Financial Performance - Third quarter net sales reached $7.7 million, a 45% increase from $5.3 million in Q2 2024[2] - Gross margin improved to 17%, more than doubling from 8% in Q2 2024, and non-GAAP gross margin reached 23%[2] - Gross profit for the third quarter was $1.3 million, more than tripling from $0.4 million in Q2 2024[2] - The company reported a net loss of $(4.8) million, an improvement from a net loss of $(6.3) million in Q2 2024[4] - Net loss for the nine months ended September 30, 2024, was $19.56 million, a slight improvement from a net loss of $20.82 million in the same period of 2023, representing a 6.1% decrease in losses[29] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(1.96) million, compared to $(3.70) million in the same period of 2023, indicating a 47% improvement[33] - Cash used in operating activities for the nine months ended September 30, 2024, was $14.27 million, down from $16.06 million in the same period of 2023, reflecting a 11.1% reduction[29] - Cash flows from investing activities decreased significantly to $1.71 million for the nine months ended September 30, 2024, compared to $3.52 million in the same period of 2023, a reduction of 51.3%[29] - The company reported a net cash provided by financing activities of $9.08 million for the nine months ended September 30, 2024, down from $23.40 million in the same period of 2023, a decline of 61.3%[29] - Total non-recurring expenses for the nine months ended September 30, 2024, amounted to $11.96 million, compared to $8.64 million in the same period of 2023, an increase of 38.5%[33] Product Development and Expansion - The Chef Woo and Woodles product lines accounted for approximately 39% of third quarter revenue[2] - Borealis expanded its retail presence to over 23,000 locations in the US and Canada following new Walmart partnerships[2] - Full-scale shipments of Woodles to schools began in Q3, with further expansion expected in Q4 2024 and into 2025[2] - The company plans to introduce new ramen flavors developed by Gordon Ramsay, enhancing its product differentiation[3] - Borealis aims for sequential sales growth in Q4 2024, driven by seasonal demand and product rollouts[3] - The company is focused on expanding its product offerings and enhancing technological capabilities through strategic partnerships with national and international food producers[35] - Borealis Foods aims to disrupt the ready-to-eat meal and dry soup categories by offering premium and super-premium nutritious products, leveraging its innovative fusion flavors[34] Future Outlook - Anticipated sales expansion is expected to drive improving operating cash flow to support future growth[4] - The company anticipates future growth and market opportunities, although actual results may differ due to various risks and uncertainties[36][38] - Borealis Foods has U.S.-based production facilities, reflecting its commitment to quality, innovation, and sustainability in food manufacturing[34]
Oxus Acquisition (OXUS) - 2024 Q3 - Quarterly Results