Financial Performance - Sales increased by 50% to $10.2 million in Q3 2024, compared to $6.8 million in the prior year period, driven by increased production and sales growth from facilities in Georgia, Texas, and Washington[3]. - Net loss for Q3 2024 was $34.3 million, compared to a net loss of $24.3 million in the prior year period[7]. - Adjusted EBITDA loss improved to $8.4 million, compared to a loss of $9.0 million in the prior year period[8]. - Total sales for Q3 2024 reached $10,242,000, a 50.5% increase from $6,810,000 in Q3 2023[25]. - Basic and diluted net loss per share for Q3 2024 was $(4.01), compared to $(3.02) in Q3 2023, reflecting increased losses per share[25]. - Net loss for September 2024 was $34,327,000 compared to a loss of $24,258,000 in September 2023, representing a 41.5% increase in losses year-over-year[30]. - Adjusted EBITDA for September 2024 was $(8,355,000), slightly improved from $(8,982,000) in September 2023[30]. Revenue and Growth Projections - The company anticipates Q4 2024 revenues of approximately $11 million, reflecting year-over-year growth of about 67%[16]. - Adjusted gross margin percentage improved to approximately 32%, up by about 300 basis points sequentially, with gross profit reported at $1.4 million[3][4]. - Adjusted gross profit for Q3 2024 was $3,253,000, with an adjusted gross margin of 32%, compared to 25% in Q3 2023[28]. Research and Development - Research and development expenses rose to $7.1 million in Q3 2024, compared to $5.0 million in the prior year, with expectations for future decreases as production thresholds for new product lines are reached[6]. - Research and development expenses for Q3 2024 were $7,096,000, up from $5,001,000 in Q3 2023, highlighting increased investment in innovation[25]. Assets and Liabilities - Total current assets decreased to $17,303,000 in 2024 from $26,988,000 in 2023, primarily due to a reduction in cash and cash equivalents[24]. - Total liabilities increased to $496,427,000 in 2024 from $366,479,000 in 2023, reflecting higher accounts payable and long-term debt[24]. - Total stockholders' equity showed a deficit of $(65,613,000) in 2024, down from a positive equity of $15,273,000 in 2023, indicating financial distress[24]. Inventory and Production - The transition of the Hamilton, Montana facility to commercial production was completed in Q3 2024, supporting the goal of achieving positive adjusted EBITDA by Q2 2025[9]. - The company reported a significant increase in inventory, rising to $6,547,000 in 2024 from $4,210,000 in 2023, indicating potential overstock issues[24]. - The company expanded its product assortment in Q3 2024, introducing several high-velocity offerings, including Arugula and Spinach[11]. Financing and Strategic Initiatives - The company is evaluating financing arrangements to support strategic initiatives while maintaining a focus on achieving positive adjusted EBITDA[2]. - As of September 30, 2024, the company had cash and cash equivalents of $6.8 million, with an additional $6 million received from a lender for working capital[13]. Expenses and Cost Management - Stock-based compensation expense decreased to $1,387,000 in September 2024 from $3,265,000 in September 2023, a reduction of 57.5%[30]. - Interest expense, net increased significantly to $18,312,000 in September 2024 from $7,105,000 in September 2023, marking a 157.5% rise[30]. - Depreciation and amortization expenses rose to $5,868,000 in September 2024 from $3,405,000 in September 2023, an increase of 72.3%[30]. - Business acquisition and strategic transaction costs amounted to $614,000 in September 2024, down from $1,975,000 in September 2023, a decrease of 68.9%[30]. - Loss on disposal of fixed assets was $1,610,000 in September 2024, consistent with the same amount in September 2023[30]. - Utilities price spike and inclement weather related costs were recorded at $727,000 in the previous year, with no current costs reported[30]. - Change in fair value of warrant liability showed a loss of $(1,921,000) in September 2024 compared to $(1,766,000) in September 2023[30]. - Restructuring and business realignment costs were $152,000 in September 2023, with no current costs reported for September 2024[30].
Local Bounti (LOCL) - 2024 Q3 - Quarterly Results