Good day. Welcome to the ToughBuilt Industries, Inc. Q1 2023 earnings call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then One on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Martin Galstyan, Chief Financial Officer. Please go ahead, sir.
Good morning, thank you all for joining us today to discuss ToughBuilt's Q1 2023 financial and operating results. Again, my name is Martin Galstyan, and I am the Chief Financial Officer of ToughBuilt. Joining me on today's call is Michael Panosian, President and Chief Executive Officer of ToughBuilt. Michael will begin today's discussion by providing operational and financial highlights from the Q1 . I will then review our financial performance. Michael will conclude the discussion with our growth plans for the upcoming fiscal year and beyond. Before turning the call over to Michael, I would like to remind you that any forward-looking statements made by management are covered under the Private Securities Litigation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our U.S. Securities filings .
In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review ToughBuilt's current report on Form eight-K, furnished with the SEC for ToughBuilt reasons for including those non-GAAP financial measures in its earnings release and presentation. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings press release issued earlier today, unless otherwise noted therein. I'll now turn the call to Michael.
Thank you, Martin, and thank you all for joining us today. The Q1 of 2023 was very strong for ToughBuilt, resulting in revenues of $20 million, an approximately 17% year-over-year increase compared to the same quarter for 2022. Gross profit for the Q1 was $3.6 million, an 18% improvement over the Q1 of 2022. The increase in gross profit was primarily driven by the increased demand for our products around the world, enabling us to take advantage of economies of scale with our increased product offerings and corresponding revenue growth. In the Q1 of this year, we introduced innovative new lines of pliers, wrenches, and screwdrivers, which combined represents more than 100 new SKUs.
Additionally, we expanded our South American distribution agreement with Sodimac, the largest home improvement and construction supplier in South America, with the initial launch of 15 SKUs in store and 23 SKUs on Sodimac online marketplace. Online sales through Amazon were also strong in the Q1 with $3.8 million in gross sales, representing a 10% improvement from the same period in 2022. In the Q1 we continued our expansion goals and both increased product offerings and increased distribution. We are enthusiastic to currently be servicing over 18,500 large and midsize storefronts and online portals worldwide with a total catalog of over 550 SKUs. As a result of strong global market demand for our brand and products, we expect to experience continued year-over-year growth in retail and online revenue in 2023.
I will now turn the call back to Martin to cover our financial results in greater details. Martin.
Thank you, Michael. Revenues for the three months ended March thirty-first, 2023 and 2022 were $20.2 million and $17.2 million, respectively, which consisted of metal goods, soft goods, and electronic goods sold to customers. Revenues increased in the Q1 of 2023 over the same period in 2022 by approximately $3 million or 17%, primarily due to a wide acceptance of our products in the tool industry and receipt of our reoccurring sale orders for metal goods and soft goods from our existing and new customers and introduction and sale of new soft goods products to our customers. Increase in sales through Amazon also contributed to the increase. Cost of goods sold for the three months ending March thirty-first, 2023 and 2022 was $16.7 million and $14.2 million, respectively.
Cost of goods sold increased in 2023 over 2022 by $2.4 million or 17%, primarily due to increased sales. Cost of goods sold as a percentage of revenues for the first quarter of 2023 was 82%, in line with 82% from the same period in the prior year. Selling general administrative expenses for three months ending March 31st, 2023 and 2022 were $15.1 million and $15.9 million, respectively. SG&A expenses as a percentage of revenues for the Q1 of 2023 was 78% compared to 93% for the same period in the prior year. We expect our SG&A expenses to decrease. Research and development costs for the three months ending March 31st, 2023 and 2022 were $3.5 million and $2.5 million, respectively.
The increase was primarily due to development of new tools for the construction industry. For the Q1 of 2023, we recorded a net loss of $8.3 million, as compared to a net loss of $12.1 million for the three months ending March 31st, 2022. This improvement was primarily due to sales increase, cost reductions in many areas, and slowdown in hiring. As of March 31st, 2023, ToughBuilt's cash position was $2.4 million. Accounts receivable and inventory for the period totaled $12.5 million and $33 million, respectively. Management anticipates that our capital resources will improve as our products gain even wider market recognition and acceptance. I will now turn the call back for Michael for his final remarks. Michael?
Thank you, Martin. I would like to reiterate the tremendous market opportunities that exist at ToughBuilt and the infrastructure we have in place to capitalize on those opportunities. We are satisfied with our R&D structure and will not be adding significant headcount in 2023. Moving forward, we plan to continue expanding our product portfolio prudently, raise some prices, and cut costs globally. We anticipate that through all the efforts, we will increase our global reach, launch some more lines, and push towards profitability. In closing, I want to thank our shareholders and our team for helping grow ToughBuilt into a high-quality brand that customers can rely on. I'm looking forward to the upcoming year and remain highly confident in our ability to execute on our prudent growth, cost savings, and profitability plans. With that, I would like to turn it over to our operator.
Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. Again, if you have a question, please press star then one. This concludes our question-and-answer session, as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect.