Financial Performance - Total net sales for the year ended December 31, 2024, were $43,295,137, representing a 26.4% increase from $34,224,198 in 2023[267] - Gross profit for 2024 was $17,687,581, compared to $10,313,277 in 2023, indicating a significant improvement in profitability[267] - The operating loss decreased to $2,173,092 in 2024 from $10,698,986 in 2023, reflecting better cost management[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a substantial reduction from the net loss of $10,163,117 in 2023[267] - The company reported a basic and diluted net loss per share of $0.18 for 2024, compared to $1.09 for 2023, showing improved performance on a per-share basis[267] - Net loss for the year ended December 31, 2024, was $1,820,161, a significant improvement from a net loss of $10,163,117 in 2023, representing an 82.1% reduction[273] - Net cash from operating activities for 2024 was $865,502, compared to a net cash outflow of $10,765,881 in 2023, indicating a positive cash flow turnaround[273] Assets and Liabilities - Cash and cash equivalents increased to $8,514,152 as of December 31, 2024, up from $7,706,806 in 2023[264] - Total assets grew to $19,259,001 in 2024, compared to $18,031,959 in 2023, indicating overall growth in the company's financial position[264] - Total liabilities increased to $6,062,135 in 2024 from $4,619,340 in 2023, primarily due to higher accounts payable and accrued expenses[264] - Stockholders' equity decreased slightly to $13,196,866 in 2024 from $13,412,619 in 2023, driven by the net loss incurred during the year[264] Expenses - Research and product development expenses decreased to $114,144 in 2024 from $219,723 in 2023, reflecting a 48% reduction[295] - Marketing and advertising costs were $6,735,672 in 2024, down from $7,886,031 in 2023, a decrease of approximately 14.6%[296] - Shipping and handling costs totaled $5,189,469 in 2024, a slight decrease from $5,223,257 in 2023, reflecting a 0.6% reduction[294] - The company reported cash paid for interest of $16,027 in 2024, compared to $13,994 in 2023, indicating a 14.5% increase[273] - The company recognized a total of $63,852 in cash paid for income taxes in 2024, up from $17,625 in 2023, representing a significant increase of 262.5%[273] - The total rent expense for the year ended December 31, 2024, was $479,617, down from $519,498 in 2023, indicating a decrease of approximately 8%[332] Inventory and Provisions - The company’s inventory provision for obsolescence was $599,902 in 2024, down from $1,273,171 in 2023, marking a decrease of 53%[273] - Inventory decreased to $5,975,676 in 2024 from $6,322,559 in 2023, a reduction of about 5.5%, with costs related to obsolete inventory recorded at $599,902 in 2024 compared to $1,273,171 in 2023[312] - As of December 31, 2024, the company had total inventory reserves of $425,792, a significant decrease from $1,029,657 in 2023, primarily due to improved inventory management[313] Stock and Compensation - The Company reported accrued expenses of $3,642,998 for the year ended December 31, 2024, compared to $2,586,343 in 2023, representing an increase of approximately 41%[326] - Total stock-based compensation for 2024 is $1,637,788, with an unrecognized compensation cost of $4,084,270 and a weighted average remaining vesting period of 3.42 years[357] - The total intrinsic value of options exercised in the year ended December 31, 2024, was $596,943, while no options were exercised in the year ended December 31, 2023[348] - The total fair value of outstanding RSUs as of December 31, 2024, was $8,790,124, based on the last market close price of $7.88[354] - The total vest date fair value of RSUs vested was $1,135,692 in the year ended December 31, 2024, compared to $158,349 in 2023[354] Revenue Sources - E-commerce sales represented 59% of total net sales in 2024, amounting to $25,642,366, while wholesale sales accounted for 41% at $17,652,771[367] - Coffee creamers generated $23,088,363 in sales, making up 53% of total sales in 2024, while hydration and beverage enhancing products contributed $9,207,964, or 21%[367] Tax and Deferred Assets - The effective tax rate for the Company was 3.4% for the year ended December 31, 2024, compared to 0.1% in 2023[335] - The Company recorded a total deferred tax asset of $26,264,674 as of December 31, 2024, with a full valuation allowance against these assets[337] Audit and Compliance - The company has been audited by Moss Adams LLP since 2018, ensuring compliance with PCAOB standards[262] Segment Performance - The CODM evaluates segment performance based on consolidated net income, which is crucial for resource allocation[373] - All expense categories in the consolidated statements of operations are significant, indicating no other major segment expenses require disclosure[373] - The CODM utilizes consolidated net income to compare operating performance against prior results and competitors[373] - Future operating and capital expenditures are allocated based on the insights derived from consolidated net income assessments[373] - Segment assets are reported as total assets on the consolidated balance sheets, reflecting the overall financial health of the company[373]
Laird Superfood(LSF) - 2024 Q4 - Annual Report