Local Bounti (US:LOCL)2025-11-14 21:01Financial Performance - Sales increased by $2.0 million (19%) for the three months ended September 30, 2025, and by $7.8 million (28%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by increased production and sales from new facilities[94] - The company achieved a gross profit of $1.4 million for the three months ended September 30, 2025, and $4.3 million for the nine months ended September 30, 2025, representing increases of 22% compared to the prior year[94] - The net loss for the three months ended September 30, 2025, was $26.4 million, a decrease of 23% from a net loss of $34.3 million in the same period in 2024[94] Operating Expenses - Operating expenses totaled $19.6 million for the three months ended September 30, 2025, and $53.7 million for the nine months ended September 30, 2025, reflecting an increase of 1% and 17% respectively compared to the same periods in 2024[94] - Cost of goods sold increased by $2.0 million for the three months ended September 30, 2025, and by $7.1 million for the nine months ended September 30, 2025, primarily due to production ramp-up at new facilities[99] - Research and development costs rose by $0.4 million for the three months ended September 30, 2025, and by $5.0 million for the nine months ended September 30, 2025, driven by the development of production and post-harvest packaging techniques[101] - Sales and marketing costs increased by $0.5 million for the three months ended September 30, 2025, and by $1.1 million for the nine months ended September 30, 2025, mainly due to higher transportation and delivery costs[104] - General and administrative expenses increased by $1.9 million for the nine months ended September 30, 2025, primarily due to a $3.7 million impairment charge related to Pete's trade name[107] Cash Flow and Financing - Net cash used in operating activities was $27.2 million for the nine months ended September 30, 2025, due to a net loss of $85.7 million[125] - Cash and cash equivalents at the end of the period increased to $12.7 million from $6.8 million at the end of the previous year[124] - Future aggregate financing obligation payments total $138.7 million, with significant payments due in the years 2026 to 2029[123] - Net cash provided by financing activities was $44.5 million for the nine months ended September 30, 2025, including $21.4 million from the issuance of Series A Preferred Stock[129] Facility and Production Updates - The Texas facility reached full harvestable capacity in early August 2025 after a reconfiguration to produce both head lettuce and cut products[87] - The company expects yield increases of more than 10% following planned tower upgrades, with optimization completion anticipated in the fourth quarter of 2025[88] - The company operates six facilities, with the latest expansions completed in Washington and Texas, enhancing its production capacity[84] Agreements and Product Offerings - The company signed an offtake agreement with Sam's Club in October 2022 for leafy greens production, which runs through September 2028[85] - The company expanded its product offerings with new Grab & Go Salads and a family-sized 10oz Romano Caesar Salad Kit launched in October 2025[92][93] Interest and Debt - Interest expense, net decreased by $13.8 million for the three months ended September 30, 2025, and by $12.4 million for the nine months ended September 30, 2025, due to a decrease in the principal amount outstanding under the Senior Facility[110][111] - The principal amount due under the credit facility with Cargill Financial totaled $302.0 million as of September 30, 2025[113]