Financial Performance - Sales for Q2 2024 reached $9.443 million, a 31% increase from $7.183 million in Q2 2023, while sales for the first half of 2024 totaled $17.826 million, up 28% from $13.881 million in the same period last year[60]. - Gross profit for Q2 2024 was $1.351 million, representing a 59% increase compared to $0.852 million in Q2 2023, and for the first half of 2024, gross profit was $2.137 million, an 89% increase from $1.131 million in the prior year[60]. - The company reported a net loss of $25.267 million for Q2 2024, a 137% increase from a net loss of $10.676 million in Q2 2023, and a net loss of $49.317 million for the first half of 2024, up 44% from $34.203 million in the same period last year[60]. Operational Expansion - The company has expanded its distribution network to approximately 13,000 retail locations across 35 U.S. states, with a leading 80% market share in living butter lettuce within the Western U.S.[54]. - Local Bounti has completed construction on two new facilities in Washington and Texas in 2024, bringing the total facility count to six, enhancing production capacity and distribution capabilities[53][56]. - The transition of the Montana Facility to commercial production is nearly complete, expected to support goals of achieving positive adjusted EBITDA by early 2025[56]. Product Development and Innovation - The company plans to introduce new product offerings, including high-velocity items like spinach, arugula, and basil in Q3 2024, and aims to expand its Grab & Go Salad Kits to approximately 700 doors by the end of 2024[58]. - Research and development expenses for Q2 2024 were $4.519 million, a 28% increase from $3.526 million in Q2 2023, reflecting ongoing investment in product innovation[60]. - Research and development costs rose by $1.0 million for the three months ended June 30, 2024, focusing on production methods and new product development[66]. Financial Obligations and Cash Flow - The company reported an accumulated deficit of $352.6 million and cash and cash equivalents of $16.2 million as of June 30, 2024[77]. - Total financing obligation payments amount to $144.9 million, with significant payments due starting in 2025[87]. - The company expects to close on financing of approximately $228 million from commercial finance lenders in Q3 2024, with potential additional financing of up to $175 million[80]. Cost Management - Selling, general, and administrative expenses decreased by $6.0 million for the three months ended June 30, 2024, attributed to reductions in stock-based compensation and other operational costs[70]. - The company anticipates significant salary cost savings of approximately $5.0 million on an annualized basis due to organizational restructuring[70]. Cash Flow Analysis - Cash used in operating activities was $11.1 million for the six months ended June 30, 2024, an improvement from $16.1 million in the same period of 2023[88]. - Net cash used in operating activities was $11.1 million for the six months ended June 30, 2024, compared to $16.1 million for the same period in 2023, reflecting a net loss of $49.3 million in 2024 versus $34.2 million in 2023[89][90]. - Net cash used in investing activities decreased to $59.8 million for the six months ended June 30, 2024, from $76.2 million in the same period of 2023, primarily due to purchases for facilities[91]. - Net cash provided by financing activities was $70.2 million for the six months ended June 30, 2024, compared to $107.8 million in 2023, with the 2024 amount consisting entirely of net proceeds from debt issuance[91]. Non-Cash Activities - The company incurred a non-cash loss of $3.1 million related to the change in fair value of warrant liability for the six months ended June 30, 2024[89]. - Non-cash activities included $21.7 million in paid-in-kind interest and $5.3 million in depreciation expense for the six months ended June 30, 2024[89]. - The net loss for the six months ended June 30, 2023, included a non-cash gain in fair value of warrant liability of $15.2 million[90]. Accounting and Reporting - The company has not made any changes to its critical accounting policies and estimates as of the latest reporting period[92]. - The company is classified as a smaller reporting company and is not required to provide certain disclosures under the Exchange Act[94].
Local Bounti (LOCL) - 2024 Q2 - Quarterly Report