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 sale is part of the company's strategy to maximize shareholder value by optimizing its asset portfolio and improving financial flexibility [3][4] Financial Details - The cash proceeds from the sale amount to $6.5 million, equating to $3.34 per share based on 2,422,005 shares outstanding as of March 25, 2025 [1] - The royalty agreement guarantees a minimum total payment of $1.65 million over five years, with a minimum annual payment of $330,000 based on a 3% royalty on sales [1] Strategic Focus - Halo will retain ownership of its key North American operations and global operations outside of Asia, allowing the company to concentrate on its core markets and strategic initiatives [2] - The Chairman of Better Choice emphasized the importance of this strategic transaction in strengthening the balance sheet and focusing resources on core offerings [4] - The company may consider stock repurchase programs, further dividends, or allocation of cash reserves into alternative investments such as silver and gold to maximize shareholder value [4] Company Overview - Better Choice Company, Inc. is a 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 awareness [5] - The company sells a majority of its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed options for pet food [5]

Core Viewpoint - Better Choice Company, Inc. has regained full compliance with NYSE American's continued listing standards, marking a significant step in strengthening its financial foundation and commitment to long-term value creation for shareholders [1][2][3] Company Compliance - The company received formal notice from NYSE American confirming compliance after resolving a continued listing deficiency related to specific sections of the Company Guide [1][2] - Compliance was achieved by demonstrating adherence to applicable listing standards for two consecutive quarters [2] Company Overview - Better Choice Company is a rapidly growing pet health and wellness company focused on providing nutrition-based products for pets, aiming to lead the industry shift towards healthier pet products [3] - The company emphasizes a portfolio of brands that align with trends in pet humanization and consumer health consciousness [3] - The majority of its products, including dog food, cat food, and treats, are sold under the Halo brand, which focuses on sustainably sourced ingredients and minimally processed diets [3]

Group 1 - Better Choice Company, Inc. announced a stock dividend of $0.35 per share for every 1 share held of common stock, payable to stockholders of record as of April 17, 2025 [1] - The payable date for the stock dividend has been changed to April 21, 2025, with shares trading with a due bill from April 17, 2025, to April 21, 2025, and the ex-dividend date set for April 22, 2025 [2] Group 2 - Better Choice Company, Inc. is a rapidly growing pet health and wellness company focused on providing nutrition-based products for pets, aiming to lead the industry shift towards healthier pet products [3] - The company primarily sells its dog food, cat food, and treats under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed diets [3]

Core Viewpoint - Better Choice Company is progressing towards the acquisition of SRx Health Solutions, which is expected to enhance its position in the pet health and wellness market, with a focus on delivering improved products and solutions for pets and families [2]. Group 1: Acquisition Details - The acquisition of SRx Health is nearing completion, with the merger scheduled for late-April 2025 [2]. - A strategic partner of SRx Health is becoming an equity holder, which is expected to strengthen the combined company [2]. - The debt-to-equity transaction has reduced SRx Health's debt by CAD$4 million, contributing to a more robust financial position for the merged entity [2]. Group 2: Company Profiles - Better Choice Company is a rapidly growing pet health and wellness company that focuses on nutrition-based products for pets, aiming to capitalize on trends in pet humanization and health consciousness [3]. - The company primarily sells its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed options [3]. - SRx Health operates as a Canadian healthcare service provider specializing in specialty pharmacy services, focusing on comprehensive patient care and management of chronic and rare diseases [4]. - SRx Health aims to expand its specialty pharmacy locations from 34 to 100 across Canada and plans to extend its services internationally [4].

Core Insights - Better Choice Company, Inc. has announced a definitive agreement with SRx Health Solutions, Inc. to convert $4 million in debt to equity, enhancing SRx Health's working capital and future cash flow [1] - This investment is contingent upon the merger between SRx Health and Better Choice, expected to close in late April, which will create a leading global health and wellness company [2] Company Overview - Better Choice Company, Inc. is focused on pet health and wellness, promoting nutrition-based products that cater to the growing trend of pet humanization and consumer health awareness [3] - The company primarily sells its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed options for pets [3] SRx Health Overview - SRx Health operates as a Canadian specialty pharmacy provider, focusing on comprehensive healthcare services from acute pharmaceutical needs to chronic disease management [4] - The company aims to expand its specialty pharmacy locations from 34 to 100 across Canada, with plans to extend its services internationally [4]

Core Insights - Better Choice Company Inc. (BTTR) shares have declined 9.4% since the earnings report for Q4 2024, contrasting with a 1.9% decline in the S&P 500 index during the same period [1] - The company reported a net loss per share of 50 cents for Q4 2024, an improvement of 97% year over year [2] - Revenues increased by 26% year over year to $7.2 million, with net losses narrowing by 90% to $1.6 million [3] Financial Performance - Adjusted EBITDA was negative at $0.7 million, but showed year-over-year improvement, indicating cost discipline and operational efficiencies [3] - Gross margin expanded by 2,705 basis points to 36%, driven by stronger volumes and improved terms with manufacturing partners [3] - For the full year 2024, Better Choice reported a net loss of $0.2 million, significantly narrower than the $22.8 million loss in 2023, with loss per share improving to 10 cents from $32.29 [8] Operational Metrics - The company achieved a 32% year-over-year growth in sales through Amazon and Chewy, emphasizing a shift towards higher-margin digital sales channels [4] - SG&A expenses were reduced by 22% in 2024, contributing to a 10% increase in gross profit dollars despite a decline in topline revenue [5] - Inventory was reduced by over 40% year-over-year while maintaining service levels above 95% [4] Strategic Initiatives - CEO Kent Cunningham highlighted 2024 as a transformative year, with strong growth in e-commerce platforms and successful promotions [6] - The company is focusing on high-return e-commerce partners and has exited unprofitable sales channels, which has contributed to improved financial performance [7] - Better Choice entered into an agreement to sell its Halo Asia business for $6.5 million in cash, plus a 3% royalty on future sales [9] Future Outlook - The company expects to close its acquisition of SRx Health Solutions in April, which is anticipated to create a leading global health and wellness platform [10]

Financial Results Announcement - Better Choice Company Inc. announced its financial results for Q4 and the year ended December 31, 2024, on March 27, 2025[4]. - The press release detailing the financial results is attached as Exhibit 99.1[7]. Company Information - The company is listed on NYSE American under the trading symbol BTTR[2]. - The company has not indicated whether it is an emerging growth company[3]. Forward-Looking Statements - The report includes forward-looking statements regarding management's expectations about future performance and operating plans[5].

Financial Data and Key Metrics Changes - The company reported annual net revenues of $35 million, down 9% year-over-year due to strategic exits from non-core sales channels [16] - Gross profit margin increased to 37%, up over 600 basis points from the previous year [7][18] - Adjusted EBITDA loss improved by 78% year-over-year to approximately $1.9 million, compared to $8.4 million in 2023 [24] Business Line Data and Key Metrics Changes - The Halo brand achieved a fourth quarter revenue growth of 26% year-over-year, driven by a 32% increase in sales across Amazon and Chewy [8][9] - The company successfully launched Halo on Chewy Canada, contributing to increased consumer demand [10] - SG&A expenses were reduced by 22% year-over-year, reflecting operational improvements [11][20] Market Data and Key Metrics Changes - International revenue grew by 18%, with significant growth in the Asia Pacific region [17] - The company noted a shift in consumer buying habits towards e-commerce, with a focus on key digital platforms [12][17] Company Strategy and Development Direction - The company is focused on a turnaround strategy to improve profitability and lay the foundation for sustained growth [7] - A definitive agreement was signed to sell Halo in Asia for $6.5 million in cash and a 3% royalty on sales over the next five years [13][14] - The Board approved a royalty distribution plan of up to 55% of annual royalties to shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum entering 2025, with a focus on profitable revenue growth and expanding margins [27] - The acquisition of SRx Health is expected to yield operational efficiencies and growth opportunities [30][31] Other Important Information - The company achieved a significant reduction in operating expenses, with a 43% decrease in total operating expenses year-over-year [22] - Cash and cash equivalents as of December 31, 2024, were $3 million, with a net working capital position of $7.9 million [25][26] Q&A Session Summary - The Q&A session was concluded without any recorded questions or answers [33]

Core Insights - Better Choice Company Inc. reported a 26% year-over-year revenue growth in Q4 2024, reaching $7.2 million, driven by a 32% increase in sales through Chewy and Amazon platforms [1][2] - The company improved its loss per share by 97% year-over-year to $(0.50) in Q4 2024, and the adjusted EBITDA loss improved by 80% to $(0.7) million [1][2] - For the full year 2024, the loss per share improved by 100% to $(0.10), and the adjusted EBITDA loss improved by 78% to $(1.9) million [1][2] Q4 2024 Financial Highlights - Revenue increased by 26% year-over-year to $7.2 million [1][6] - Gross margin rose by 2,705 basis points year-over-year to 36% [6] - Net loss improved by 90% year-over-year to $(1.6) million [6] - Adjusted EBITDA loss improved by 80% year-over-year to $(0.7) million [6] Full Year 2024 Financial Highlights - Total net sales for 2024 were $34.975 million, down from $38.592 million in 2023 [11] - Gross profit for 2024 was $12.989 million, compared to $11.797 million in 2023 [11] - Total operating expenses decreased significantly from $32.976 million in 2023 to $18.956 million in 2024 [12] Liquidity and Capital Resources - As of December 31, 2024, cash and cash equivalents were $3.1 million, with an additional borrowing capacity of $2.4 million under its credit facility [5] Management Commentary - The CEO highlighted the momentum from Q3 2024, with confidence in the company's strategy and ability to drive sustained, profitable growth [2] - The CFO noted the focus on sustainable growth, achieving a healthy working capital position of $7.9 million and a $6.2 million gain from debt extinguishment [2]

Core Insights - Better Choice Company is participating in the 2025 Bloom Burton & Co. Healthcare Investor Conference, highlighting its commitment to the pet health and wellness sector [1][2] - SRx Health, a Canadian healthcare service provider, will present at the same conference, showcasing its focus on specialty pharmacy services [1][5] Company Overview - Better Choice Company is dedicated to transforming the pet health industry by offering nutrition-based products aimed at enhancing the health and longevity of pets [3] - The company primarily markets its products under the Halo brand, which emphasizes sustainably sourced ingredients and minimally processed diets [3] SRx Health Overview - SRx Health specializes in the Specialty Pharmacy segment, providing comprehensive healthcare services that include patient support programs and clinical trials [5][6] - The company aims to expand its specialty pharmacy locations from 34 to 100 across Canada, focusing on chronic and rare diseases [6]