Mama’s Creations(MAMA) - 2025 Q4 - Annual Report

Financial Performance - Net sales increased by approximately 19% to $123.3 million for the year ended January 31, 2025, compared to$103.3 million for the year ended January 31, 2024[118]. - Gross profit margin decreased to 25% for the year ended January 31, 2025, down from 29% for the year ended January 31, 2024, due to manufacturing inefficiencies and increased commodity costs[119]. - Operating expenses increased by 20% to $25.7 million for the year ended January 31, 2025, compared to$21.4 million for the year ended January 31, 2024[120]. - Net income for the year ended January 31, 2025, was approximately $3.7 million, a decrease from$6.6 million for the year ended January 31, 2024[117]. Cash Flow and Working Capital - Working capital decreased by approximately $2.0 million to$4.9 million as of January 31, 2025, compared to $6.9 million as of January 31, 2024[123]. - Net cash provided by operating activities was approximately$5.2 million for the year ended January 31, 2025, down from $11.6 million for the year ended January 31, 2024[127]. - Net cash used in investing activities increased to approximately$5.1 million for the year ended January 31, 2025, compared to $1.4 million for the year ended January 31, 2024[128]. - The Company had$0 outstanding under its Line of Credit Agreement with a maximum capacity of $5.5 million as of January 31, 2025[124]. - The Company’s cash and cash equivalents decreased to$7.15 million as of January 31, 2025, from $11.02 million at the beginning of the period[126]. Funding and Financial Strategy - The Company may require additional funding to finance growth and achieve strategic objectives, with no assurance that financing will be available on acceptable terms[130]. Fair Value Determination - The Company utilizes the Black-Scholes option-pricing model or Monte Carlo simulation for fair value determination of equity-based grants, excluding restricted stock[141]. - Management must make assumptions regarding expected life of units, volatility of future share price, risk-free rates, future dividend yields, and estimated forfeitures at the initial grant date[141]. - Changes in assumptions for fair value estimation could lead to materially different results[141]. Regulatory Classification - The Company is classified as a smaller reporting company under Regulation S-K and is not required to provide certain market risk disclosures[142].