Financial Performance - Sales increased by 50% to $10.2 million in Q3 2024, compared to $6.8 million in the prior year period, driven by increased production and sales growth from facilities in Georgia, Texas, and Washington[3]. - Net loss for Q3 2024 was $34.3 million, compared to a net loss of $24.3 million in the prior year period[7]. - Adjusted EBITDA loss improved to $8.4 million, compared to a loss of $9.0 million in the prior year period[8]. - Total sales for Q3 2024 reached $10,242,000, a 50.5% increase from $6,810,000 in Q3 2023[25]. - Basic and diluted net loss per share for Q3 2024 was $(4.01), compared to $(3.02) in Q3 2023, reflecting increased losses per share[25]. - Net loss for September 2024 was $34,327,000 compared to a loss of $24,258,000 in September 2023, representing a 41.5% increase in losses year-over-year[30]. - Adjusted EBITDA for September 2024 was $(8,355,000), slightly improved from $(8,982,000) in September 2023[30]. Revenue and Growth Projections - The company anticipates Q4 2024 revenues of approximately $11 million, reflecting year-over-year growth of about 67%[16]. - Adjusted gross margin percentage improved to approximately 32%, up by about 300 basis points sequentially, with gross profit reported at $1.4 million[3][4]. - Adjusted gross profit for Q3 2024 was $3,253,000, with an adjusted gross margin of 32%, compared to 25% in Q3 2023[28]. Research and Development - Research and development expenses rose to $7.1 million in Q3 2024, compared to $5.0 million in the prior year, with expectations for future decreases as production thresholds for new product lines are reached[6]. - Research and development expenses for Q3 2024 were $7,096,000, up from $5,001,000 in Q3 2023, highlighting increased investment in innovation[25]. Assets and Liabilities - Total current assets decreased to $17,303,000 in 2024 from $26,988,000 in 2023, primarily due to a reduction in cash and cash equivalents[24]. - Total liabilities increased to $496,427,000 in 2024 from $366,479,000 in 2023, reflecting higher accounts payable and long-term debt[24]. - Total stockholders' equity showed a deficit of $(65,613,000) in 2024, down from a positive equity of $15,273,000 in 2023, indicating financial distress[24]. Inventory and Production - The transition of the Hamilton, Montana facility to commercial production was completed in Q3 2024, supporting the goal of achieving positive adjusted EBITDA by Q2 2025[9]. - The company reported a significant increase in inventory, rising to $6,547,000 in 2024 from $4,210,000 in 2023, indicating potential overstock issues[24]. - The company expanded its product assortment in Q3 2024, introducing several high-velocity offerings, including Arugula and Spinach[11]. Financing and Strategic Initiatives - The company is evaluating financing arrangements to support strategic initiatives while maintaining a focus on achieving positive adjusted EBITDA[2]. - As of September 30, 2024, the company had cash and cash equivalents of $6.8 million, with an additional $6 million received from a lender for working capital[13]. Expenses and Cost Management - Stock-based compensation expense decreased to $1,387,000 in September 2024 from $3,265,000 in September 2023, a reduction of 57.5%[30]. - Interest expense, net increased significantly to $18,312,000 in September 2024 from $7,105,000 in September 2023, marking a 157.5% rise[30]. - Depreciation and amortization expenses rose to $5,868,000 in September 2024 from $3,405,000 in September 2023, an increase of 72.3%[30]. - Business acquisition and strategic transaction costs amounted to $614,000 in September 2024, down from $1,975,000 in September 2023, a decrease of 68.9%[30]. - Loss on disposal of fixed assets was $1,610,000 in September 2024, consistent with the same amount in September 2023[30]. - Utilities price spike and inclement weather related costs were recorded at $727,000 in the previous year, with no current costs reported[30]. - Change in fair value of warrant liability showed a loss of $(1,921,000) in September 2024 compared to $(1,766,000) in September 2023[30]. - Restructuring and business realignment costs were $152,000 in September 2023, with no current costs reported for September 2024[30].

Financial Data and Key Metrics Changes - Sales increased 31% year-over-year to a record $9.4 million, representing 12% growth on a sequential basis [4][14] - Adjusted EBITDA loss improved by approximately $800,000 year-over-year to $7.5 million [4][17] - Net loss was $25.3 million in Q2 2024, compared to a net loss of $10.7 million in the prior year period [16][17] - Adjusted gross margin for Q2 was approximately 29%, reflecting a 5 percentage point improvement from Q1 [15] Business Line Data and Key Metrics Changes - The Georgia facility contributed significantly to revenue growth, while the new Washington and Texas facilities began operations and contributed to revenue [14][15] - The Montana facility's revenue was impacted due to a temporary shutdown associated with SKU transitions, but is expected to improve in the second half of the year [15][22] Market Data and Key Metrics Changes - The company is now shipping to over 180 Brookshire Grocery Company locations and has expanded distribution with Sam's Club [7] - The national expansion of Grab-and-Go Salad Kits is on track, with plans to roll out to a total of 700 doors in the second half of 2024 [8] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA in early 2025, focusing on operational efficiencies and scaling production [4][10] - Plans for a Midwest facility are underway, with adjustments being made to accommodate new SKUs and increased customer demand [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and the potential for growth in the second half of 2024, driven by new facilities and product offerings [10][19] - The company is actively pursuing strategies to lower capital costs and refinance construction debt [18] Other Important Information - The company is negotiating an additional $175 million in financing, which would bring total committed future capital to approximately $400 million [12] - Significant strides have been made in optimizing seed costs, achieving a reduction of approximately 20% [9] Q&A Session Summary Question: Contribution of Texas and Pasco in the back half of the year - Management highlighted the positive impact of new SKUs and customer demand on revenue and margin in the second half [21][22] Question: Details on the sale-leaseback of the Georgia facility - Management indicated that the strategy involves transitioning facilities to sale-leaseback once they reach profitability, with expectations for Texas and Washington to follow suit [27][28] Question: Sequential shift in EBITDA from Q1 to Q2 - Management explained that the increase in EBITDA loss was due to lower revenue from Montana and some elevated costs associated with new facility operations [30][31] Question: Doubling capacity in Texas and Washington - Management confirmed that land has been secured for expansion, and the facilities are designed to accommodate increased production without significant disruption [32][33] Question: Updates on the Midwest facility - Management noted that the Midwest build is being adjusted to meet customer demand and may involve a larger scale than initially planned [36][37]

Group 1 - Local Bounti Corporation reported a quarterly loss of $3 per share, which was better than the Zacks Consensus Estimate of a loss of $3.19, but worse than the loss of $1.35 per share a year ago, indicating an earnings surprise of 5.96% [1] - The company posted revenues of $9.44 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 16.43%, compared to revenues of $7.18 million a year ago [2] - Local Bounti shares have increased approximately 30.4% since the beginning of the year, outperforming the S&P 500's gain of 12.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is -$3.11 on revenues of $16.1 million, and for the current fiscal year, it is -$12.08 on revenues of $55.4 million [7] - The Agriculture - Operations industry, to which Local Bounti belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Sales for Q2 2024 reached $9.443 million, a 31% increase from $7.183 million in Q2 2023, while sales for the first half of 2024 totaled $17.826 million, up 28% from $13.881 million in the same period last year[60]. - Gross profit for Q2 2024 was $1.351 million, representing a 59% increase compared to $0.852 million in Q2 2023, and for the first half of 2024, gross profit was $2.137 million, an 89% increase from $1.131 million in the prior year[60]. - The company reported a net loss of $25.267 million for Q2 2024, a 137% increase from a net loss of $10.676 million in Q2 2023, and a net loss of $49.317 million for the first half of 2024, up 44% from $34.203 million in the same period last year[60]. Operational Expansion - The company has expanded its distribution network to approximately 13,000 retail locations across 35 U.S. states, with a leading 80% market share in living butter lettuce within the Western U.S.[54]. - Local Bounti has completed construction on two new facilities in Washington and Texas in 2024, bringing the total facility count to six, enhancing production capacity and distribution capabilities[53][56]. - The transition of the Montana Facility to commercial production is nearly complete, expected to support goals of achieving positive adjusted EBITDA by early 2025[56]. Product Development and Innovation - The company plans to introduce new product offerings, including high-velocity items like spinach, arugula, and basil in Q3 2024, and aims to expand its Grab & Go Salad Kits to approximately 700 doors by the end of 2024[58]. - Research and development expenses for Q2 2024 were $4.519 million, a 28% increase from $3.526 million in Q2 2023, reflecting ongoing investment in product innovation[60]. - Research and development costs rose by $1.0 million for the three months ended June 30, 2024, focusing on production methods and new product development[66]. Financial Obligations and Cash Flow - The company reported an accumulated deficit of $352.6 million and cash and cash equivalents of $16.2 million as of June 30, 2024[77]. - Total financing obligation payments amount to $144.9 million, with significant payments due starting in 2025[87]. - The company expects to close on financing of approximately $228 million from commercial finance lenders in Q3 2024, with potential additional financing of up to $175 million[80]. Cost Management - Selling, general, and administrative expenses decreased by $6.0 million for the three months ended June 30, 2024, attributed to reductions in stock-based compensation and other operational costs[70]. - The company anticipates significant salary cost savings of approximately $5.0 million on an annualized basis due to organizational restructuring[70]. Cash Flow Analysis - Cash used in operating activities was $11.1 million for the six months ended June 30, 2024, an improvement from $16.1 million in the same period of 2023[88]. - Net cash used in operating activities was $11.1 million for the six months ended June 30, 2024, compared to $16.1 million for the same period in 2023, reflecting a net loss of $49.3 million in 2024 versus $34.2 million in 2023[89][90]. - Net cash used in investing activities decreased to $59.8 million for the six months ended June 30, 2024, from $76.2 million in the same period of 2023, primarily due to purchases for facilities[91]. - Net cash provided by financing activities was $70.2 million for the six months ended June 30, 2024, compared to $107.8 million in 2023, with the 2024 amount consisting entirely of net proceeds from debt issuance[91]. Non-Cash Activities - The company incurred a non-cash loss of $3.1 million related to the change in fair value of warrant liability for the six months ended June 30, 2024[89]. - Non-cash activities included $21.7 million in paid-in-kind interest and $5.3 million in depreciation expense for the six months ended June 30, 2024[89]. - The net loss for the six months ended June 30, 2023, included a non-cash gain in fair value of warrant liability of $15.2 million[90]. Accounting and Reporting - The company has not made any changes to its critical accounting policies and estimates as of the latest reporting period[92]. - The company is classified as a smaller reporting company and is not required to provide certain disclosures under the Exchange Act[94].

Sales Performance - Sales increased by 31% to $9.4 million in Q2 2024, compared to $7.2 million in the prior year period, driven by increased production and growth from the Georgia facility[3]. - Full year 2024 sales guidance is reiterated at $50 to $60 million, representing a doubling of revenue compared to 2023[1][14]. - Sales for the three months ended June 30, 2024, were $9,443,000, an increase of 31.6% compared to $7,183,000 for the same period in 2023[23]. Financial Performance - Operating loss improved by $5.5 million to $13.9 million in Q2 2024, compared to a loss of $19.4 million in Q2 2023[4]. - Net loss was $25.3 million in Q2 2024, compared to a net loss of $10.7 million in the prior year period[4]. - The net loss for the three months ended June 30, 2024, was $25,267,000, compared to a net loss of $10,676,000 for the same period in 2023[23]. - The company reported a basic and diluted net loss per share of $3.00 for the three months ended June 30, 2024, compared to a loss of $1.35 for the same period in 2023[23]. - Adjusted EBITDA for June 2024 was $(7,535) thousand, compared to $(8,274) thousand in June 2023, showing a slight improvement[28]. Cost Management - Total operating expenses for the three months ended June 30, 2024, were $15,215,000, a decrease of 24.9% from $20,230,000 in the same period of 2023[23]. - Adjusted selling, general and administrative expenses for the three months ended June 2024 were $7,211 thousand, down from $7,810 thousand in the same period last year[27]. - Business acquisition and strategic transaction costs for the three months ended June 2024 were $783 thousand, down from $2,630 thousand in the same period last year[28]. - Stock-based compensation expense for June 2024 was $1,648 thousand, compared to $4,434 thousand in June 2023, reflecting a reduction in equity compensation costs[28]. - Restructuring and business realignment costs for June 2024 were $9 thousand, significantly lower than $724 thousand in June 2023, suggesting improved operational efficiency[28]. Cash and Liquidity - The company ended Q2 2024 with cash and cash equivalents of $16.2 million, positioning it to fund ongoing projects and operations[12]. - Cash and cash equivalents as of June 30, 2024, were $9,685,000, a decrease from $10,326,000 as of December 31, 2023[22]. Asset and Liability Management - Total assets increased to $438,099,000 as of June 30, 2024, from $381,752,000 as of December 31, 2023[22]. - Total liabilities increased to $470,938,000 as of June 30, 2024, compared to $366,479,000 as of December 31, 2023[22]. Production and Expansion - The company began shipping products from its new Texas and Washington facilities, enhancing distribution capabilities[6][9]. - Local Bounti is expanding its product assortment, including new Grab-and-Go Salad Kits, with expectations to reach approximately 700 doors by the end of 2024[10][11]. - The transition of the Montana facility to commercial production is nearly complete, supporting the goal of achieving positive adjusted EBITDA in early 2025[8]. Research and Development - Research and development expenses for the three months ended June 30, 2024, were $4,519,000, up from $3,526,000 in the same period of 2023[23]. Interest and External Costs - Interest expense, net for June 2024 was $12,500 thousand, up from $6,472 thousand in June 2023, indicating increased borrowing costs[28]. - Utilities price spike and inclement weather related costs were recorded as $727 thousand for the six months ended June 2024, indicating external cost pressures[28].

Core Viewpoint - Local Bounti Corporation has promoted Kathleen Valiasek to President and Chief Financial Officer, reflecting her significant contributions to the company's operational efficiency and growth strategy [1][2]. Company Overview - Local Bounti is an innovative indoor agriculture company utilizing patented Stack & Flow Technology® to enhance crop yields and improve unit economics, operating advanced facilities across the U.S. and servicing approximately 13,000 retail doors [5]. - The company aims to revolutionize agriculture by ensuring access to fresh, sustainable, locally grown produce while using 90% less land and water compared to conventional farming methods [5]. Leadership Changes - Kathleen Valiasek has been with Local Bounti as CFO since April 2021 and has previously held significant roles in other companies, including Amyris and Lenox Group, showcasing her extensive experience in finance and strategic consulting [3]. - In her new role, Valiasek will oversee operations, innovation, commercial, and marketing activities while continuing to lead the financial organization [2]. Strategic Goals - The company aims to achieve positive adjusted EBITDA by early 2025, indicating a focus on financial performance and operational efficiency [2][4].

Expected to create approximately 50 jobs in the Mount Pleasant area Innovative CEA facility combines vertical and greenhouse technologies to grow sustainable produce year-round using less water and land HAMILTON, Mont., May 16, 2024 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company, announced today it will hold a ribbon cutting ceremony on Tuesday, June 18, 2024 from 1:00 to 4:00 pm local time to mark the official opening ...

Local Bounti Corporation (NYSE:LOCL) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Jeff Sonnek - Investor Relations, ICR Craig Hurlbert - Co-Founder & Chief Executive Officer Kathleen Valiasek - Chief Financial Officer Conference Call Participants Kristen Owen - Oppenheimer Ben Klieve - Lake Street Capital Markets Operator Good morning and welcome to Local Bounti's First Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. After today’s prese ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-40125 LOCAL BOUNTI CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporat ...

Exhibit 99.1 Local Bounti Announces First Quarter 2024 Financial Results First customer deliveries from Washington and Texas facilities shipping in second quarter Expands penetration in Pacific Northwest and Texas with new retail customers, including Albertsons Seattle and Brookshire's Expected to close on $228 million of financing commitments in the second quarter to support 2024 projects — including additional capacity at existing facilities and building of a new greenfield facility in the Midwest Grab-an ...