Laird Superfood(US:LSF)2025-05-07 20:42Financial Performance - The net loss for the three months ended March 31, 2025, was $156,182, compared to a net loss of $1,016,522 for the same period in 2024, resulting in a basic and diluted loss per share of $0.02[77]. - Adjusted EBITDA for Q1 2025 was $356,912, compared to a negative $748,757 in Q1 2024, indicating improved operational performance[96]. - The company reported a consolidated net loss of $156,182 for Q1 2025, significantly improved from a loss of $1,016,522 in Q1 2024[96]. Revenue and Sales - Gross sales for the three months ended March 31, 2025, were $13,542,133, an increase from $11,196,930 in the same period of 2024, with net sales of $11,654,159[88]. - E-commerce revenue for Q1 2025 was $6,213,116, accounting for 53% of total sales, compared to $5,868,337 (59%) in Q1 2024[90]. - Wholesale revenue increased to $5,441,043 (47% of total sales) in Q1 2025 from $4,040,601 (41%) in Q1 2024[90]. - Total net sales for Q1 2025 reached $11,654,159, a 17.7% increase from $9,908,938 in Q1 2024[90]. - Coffee creamers accounted for 58% of total sales in Q1 2025, generating $6,712,651, compared to 56% and $5,570,321 in Q1 2024[88]. Inventory and Assets - Total inventory increased to $9,511,964 as of March 31, 2025, compared to $5,975,676 as of December 31, 2024, reflecting a growth of approximately 59.5%[35]. - The company recorded inventory obsolescence and disposal costs of $101,715 for the three months ended March 31, 2025, compared to $43,204 for the same period in 2024, indicating an increase of approximately 135.5%[38]. - The company had total inventory reserves of $512,751 as of March 31, 2025, compared to $425,792 as of December 31, 2024, indicating an increase of approximately 20.4%[39]. - Total intangible assets decreased to $983,168 as of March 31, 2025, from $1,028,223 as of December 31, 2024, reflecting a decline of approximately 4.4%[43]. Cash and Expenses - As of March 31, 2025, total cash, cash equivalents, and restricted cash amounted to $7,163,362, a decrease from $8,514,152 as of December 31, 2024, representing a decline of approximately 15.9%[33]. - Accrued expenses rose to $4,691,904 as of March 31, 2025, up from $3,642,998 as of December 31, 2024, marking an increase of approximately 28.8%[47]. - The company reported depreciation expense of $21,466 for the three months ended March 31, 2025, compared to $19,714 for the same period in 2024, which is an increase of approximately 8.9%[41]. - The company incurred $66,521 in depreciation and amortization expenses in Q1 2025, slightly down from $71,435 in Q1 2024[96]. - The company’s operating lease expense for the three months ended March 31, 2025, was $116,809, compared to $107,879 for the same period in 2024, representing an increase of approximately 8.9%[49]. Tax and Deferred Assets - The company reported an income tax benefit at statutory rates of $20,511 for the three months ended March 31, 2025, compared to $205,289 for the same period in 2024, resulting in an effective tax rate of 8.8%[52]. - The total net deferred tax assets as of March 31, 2025, were $0, with a valuation allowance of $26,379,645 against deferred tax assets[52]. - The company has total net operating losses (NOLs) of $146,334,753 as of March 31, 2025, compared to $145,553,779 as of December 31, 2024[55]. Stock and Compensation - The total intrinsic value of options that vested during the three months ended March 31, 2025, was $844,561, while the total intrinsic value of options exercised was $118,010[64]. - The total fair value of outstanding restricted stock units (RSUs) as of March 31, 2025, was $5,939,602, based on a closing price of $6.15[68]. - The company had 1,265,041 authorized shares available for issuance under the stock incentive plan as of March 31, 2025[63]. - Total stock-based compensation for the three months ended March 31, 2025, was $508,410, with unrecognized compensation cost related to non-vested awards amounting to $3,575,861[75]. - Stock-based compensation expenses increased to $508,410 in Q1 2025 from $279,565 in Q1 2024[96]. Customer and Vendor Concentration - The company had a concentration of customer accounts receivable, with Customer A representing 40% and Customer B 29% of total trade accounts receivable as of March 31, 2025[79]. - The concentration of vendor accounts payable balances in excess of 10% of total accounts payable was 50% as of March 31, 2025, compared to 42% as of December 31, 2024[78]. Other Information - The average remaining vesting period for stock options as of March 31, 2025, was 2.61 years, while for RSUs, it was 3.44 years[75]. - The company did not grant any stock options or RSUs during the three months ended March 31, 2025[68]. - No Market-Based Stock Units (MSUs) were outstanding during the three months ended March 31, 2025, and the total vest date market value of MSUs vested during the three months ended March 31, 2024, was $260,000[72]. - The company does not have intra-entity sales or transfers, focusing solely on domestic product sales in its superfood segment[93].