Sales Performance - Sales for the three months ended September 30, 2024, increased by $3.4 million (50%) to $10.2 million compared to $6.8 million for the same period in 2023[70] - Sales for the nine months ended September 30, 2024, increased by $7.4 million (36%) to $28.1 million compared to $20.7 million for the same period in 2023[70] Gross Profit - Gross profit for the three months ended September 30, 2024, was $1.4 million, a 249% increase from $405,000 in the same period in 2023[70] - Gross profit for the nine months ended September 30, 2024, was $3.6 million, a 131% increase from $1.5 million in the same period in 2023[70] Cost of Goods Sold - Cost of goods sold for the three months ended September 30, 2024, increased by $2.4 million (38%) to $8.8 million compared to $6.4 million for the same period in 2023[70] - Cost of goods sold for the nine months ended September 30, 2024, increased by $5.4 million (28%) to $24.5 million compared to $19.2 million for the same period in 2023[70] Production and Expansion Plans - The company completed the transition of its Montana facility to commercial production in Q3 2024, aiming for positive adjusted EBITDA by Q2 2025[64] - The company plans to expand its production capacity and product offerings, including new varieties of fresh greens and herbs, through new facilities and acquisitions[63] - The company signed an offtake agreement with Sam's Club in October 2022 for leafy greens production, which runs through September 2028[62] - The company introduced new Grab & Go Salad Kits and expanded its product assortment with several high-velocity offerings in Q3 2024[66] Research and Development Expenses - Research and development expenses increased by $2.1 million for the three months ended September 30, 2024, compared to the same period in 2023, and by $3.0 million for the nine months ended September 30, 2024[80] Selling, General, and Administrative Expenses - Selling, general, and administrative expenses decreased by $2.1 million for the three months ended September 30, 2024, primarily due to a $1.6 million decrease in stock-based compensation expense[82] - Selling, general, and administrative expenses decreased by $16.4 million for the nine months ended September 30, 2024, mainly due to a $10.1 million decrease in stock-based compensation expense[83] Interest Expense - Interest expense, net increased by $11.2 million for the three months ended September 30, 2024, primarily due to a significant increase in the principal amount outstanding on the Senior Facility[86] - Interest expense, net increased by $22.5 million for the nine months ended September 30, 2024, mainly due to a $21.0 million increase in the principal amount outstanding on the Senior Facility[87] Financial Position - As of September 30, 2024, the company had an accumulated deficit of $387.0 million and cash and cash equivalents of $6.8 million[88] - Outstanding debt principal totaled $431.7 million as of September 30, 2024, with required quarterly principal payments beginning April 1, 2025[89] Cash Flow - Net cash used in operating activities was $28.3 million for the nine months ended September 30, 2024, primarily due to a net loss of $83.6 million[100] - Net cash used in investing activities was $72.6 million for the nine months ended September 30, 2024, due primarily to purchases for the Washington, Texas, and Georgia facilities[102] - The company plans to renegotiate credit facility terms to provide additional working capital and defer principal payments through November 30, 2025[92] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $90.8 million, primarily from $90.9 million of net proceeds from debt issuance[103] - In comparison, net cash provided by financing activities for the nine months ended September 30, 2023, was $136.6 million, which included $101.9 million from debt issuance and $35.0 million from a sale and leaseback transaction[103]
Local Bounti (LOCL) - 2024 Q3 - Quarterly Report