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]

Core Insights - Smart for Life, Inc. is featured in Whole Foods Magazine, highlighting its strategic focus on consolidating small to medium-sized businesses to enhance revenues and earnings through comprehensive operations in manufacturing, logistics, marketing, and sales [1][2][3] Company Strategy - The company is pursuing an ambitious growth strategy through a Buy & Build model, targeting acquisitions to integrate and enhance service offerings for nutraceutical businesses [2][3] - Smart for Life aims to create a synergistic ecosystem by acquiring and integrating smaller businesses, which will strengthen its market position and validate its value to partners and customers [3] Operational Enhancements - The company is focused on streamlining operational efficiencies through strategic acquisitions, fostering innovation, and delivering superior value to consumers and investors [3] - Recent restructuring efforts include recapitalization with equity and debt financings, sale of non-performing assets, and liquidation of senior debt, significantly improving the company's balance sheet [4] Recent Developments - Smart for Life has signed a definitive agreement to acquire Purely Optimal Nutrition, which is expected to contribute additional revenue and EBITDA [4]

Core Insights - Smart for Life, Inc. is actively seeking potential acquisitions and strategic partnerships at the upcoming IFT Annual Event and Expo, indicating a focus on innovation and growth in the food science and technology sectors [1][4] - Heather Granato, a board member of Smart for Life, will represent the company at the event, emphasizing her commitment to collaboration and industry advancements [2][3] Company Overview - Smart for Life, Inc. is a leader in the Health & Wellness sector, specializing in nutritional supplements and foods, and is structured as a publicly held holding company [1][8] - The company is executing a Buy-and-Build strategy, focusing on serial accretive acquisitions to create a vertically integrated business model [8][9] - Recent restructuring efforts have included recapitalization, sale of non-performing assets, and conversion of debt obligations to equity, significantly improving the company's balance sheet [9] Industry Context - The IFT Annual Event is a premier gathering for food science and technology professionals, providing a platform for idea exchange and collaboration [2][6] - IFT FIRST initiative aims to address challenges in the global food system by bringing together researchers and industry leaders to discuss transformative innovations [7]

Core Viewpoint - Smart for Life, Inc. has successfully completed a comprehensive restructuring program, significantly improving its financial position and preparing for future growth opportunities in the Health & Wellness sector [1][2][3]. Financial Restructuring - The restructuring program included recapitalization through equity and debt financings, sale of non-performing assets, and liquidation of senior debt, resulting in a six-fold increase in Net Shareholders' Equity to approximately $6 million [2][10]. - The conversion of substantial debt obligations to equity has eliminated significant ongoing interest expenses, enhancing the company's balance sheet [2][3]. Management and Board Enhancements - The company has strengthened its Board of Directors by adding two experienced nutraceutical executives, Heather Granato and Loren Brown, to drive business development and acquisition strategies [4][5][6]. - The addition of these executives is expected to enhance the company's credibility and expand its network for future acquisition opportunities [7]. Compliance and Reporting - Smart for Life has received a notification from Nasdaq regarding delinquency in filing its Form 10-Q for the period ended March 31, 2024, which may affect its listing status [8][9]. - The company is working on regaining compliance with Nasdaq's Equity Rule and plans to file the Form 10-Q report upon completion of its audit [11]. Strategic Growth Initiatives - The company is executing a Buy-and-Build strategy, focusing on acquiring profitable companies and developing proprietary products to drive growth and earnings [12]. - Smart for Life has signed a definitive agreement to acquire Purely Optimal Nutrition, which is anticipated to contribute additional revenue and EBITDA [12].