Better Choice pany (BTTR)

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Better Choice pany (BTTR) - 2025 Q2 - Quarterly Report
2025-09-30 18:38
Cover Page & Preliminary Information [General Information](index=1&type=section&id=General%20Information) The section identifies SRx Health Solutions Inc. as a non-accelerated, smaller reporting company filing its Q2 2025 Form 10-Q - Filing Type: **Quarterly Report on Form 10-Q** for the period ended **June 30, 2025**[2](index=2&type=chunk) - Registrant Name: **SRx Health Solutions Inc.** (formerly **Better Choice Company, Inc.**)[2](index=2&type=chunk) - Trading Symbol: **SRXH** on **NYSE American**[3](index=3&type=chunk) - Filer Status: **Non-accelerated filer** and **Smaller reporting company**[4](index=4&type=chunk) - Common Stock Outstanding (as of **Sep 29, 2025**): **24,853,633 shares**[5](index=5&type=chunk) [Explanatory Note](index=3&type=section&id=EXPLANATORY%20NOTE) This note clarifies the business combination (Merger) on April 24, 2025, where SRx Canada merged with Better Choice Company, Inc - Business Combination Date: **April 24, 2025**[6](index=6&type=chunk) - Accounting Acquirer: **SRx Health Solutions, Inc.** (formerly **SRx Canada**)[7](index=7&type=chunk) - Legal Acquirer: **Better Choice Company, Inc.**[6](index=6&type=chunk) - Post-Merger Name: **SRx Health Solutions, Inc.**[7](index=7&type=chunk) [Forward-Looking Statements](index=5&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights that the report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements discuss current expectations and projections relating to financial condition, results of operations, plans, objectives, future performance, and business[13](index=13&type=chunk) - Key risks include: ability to continue as a **going concern**, impact of **cyber-attacks**, business interruptions from geopolitical actions, ability to implement growth strategy, achieve/maintain profitability, loss of key management, ability to generate cash flow or raise capital, dependence on subsidiaries, product development, competition, customer retention, product allegations, supply chain management, regulatory compliance (**FDA**, **FTC**, **USDA**), product recalls, shifting customer demand, and inflationary pressures[14](index=14&type=chunk)[18](index=18&type=chunk) [Note Regarding Trademarks](index=6&type=section&id=NOTE%20REGARDING%20TRADEMARKS) This standard disclosure confirms the company's ownership or rights to use trademarks and trade names mentioned in the report - Company owns or has rights to use trademarks and trade names in its business operations[17](index=17&type=chunk) - References without ® or ™ symbols do not waive rights to these trademarks and trade names[17](index=17&type=chunk) Part I [ITEM 1. FINANCIAL STATEMENTS](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for SRx Health Solutions Inc., including the statements of operations, balance sheets, shareholders' equity, and cash flows, along with comprehensive notes detailing the company's financial position, performance, and significant accounting policies. The statements reflect the impact of the recent reverse merger and highlight the company's ongoing liquidity challenges and going concern uncertainty [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations, detailing the company's financial performance over specified periods | Metric (USD in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net sales | 11,447 | 42,670 | (31,223) | (73.2%) | | Cost of goods sold | 8,028 | 33,254 | (25,226) | (75.9%) | | Gross margin | 3,419 | 9,416 | (5,997) | (63.7%) | | Operating loss | (17,422) | (1,322) | (16,100) | (1217.9%) | | Net loss after taxes | (15,133) | (3,115) | (12,018) | (385.8%) | | Net loss per share, basic | (0.74) | (0.14) | (0.60) | (428.6%) | | Metric (USD in thousands) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net sales | 41,082 | 117,122 | (76,040) | (65.0%) | | Cost of goods sold | 30,786 | 93,695 | (62,909) | (67.1%) | | Gross margin | 10,296 | 23,427 | (13,131) | (56.1%) | | Operating loss | (32,177) | (8,200) | (23,977) | (292.4%) | | Net loss after taxes | (29,745) | (11,077) | (18,668) | (168.5%) | | Net loss per share, basic | (1.54) | (0.50) | (1.04) | (208.0%) | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets, outlining the company's financial position at specific dates | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Total Assets | 33,985 | 33,764 | 221 | 0.7% | | Total Liabilities | 79,865 | 88,884 | (9,019) | (10.1%) | | Total Shareholders' Deficit | (45,880) | (55,119) | 9,239 | 16.8% | | Cash and cash equivalents | 912 | 106 | 806 | 760.4% | | Working Capital Deficiency | (49,581) | (67,667) | 18,086 | 26.7% | [Unaudited Condensed Consolidated Statements of Shareholders' Equity (Deficit)](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity%20%28Deficit%29) This section details the unaudited condensed consolidated statements of shareholders' equity (deficit), showing changes in equity over time | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Common Stock Amount | 21 | 22 | (1) | (4.5%) | | Additional Paid-in Capital | 38,642 | 12,491 | 26,151 | 209.4% | | Accumulated Deficit | (98,424) | (70,031) | (28,393) | (40.5%) | | Accumulated Other Comprehensive Loss | 13,881 | 2,399 | 11,482 | 478.6% | | Total Shareholders' Deficit | (45,880) | (55,119) | 9,239 | 16.8% | - Shares redeemed in connection with business combinations: (**26,323,200 shares**), reducing common stock by **$26K** and additional paid-in capital by **$7,244K**[26](index=26&type=chunk) - Shares issued for private placement, post-merger: **1,280,000 shares**, increasing common stock by **$9K** and additional paid-in capital by **$8,791K**[26](index=26&type=chunk) - Fair value of shares issued to acquire Better Choice: **8,898,069 shares**, increasing common stock by **$9K** and additional paid-in capital by **$8,930K**[26](index=26&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows, summarizing cash inflows and outflows from operating, investing, and financing activities | Metric (USD in thousands) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Operating activities | (15,744) | 613 | (16,357) | (2668.3%) |\ | Investing activities | 13,280 | (4,490) | 17,770 | (395.8%) |\ | Financing activities | 3,154 | 3,841 | (687) | (17.9%) |\n| Net increase (decrease) in cash | 690 | (36) | 726 | (2016.7%) |\ | Cash and cash equivalents, end of period | 912 | 488 | 424 | 86.9% | - Cash used in operating activities increased significantly due to a higher net loss, partially offset by non-cash adjustments and working capital changes[300](index=300&type=chunk) - Cash provided by investing activities increased due to proceeds from asset sales and cash acquired in the merger, offsetting prior period acquisitions[301](index=301&type=chunk) - Cash provided by financing activities decreased slightly, with private placement proceeds offset by senior secured facility paydowns[302](index=302&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statements, covering significant accounting policies, the reverse merger, specific asset and liability accounts, revenue recognition, segment performance, income taxes, related party transactions, share activity, financial instruments, asset disposals, commitments, and crucial subsequent events like the CCAA filing [Note 1 – Nature of business and summary of significant accounting policies](index=11&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20business%20and%20summary%20of%20significant%20accounting%20policies) This note outlines the company's business operations, the impact of the reverse merger, and key accounting policies - Company operates as a vertically integrated healthcare organization (Canadian pharmacy and healthcare services via **SRx Canada**) and a branded pet wellness company (premium pet health and nutrition products via **Halo**)[35](index=35&type=chunk) - Reverse Merger: **SRx Canada** (Accounting Acquirer) consummated a business combination with **Better Choice Company, Inc.** (Legal Acquirer) on **April 24, 2025**. **Better Choice** changed its name to **SRx Health Solutions, Inc.**[32](index=32&type=chunk)[33](index=33&type=chunk) - **Halo** Spin-Out Distribution: On **April 25, 2025**, **17%** of **Halo's** capital stock was distributed to **Better Choice** stockholders, treated as a common control equity reorganization with **Halo** remaining fully consolidated[36](index=36&type=chunk)[38](index=38&type=chunk) - **SRx Canada** filed for protection under the **Companies' Creditors Arrangement Act (Canada)** ('**CCAA**') on **August 12, 2025**[39](index=39&type=chunk) [Note 2 – Basis of Preparation](index=11&type=section&id=Note%202%20%E2%80%93%20Basis%20of%20Preparation) This note details the basis of financial statement preparation, identifies an immaterial error, and highlights going concern uncertainties - Financial statements prepared in accordance with **U.S. GAAP** and **SEC rules** for interim reports[40](index=40&type=chunk) - Immaterial error identified in **FY2024** revenue related to billed but undispensed prescriptions, resulting in a **$1.8 million** reduction to accumulated deficit as of **September 30, 2024**[43](index=43&type=chunk)[44](index=44&type=chunk) - Going Concern Uncertainty: Company has accumulated deficit (**$98.4M**), working capital deficiency (**$49.6M**), recurring net losses (**$15.1M** for **3 months**, **$29.7M** for **9 months ended June 30, 2025**), and non-compliance with **CWB** debt covenants[49](index=49&type=chunk)[50](index=50&type=chunk) - Management plans to address going concern include raising capital, debt restructuring, cost control, scaling high-margin services, and divesting non-core assets. However, there is no assurance of success[53](index=53&type=chunk)[59](index=59&type=chunk) - **CCAA** Filing: **SRx Canada** initiated **CCAA** proceedings in **August 2025**, leading to operational changes (divestiture, workforce reductions) to stabilize liquidity, but outcome remains uncertain[54](index=54&type=chunk) - U.S. pet food business (legacy Better Choice) faces significant liquidity constraints and operating losses, with management evaluating strategic alternatives[55](index=55&type=chunk) [Note 3 – Summary of significant accounting policies](index=14&type=section&id=Note%203%20%E2%80%93%20Summary%20of%20significant%20accounting%20policies) This note summarizes the company's significant accounting policies, including segment reporting, business combinations, revenue recognition, and asset impairment - Segment Information: Following the reverse merger, the Company reports two segments: **Health Solutions** (Canadian pharmacy/healthcare) and **Consumer Products** (legacy **Halo** pet food business, primarily U.S.)[62](index=62&type=chunk)[63](index=63&type=chunk) - Business Combinations: Accounted for using the acquisition method (**ASC 805**). Goodwill is measured as excess consideration over net identifiable assets. A bargain purchase gain is recognized if net assets acquired exceed consideration[64](index=64&type=chunk)[66](index=66&type=chunk)[70](index=70&type=chunk) - Revenue Recognition: For healthcare services, revenue is recognized when control of goods/services transfers (e.g., prescription dispensed, service completed). For **Halo** pet food, revenue is recognized upon product shipment[78](index=78&type=chunk)[80](index=80&type=chunk)[85](index=85&type=chunk) - Impairment of Non-Financial Assets: Long-lived assets (property, equipment, finite-lived intangibles, ROU assets) are reviewed for impairment when circumstances indicate carrying amount may not be recoverable (**ASC 360**). Goodwill is tested annually or more frequently (**ASC 350**)[105](index=105&type=chunk)[106](index=106&type=chunk) - Share Repurchases: Board authorized a stock repurchase plan for up to **$6.5 million**. **76,800 shares** repurchased between **April 24, 2025**, and **June 30, 2025**[75](index=75&type=chunk) [Note 4 – Business Combinations](index=24&type=section&id=Note%204%20%E2%80%93%20Business%20Combinations) This note details the reverse merger, the resulting bargain purchase gain, acquisition-related costs, and prior pharmacy acquisitions - Reverse Merger (**April 24, 2025**): **Better Choice** issued **8,898,069 shares** and **19,701,935 exchangeable shares**. Former **SRx Canada** shareholders hold **~88%** of combined voting power. Accounted for as a reverse acquisition with **SRx Canada** as accounting acquirer[142](index=142&type=chunk)[143](index=143&type=chunk) - Bargain Purchase Gain: Preliminary gain of **$1.69 million** recognized in **Q2 2025** due to total consideration transferred being less than the fair value of net assets acquired[144](index=144&type=chunk)[150](index=150&type=chunk) - Acquisition-Related Costs: Issued **1,599,231 common shares** for advisory and professional services, totaling **$3.3 million**, expensed in **Q2 2025**[146](index=146&type=chunk) - Private Placement: Completed on **April 24, 2025**, issuing **1,280,000 common shares** and **2,756,697 pre-funded warrants** for **$8.8 million** gross proceeds[147](index=147&type=chunk) - Prior Pharmacy Acquisitions (**9 months ended June 30, 2024**): Acquired Elora Apothecary Ltd., Trailside Pharmacy Ltd., 0864009 B.C. Ltd. (Mediglen), and Vaughan Endoscopy Clinic Inc., totaling **$4.019 million** in consideration and **$2.441 million** in goodwill[152](index=152&type=chunk) [Note 5 – Trade and other receivables](index=27&type=section&id=Note%205%20%E2%80%93%20Trade%20and%20other%20receivables) This note provides a breakdown of trade and other receivables, including the allowance for current expected credit losses | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Receivables from third-party customers | 5,519 | 4,223 | 1,296 | 30.7% | | Other receivables | 2,460 | 2,883 | (423) | (14.7%) | | Sales and income tax receivables | 247 | 2,371 | (2,124) | (89.6%) | | Less: Allowance for CECL | (88) | (202) | 114 | (56.4%) | | Total Accounts Receivable, net | 8,138 | 9,275 | (1,137) | (12.3%) | - Allowance for current expected credit losses (**CECL**) decreased from **$202K** to **$88K**[165](index=165&type=chunk) [Note 6 – Inventory](index=28&type=section&id=Note%206%20%E2%80%93%20Inventory) This note presents the composition of the company's inventory, including finished goods and packaging supplies | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Finished goods | 4,582 | 3,369 | 1,213 | 36.0% | | Inventory packaging and supplies | 550 | - | 550 | N/A | | Total Inventory, net | 5,132 | 3,369 | 1,763 | 52.3% | [Note 7 – Fixed assets](index=28&type=section&id=Note%207%20%E2%80%93%20Fixed%20assets) This note details the company's fixed assets, accumulated depreciation, and depreciation expense | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Total fixed assets | 7,698 | 11,207 | (3,509) | (31.3%) | | Accumulated depreciation | (4,628) | (5,176) | 548 | (10.6%) | | Fixed assets, net | 3,070 | 6,031 | (2,961) | (49.1%) | - Depreciation expense for the **nine months ended June 30, 2025**, was **$0.5 million**, compared to **$0.4 million** for the same period in **2024**[167](index=167&type=chunk) [Note 8 – Intangible assets](index=28&type=section&id=Note%208%20%E2%80%93%20Intangible%20assets) This note outlines the company's intangible assets, amortization expense, and impairment losses | Metric (USD in thousands) | June 30, 2025 (Net Carrying Amount) | September 30, 2024 (Net Carrying Amount) | Change ($) | Change (%) | | :------------------------ | :---------------------------------- | :--------------------------------------- | :--------- | :--------- | | Computer software | 30 | 50 | (20) | (40.0%) | | Domain/website | 1 | 1 | 0 | 0.0% | | Customer lists | 424 | 6,210 | (5,786) | (93.2%) | | Charter license | 669 | 740 | (71) | (9.6%) | | Total Intangible Assets | 1,124 | 7,001 | (5,877) | (83.9%) | - Amortization expense for the **nine months ended June 30, 2025**, was **$2.4 million**, compared to **$1.0 million** for the same period in **2024**, an increase of **140%**[169](index=169&type=chunk) - Impairment loss of **$2.7 million** recognized during the **nine months ended June 30, 2025**, related to customer list intangible assets, driven by a decline in estimated fair value[170](index=170&type=chunk) [Note 9 – Goodwill](index=29&type=section&id=Note%209%20%E2%80%93%20Goodwill) This note details the company's goodwill, including impairment charges and their underlying causes | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Beginning balance | - | 18,346 | (18,346) | (100.0%) | | Acquisitions | - | 2,438 | (2,438) | (100.0%) | | Impairment expense | - | (19,669) | 19,669 | (100.0%) | | Ending balance | - | - | 0 | N/A | - A goodwill impairment charge of **$19.7 million** was recognized for the **three and twelve months ended September 30, 2024**, for the Pharmacy and Prescription Drug Sales reporting unit[173](index=173&type=chunk) - Impairment was primarily due to the loss of a key contract, reduced projected revenue, increased pricing pressure, lower long-term growth expectations, and a higher discount rate[172](index=172&type=chunk) [Note 10 – Leases](index=30&type=section&id=Note%2010%20%E2%80%93%20Leases) This note provides information on the company's operating lease assets, liabilities, and associated costs | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Operating lease assets | 4,717 | 6,490 | (1,773) | (27.3%) | | Total Operating lease liabilities | 5,044 | 7,092 | (2,048) | (28.9%) | - Total lease cost for the **nine months ended June 30, 2025**, was **$1.707 million**, a decrease of **6%** from **$1.816 million** in **2024**[176](index=176&type=chunk) - Weighted average remaining lease term is **4.78 years**, with a weighted average discount rate of **7.74%**[176](index=176&type=chunk) [Note 11 – Debt](index=31&type=section&id=Note%2011%20%E2%80%93%20Debt) This note details the company's debt structure, including short-term borrowings, CWB facilities, and covenant non-compliance | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Short-term borrowings | 4,077 | 3,715 | 362 | 9.7% | | CWB Term Facilities | 23,054 | 30,603 | (7,549) | (24.7%) | | Other borrowings | 3,685 | 1,668 | 2,017 | 120.9% | | Total Debt | 30,816 | 35,986 | (5,170) | (14.4%) | | Current portion of long-term borrowings | 24,836 | 31,575 | (6,739) | (21.3%) | | Long-term portion of other borrowings | 1,903 | 696 | 1,207 | 173.4% | - Company was not in compliance with **CWB** loan covenants (**Senior Funded Debt to Adjusted EBITDA < 4.0x** and **Fixed Charge Coverage Ratio > 1.0x**) as of **June 30, 2025**, and **September 30, 2024**, leading to reclassification of the entire **CWB** loan as a current liability[183](index=183&type=chunk) - Revolving Loan with **Better Choice Company Inc. (BTTR)** was converted into common shares upon the reverse merger on **April 24, 2025**, and is no longer outstanding[181](index=181&type=chunk)[182](index=182&type=chunk) [Note 12 – Convertible debentures](index=32&type=section&id=Note%2012%20%E2%80%93%20Convertible%20debentures) This note describes the company's convertible debentures, including conversions and new issuances | Metric (USD in thousands) | June 30, 2025 | September 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :----------------- | :--------- | :--------- | | Convertible debentures | 1,145 | 2,230 | (1,085) | (48.7%) | - **Better Choice** Convertible Note (**$1.45 million** principal) converted into common shares upon the reverse merger on **April 24, 2025**, and is no longer outstanding[190](index=190&type=chunk)[191](index=191&type=chunk) - During the **nine months ended June 30, 2025**, an additional **$1.0 million** in convertible debentures were issued[189](index=189&type=chunk) [Note 13 – Revenue](index=33&type=section&id=Note%2013%20%E2%80%93%20Revenue) This note provides a detailed breakdown of the company's revenue by channel for various periods | Revenue Channel (USD in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Retail pharmacy | 6,790 | 41,438 | (34,648) | (83.6%) | 33,598 | 113,921 | (80,323) | (70.5%) | | Infusion services | 207 | 428 | (221) | (51.6%) | 724 | 948 | (224) | (23.6%) | | Specialty clinics | 142 | 111 | 31 | 27.9% | 411 | 417 | (6) | (1.4%) | | Wholesale distribution | 1 | 245 | (244) | (99.6%) | 31 | 612 | (581) | (95.0%) | | Patient support program | 193 | 262 | (69) | (26.3%) | 731 | 744 | (13) | (1.7%) | | Clinical trial | 213 | 7 | 206 | 2942.9% | 792 | 8 | 784 | 9800.0% | | Consumer packaged goods | 2,673 | - | 2,673 | N/A | 2,673 | - | 2,673 | N/A | | Other service revenue | 1,228 | 179 | 1,049 | 586.0% | 2,122 | 472 | 1,650 | 349.6% | | Total revenue | 11,447 | 42,670 | (31,223) | (73.2%) | 41,082 | 117,122 | (76,040) | (65.0%) | [Note 14 – Segment information](index=33&type=section&id=Note%2014%20%E2%80%93%20Segment%20information) This note outlines the company's two reportable segments: Health Solutions and Consumer Products, and their respective financial contributions - Company operates two reportable segments: Health Solutions (Canadian pharmacies, core business) and Consumer Products (legacy Halo pet food, primarily U.S.)[195](index=195&type=chunk) - CODM (Board of Directors) evaluates segments based on revenues, gross margin, and Adjusted EBITDA, but not total assets[196](index=196&type=chunk)[197](index=197&type=chunk) | Segment (USD in thousands) | 3 Months Ended June 30, 2025 (Net Sales) | 3 Months Ended June 30, 2024 (Net Sales) | 9 Months Ended June 30, 2025 (Net Sales) | 9 Months Ended June 30, 2024 (Net Sales) | | :------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Health Solutions | 8,774 | 42,670 | 38,409 | 117,122 | | Consumer Products | 2,673 | - | 2,673 | - | | Total | 11,447 | 42,670 | 41,082 | 117,122 | - U.S. revenue (Consumer Products) for **9 months ended June 30, 2025**, was **$2.673 million** (N/A in 2024). Canadian revenue (Health Solutions) for **9 months ended June 30, 2025**, was **$38.409 million**, down from **$117.122 million** in **2024**[201](index=201&type=chunk) - Long-lived assets in the U.S. increased to **$4.090 million** as of **June 30, 2025** (from **$0** in **2024**), while Canadian long-lived assets decreased to **$0.104 million** (from **$13.032 million** in **2024**)[202](index=202&type=chunk) [Note 15 – Income taxes](index=36&type=section&id=Note%2015%20%E2%80%93%20Income%20taxes) This note details the company's income tax provision, deferred tax income, and effective tax rates | Metric (USD in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Income tax provision | 100 | 300 | 800 | 200 | | Deferred tax income (expense) | 1,700 | (400) | 1,500 | 600 | - U.S. operations have a federal statutory tax rate of **21%**, but the effective tax rate was **less than 1%** due to a full valuation allowance against deferred tax assets related to net operating losses[205](index=205&type=chunk) [Note 16 – Related party transactions](index=36&type=section&id=Note%2016%20%E2%80%93%20Related%20party%20transactions) This note describes transactions with related parties, including working capital advances and balances due to former executives - Historical non-interest-bearing working capital advances with largest shareholder and common control entities were forgiven, resulting in a capital contribution[206](index=206&type=chunk)[207](index=207&type=chunk) - As of **June 30, 2025**, net related party balances transitioned to a payable position of **$82K** (from a receivable of **$81K** in **Sep 2024**)[210](index=210&type=chunk) - A **$1.4 million** balance due to former CEO Adesh Vora was recorded as an increase to beginning accumulated deficit and a non-cash capital distribution[208](index=208&type=chunk) [Note 17 – Share issuances and warrants](index=37&type=section&id=Note%2017%20%E2%80%93%20Share%20issuances%20and%20warrants) This note details the company's share issuances, private placements, and warrant activity | Metric | June 30, 2025 | September 30, 2024 | Change | | :------------------------ | :------------ | :----------------- | :----- | | Warrants Outstanding () | 3,075,042 | 232,438 | 2,842,604 | | Weighted average price ($)| 14.94 | 2.02 | 12.92 | - On **April 24, 2025**, issued **1,280,000 common shares** and **2,756,697 pre-funded warrants** for **$8.8 million** in a private placement[212](index=212&type=chunk) - Issued **1,941,120 shares** for settlement of **$2.9 million** inventory-related accounts payable and **$3.1 million** professional fee-related accounts payable during the **nine months ended June 30, 2025**[213](index=213&type=chunk) [Note 18 – Loss per share](index=38&type=section&id=Note%2018%20%E2%80%93%20Loss%20per%20share) This note presents the company's net loss per share, including basic and diluted calculations | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | (15,133) | (3,115) | (29,745) | (11,077) | | Weighted average shares (basic & diluted) | 20,401,138 | 21,922,889 | 19,334,671 | 22,005,842 | | Net loss per share (basic & diluted) | (0.74) | (0.14) | (1.54) | (0.50) | - Basic and diluted net loss per share are the same as potentially dilutive securities were anti-dilutive due to net losses[215](index=215&type=chunk)[216](index=216&type=chunk) [Note 19 – Share-based compensation](index=38&type=section&id=Note%2019%20%E2%80%93%20Share-based%20compensation) This note outlines the company's share-based compensation expense, incentive plans, and restricted stock unit activity | Metric (USD in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Share-based compensation expense | 2,900 | 800 | 4,500 | 2,600 | - Amended **2019 Incentive Award Plan** adopted post-Merger, authorizing **1,928,023 shares** for issuance[217](index=217&type=chunk)[222](index=222&type=chunk) - Granted **890,192 shares** of immediately vested restricted common stock in **April 2025** for performance bonus compensation (**$1.9 million** expense)[220](index=220&type=chunk) - **RSUs** outstanding decreased from **1,594,641** (**Sep 30, 2024**) to **0** (**June 30, 2025**) due to vesting and conversion in the Reverse Merger[222](index=222&type=chunk) [Note 20 – Financial instruments](index=39&type=section&id=Note%2020%20%E2%80%93%20Financial%20instruments) This note discusses the fair value of financial instruments, exposure to credit, liquidity, and market risks, and contractual maturities - Fair value of cash, receivables, and payables approximate carrying amounts due to short-term maturities[224](index=224&type=chunk) - Convertible debt classified as **Level 3** financial instrument due to unobservable inputs in valuation[225](index=225&type=chunk) - Company is exposed to credit risk, liquidity risk, and market risk (interest rate risk)[227](index=227&type=chunk) - Liquidity risk is monitored through cash flow forecasts and access to credit facilities[228](index=228&type=chunk) | Contractual Maturities (USD in thousands) | Year 1 (June 30, 2025) | Year 2 (June 30, 2025) | Total (June 30, 2025) | Year 1 (Sep 30, 2024) | Year 3 (Sep 30, 2024) | Total (Sep 30, 2024) | | :---------------------------------------- | :--------------------- | :--------------------- | :-------------------- | :-------------------- | :-------------------- | :------------------- | | Long-term borrowings | 24,836 | 1,903 | 26,739 | 31,575 | 696 | 32,271 | | Convertible debentures | 1,145 | - | 1,145 | 2,230 | - | 2,230 | | Due to related parties | 82 | - | 82 | 288 | - | 288 | | Short-term borrowings | 4,077 | - | 4,077 | 3,715 | - | 3,715 | | Trade and other payables | 41,638 | - | 41,638 | 41,697 | - | 41,697 | | Total | 71,778 | 1,903 | 73,681 | 79,505 | 696 | 80,201 | [Note 21 – Disposal of assets](index=40&type=section&id=Note%2021%20%E2%80%93%20Disposal%20of%20assets) This note details the gains recognized from the disposal of various assets during the period - Net total gain of **$4.3 million** from asset disposals for the **nine months ended June 30, 2025**[236](index=236&type=chunk) - Key asset sales include **Niagara Community Pharmacy Ltd.** (gain of **$1.3M**), **P.A. Pharmacy Limited** (gain of **$2.1M**), warehouse building (gain of **$0.4M**), **Clearbrook Pharmacy (1987)** (gain of **$0.4M**), and **Greg's Drug Ltd.** (gain of **$0.4M**)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) [Note 22 – Commitments and contingencies](index=40&type=section&id=Note%2022%20%E2%80%93%20Commitments%20and%20contingencies) This note addresses the company's involvement in legal proceedings, claims, and regulatory inquiries, and related loss contingencies - Company is involved in legal proceedings, claims, and regulatory inquiries in the ordinary course of business[237](index=237&type=chunk) - Loss contingencies are accrued when probable and estimable; management is not aware of any claims that would have a material adverse effect[237](index=237&type=chunk)[238](index=238&type=chunk) [Note 23 – Subsequent events](index=41&type=section&id=Note%2023%20%E2%80%93%20Subsequent%20events) This note discloses significant events occurring after the reporting period, including asset sales, financing activities, share cancellations, and the CCAA filing - Asset Sale: On **July 11, 2025**, sold assets of **3788602 Manitoba Ltd.** for **$1.8 million**, resulting in a gain of **$1.066 million**[240](index=240&type=chunk) - Equity Line of Credit (**ELOC**): On **July 7, 2025**, entered agreement to sell up to **$50 million** of common shares (capped at **19.99%** unless stockholder approval). Issued **$1 million** in Commitment Shares[241](index=241&type=chunk) - Convertible Note and Warrant Financing: On **July 7, 2025**, issued **$7.65 million** senior secured convertible notes (**8% interest**, due **July 8, 2027**, convertible at **$0.6274/share**) and warrants for **21,338,062 shares** (exercisable at **$0.6274**)[242](index=242&type=chunk) - Share Cancellation: On **August 1, 2025**, **18,839,332 shares** (common and exchangeable) were forfeited and cancelled by original founders/officers, representing **~46%** of fully diluted capital stock prior to settlement[243](index=243&type=chunk) - **CCAA** Filing: On **August 11, 2025**, **SRx Canada** commenced proceedings under the **Companies' Creditors Arrangement Act (Canada)** due to liquidity constraints and inability to refinance maturing obligations[244](index=244&type=chunk) - Pro-forma financial information for U.S. operations (not subject to **CCAA**) shows net income of **$1.710 million** for **3 months ended June 30, 2025**, and net loss of **$(0.651) million** for **9 months ended June 30, 2025**[247](index=247&type=chunk)[248](index=248&type=chunk) - Issued **2,193,355 shares** in **July 2025** for professional advisory fees (**$0.61/share** weighted average price)[249](index=249&type=chunk) - Share Exchange Agreement: On **August 21, 2025**, acquired **17%** interest in **Halo** from **Halo Spin-Out SPV, Inc.** by issuing **4,950,000 common shares**, regaining **100% ownership** of **Halo**[250](index=250&type=chunk) - Issued **2,396,697 shares** of restricted common stock to directors/officers/employees as performance bonus compensation in **August 2025** (**$0.40/share** weighted average price)[251](index=251&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=43&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance and condition for the nine months ended June 30, 2025, compared to the prior year. It details the business overview, recent corporate developments including the reverse merger and CCAA filing, and a comprehensive analysis of revenue, gross profit, operating expenses, and liquidity, emphasizing the significant challenges faced due to liquidity constraints and covenant non-compliance [Overview and Outlook](index=43&type=section&id=Overview%20and%20Outlook) This section provides an overview of SRx's integrated Canadian healthcare services business and its strategic outlook - **SRx** is a fully integrated Canadian healthcare services provider, focusing on specialty healthcare at the intersection of pharmacy, clinical services, and pharmaceutical distribution[255](index=255&type=chunk) - The **SRx Network** includes **~30 specialty pharmacies**, **37 specialty health clinics**, **2 clinical trial sites**, a diagnostics lab, national Patient Support Programs (**PSPs**), and a wholesale/distribution facility, operating across **all ten Canadian provinces**[256](index=256&type=chunk) - Specialty drugs, high-cost and complex therapies, are the core focus, requiring advanced logistics and clinical oversight[257](index=257&type=chunk) - Outlook: Expects increasing demand for specialty medications and health system capacity challenges to drive growth, leveraging established footprint and partnerships[259](index=259&type=chunk) [Recent Corporate Developments](index=43&type=section&id=Recent%20Corporate%20Developments) This section summarizes key corporate events, including CWB loan covenant non-compliance, the reverse merger, and management changes - **2023** focused on strategic acquisitions; **2024** shifted to integration, operational optimization, and organic growth[260](index=260&type=chunk) - Non-compliance with **CWB** loan financial covenants as of **June 30, 2025**, led to debt being callable. Subsequent to **June 30, 2025**, the Company sought creditor protection under **CCAA**[261](index=261&type=chunk) - Reverse merger with **Better Choice Company, Inc.** completed on **April 24, 2025**; **Better Choice** changed name to **SRx Health Solutions Inc.** and began trading as '**SRXH**'[262](index=262&type=chunk)[263](index=263&type=chunk) - Multiple management and Board of Directors changes occurred between **April** and **August 2025**, including changes in **CEO** and **Chairman** roles, and the resignation of Adesh Vora[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) - Cancellation of approximately **18.8 million shares** of fully diluted capital stock announced on **August 14, 2025**[266](index=266&type=chunk) [Arrangement Agreement](index=44&type=section&id=Arrangement%20Agreement) This section details the all-stock arrangement agreement with Better Choice Company Inc., which closed on April 24, 2025 - Arrangement Agreement with **Better Choice Company Inc.** (publicly listed) for **SRx's** acquisition through an all-stock transaction, closed on **April 24, 2025**[267](index=267&type=chunk)[270](index=270&type=chunk) - **SRx** common shares converted into **Better Choice** common stock or exchangeable shares (1:1 convertible). Former **SRx** shareholders hold **~88%** of combined voting power[143](index=143&type=chunk)[269](index=269&type=chunk) - Transaction reflects an assigned equity value of **SRx** of USD **$80 million**, assuming net debt of USD **$43 million**[269](index=269&type=chunk) - Combined Company aims to be a leading global health and wellness platform, continuing **Halo** pet product brands and **SRx** healthcare business[271](index=271&type=chunk)[272](index=272&type=chunk) [Results of Operations for the nine months ended June 30, 2025 and 2024](index=46&type=section&id=Results%20of%20Operations%20for%20the%20nine%20months%20ended%20June%2030%2C%202025%20and%202024) The company experienced a significant decline in net sales and gross profit for the nine months ended June 30, 2025, primarily due to operational disruptions and liquidity constraints. Operating expenses increased due to transaction-related professional fees and share-based compensation, while other income improved from asset sales. The net loss widened considerably [Net sales](index=46&type=section&id=Net%20sales) This section analyzes the significant decrease in net sales, primarily attributed to operational disruptions and liquidity constraints - Net sales decreased by **$76.0 million (65%)** to **$41.1 million** for the **nine months ended June 30, 2025**, from **$117.1 million** in **2024**[273](index=273&type=chunk)[276](index=276&type=chunk) - Primary drivers for decrease: significant operational disruptions due to liquidity constraints, limiting ability to purchase and dispense high-cost specialty medications, leading to reduced patient volumes and prescription fulfillment rates[276](index=276&type=chunk) - Retail pharmacy revenue, the core driver, decreased by **$80.3 million (70.5%)** for the **nine months ended June 30, 2025**[194](index=194&type=chunk) [Gross profit](index=47&type=section&id=Gross%20profit) This section examines the decline in gross profit, driven by reduced net sales and operational challenges - Gross profit decreased by **$13.1 million (56%)** to **$10.3 million** for the **nine months ended June 30, 2025**, from **$23.4 million** in **2024**[273](index=273&type=chunk)[279](index=279&type=chunk) - Decrease primarily driven by significant decline in net sales, operational and liquidity challenges, and under-absorption of fixed costs[279](index=279&type=chunk) - Company is collaborating with supply chain partners for cost-saving opportunities but expects ongoing margin variability due to macroeconomic factors (inflationary pressures)[280](index=280&type=chunk) [Operating expenses](index=47&type=section&id=Operating%20expenses) This section details the increase in total operating expenses, including SG&A, share-based compensation, and professional fees - Total operating expenses increased by **$10.8 million (34%)** to **$42.5 million** for the **nine months ended June 30, 2025**, from **$31.6 million** in **2024**[273](index=273&type=chunk) - Selling, general and administrative (**SG&A**) expenses increased by **$8.2 million (26%)** to **$39.8 million**[273](index=273&type=chunk) - Sales and marketing costs increased by **$0.3 million (389%)** due to **Better Choice** integration[281](index=281&type=chunk) - Employee compensation and benefits remained constant at **$16.8 million**, as headcount reductions were offset by **Better Choice** personnel costs[281](index=281&type=chunk) - Share-based compensation increased by **$1.8 million (71%)** to **$4.4 million**, primarily due to **Better Choice** consolidation[281](index=281&type=chunk) - Impairment of long-lived intangible assets resulted in a **$2.7 million charge** in **2025** (none in **2024**)[283](index=283&type=chunk) - Professional fees increased by **$3.9 million (285%)** to **$5.2 million**, driven by reverse merger transaction-related expenses[288](index=288&type=chunk) [Other income (expense), net](index=48&type=section&id=Other%20income%20%28expense%29%2C%20net) This section explains the improvement in other income, primarily due to gains from asset sales - Other income improved by **$3.5 million** to **$3.457 million** for the **nine months ended June 30, 2025**, from an expense of **$0.069 million** in **2024**[273](index=273&type=chunk)[284](index=284&type=chunk) - Improvement primarily driven by a gain on the sale of assets at the SRx level, as part of asset base optimization and liquidity strengthening[284](index=284&type=chunk) [Interest expense, net](index=48&type=section&id=Interest%20expense%2C%20net) This section discusses the company's interest expense, which remained relatively constant year-over-year - Interest expense remained constant at **$3.3 million** for the **nine months ended June 30, 2025**, compared to **$3.26 million** in **2024**[273](index=273&type=chunk)[285](index=285&type=chunk) - Comprised of interest on **CWB** term loan, CEBA loans, and other borrowings; not materially impacted by Better Choice consolidation[285](index=285&type=chunk) [Income taxes](index=48&type=section&id=Income%20taxes) This section analyzes the income tax recovery and the effective tax rate, influenced by valuation allowances against deferred tax assets - Income tax recovery of **$0.63 million** for the **nine months ended June 30, 2025**, compared to an expense of **$0.45 million** in **2024**[286](index=286&type=chunk) - Effective tax rate was **(2.46%)** in **2025** vs. **(3.92%)** in **2024**, differing from the **26.5%** Canadian statutory rate due to a significant increase in valuation allowances against deferred tax assets (primarily **NOLs**)[286](index=286&type=chunk) [Non-GAAP Measures](index=49&type=section&id=Non-GAAP%20Measures) This section defines and reconciles Adjusted EBITDA, a non-GAAP measure used by management for performance evaluation and strategic decisions - **Adjusted EBITDA** is a non-GAAP measure used by management to evaluate operating performance, generate future plans, and make strategic capital allocation decisions[290](index=290&type=chunk) - **Adjusted EBITDA** is calculated by adding interest expense, tax expense (benefit), depreciation and amortization, share-based compensation, gain on extinguishment of debt and accounts payable, loss on disposal of assets, transaction-related expenses, and other non-recurring expenses to net loss[289](index=289&type=chunk) | Metric (USD in thousands) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net loss | (29,745) | (11,077) | (18,668) | (168.5%) | | EBITDA | (24,104) | (4,947) | (19,157) | (387.3%) | | Adjusted EBITDA | (19,142) | (135) | (19,
SRx Health Solutions (BTTR) Earnings Call Presentation
2025-07-01 13:21
Company Overview and Strategy - SRx Health Solutions was founded in 2013 with a patient-centric approach to specialty pharmacy care[13] - The company has expanded to 20 pharmacies, 34 clinics, and 4 clinical trial sites across Canada[14] - SRx entered the U S market by signing a letter of intent to acquire 100% of Choice Specialty Pharmacy Group, which has five sites in Texas and licenses to distribute across 26 states[16] - SRx aims to create a comprehensive North American healthcare network by integrating its Canadian operations with the acquired U S operations[55] Market Opportunity - 73% of Canadians aged 65+ report having at least one chronic disease[39] - 33% of Canadians aged 65+ report having two or more chronic diseases[39] - 52% of Canadians aged 60+ take three or more prescription medications[39] - U S specialty drug spend represents approximately 51% of total 2024 U S drug purchases, amounting to ~$410 billion[41] - U S specialty drug spend growth in 2024 was ~11 9%, compared to 8 1% for traditional drugs[41] Financials and Capitalization - The pro forma combined net debt is $39 4 million[51] - Insiders own 75%+ of the company, while non-affiliates own 25%[51]
Better Choice pany (BTTR) - 2025 Q1 - Quarterly Report
2025-05-15 20:38
[EXPLANATORY NOTE](index=3&type=section&id=EXPLANATORY%20NOTE) This section clarifies that SRx Health Solutions, Inc. (formerly Better Choice Company, Inc.) completed a business combination with SRx Health Solutions, Inc. (Ontario) on April 24, 2025, with the report reflecting prior operations - SRx Health Solutions, Inc. (formerly Better Choice Company, Inc.) **consummated a business combination** with SRx Health Solutions, Inc. (Ontario) on April 24, 2025[5](index=5&type=chunk) - As a result of the Business Combination, BCC **acquired the business of SRx Health** and will continue its existing business operations as a wholly-owned subsidiary[5](index=5&type=chunk) - BCC **changed its corporate name** from "Better Choice Company Inc." to "SRx Health Solutions, Inc." on April 24, 2025[5](index=5&type=chunk) [FORWARD-LOOKING STATEMENTS](index=5&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section serves as a cautionary note, indicating that the report contains forward-looking statements about the company's future financial condition, operations, and business plans, subject to various risks and uncertainties that could cause actual results to differ materially from expectations - All statements in the report, other than historical facts, are forward-looking and discuss current expectations and projections related to financial condition, results of operations, plans, and future performance[11](index=11&type=chunk) - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the company's ability to continue as a going concern, impact of cyber-attacks, and ability to implement growth strategy[11](index=11&type=chunk) - Other risks include failure to achieve or manage growth, loss of key management, ability to generate sufficient cash flow, competition, regulatory compliance (FDA, FTC, USDA), and inflationary pressures[11](index=11&type=chunk)[12](index=12&type=chunk) [NOTE REGARDING TRADEMARKS](index=6&type=section&id=NOTE%20REGARDING%20TRADEMARKS) This section clarifies that the company owns or has rights to use the trademarks and trade names mentioned in the report for its business operations, and the omission of symbols does not waive its legal rights - The company owns or has rights to use the trademarks and trade names in conjunction with its business operations[14](index=14&type=chunk) - References to trademarks and trade names without ® or ™ symbols are for convenience and do **not indicate a waiver of rights**[14](index=14&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=Part%20I) [ITEM 1. FINANCIAL STATEMENTS](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents SRx Health Solutions Inc.'s unaudited condensed consolidated financial statements, highlighting reduced net loss, decreased assets and equity, and positive operating cash flow despite an overall cash decrease [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant reduction in net loss for Q1 2025, driven by decreased operating expenses and a shift to net interest income, despite slight declines in net sales and gross profit | Metric | 3 Months Ended Mar 31, 2025 (in thousands) | 3 Months Ended Mar 31, 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------- | :--------- | | Net sales | $7,159 | $7,903 | $(744) | (9)% | | Cost of goods sold | $4,776 | $5,289 | $(513) | (10)% | | Gross profit | $2,383 | $2,614 | $(231) | (9)% | | Total operating expenses | $3,471 | $5,080 | $(1,609) | (32)% | | Loss from operations | $(1,088) | $(2,466) | $1,378 | (56)% | | Total other income (expense), net | $126 | $(362) | $488 | 135% | | Loss before income taxes | $(962) | $(2,828) | $1,866 | 66% | | Net loss | $(964) | $(2,830) | $1,866 | 66% | | Net loss per share, basic | $(0.37) | $(3.60) | | | | Net loss per share, diluted | $(0.37) | $(3.60) | | | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's total assets and stockholders' equity decreased compared to December 31, 2024, while total liabilities slightly increased, with key changes in cash, credit facility, notes receivable, and accounts payable | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :---------------------------- | :----------------------------- | :--------- | :--------- | | Cash and cash equivalents | $1,137 | $3,066 | $(1,929) | (62.9)% | | Accounts receivable, net | $4,770 | $5,371 | $(601) | (11.2)% | | Notes receivable | $3,331 | $2,211 | $1,120 | 50.6% | | Inventories | $4,512 | $3,869 | $643 | 16.6% | | Total Current Assets | $14,529 | $15,001 | $(472) | (3.1)% | | Total Assets | $15,288 | $15,801 | $(513) | (3.2)% | | Accounts payable | $4,440 | $3,137 | $1,303 | 41.5% | | Credit facility, net | $1,228 | $2,414 | $(1,186) | (49.1)% | | Total Current Liabilities | $7,319 | $7,148 | $171 | 2.4% | | Total Liabilities | $7,324 | $7,153 | $171 | 2.4% | | Total Stockholders' Equity | $7,964 | $8,648 | $(684) | (7.9)% | | Total Liabilities and Stockholders' Equity | $15,288 | $15,801 | $(513) | (3.2)% | [Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) The company's total stockholders' equity decreased from **$8.6 million** at December 31, 2024, to **$8.0 million** at March 31, 2025, primarily due to a net loss of **$964 thousand**, partially offset by share-based compensation | Metric | December 31, 2024 (in thousands) | March 31, 2025 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :----------------------------- | :---------------------------- | :--------- | :--------- | | Balance as of December 31, 2024 | $8,648 | | | | | Share-based compensation | | $280 | $280 | | | Warrant exercise | | $0 | $0 | | | Net loss | | $(964) | $(964) | | | Balance as of March 31, 2025 | | $7,964 | $(684) | (7.9)% | - The decrease in stockholders' equity was primarily driven by a **net loss of $(964) thousand** for the three months ended March 31, 2025[21](index=21&type=chunk) - Share-based compensation contributed **$280 thousand** to additional paid-in capital during the period[21](index=21&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net decrease in cash and cash equivalents of **$1.9 million** for the three months ended March 31, 2025, primarily driven by cash used in investing and financing activities, despite positive cash flow from operating activities | Cash Flow Activity | 3 Months Ended Mar 31, 2025 (in thousands) | 3 Months Ended Mar 31, 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------- | :--------- | | Operating activities | $384 | $(1,006) | $1,390 | 138.2% | | Investing activities | $(1,127) | $(3) | $(1,124) | 37466.7% | | Financing activities | $(1,186) | $430 | $(1,616) | (375.8)% | | Net decrease in cash and cash equivalents | $(1,929
Better Choice Company Completes Name Change to SRx Health Solutions Inc. and Begins Trading Under the Ticker Symbol ‘SRXH' Today, Wednesday, April 30, 2025
GlobeNewswire News Room· 2025-04-30 12:30
Company Overview - Better Choice Company, Inc. has completed its name change to SRx Health Solutions Inc. and began trading under the new ticker symbol 'SRXH' on April 30, 2025 [1] - The name and ticker change follows the successful business combination between Better Choice Company and SRx Health, positioning the combined entity as a leading global health and wellness company focused on delivering better products and solutions for pets, people, and families [2] Industry Position - SRx Health Solutions Inc. operates as an integrated healthcare services provider within the specialty healthcare industry in Canada, with a network that spans all ten provinces [3] - The company aims to provide comprehensive, integrated, and customized specialty healthcare services, leveraging industry knowledge, technology, and a patient-centric approach to enhance wellness for Canadians [3]
SRx Health Solutions, Inc. (formerly known as Better Choice Company Inc.) Announces Halo Spin-Out Distribution for Stockholders of Record as of April 23, 2025
Globenewswire· 2025-04-25 20:05
Group 1 - SRx Health Solutions, Inc. will distribute one share of Class A Common Stock of Halo Spin-Out SPV Inc. for every share of common stock held by stockholders of record as of April 23, 2025 [1] - The Spin-Out Distribution is part of a business combination transaction between the Company and SRx Health Solutions, Inc. (Canada) that was completed on April 24, 2025 [2] - The Company's new name and ticker symbol "SRXH" will be effective on the NYSE American starting April 30, 2025 [2] Group 2 - SRx Health Solutions Inc. operates as an integrated healthcare services provider within the specialty healthcare industry across all ten Canadian provinces [3] - The Company focuses on creating strategies and solutions that enhance patient care and wellness in Canada [3]
Better Choice Company Cancels Previously Announced Stock Dividend
Globenewswire· 2025-04-25 12:45
Company Overview - Better Choice Company, Inc. is a rapidly growing pet health and wellness company focused on providing nutrition-based products for dogs and cats, aiming to enhance their health and longevity [2] - The company positions its portfolio to capitalize on trends in pet humanization and consumer health consciousness, leveraging a multi-decade track record in selling trusted pet health products [2] - The majority of its products, including dog food, cat food, and treats, are marketed under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed diets [2] Recent Developments - Better Choice Company announced the cancellation of a previously declared stock dividend of $0.35 per share, which was set for every 1 share of common stock [1]
Better Choice Company Announces Closing of the SRx Health Merger, Name/Symbol Change and Completes $8.8 Million Private Placement Priced Above Last Market Closing Price
Globenewswire· 2025-04-25 12:45
Core Points - Better Choice Company, Inc. has completed its business combination with SRx Health Solutions, Inc. and closed an $8.8 million private placement [1][2] - The company will issue 28.6 million shares of common stock as part of the business combination and will change its name to "SRx Health Solutions Inc." with a new ticker symbol "SRXH" effective April 30, 2025 [2] - The Chairman of Better Choice expressed gratitude to shareholders and emphasized the transformative nature of this opportunity for the company [3] Company Overview - Better Choice Company, Inc. is focused on pet health and wellness, aiming to lead the industry shift towards healthier pet products and services [5] - The company adopts a nutrition-based approach to pet health, positioning its brands to benefit from trends in pet humanization and consumer health focus [5] - The Halo brand, under which the majority of its products are sold, emphasizes sustainably sourced ingredients and minimally processed options for pets [5]
Better Choice Company Revises Record Date and Payment Date for Stock Dividend of 0.35 per Share
Globenewswire· 2025-04-17 13:15
Core Viewpoint - Better Choice Company, Inc. has announced a stock dividend of $0.35 per share for every 1 share held, with changes to the payable and record dates for the dividend [1][2]. Group 1: Stock Dividend Announcement - The Board of Directors approved a stock dividend of $0.35 per share for every 1 share of common stock [1]. - The payable date for the stock dividend has been changed from April 17, 2025, to April 21, 2025 [1]. - The record date for determining stockholders entitled to receive the stock dividend has been changed from April 17, 2025, to April 28, 2025 [2]. Group 2: Trading and Ex-Dividend Information - Shares will trade with a due bill for the stock dividend from April 28, 2025, through April 29, 2025 [2]. - The ex-dividend date will be April 30, 2025, which is the first business day following the payment date of April 29, 2025 [2]. - Shareholders of record as of April 28, 2025, must hold their stock through April 29, 2025, to receive the stock dividend [2]. Group 3: Company Overview - Better Choice Company, Inc. is a rapidly growing pet health and wellness company focused on nutrition-based approaches to pet health [3]. - The company aims to lead the industry shift towards healthier pet products and services, benefiting from trends in pet humanization and consumer health focus [3]. - The majority of its products, including dog food, cat food, and treats, are sold under the Halo brand, emphasizing sustainably sourced ingredients and minimally processed options [3].
Better Choice Company Reinstates Stock Repurchase Program and Increases Authorization to $6.5 Million
Globenewswire· 2025-04-17 12:45
Core Viewpoint - Better Choice Company has reinstated its stock repurchase program with an increased authorization of up to $6.5 million for its common stock until December 31, 2025, indicating a belief that its equity is undervalued [1][2]. Group 1: Stock Repurchase Program - The Board of Directors has authorized a stock repurchase program up to $6.5 million, following the previous program that repurchased 102,405 shares at an average price of $1.9869 per share [1][2]. - The repurchase may occur in open market or private transactions, depending on various factors such as stock availability and market conditions [2]. Group 2: Company Overview - Better Choice Company is focused on pet health and wellness, promoting products that help pets live healthier lives through a nutrition-based approach [3]. - The company markets its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed food options [3].
Better Choice Sells Halo’s Business in Asia for $8.1 Million in Total Gross Proceeds Including $6.5 Million in Cash Up Front, the Equivalent of $3.34 Per Share
Globenewswire· 2025-04-16 12:45
Core Insights - Better Choice Company, Inc. has successfully sold its Asian business through its subsidiary Halo, Purely for Pets, Inc. for total gross proceeds of $8.1 million, which includes $6.5 million in cash and a 5-year royalty agreement [1][3][4] - The transaction allows Better Choice to focus on its core health and wellness product portfolio while creating an additional revenue stream through the royalty arrangement [3][4] - The company aims to maximize shareholder value by optimizing its asset portfolio and improving financial flexibility, which may include stock repurchase programs or further dividends [4] Company Overview - Better Choice Company, Inc. is a rapidly growing pet health and wellness company that focuses on nutrition-based approaches to pet health, positioning its brands to benefit from trends in pet humanization and consumer health consciousness [5] - The company primarily sells dog food, cat food, and treats under the Halo brand, emphasizing sustainably sourced ingredients and minimally processed options [5]