Revenue Performance - Total revenues decreased by $976,182, or 43.47%, to $1,269,373 for the three months ended September 30, 2024, from $2,245,555 for the same period in 2023[226] - Revenues from the nutraceutical business decreased by $970,183, or 43.32%, to $1,269,373 for the three months ended September 30, 2024, primarily due to cash constraints affecting the ability to purchase raw materials[227] - Total revenues decreased by $2,560,296, or 49.37%, to $2,626,080 for the nine months ended September 30, 2024, from $5,186,376 in the same period of 2023[240] - Revenues from the nutraceutical business decreased by $2,198,941, or 45.57%, to $2,625,965 for the nine months ended September 30, 2024, primarily due to cash constraints[242] - The digital marketing business did not generate any revenues for the three months ended September 30, 2024, compared to $5,999 for the same period in 2023[228] Profitability and Loss - Gross profit increased to $518,056, representing 40.81% of total revenues for the three months ended September 30, 2024, compared to 37.25% for the same period in 2023[226] - Operating loss for the three months ended September 30, 2024, was $(1,204,102), or (94.86)%, compared to $(2,916,431), or (129.88)%, for the same period in 2023[226] - Net loss for the three months ended September 30, 2024, was $(3,235,878), or (254.92)%, compared to $(4,344,107), or (193.45)%, for the same period in 2023[226] - Gross profit decreased by $318,331, or 38.06%, to $518,056 for Q3 2024 from $836,387 in Q3 2023, with gross profit as a percentage of revenues at 40.81% versus 37.25%[232] - Net loss for Q3 2024 was $3,235,878, a decrease of $1,108,229 or 25.51% from a net loss of $4,344,107 in Q3 2023[239] - Net loss for the nine months ended September 30, 2024 was $8,343,073, a decrease of $4,505,346, or 35.07%, from a net loss of $12,848,419 in the same period of 2023[255] Expenses Management - The total cost of revenues decreased by $657,851, or 46.68%, to $751,317 for the three months ended September 30, 2024, from $1,409,168 for the same period in 2023[229] - General and administrative expenses decreased to $428,554, or 33.76% of revenues, for the three months ended September 30, 2024, from $1,174,348, or 52.30% of revenues, for the same period in 2023[226] - Compensation expenses decreased to $570,126, or 44.91% of revenues, for the three months ended September 30, 2024, from $1,907,195, or 84.93% of revenues, for the same period in 2023[226] - General and administrative expenses decreased by $745,793, or 63.51%, to $428,554 for Q3 2024 from $1,174,348 in Q3 2023, representing 33.76% of revenues compared to 52.30%[233] - Compensation expenses decreased by $1,337,069, or 70.11%, to $570,126 for Q3 2024 from $1,907,195 in Q3 2023, with a percentage of revenues at 44.91% versus 84.93%[234] Financial Position and Cash Flow - The company reported a working capital deficiency of $8.2 million as of September 30, 2024, raising substantial doubt about its ability to continue as a going concern[257] - Net cash used in operating activities decreased to $516,784 for the nine months ended September 30, 2024, compared to $5,952,710 for the same period in 2023[260] - Net cash provided by financing activities was $403,069 for the nine months ended September 30, 2024, down from $5,897,604 in 2023[262] - Total outstanding debt as of September 30, 2024, amounted to $3,239,177, with current debt at $2,221,163[265] - The company is dependent on raising additional capital through common and preferred stock placements and debt financing to fund planned expenditures over the next 12 months[258] - Cash and cash equivalents at the end of the period were $35,608, compared to $5,684 at the end of the same period in 2023[260] - The company had net cash used in investing activities of $5,343 for the nine months ended September 30, 2024, which was entirely for additions to property and equipment[261] - The company has no off-balance sheet arrangements that could affect its financial condition[267] - Management believes that currently available resources will not be sufficient to fund planned expenditures, indicating potential financial challenges ahead[258] Strategic Initiatives - The company continues to execute a buy-and-build strategy with a focus on acquiring profitable companies to drive growth and earnings[214]

Financial Performance - Total revenues for the three months ended June 30, 2024, were $877,799, a decrease from $1,334,980 in the same period of 2023, representing a decline of approximately 34.2%[192] - Total revenues decreased by $457,181, or 34.25%, to $877,799 for the three months ended June 30, 2024, from $1,334,980 for the same period in 2023[196] - Total revenues for the six months ended June 30, 2024, were $1,356,707, a decrease from $2,940,822 for the same period in 2023[211] - Total revenues decreased by $1,584,115, or 53.87%, to $1,356,707 for the six months ended June 30, 2024, compared to $2,940,822 for the same period in 2023[214] Gross Profit and Margins - Gross profit for the three months ended June 30, 2024, was $406,084, which is 46.26% of total revenues, compared to $313,401 or 23.48% in the same period of 2023, indicating a significant improvement in gross margin[193] - Gross profit increased by $92,683, or 29.57%, to $406,084 for the three months ended June 30, 2024, with a gross profit margin of 46.26% compared to 23.48% in 2023[202] - Gross profit decreased by $67,421, or 9.90%, to $613,744 for the six months ended June 30, 2024, with gross profit as a percentage of revenues at 45.24%[220] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $1,442,835, which is 164.37% of total revenues, compared to $4,040,780 or 302.68% in the same period of 2023, showing a reduction in operating expenses relative to revenues[193] - General and administrative expenses decreased by $1,091,168, or 77.34%, to $319,736 for the three months ended June 30, 2024, representing 36.42% of revenues compared to 105.69% in 2023[203] - General and administrative expenses decreased by $1,443,665, or 60.01%, to $962,083 for the six months ended June 30, 2024, representing 70.91% of revenues[221] - Compensation expenses decreased by $770,763, or 59.96%, to $514,684 for the three months ended June 30, 2024, accounting for 58.63% of revenues compared to 96.29% in 2023[205] Losses - The operating loss for the three months ended June 30, 2024, was $(1,036,751), an improvement from $(3,727,379) in the same period of 2023, reflecting a narrowing of losses[193] - Net loss for the three months ended June 30, 2024, was $2,211,021, an improvement from a net loss of $4,219,996 for the same period in 2023[210] - Operating loss for the six months ended June 30, 2024, was $(3,028,631), compared to $(6,456,487) for the same period in 2023[211] - Net loss was $5,107,195 for the six months ended June 30, 2024, compared to a net loss of $8,504,311 for the same period in 2023[228] Cash and Debt - Cash and cash equivalents at the end of the period were $31,703, down from $315,014 at the end of June 30, 2023[233] - Total outstanding debt was $5,320,969 as of June 30, 2024, with a current portion of $3,302,823[237] - The company has a working capital deficiency of $9.7 million as of June 30, 2024, raising substantial doubt about its ability to continue as a going concern[230] Business Strategy and Operations - The company has executed a buy-and-build strategy with serial accretive acquisitions to create a vertically integrated company focused on health and wellness products[182] - The company operates a network platform in the affiliate marketing space, which compensates third-party digital marketers for generating traffic or leads[183] - The company acquired 100% of GSP Nutrition Inc. on December 6, 2021, expanding its portfolio in the sports nutrition sector[187] - The company has classified the financial results of Ceautamed as discontinued operations following the sale of nearly all its assets on January 29, 2024[191] - The company intends to rely on exemptions from certain disclosure requirements as an "emerging growth company" under the JOBS Act[188] - The company has relocated the operations of Bonne Sante Natural Manufacturing, Inc. to a new facility in Riviera Beach, Florida, enhancing its manufacturing capabilities[184] Revenue Breakdown - Revenues from the nutraceutical business decreased by $446,565, or 33.72%, to $877,799 for the three months ended June 30, 2024, primarily due to cash constraints affecting raw material purchases[197] - Revenues from the nutraceutical business decreased by $1,228,759, or 47.53%, to $1,356,592 for the six months ended June 30, 2024, primarily due to cash constraints affecting raw material purchases[215] - Revenues from the digital marketing business decreased by $355,356, or 99.97%, to $115 for the six months ended June 30, 2024, due to a shift in focus from affiliate network management[216] Cost of Revenues - Total cost of revenues decreased by $549,864, or 53.82%, to $471,715 for the three months ended June 30, 2024, from $1,021,579 for the same period in 2023[199] - Total cost of revenues decreased by $1,516,694, or 67.12%, to $742,963 for the six months ended June 30, 2024, directly related to the decrease in revenues[217] - Total other expense increased to $1,174,119 for the three months ended June 30, 2024, compared to $89,176 for the same period in 2023, primarily due to increased interest expense[209]

Acquisition and Strategy - The company is acquiring Purely Optimal Nutrition Inc. for a total purchase price of $11,965,966.10, which includes $7,859,579.66 in cash and $4,106,386.44 in newly issued preferred stock[217]. - The purchase price is based on a six times multiple of an estimated EBITDA of $1,467,073.35 for the twelve-month period ending November 30, 2023[218]. - The company has executed a buy-and-build strategy with multiple acquisitions, including 100% of GSP Nutrition Inc., a sports nutrition company[216]. - The company has a vertically integrated structure, focusing on proprietary product development and profitable acquisitions[211]. Financial Performance - Total revenues decreased by $1,126,934, or 70.18%, to $478,907 for the three months ended March 31, 2024, compared to $1,605,841 for the same period in 2023[230]. - Revenues from the nutraceutical business decreased by $782,194, or 62.03%, to $478,792, primarily due to cash constraints affecting the ability to purchase raw materials[231]. - Revenues from the digital marketing business decreased by $344,740, or 99.97%, to $115, attributed to a shift in focus from affiliate network management[232]. - Total cost of revenues decreased by $966,831, or 78.09%, to $271,247, directly related to the decrease in revenues[233]. - Gross profit decreased by $160,103, or 43.53%, to $207,660, with gross profit as a percentage of revenues increasing to 43.36% from 22.90%[236]. - General and administrative expenses decreased by $352,498, or 35.43%, to $642,346, with expenses as a percentage of revenues rising to 134.13%[237]. - Total other expenses netted $993,880 for the three months ended March 31, 2024, compared to $1,339,893 for the same period in 2023[242]. - Net loss decreased by $1,388,142, or 32.40%, to $2,896,174 for the three months ended March 31, 2024, compared to $4,284,316 in 2023[243]. Financial Position and Concerns - As of March 31, 2024, the company had cash of $21,331 and a working capital deficiency of $11.0 million, raising substantial doubt about its ability to continue as a going concern[245]. - The company had total debt of $7,075,498 as of March 31, 2024, with a current portion of $3,980,486[252]. Management and Accounting - Management's estimates and assumptions significantly impact reported amounts of assets, liabilities, revenues, and expenses[255]. - The company regularly evaluates its estimates based on historical industry experience and reasonable assumptions[255]. - Critical accounting policies may materially affect reported financial position, results of operations, or cash flows[256]. - There are no applicable quantitative and qualitative disclosures about market risk[257]. Market Position and Outlook - The company is positioned as an emerging growth company under the JOBS Act, allowing it to rely on certain exemptions from disclosure requirements[225]. - The company’s financial performance is influenced by its ability to acquire and retain customers, competitive pricing, and market conditions[224]. - The company’s future outlook includes expectations regarding demand for its products and competition trends in the industry[209].

Core Viewpoint - Smart for Life, Inc. has made significant progress in strengthening its balance sheet, transitioning from negative net stockholders' equity to over $9.4 million in positive net stockholders' equity as of September 20, 2024, following a series of restructuring initiatives [1][2][3] Financial Performance - The financial turnaround was primarily achieved through the elimination of over $15 million in debt and interest, demonstrating the company's commitment to building long-term value for shareholders [2][3] - The company successfully filed its 2023 annual report on Form 10-K with the U.S. Securities and Exchange Commission, marking an important step towards regaining its listing on a senior U.S. exchange [1][3] Strategic Initiatives - The leadership is focused on reducing debt and improving operational efficiency as part of a broader strategy for sustainable growth [2][3] - The restructuring has allowed the company to refocus on its core business and improve operational efficiency, laying the groundwork for future growth [3] Company Overview - Smart for Life, Inc. is an emerging growth company in the nutraceutical industry, committed to delivering innovative solutions that promote health and wellness [4] - The company is executing a Buy-and-Build strategy with serial accretive acquisitions to create a vertically integrated company [4] - Recent restructuring included recapitalization with equity and debt financings, sale of non-performing assets, and successful liquidation of the senior debt facility [4]

Core Viewpoint - Smart for Life, Inc. has appointed Jessica Walters as the new Chief Marketing Officer to enhance its marketing initiatives and drive long-term growth in the Health & Wellness sector [4][11]. Company Overview - Smart for Life, Inc. is a publicly held company in the nutraceutical industry, focusing on innovative solutions that promote Health & Wellness through research-driven formulations and consumer-centric approaches [9]. - The company is executing a Buy-and-Build strategy, aiming for serial accretive acquisitions to create a vertically integrated business model [9]. - Recent restructuring efforts include recapitalization through equity and debt financings, sale of non-performing assets, and liquidation of senior debt, significantly improving the balance sheet [9]. Leadership and Strategy - Jessica Walters brings expertise in lead generation, conversion, and affiliate marketing, with a background in various industries, including experience as a former Shark Tank contestant [8]. - The company's strategy under Ms. Walters includes leveraging core intellectual property (IP) from acquisitions to enhance sales capabilities and achieve a revenue target of $100 million [5][11]. - The appointment of Ms. Walters is seen as a strategic move to broaden the company's reach and strengthen its position in the Health and Wellness industry [11]. Recent Developments - Smart for Life has signed a definitive agreement to acquire Purely Optimal Nutrition, which is expected to contribute additional revenue and EBITDA [9].

Company Overview - Smart for Life, Inc. is an emerging growth company in the nutraceutical industry, focusing on innovative solutions that promote health and wellness [2] - The company is structured as a publicly held holding company and is executing a Buy-and-Build strategy through serial accretive acquisitions [2] - Recent restructuring efforts include recapitalization with equity and debt financings, sale of non-performing assets, and conversion of substantial debt obligations to equity, improving the balance sheet [2] Upcoming Event - Smart for Life will participate in the IFT FIRST Annual Event and Expo from July 14-17, 2024, in Chicago, Illinois [5] - The event aims to broaden the company's reach in the functional foods market and explore potential partnerships and acquisition opportunities [1][11] - Dedicated representatives will be present to meet with companies interested in collaboration and business development [6] Industry Context - IFT FIRST stands for Food Improved by Research, Science, and Technology, and it addresses the transformative nature of the global food system [7] - The event will gather researchers, scientists, engineers, and entrepreneurs to discuss scientific solutions and transformative innovations in the food industry [7][16]

Core Insights - Smart for Life is participating in the IFT FIRST Annual Event from July 14-17, 2024, in Chicago, aiming to enhance its presence in the functional foods market and explore strategic partnerships and acquisition opportunities [11][5][6] Company Overview - Smart for Life, Inc. is a leader in the Health & Wellness sector, focusing on nutritional supplements and foods, and is committed to innovative solutions that promote health [11][14] - The company is executing a Buy-and-Build strategy, which includes acquiring profitable companies and developing proprietary products to drive growth and earnings [14] Event Details - The IFT FIRST Annual Event is a significant gathering for food science professionals, providing a platform for exchanging ideas and fostering innovation [5][7] - Smart for Life will have dedicated representatives at the event to discuss collaboration opportunities, including acquisitions and strategic partnerships [6][5] Strategic Goals - The participation in the IFT event aligns with Smart for Life's growth strategy, focusing on advancements in food science and potential partnerships [11][5] - The company aims to engage with industry leaders and explore avenues for mutual growth and innovation during the event [6][5]

MIAMI, May 31, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (NASDAQ:SMFL), a prominent leader in the Health & Wellness sector specializing in the marketing and manufacturing of nutritional supplements and foods worldwide, announced its upcoming feature in Whole Foods Magazine. The feature will spotlight Smart for Life's strategic focus on consolidating small to medium-sized businesses to drive revenues and earnings through the Company's comprehensive operations in manufacturing, logistics, marketing, and s ...

MIAMI, May 30, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) ("Smart for Life" or the "Company"), a distinguished leader in the Health & Wellness sector specializing in the marketing and manufacturing of nutritional supplements and foods, today announced board member Heather Granato will be in attendance at the Institute of Food Technologists (IFT) Annual Event and Expo, taking place from July 14- 17, 2024, in Chicago, Illinois. Ms. Granato will be actively seeking meetings to discuss potenti ...

MIAMI, May 28, 2024 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) ("Smart for Life" or the "Company"), a distinguished leader in the Health & Wellness sector specializing in the marketing and manufacturing of nutritional supplements and foods, today announced further updates on the successful completion of the Company's comprehensive restructuring program. As previously announced, the comprehensive program included recapitalization of the Company with equity and debt financings, the sale of certai ...