Financial Performance - The net loss for the three months ended March 31, 2025, was $156,182, compared to a net loss of $1,016,522 for the same period in 2024, resulting in a basic and diluted loss per share of $0.02[77]. - Adjusted EBITDA for Q1 2025 was $356,912, compared to a negative $748,757 in Q1 2024, indicating improved operational performance[96]. - The company reported a consolidated net loss of $156,182 for Q1 2025, significantly improved from a loss of $1,016,522 in Q1 2024[96]. Revenue and Sales - Gross sales for the three months ended March 31, 2025, were $13,542,133, an increase from $11,196,930 in the same period of 2024, with net sales of $11,654,159[88]. - E-commerce revenue for Q1 2025 was $6,213,116, accounting for 53% of total sales, compared to $5,868,337 (59%) in Q1 2024[90]. - Wholesale revenue increased to $5,441,043 (47% of total sales) in Q1 2025 from $4,040,601 (41%) in Q1 2024[90]. - Total net sales for Q1 2025 reached $11,654,159, a 17.7% increase from $9,908,938 in Q1 2024[90]. - Coffee creamers accounted for 58% of total sales in Q1 2025, generating $6,712,651, compared to 56% and $5,570,321 in Q1 2024[88]. Inventory and Assets - Total inventory increased to $9,511,964 as of March 31, 2025, compared to $5,975,676 as of December 31, 2024, reflecting a growth of approximately 59.5%[35]. - The company recorded inventory obsolescence and disposal costs of $101,715 for the three months ended March 31, 2025, compared to $43,204 for the same period in 2024, indicating an increase of approximately 135.5%[38]. - The company had total inventory reserves of $512,751 as of March 31, 2025, compared to $425,792 as of December 31, 2024, indicating an increase of approximately 20.4%[39]. - Total intangible assets decreased to $983,168 as of March 31, 2025, from $1,028,223 as of December 31, 2024, reflecting a decline of approximately 4.4%[43]. Cash and Expenses - As of March 31, 2025, total cash, cash equivalents, and restricted cash amounted to $7,163,362, a decrease from $8,514,152 as of December 31, 2024, representing a decline of approximately 15.9%[33]. - Accrued expenses rose to $4,691,904 as of March 31, 2025, up from $3,642,998 as of December 31, 2024, marking an increase of approximately 28.8%[47]. - The company reported depreciation expense of $21,466 for the three months ended March 31, 2025, compared to $19,714 for the same period in 2024, which is an increase of approximately 8.9%[41]. - The company incurred $66,521 in depreciation and amortization expenses in Q1 2025, slightly down from $71,435 in Q1 2024[96]. - The company’s operating lease expense for the three months ended March 31, 2025, was $116,809, compared to $107,879 for the same period in 2024, representing an increase of approximately 8.9%[49]. Tax and Deferred Assets - The company reported an income tax benefit at statutory rates of $20,511 for the three months ended March 31, 2025, compared to $205,289 for the same period in 2024, resulting in an effective tax rate of 8.8%[52]. - The total net deferred tax assets as of March 31, 2025, were $0, with a valuation allowance of $26,379,645 against deferred tax assets[52]. - The company has total net operating losses (NOLs) of $146,334,753 as of March 31, 2025, compared to $145,553,779 as of December 31, 2024[55]. Stock and Compensation - The total intrinsic value of options that vested during the three months ended March 31, 2025, was $844,561, while the total intrinsic value of options exercised was $118,010[64]. - The total fair value of outstanding restricted stock units (RSUs) as of March 31, 2025, was $5,939,602, based on a closing price of $6.15[68]. - The company had 1,265,041 authorized shares available for issuance under the stock incentive plan as of March 31, 2025[63]. - Total stock-based compensation for the three months ended March 31, 2025, was $508,410, with unrecognized compensation cost related to non-vested awards amounting to $3,575,861[75]. - Stock-based compensation expenses increased to $508,410 in Q1 2025 from $279,565 in Q1 2024[96]. Customer and Vendor Concentration - The company had a concentration of customer accounts receivable, with Customer A representing 40% and Customer B 29% of total trade accounts receivable as of March 31, 2025[79]. - The concentration of vendor accounts payable balances in excess of 10% of total accounts payable was 50% as of March 31, 2025, compared to 42% as of December 31, 2024[78]. Other Information - The average remaining vesting period for stock options as of March 31, 2025, was 2.61 years, while for RSUs, it was 3.44 years[75]. - The company did not grant any stock options or RSUs during the three months ended March 31, 2025[68]. - No Market-Based Stock Units (MSUs) were outstanding during the three months ended March 31, 2025, and the total vest date market value of MSUs vested during the three months ended March 31, 2024, was $260,000[72]. - The company does not have intra-entity sales or transfers, focusing solely on domestic product sales in its superfood segment[93].

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) This section highlights Laird Superfood's strong Q1 2025 performance, including double-digit sales growth, improved profitability, and positive Adjusted EBITDA [CEO Commentary and Performance Summary](index=1&type=section&id=CEO%20Commentary%20and%20Performance%20Summary) In Q1 2025, Laird Superfood achieved its fifth consecutive quarter of double-digit year-over-year sales growth, with net sales increasing by 18% to $11.7 million, driven by strategic expansion and improved operational leverage - The company reported its **fifth consecutive quarter of double-digit year-over-year sales growth**, driven by expansion into brick-and-mortar stores and Amazon[3](index=3&type=chunk) - Successfully resolved inventory and supply chain constraints that impacted the business at the end of 2024, building a more flexible supply chain in the process[3](index=3&type=chunk) Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | Q4 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales ($M) | $11.7M | $9.9M | +18% YoY | $11.6M | | Gross Margin (%) | 41.9% | 40.0% | +1.9 p.p. YoY | 38.6% | | Net Loss ($M) | ($0.2M) | ($1.0M) | +$0.8M YoY | ($0.4M) | | Net Loss per Share ($) | ($0.02) | ($0.11) | +$0.09 YoY | ($0.04) | | Adjusted EBITDA ($M) | $0.4M | ($0.7M) | +$1.1M YoY | $0.2M | - Wholesale sales grew **35% year-over-year**, contributing **47%** of total net sales, while E-commerce sales increased **6%**, contributing **53%** of total net sales[5](index=5&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a detailed breakdown of Q1 2025 financial results, including revenue by product and channel, balance sheet positions, and cash flow activities [Revenue Disaggregation](index=2&type=section&id=Revenue%20Disaggregation) In Q1 2025, total net sales reached $11.65 million, with coffee creamers as the largest product category and wholesale sales significantly growing to 47% of net sales Revenue by Product Category (Three Months Ended March 31) | Product Category | 2025 Gross Sales ($) | % of Total | 2024 Gross Sales ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Coffee creamers | $6,712,651 | 58% | $5,570,321 | 56% | | Coffee, tea, and hot chocolate | $3,220,892 | 28% | $2,175,265 | 22% | | Hydration and beverage enhancing | $2,106,179 | 18% | $2,025,272 | 20% | | Snacks and other food items | $1,430,729 | 12% | $1,304,060 | 13% | Revenue by Sales Channel (Three Months Ended March 31) | Sales Channel | 2025 Net Sales ($) | % of Total | 2024 Net Sales ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | E-commerce | $6,213,116 | 53% | $5,868,337 | 59% | | Wholesale | $5,441,043 | 47% | $4,040,601 | 41% | | **Total Sales, net** | **$11,654,159** | **100%** | **$9,908,938** | **100%** | [Balance Sheet and Cash Flow Highlights](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights) As of March 31, 2025, the company held $7.2 million in cash and equivalents with no outstanding debt, while cash used in operating activities increased to $1.3 million due to strategic inventory investment - The company had **$7.2 million** of cash, cash equivalents, and restricted cash as of March 31, 2025, with **no outstanding debt**[7](index=7&type=chunk) - Cash used in operating activities increased to **$1.3 million** in Q1 2025 from **$0.4 million** in Q1 2024, driven by a **strategic investment in working capital** to meet high demand and address previous out-of-stock issues[8](index=8&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) This section outlines Laird Superfood's reaffirmed full-year 2025 guidance, including projected sales growth, gross margin, and Adjusted EBITDA targets [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Management has reaffirmed its full-year 2025 guidance, projecting strong growth with net sales increasing between 20% and 25%, gross margin in the upper 30s, and breakeven adjusted EBITDA - Re-affirms Net Sales growth guidance in the **20% to 25%** range for the full year 2025[11](index=11&type=chunk) - Expects Gross Margin to hold in the **upper 30s** for the full year[11](index=11&type=chunk) - Targets **breakeven adjusted EBITDA** for the full year[11](index=11&type=chunk) - Anticipates using **$1 to $2 million** in cash for the full year to invest in inventory, supporting top-line growth and minimizing out-of-stocks[11](index=11&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=LAIRD%20SUPERFOOD%2C%20INC.%20CONSOLIDATED%20STATEMENTS) This section presents the unaudited consolidated financial statements for Q1 2025, including statements of operations, cash flows, and balance sheets [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, Laird Superfood reported increased net sales and gross profit, significantly reducing its operating and net losses year-over-year Q1 2025 vs Q1 2024 Statement of Operations Summary | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Sales, net | $11,654,159 | $9,908,938 | | Gross profit | $4,881,540 | $3,964,101 | | Total operating expenses | $5,099,559 | $5,052,663 | | Operating loss | ($218,019) | ($1,088,562) | | Net loss | ($156,182) | ($1,016,522) | | Net loss per share | ($0.02) | ($0.11) | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For Q1 2025, net cash used in operating activities increased to $1.27 million, primarily due to a $3.64 million strategic investment in inventory, with cash and equivalents ending at $7.16 million - Net cash used in operating activities was **$1,274,744** for Q1 2025, compared to **$422,311** in Q1 2024[18](index=18&type=chunk) - The primary driver for the increased cash use was a **$3,638,003 increase in inventory**, reflecting a strategic build-up to support sales growth[18](index=18&type=chunk) - The ending balance of cash, cash equivalents, and restricted cash was **$7,163,362** as of March 31, 2025[18](index=18&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Laird Superfood's total assets increased to $21.5 million, driven by a rise in inventory, while total liabilities also increased, and stockholders' equity remained stable Balance Sheet Summary | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total Current Assets | $20,213,541 | $17,966,628 | | Inventory | $9,511,964 | $5,975,676 | | Total Assets | $21,493,031 | $19,259,001 | | Total Current Liabilities | $8,044,597 | $5,921,671 | | Total Liabilities | $8,162,258 | $6,062,135 | | Total Stockholders' Equity | $13,330,773 | $13,196,866 | [Non-GAAP Financial Measures](index=8&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section provides a reconciliation of the company's GAAP net loss to its non-GAAP Adjusted EBITDA for Q1 2025 [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) For Q1 2025, the company reported a Net Loss of $156,182, which adjusted to a positive Adjusted EBITDA of $356,912, a significant turnaround from the prior year's negative Adjusted EBITDA - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and certain non-recurring items[22](index=22&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net loss | $(156,182) | $(1,016,522) | | Stock-based compensation | $508,410 | $279,565 | | Depreciation and amortization | $66,521 | $71,435 | | Other adjustments | $(61,837) | $(72,040) | | **Adjusted EBITDA** | **$356,912** | **$(748,757)** | Adjusted EBITDA per Diluted Share | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Adjusted EBITDA per share, diluted | $0.03 | $(0.08) |

Core Insights - Laird Superfood has launched a new Vanilla Instant Latte featuring real vanilla bean powder, differentiating it from competitors that typically use artificial flavors [1][2] - The product is designed to provide a convenient coffee shop experience at home, requiring only hot water for preparation [3] - The Vanilla Instant Latte includes a Performance Mushroom Blend for energy benefits and Aquamin™, a multi-mineral sea algae complex, which offers over 72 trace minerals including calcium [3] Product Details - The Vanilla Instant Latte is available in an eight-ounce bag on LairdSuperfood.com, with plans for distribution through Amazon and other retailers [5] - The product aims to cater to health-conscious consumers by avoiding sugary syrups and artificial ingredients, focusing instead on authentic flavors [4] Company Background - Laird Superfood was founded in 2015 by Laird Hamilton and Gabby Reece, focusing on minimally processed superfood products that support active lifestyles [6] - The brand has expanded its product line from superfood creamers to include instant lattes, coffees, bars, and prebiotic daily greens [6]

Core Insights - Laird Superfood has launched an online shopping platform called The Market Place, aimed at promoting exceptional health and high performance through a curated selection of wellness products [1][3] - The Market Place will feature a limited number of product collections from various brands, emphasizing quality and accessibility for consumers seeking a healthy lifestyle [2][3] Company Overview - Laird Superfood, founded in 2015 by Laird Hamilton and Gabby Reece, focuses on clean, plant-based superfood products that enhance energy, endurance, and overall well-being [4] - The brand has expanded its product offerings from superfood creamers to include instant lattes, coffees, bars, and prebiotic daily greens, all made with simple, minimally processed ingredients [4] Product Offering - The Market Place will offer a selection of wellness products, including premium river boards, sustainable activewear, and recovery tools, with a focus on limited supply and best prices [2][3] - The platform aims to provide customers with access to effective wellness superfoods, tools, and accessories that align with healthy values and an elevated lifestyle [3]

Core Insights - Laird Superfood is participating in the 37th Annual Roth 2025 Conference on March 17-18, 2025, where the leadership team will discuss innovation, product launches, and growth initiatives [1][2] Company Overview - Laird Superfood, founded in 2015 by Laird Hamilton and Gabby Reece, focuses on clean, plant-based superfood products aimed at enhancing performance and wellness [3] - The brand offers a variety of products including superfood creamers, instant lattes, coffees, bars, and prebiotic daily greens, emphasizing minimally processed ingredients [3] Strategic Focus - The company aims to meet the growing consumer demand for clean, minimally processed products by delivering innovative superfood solutions [2][3] - Laird Superfood's growth strategy includes expanding market presence and driving shareholder value through strategic initiatives [2][3]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved a 27% top-line growth, with net sales reaching $43.3 million, up from $34.2 million in 2023 [6][24] - In Q4 alone, net sales grew to $11.6 million, a 26% increase over Q4 2023 [7][22] - Gross margins for the full year were maintained at nearly 41%, an 11-point increase from 30.1% in 2023 [8][27] - The net loss for Q4 was $0.4 million, compared to net income of $0.1 million in the prior year period, while the full year net loss improved to $1.8 million from $10.2 million [29][30] Business Line Data and Key Metrics Changes - E-commerce sales increased by 32% year-over-year, contributing 59% of total net sales for the full year [10][24] - Wholesale sales grew by 19% year-over-year, accounting for 41% of total net sales [12][26] - In Q4, the wholesale channel led growth with a 52% increase year-over-year [22] Market Data and Key Metrics Changes - The company secured new distribution with major retailers like Kroger and Safeway Albertsons, contributing to a 35% growth in retail sales across the MULO universe [12][13] - The Amazon platform accounted for over 40% of the e-commerce channel, with expectations for continued growth [11] Company Strategy and Development Direction - The company focuses on rapid growth in e-commerce and expanding wholesale distribution as key strategic pillars [9] - The transition to a variable cost manufacturing model and disciplined trade spend management have been crucial for maintaining high gross margins [8][15] - The company aims to achieve gross margins in the upper 30s while prioritizing volume growth over short-term margin points [16][32] Management's Comments on Operating Environment and Future Outlook - Management believes that recent commodity cost increases are opportunistic and expects a correction in some costs over 2025 [16][87] - The company anticipates continued growth in core business segments, reaffirming guidance for 20% to 25% net sales growth in 2025 [31][32] - Management expressed confidence in resolving supply chain issues and expects to recover from out-of-stock situations by the end of Q1 or early Q2 [19][46] Other Important Information - The company has entered 2025 with $8.5 million in cash and no debt, projecting sufficient cash to fund operations and growth [30] - The company is targeting adjusted EBITDA to breakeven on a full-year basis while investing in inventory to support growth [34] Q&A Session Summary Question: Impact of stock-outs on Q4 and timeline for resolution - Management acknowledged that stock-outs impacted Q4, estimating a loss of approximately $1 million in sales, but emphasized strong demand and plans to resolve supply issues [42][46] Question: Growth in coffee category and its drivers - Management confirmed strong growth in the coffee category, driven by functional coffee products and effective pricing strategies [50][52] Question: Gross margin expectations for early 2025 - Management intends to maintain gross margins in the high-30s, willing to trade off some margin points for market share and top-line growth [61] Question: Performance of new liquid product size - Management reported a successful transition to a larger liquid product size, with expectations for strong sales but noted it is too early to provide specific sales data [66][70] Question: Supply challenges for coconut milk powder - Management indicated that while there is sufficient overall supply for coconut milk powder, quality requirements necessitate careful supplier vetting, which has caused temporary supply issues [75][79]

Company Performance - Laird Superfood, Inc. reported a quarterly loss of $0.04 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -100% [1] - The company posted revenues of $11.61 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.64%, but showing an increase from $9.21 million in the same quarter last year [2] - Over the last four quarters, Laird Superfood has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Laird Superfood shares have declined approximately 13.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $12.5 million, and for the current fiscal year, it is -$0.08 on revenues of $52.7 million [7] Industry Outlook - The Zacks Industry Rank for Food - Miscellaneous, which includes Laird Superfood, is currently in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Laird Superfood's stock performance [5]

Financial Performance - Record Net Sales of $43.3 million for Fiscal Year 2024, representing a growth of 27% year-over-year[1] - Fourth Quarter 2024 Net Sales of $11.6 million, a 26% increase compared to $9.2 million in the prior year period[3] - Net Loss improved to $1.8 million, or $0.18 per diluted share, compared to a Net Loss of $10.2 million, or $1.09 per diluted share, in the prior year[6] - Adjusted EBITDA improved to ($0.7) million, or ($0.07) per diluted share, compared to ($9.0) million, or ($0.96) per diluted share, in the prior year[6] - Management expects Net Sales growth in the 20% to 25% range for 2025, with Gross Margin anticipated to hold in the upper 30s[12] Sales Channels - E-commerce sales increased by 32% year-over-year, contributing 59% of total Net Sales, driven by growth in subscription revenue and repeat customer purchases[6] - Wholesale sales increased by 19% year-over-year, contributing 41% of total Net Sales, supported by velocity improvement in retail and distribution expansion[6] Cash Flow and Liquidity - Cash provided by operating activities was $0.9 million for Fiscal Year 2024, a significant improvement from cash used in operating activities of $10.8 million in 2023[8] - The company had $8.5 million in cash and no outstanding debt as of December 31, 2024[7] - Net cash from operating activities for 2024 was $865,502, compared to a net cash outflow of $10,765,881 in 2023, indicating a positive cash flow turnaround[19] Assets and Liabilities - Total assets increased to $19,259,001 as of December 31, 2024, up from $18,031,959 in 2023, reflecting a growth of 6.8%[21] - Total liabilities rose to $6,062,135 in 2024, compared to $4,619,340 in 2023, an increase of 31.1%[21] Inventory and Receivables - Inventory decreased to $5,975,676 in 2024 from $6,322,559 in 2023, a decline of 5.5%, indicating improved inventory management[21] - Accounts receivable increased to $1,762,911 in 2024 from $1,022,372 in 2023, representing a growth of 72.3%[21] Stock-Based Compensation and Interest - Stock-based compensation expenses increased to $1,637,788 in 2024 from $1,092,146 in 2023, a rise of 49.9%[25] - The company reported cash paid for interest of $16,027 in 2024, up from $13,994 in 2023, reflecting a 14.5% increase[19] Gross Margin - Gross Margin expanded to 40.9% from 30.1% in the prior year, an increase of 1,071 basis points, due to favorable product costs and reduced promotional spend[6]

Financial Performance - Total net sales for the year ended December 31, 2024, were $43,295,137, representing a 26.4% increase from $34,224,198 in 2023[267] - Gross profit for 2024 was $17,687,581, compared to $10,313,277 in 2023, indicating a significant improvement in profitability[267] - The operating loss decreased to $2,173,092 in 2024 from $10,698,986 in 2023, reflecting better cost management[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a substantial reduction from the net loss of $10,163,117 in 2023[267] - The company reported a basic and diluted net loss per share of $0.18 for 2024, compared to $1.09 for 2023, showing improved performance on a per-share basis[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a significant improvement from a net loss of $10,163,117 in 2023, representing an 82.1% reduction[273] - Net cash from operating activities for 2024 was $865,502, compared to a net cash outflow of $10,765,881 in 2023, indicating a positive cash flow turnaround[273] Assets and Liabilities - Cash and cash equivalents increased to $8,514,152 as of December 31, 2024, up from $7,706,806 in 2023[264] - Total assets grew to $19,259,001 in 2024, compared to $18,031,959 in 2023, indicating overall growth in the company's financial position[264] - Total liabilities increased to $6,062,135 in 2024 from $4,619,340 in 2023, primarily due to higher accounts payable and accrued expenses[264] - Stockholders' equity decreased slightly to $13,196,866 in 2024 from $13,412,619 in 2023, driven by the net loss incurred during the year[264] Expenses - Research and product development expenses decreased to $114,144 in 2024 from $219,723 in 2023, reflecting a 48% reduction[295] - Marketing and advertising costs were $6,735,672 in 2024, down from $7,886,031 in 2023, a decrease of approximately 14.6%[296] - Shipping and handling costs totaled $5,189,469 in 2024, a slight decrease from $5,223,257 in 2023, reflecting a 0.6% reduction[294] - The company reported cash paid for interest of $16,027 in 2024, compared to $13,994 in 2023, indicating a 14.5% increase[273] - The company recognized a total of $63,852 in cash paid for income taxes in 2024, up from $17,625 in 2023, representing a significant increase of 262.5%[273] - The total rent expense for the year ended December 31, 2024, was $479,617, down from $519,498 in 2023, indicating a decrease of approximately 8%[332] Inventory and Provisions - The company’s inventory provision for obsolescence was $599,902 in 2024, down from $1,273,171 in 2023, marking a decrease of 53%[273] - Inventory decreased to $5,975,676 in 2024 from $6,322,559 in 2023, a reduction of about 5.5%, with costs related to obsolete inventory recorded at $599,902 in 2024 compared to $1,273,171 in 2023[312] - As of December 31, 2024, the company had total inventory reserves of $425,792, a significant decrease from $1,029,657 in 2023, primarily due to improved inventory management[313] Stock and Compensation - The Company reported accrued expenses of $3,642,998 for the year ended December 31, 2024, compared to $2,586,343 in 2023, representing an increase of approximately 41%[326] - Total stock-based compensation for 2024 is $1,637,788, with an unrecognized compensation cost of $4,084,270 and a weighted average remaining vesting period of 3.42 years[357] - The total intrinsic value of options exercised in the year ended December 31, 2024, was $596,943, while no options were exercised in the year ended December 31, 2023[348] - The total fair value of outstanding RSUs as of December 31, 2024, was $8,790,124, based on the last market close price of $7.88[354] - The total vest date fair value of RSUs vested was $1,135,692 in the year ended December 31, 2024, compared to $158,349 in 2023[354] Revenue Sources - E-commerce sales represented 59% of total net sales in 2024, amounting to $25,642,366, while wholesale sales accounted for 41% at $17,652,771[367] - Coffee creamers generated $23,088,363 in sales, making up 53% of total sales in 2024, while hydration and beverage enhancing products contributed $9,207,964, or 21%[367] Tax and Deferred Assets - The effective tax rate for the Company was 3.4% for the year ended December 31, 2024, compared to 0.1% in 2023[335] - The Company recorded a total deferred tax asset of $26,264,674 as of December 31, 2024, with a full valuation allowance against these assets[337] Audit and Compliance - The company has been audited by Moss Adams LLP since 2018, ensuring compliance with PCAOB standards[262] Segment Performance - The CODM evaluates segment performance based on consolidated net income, which is crucial for resource allocation[373] - All expense categories in the consolidated statements of operations are significant, indicating no other major segment expenses require disclosure[373] - The CODM utilizes consolidated net income to compare operating performance against prior results and competitors[373] - Future operating and capital expenditures are allocated based on the insights derived from consolidated net income assessments[373] - Segment assets are reported as total assets on the consolidated balance sheets, reflecting the overall financial health of the company[373]

Company Overview - Laird Superfood is a clean plant-based food brand founded in 2015 by big wave surfer Laird Hamilton, aimed at improving performance through better morning routines [4] - The brand offers a range of superfood products including instant lattes, coffees, bars, and prebiotic daily greens, focusing on simple ingredients and minimally processed foods [4] Product Launch - The Laird Superfood Maca Instant Latte incorporates functional mushrooms to provide sustained energy without a crash, catering to consumers looking to enhance daily stamina [2][3] - Priced at $19, the Maca Instant Latte is available on LairdSuperfood.com and will soon be available on Amazon.com [3] Market Trends - Maca root, cultivated for over 2,000 years, is gaining popularity for its health benefits, although it has not yet been widely incorporated into mainstream products [1][2][3] - The product aims to restore vitality for consumers, reflecting a growing trend towards functional foods that enhance daily rituals [3]