4 Less Group Inc (OTCMKTS: FLES) is heating up and running higher in recent weeks skyrocketing off its $0.004 low’s to recent highs of $5 per share. The stock is quickly getting noticed by investors that are accumulating heavily as FLES emerges as a top traded stock in small caps.
It’s easy to get excited about FLES as the Company recently reported record Q2 results of $2,927,209 in revenues for Q2, 2020 up 42% from the same period last year. 4 Less Group also reported a net income of $83,110, its 1st profitable quarter. FLES sales are booming as the Company is averaging $13,400 sales per day in October on EBAY alone. FLES management has been busy behind the scenes focused on a healthy balance sheet and share structure, as well as paying down and canceling the remaining convertible debt. On September 9, 2020, the company filed a PRE 14C to reduce its common shares authorized from 1,000,000,000 to 15,000,000.
4 Less Group Inc (OTCMKTS: FLES) operating out of Las Vegas, Nevada, FLES is focusing all of its efforts and resources on building out its flagship multi-vendor automotive parts marketplace located at the URL AutoParts4Less.com, with the potential to list and sell literally millions of parts that will include automotive specialty equipment parts and accessories, targeted “niche” web sites and potentially a used auto parts exchange one day as well. The Company also operates the websites viftkits4less.com which has quickly risen to be an industry leading seller of aftermarket suspension parts. Bumpers4Less.com has brought similar results and is optimally positioned to lead the bumpers market. The Company’s newest site, TruckBedCovers4Less.com offers a uniquely optimized experience for consumers to locate and purchase Covers and Liners for their truck. In total, these sites represent products from over 1,000 manufacturers.
The Company is focused on the rapid increase of visitors to its websites; In a recent release FLES stated its majority of its rapid online growth comes from the organic SEO tools the Company developed and launched earlier year; such as how the sites index video ratings and reviews on specific products. The Company believes it can leverage these existing SEO tools effectively as it continues to build out its multi-vendor marketplace AutoParts4less.com. This new platform will leverage a more refined version of the Company’s current SEO tools to further enhance discoverability.
Like many small businesses Auto Parts 4Less Inc. was born from humble beginnings; in 2013 Christopher Davenport, the founder of 4LESS, began selling auto parts on eBay and shipping those items out of his garage. However, what started out as a hobby, quickly grew into a fully functioning ecommerce aftermarket auto parts company that required a significant technical staff and facilities to support their growth. In June of 2015, they leased their first office.
Originally the company generated most of its revenues from 3rd party companies to list their auto parts in the different marketplaces such as Amazon, eBay, Walmart and Jet. However, using these 3rd party companies was inefficient, cumbersome, slow and very expensive. Since 2016 the company has invested heavily to become their own listing platform that allows their auto parts to be direct listed across marketplace and social media sites. We have completed multiple technical achievements including CRM system, warehouse integration API, warehouse inventory software to name a few.
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On November 19, 2019 The 4Less Group acquired the URL Autoparts4Less.com and changed the name of their wholly owned subsidiary from the 4Less Corp. to Auto Parts 4Less, Inc. With the acquisition of the URL AutoParts4Less.com, 4Less is focusing all of their efforts and resources on building out a flagship automotive E-tailing site with the potential to list and sell literally millions of parts that will include automotive specialty equipment parts and accessories, targeted “niche” web sites and potentially a used auto parts exchange one day as well.
The 4Less Group has been busy in recent months; they closed on a strategic transaction to reach this year’s goal of paying-off all their remaining highly discounted convertible debt totaling approximately $2.3 million in principal and accrued interest plus over $1 million in additional associated derivative liabilities for a total of $3.3M of book value liabilities. The convertible debt was replaced with a $1.2 million, non-convertible promissory note with a 2-year term and a fixed interest rate of 12%. For the investment the investor received, along with the 1.2 million note, 950 thousand warrants with a $0.40 exercise price and 150 shares of series C preferred shares. At the completion of the transaction, 4Less Group will have just over 1.1 million shares outstanding. In conjunction with the overall debt reduction. On September 9, 2020, the company filed a PRE 14C to reduce its common shares authorized from 1,000,000,000 to 15,000,000.
In September FLESS reported record Q2 results announcing it has increased sales by 42% from $2,059,700 for Q2 2019 to $2,927,209 for Q2, 2020. The 4Less Group also logged in a positive net operating income of $83,110 as compared to a loss of $459,797 for the same quarter last year which is an increase in operating income of more than $500,000.
Christophor Davenport, founder and president of Auto Parts 4Less, Inc., stated: “We are very pleased to have hit almost $1,000,000 of sales per month for this past quarter representing an increase of over 40% from same quarter last year. And, as promised, we have cut costs in conjunction with our sales increase to hit profitability which is very impressive this early on for a growth online platform. Additionally, we have recently started the development of our Auto Parts Marketplace Platform which we believe will be a game changer in the industry. As, what we believe will be one of the first true standalone marketplace’s for auto parts (as opposed to reseller sites), it will allow manufacturers as well as resellers to list their parts directly on the AutoParts4Less.com platform for selling direct to consumers.”
On October 7 FLES reported through the first two months of their third quarter they are tracking to generate similar topline sales as they did in their record breaking 2nd quarter. Third quarter topline sales-to-date are up over 32% for the same time period in 2019. Additionally, advertising and marketing expenses this quarter is just over $14,000 to-date and only 80% of what was spent over same time period last year.
Finally got into $FLES. This thing has been an absolute beast so far.
— Saad (@Neuron1011) October 14, 2020
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Currently running northbound in a hurry FLES is emerging as among the most exciting stories in small caps; blessed with a small float FLES is heating up and running higher in recent weeks skyrocketing off its $0.004 low’s to recent highs of $5 per share. It’s easy to get excited about FLES as the Company recently reported record Q2 results of $2,927,209 in revenues for Q2, 2020 up 42% from the same period last year. 4 Less Group many money last quarter reporting net income of $83,110, its 1st profitable quarter and a rarity which puts this Company above 99.9% of other stocks on the exchange. FLES sales are booming as the Company is averaging $13,400 sales per day on EBAY alone. FLES management has been busy behind the scenes focused on a healthy balance sheet and share structure, as well as paying down and canceling the remaining convertible debt. On September 9, 2020, the company filed a PRE 14C to reduce its common shares authorized from 1,000,000,000 to 15,000,000. We will be updating on FLES when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with FLES.
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Disclosure: we hold no position in FLES either long or short and we have not been compensated for this article.