RiceBran Technologies(RIBT) - 2023 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2023, were $9,269,000, a decrease of 12.2% compared to $10,559,000 for the same period in 2022[11] - Gross profit for Q1 2023 was a loss of $282,000, compared to a profit of $502,000 in Q1 2022, indicating a significant decline in profitability[11] - Operating loss increased to $2,013,000 in Q1 2023 from $1,190,000 in Q1 2022, reflecting ongoing challenges in cost management[11] - Net loss for the three months ended March 31, 2023, was $2,028,000, compared to a net loss of $1,516,000 in the same period last year, representing a 33.7% increase in losses[11] - Cash flow from operating activities was a net outflow of $62,000 for Q1 2023, a decline from a net inflow of $190,000 in Q1 2022[15] Assets and Liabilities - Cash and cash equivalents decreased to $3,412,000 as of March 31, 2023, down from $3,941,000 at the end of 2022[13] - Total current assets decreased to $10,300,000 as of March 31, 2023, compared to $11,068,000 at December 31, 2022[13] - Total liabilities increased to $15,346,000 as of March 31, 2023, from $14,524,000 at the end of 2022, indicating a rise in financial obligations[13] - Long-term debt as of March 31, 2023, totaled $2,344,000, slightly up from $2,292,000 as of December 31, 2022[52] - The company had an average borrowing of $2,771,000 during the three months ended March 31, 2023, with interest paid as a percentage of average outstanding borrowings at 2.2%[48] Equity and Stock - The company reported a basic loss per share of $0.31 for Q1 2023, compared to a loss of $0.29 per share in Q1 2022[11] - The weighted average number of common shares outstanding increased to 6,337,031 in Q1 2023 from 5,166,491 in Q1 2022, reflecting a 22.6% increase in shares[68] - The company had 277,479 restricted stock units (RSUs) nonvested as of March 31, 2023, down from 366,818 RSUs at the end of 2022, indicating a reduction of 24.3%[61] - As of March 31, 2023, the company had 320,813 vested RSUs, which is an increase from 224,725 vested RSUs at the end of 2022, representing a 42.6% increase[61] Inventory and Receivables - Total inventories increased to $2.562 million as of March 31, 2023, from $2.378 million as of December 31, 2022, reflecting a growth of approximately 7.7%[35] - Accounts receivable from significant customers accounted for 17% and 10% of revenue for the three months ended March 31, 2023, compared to 11% and 5% for the same period in 2022[32] Other Income and Expenses - The company recognized share-based compensation expense of $300,000 for the three months ended March 31, 2023, compared to $241,000 for the same period in 2022, which is a 24.5% increase[60] - The company received $0.3 million in restitution payments from a former employee, contributing to other income in Q1 2023[77] - Other income for the three months ended March 31, 2023, includes a $0.3 million gain from collecting the restitution payment[77] Business Operations - The company continues to focus on developing specialty ingredients derived from rice bran, with ongoing production at multiple facilities across the U.S.[21] - The company continues to focus on developing and marketing products derived from rice bran, addressing consumer demand for natural and non-GMO products[21] Legal and Compliance - The company is involved in litigation related to employment, patent claims, and alleged non-compliance with contract provisions, but management believes these will not materially affect financial position or results[76]