Laird Superfood(US:LSF)2025-11-10 21:45Financial Position - As of September 30, 2025, the company had $5.3 million in cash, a decrease from $8.5 million as of December 31, 2024, with cash used in operating activities amounting to $2.9 million during the nine months ended September 30, 2025[28][35]. - The company expects cash balances to normalize and increase by the end of the 2025 fiscal year as it sells down forward-purchased inventory[28]. - The company believes existing cash balances and anticipated cash flow from operations will be sufficient to finance operations for at least the next twelve months[29]. - As of September 30, 2025, total accrued expenses amounted to $3,253,740, a decrease of 10.7% from $3,642,998 as of December 31, 2024[51]. - The company had access to $1.3 million of advances under its $2.0 million factoring agreement, none of which had been utilized as of the report date[29]. Inventory Management - Inventory increased to $10.0 million as of September 30, 2025, up from $6.0 million as of December 31, 2024, driven by strategic investments to meet higher product demand and address out-of-stocks[28][39]. - The company recorded inventory obsolescence and disposal costs of $113,209 and $515,147 for the three and nine months ended September 30, 2025, respectively, compared to $372,617 and $560,519 for the same periods in 2024[42]. - Total inventory reserves as of September 30, 2025, were $464,036, an increase from $425,792 as of December 31, 2024[43]. Operating Performance - For the three months ended September 30, 2025, net sales reached $12,895,662, a 9.5% increase from $11,776,346 in the same period of 2024[96]. - For the nine months ended September 30, 2025, net sales totaled $36,540,663, a 15.5% increase from $31,688,938 in the same period of 2024[98]. - The gross sales for the nine months ended September 30, 2025, were $41,967,085, reflecting a 15.5% increase from $36,208,596 in 2024[98]. - The company reported a net loss of $975,066 for the three months ended September 30, 2025, compared to a net loss of $166,120 in Q3 2024[106]. - Adjusted EBITDA for Q3 2025 was $165,108, a significant improvement from an adjusted EBITDA of $(11,440) in Q3 2024[106]. Expenses and Losses - Amortization expense for the three and nine months ended September 30, 2025, was $34,975 and $115,020, respectively, compared to $45,055 and $144,054 for the same periods in 2024[48]. - The Company reported a net operating loss (NOL) of $149,245,519 as of September 30, 2025, up from $145,553,779 as of December 31, 2024[60]. - The company recognized advertising expenses of $92,084 and $239,257 for the three and nine months ended September 30, 2025, respectively[93]. Tax and Deferred Assets - The effective tax rate for the nine months ended September 30, 2025, was 1.9%, compared to 3.5% for the same period in 2024[57]. - As of September 30, 2025, the Company had total deferred tax assets of $26,358,497, with a full valuation allowance recorded against these assets[57]. - The Company recorded a provision for state income taxes of approximately $14,730 as of September 30, 2025[57]. Stock and Compensation - The total intrinsic value of options that vested during the nine months ended September 30, 2025, was $1,295,897, compared to $602,559 for the same period in 2024[71]. - The Company had 1,497,428 stock options outstanding as of September 30, 2025, with a weighted average exercise price of $3.70[69]. - The total fair value of RSUs granted during the nine months ended September 30, 2025 was $674,789, compared to $3,699,693 for the same period in 2024, indicating a significant decrease of approximately 82%[75]. - The total vest-date market value of RSUs that vested during the nine months ended September 30, 2025 was $2,303,947, up from $987,128 in 2024, representing an increase of about 133%[75]. - The Company recorded stock-based compensation expense of $439,450 for the three months ended September 30, 2025, and $1,436,436 for the nine months ended September 30, 2025[82]. Customer and Vendor Concentration - The concentration of customer accounts receivable from Customer A was 32% as of September 30, 2025, down from 43% in December 2024[85]. - The total concentration of vendor accounts payable balances was 47% as of September 30, 2025, compared to 42% in December 2024[85]. Lease Obligations - Future minimum lease payments for the next three years total $191,846, with operating lease liabilities of $179,152 as of September 30, 2025[53].