Financial Performance - The company reported accumulated deficits of $51,440,227 and $41,534,445 as of December 30, 2023, and December 31, 2022, respectively, with net losses of $9,905,782 and $7,615,261 for the years ended December 30, 2023, and December 31, 2022[122]. - The company incurred net losses of $9,905,782 and $7,615,261 for the years ended December 30, 2023, and December 31, 2022, respectively, indicating ongoing financial challenges[126]. - Revenue decreased by 13.6% to $14,240,724 in 2023 from $16,477,984 in 2022, partly due to a decrease in the customer base[128]. - The company anticipates continued substantial operating expenses, particularly related to fulfillment center operations and technology development[126]. - The company is significantly reliant on related party transactions and loans, raising concerns about financial stability[121]. - The company has experienced net losses since inception, raising substantial doubt about its ability to continue as a going concern without obtaining new financing[122]. - The company plans to rely on a combination of equity and debt financing to support operations and growth strategies, but there is no assurance that such financing will be available on favorable terms[123]. Inventory and Supply Chain - The company does not currently purchase new merchandise as it believes it has adequate inventory for the foreseeable future[60]. - The company has ceased the purchase of new inventory to conserve cash, which may restrict growth and limit revenues to the current inventory on hand[124]. - Three vendors accounted for approximately 81% of inventory purchases in 2023, highlighting a significant reliance on a small number of suppliers[141]. - The company is currently not purchasing new products as it works to clear existing inventory, indicating adequate stock for the foreseeable future[75]. - The company recorded a one-time inventory write-down adjustment of approximately $2.9 million in 2023 due to plans to sell off inventory below cost[170]. - The company is currently not manufacturing new products as it works to clear existing inventory, making it vulnerable to demand and pricing shifts[171]. Marketing and Customer Acquisition - The company attributes member acquisition primarily to social media marketing, including Facebook and Instagram ads, and has seen positive engagement from addressing parents' pain points[35][53]. - The loyalty program, launched in October 2020, allows members to earn 'kidpik koins' for actions such as keeping the whole box and referring friends[57]. - The company faces challenges in retaining existing subscription members and acquiring new customers, which are critical for revenue growth[128]. - Attracting new members and customers is critical for revenue growth, with marketing strategies subject to change based on performance[178]. - Changes in social media advertising policies may negatively impact marketing effectiveness and costs, affecting customer acquisition[133]. Competition and Market Position - Increased competition from clothing subscription services, online stores, and traditional retailers poses a significant threat to the company's market position[150]. - The company has a competitive advantage due to its robust client dataset and proprietary technology, which are difficult for new entrants to replicate[74]. - The company focuses on a price-sensitive market, negotiating directly with suppliers to offer competitive pricing while maintaining quality[65]. Technology and Operations - The company has invested heavily in proprietary technology and algorithm capabilities over the past seven years to enhance its clothing subscription model[66]. - The algorithm utilizes initial consumer data points and member feedback to optimize outfit combinations, aiming to maximize member satisfaction and profit[67]. - The company’s internal systems are custom-built to meet the unique needs of its subscription model, allowing for flexibility and quick responses to market changes[68]. - The company’s warehouse systems are designed for maximum efficiency, including features like optimal pick path mapping and just-in-time inventory replenishment[69]. - The company’s consumer-facing applications allow members to interact with services, update preferences, and manage orders seamlessly[70]. Regulatory and Compliance Risks - The company is subject to various U.S. and foreign regulations affecting online business operations, including user privacy and product safety compliance[100][102]. - Compliance with evolving privacy and data protection laws, such as the California Consumer Privacy Act, is costly and may impact the company's operations[202]. - The company may incur significant fines or lose the ability to process credit card payments if it fails to comply with payment card industry data security standards[189]. - The company is subject to fluctuating tax obligations and effective tax rates, which could adversely affect its financial condition and results of operations[206]. - The company may incur substantial tax liabilities due to failure to collect sales and use taxes, which could materially affect its business[207]. Risks and Challenges - The company is subject to various risks, including supply chain disruptions, changes in consumer spending, and increased competition, which could materially affect its operations[118]. - Economic uncertainty and inflation may adversely affect consumer demand for discretionary items, impacting sales and financial performance[137]. - The company is navigating heightened inflationary pressures and supply chain disruptions, which could materially affect operating costs and financial results[140]. - The company faces risks associated with product returns, which could lead to increased shipping costs and excess inventory if return rates exceed expectations[166]. - The company has experienced increases in product manufacturing costs due to inflation, which may impact its ability to maintain satisfactory margins[160]. Corporate Governance - The CEO, Ezra Dabah, controls approximately 66.6% of the voting power of the capital stock, classifying the company as a "controlled company" under Nasdaq Marketplace Rules[114]. - The concentration of voting power held by the CEO could limit shareholder influence and adversely affect stock price[210]. - The company does not have employment agreements with its management, which could lead to operational challenges if key personnel leave[216]. - The board of directors is classified into three classes with staggered three-year terms, limiting the ability to remove directors[229]. Data Security and Privacy - The company is at risk of data security breaches, having experienced a ransomware attack in July 2020, which highlights vulnerabilities in its information systems[184]. - The company faces risks from potential security breaches that could harm its reputation and require significant capital to address[185]. - The company relies on third parties to manage sensitive customer data, and any breach could lead to significant reputational and financial consequences[201]. - The company has previously experienced security breaches, which could impact its ability to attract and retain customers[192].

Financial Data and Key Metrics Changes - Q3 2023 revenue was $3.4 million, a decrease of 7.4% year-over-year and a decrease of 6.7% quarter-over-quarter, primarily driven by a decrease in subscription box sales [7][18] - Active subscriptions for recurring boxes decreased by 14.2% to $2 million year-over-year, while new subscriptions of the first box decreased by 20% to $0.5 million [6] - Net loss for the quarter was approximately $1.9 million or a loss of $0.24 per share, compared to a net loss of $2.4 million or a loss of $0.32 per share last year [9] - Gross margin for the quarter was 61.1%, a year-over-year increase of 80 basis points [12] Business Line Data and Key Metrics Changes - Subscription sales were approximately $2.4 million, a decrease of 15.4% quarter-over-quarter [8] - Third-party website sales increased to $492,000, an increase of 4.9% quarter-over-quarter, while online website sales increased by 58.3% to $470,000 for the quarter [8] Market Data and Key Metrics Changes - The company is facing a challenging consumer environment due to high inflation, increased interest rates, and declining consumer confidence, resulting in lower discretionary spending [18] - The company has significantly reduced purchases of new inventory and is focusing on increasing sales from its current elevated inventory level [18] Company Strategy and Development Direction - The company is evaluating strategic alternatives, which may include business combinations, liquidations of assets, or sale of the company or its assets [17] - Management is committed to acting in the best interest of the company and its stakeholders, with a focus on reducing expenses and overhead [17] Management Comments on Operating Environment and Future Outlook - Management noted that the current economic environment has weakened consumer sentiment, leading to lower discretionary spending [18] - The company is taking actions to improve cash flow, including reducing operating costs and focusing on sales from existing inventory [18] Other Important Information - Cash at the end of the quarter was approximately $60,000 compared to $605,000 at the end of 2022, with total current assets of $9.7 million and total current liabilities of $5.1 million [13] Q&A Session Summary - The Q&A session was not detailed in the provided content, and thus no specific questions and answers can be summarized. [14]

Financial Performance - For the 13 weeks ended September 30, 2023, gross margin was 61.1%, compared to 60.3% for the same period in 2022[103]. - Revenue for the 13 weeks ended September 30, 2023, decreased by 6.7% to $3,389,183 compared to $3,633,467 for the same period in 2022, with subscription box revenue down 15.4%[129]. - Total revenue for the 39 weeks ended September 30, 2023, decreased by 7.4% to $10,867,580 compared to $11,734,132 for the same period in 2022[129]. - Adjusted EBITDA for the 13 weeks ended September 30, 2023, was a loss of $1,610,788, compared to a loss of $2,104,795 for the same period in 2022[109]. - The net loss for the 13 weeks ended September 30, 2023, was $1,925,951, compared to a net loss of $2,438,330 for the same period in 2022[109]. - Gross profit for the 13 weeks ended September 30, 2023, was $2,071,499, a decrease from $2,191,209 for the same period in 2022, primarily due to a decline in subscription box sales[135]. - Loss from operations decreased from $2,416,445 for the 13 weeks ended October 1, 2022, to $1,903,834 for the 13 weeks ended September 30, 2023[141]. - Net cash used in operating activities decreased to $461,162 for the 39 weeks ended September 30, 2023, compared to $7,040,580 for the same period in 2022, a reduction of approximately $6.6 million[156]. Shipping and Sales Metrics - Shipped items decreased to 292,000 for the 13 weeks ended September 30, 2023, down from 358,000 in the same period of 2022[111]. - Average shipment keep rate improved to 82.6% for the 13 weeks ended September 30, 2023, compared to 68.5% for the same period in 2022[112]. - The number of items shipped decreased by 18.3% from approximately 358,000 for the 13 weeks ended October 1, 2022, to approximately 292,000 for the 13 weeks ended September 30, 2023[130]. - Online website sales increased by 58.3% to $469,717 for the 13 weeks ended September 30, 2023, compared to $296,702 for the same period in 2022[129]. - Revenue from new subscriptions decreased by 20.0% to $456,392 for the 13 weeks ended September 30, 2023, compared to $570,718 for the same period in 2022[130]. - Subscription box revenue for the 39 weeks ended September 30, 2023, decreased by 14.1% to $8,006,725 compared to $9,326,331 for the same period in 2022[130]. Cost and Expenses - Cost of goods sold for the 13 weeks ended September 30, 2023, decreased by 8.6% to $1,317,684 compared to $1,442,258 for the same period in 2022[133]. - Total operating expenses for the 13 weeks ended September 30, 2023, decreased by $632,321 or 13.7% to $3,975,333, compared to $4,607,654 for the same period in 2022[139]. - The cost of goods sold for the 39 weeks ended September 30, 2023, decreased by 7.3% to $4,309,473 compared to $4,649,552 for the same period in 2022[133]. Cash Flow and Financial Position - Cash and restricted cash decreased to $60,305 as of September 30, 2023, from $605,213 as of December 31, 2022, representing a decline of 90.0%[148]. - Working capital decreased by $3,720,213 or 45.0% to $4,553,388 as of September 30, 2023, compared to $8,273,601 as of December 31, 2022[148]. - Net cash used in financing activities decreased to $6,447 for the 39 weeks ended September 30, 2023, compared to $1,115,847 for the same period in 2022[158]. Strategic Initiatives and Market Conditions - The company introduced an "add-on" option for active members to increase average box transaction size and gross margin[99]. - The company expanded its product offerings to include larger sizes for boys and girls, as well as toddler sizes, enhancing its market reach[97]. - The company is focusing on increasing new member growth through new advertising channels and affiliate partnerships[100]. - The overall economic environment, including high inflation and interest rates, poses risks to consumer spending and company performance[113]. - The company has made significant investments in brand marketing to enhance brand awareness and customer acquisition since 2016[114]. - The Company expects to continue generating net losses for the foreseeable future, indicating a need for new financing to sustain operations[163]. - The Company plans to significantly reduce purchases of new inventory to manage operating cash flows in the near term[163]. - The Company may pursue strategic alternatives, including business combinations or asset liquidations, but there is no definitive timetable for this process[164]. Debt and Compliance - A Debt Conversion agreement was entered into on September 18, 2023, converting $1,200,000 of principal owed into 1,553,800 shares of restricted common stock[161]. - As of September 30, 2023, there was $1,709,708 due to a related party, an increase from $1,107,665 as of December 31, 2022[162]. - The company intends to monitor its stock price and may consider a reverse stock split to regain compliance with Nasdaq's minimum bid price requirement[155]. Accounting and Reporting - The Company has implemented all new accounting pronouncements that may impact its financial statements[169]. - There were no material changes to the Company's critical accounting policies during the 39 weeks ended September 30, 2023[167].

Company Participants Operator It is now my pleasure to introduce your host, Ezra Dabah. Thank you, Ezra. You may begin. Thank you, operator, and thank you, everyone, for joining us today. We are pleased to welcome everyone to today's call where we will review Q2 2023 and provide an update on Kidpik's business. We will begin with a review of our financial business highlights, followed by a financial review, which, Jill, our Chief Accounting Officer, will take us through. In our continued commitment to value ...

Kidpik Corp. (NASDAQ:PIK) Q1 2023 Earnings Call Transcript May 16, 2023 4:30 PM ET Ezra Dabah - Chairman, President and Chief Executive Officer Adir Katzav - Executive Vice President and Chief Financial Officer Edward Reilly - EF Hutton Operator I would now turn the conference over to your host, Ezra Dabah. You may begin. Ezra Dabah I'd like to start by sharing that we have continued executing our plan to reduce inventory and generate cash flow. We have substantially reduced purchases of new inventory and a ...

kidpik INVESTOR PRESENTATION May 2023 NASDAQ: PIK Past performance information given in this document is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. This presentation is not and does not purport to be an appraisal of the assets, stock, or business referenced herein. In this document, we may rely on and refer to information regarding our industry and the market for our products and services in general from market research reports, an ...

Kidpik Corp. (NASDAQ:PIK) Q4 2022 Earnings Call Transcript April 3, 2023 4:30 PM ET Company Participants Ezra Dabah - Chairman, President and Chief Executive Officer Adir Katzav - Executive Vice President and Chief Financial Officer Conference Call Participants Edward Reilly - EF Hutton Operator Good day. And welcome to the Kidpik Corporation Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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: 001-41032 Kidpik Corp. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organizat ...

Kidpik Corp. (NASDAQ:PIK) Q3 2022 Earnings Conference Call November 15, 2022 4:30 PM ET Company Participants Ezra Dabah - Chief Executive Officer Adir Katzav - Chief Financial Officer Conference Call Participants Edward Reilly - EF Hutton Operator Hello and welcome to the Kidpik Third Quarter 2022 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ezra Dabah. Please go ahead. Ezra Dabah Thank you, operator. We ...

Kidpik Corp. (NASDAQ:PIK) Q2 2022 Results Conference Call August 16, 2022 4:30 PM ET Company Participants Ezra Dabah - Chairman, President and Chief Executive Officer Adir Katzav - Executive Vice President and Chief Financial Officer Moshe Dabah - Chief Technology Officer and Chief Operating Officer Conference Call Participants Edward Reilly - EF Hutton Operator Good afternoon and welcome to the Kidpik Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Inst ...