,559Inventory reserve 40,203 (28,390)Gain on sale of property and equipment (18,943) -(Increase) decrease in:Accounts receivable (1,753,961) 1,235,162Inventory 5,052,510 5,681,721Payments in advance (206,557) (503,679)Prepaid expenses and other current assets (416,686) (294,959)Income tax receivable 31,330 101,993Long-term accounts receivable 56,391 65,564Deposits (6,904) (1,317)Increase (decrease) in:Accounts payable and accrued expenses (2,498,082) (1,984,795)Income tax payable 772,741 -Net cash provided by operating activities 4,114,440 2,993,953Cash flows from investing activitiesCapital expenditures (349,011) (239,094)Proceeds from sale of property and equipment 19,250 -Net cash used in investing activities (329,761) (239,094)Cash flows from financing activitiesRepayment of notes payable to bank (18,140) (55,890)Repayment of short-term loan, net (548,464) (735,363)Net cash used in financing activities (566,604) (791,253)Effect of exchange rates on cash and cash equivalents 140,013 18,922Net increase in cash and cash equivalents 3,358,088 1,982,528Cash and cash equivalents – beginning of period 12,368,100 11,347,420Cash and cash equivalents – end of period $ 15,726,188 $ 13,329,948SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid for interest $ 30,206 $ 42,210Cash paid for income taxes $ – $ 26,633Other noncash investing and financing activitiesCommon stock issued for services $ 243,017 $ 3,752The accompanying notes are an integral part of these consolidated financial statements.

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