Financial Performance - Commodity sales for Q3 2025 were $272,000, a significant decline from $200.9 million in Q3 2024, indicating a drop of approximately 99.9% year-over-year[308] - Gross loss for Q3 2025 was $6.34 million compared to a gross profit of $7.66 million in Q3 2024, reflecting a negative swing of approximately 182.8%[308] - Net loss for Q3 2025 was $15.26 million, compared to a net income of $1.09 million in Q3 2024, representing a year-over-year decline of approximately 1,500%[321] - EBITDA for Q3 2025 was $(14.35) million, a decrease from $2.86 million in Q3 2024, marking a decline of approximately 600%[321] - Commodity sales decreased to $0.3 million for the three months ended September 30, 2025, from $200.9 million in the same period of 2024, representing a decline of $200.6 million or 99.9%[326] - Gross loss totaled $6.3 million for the three months ended September 30, 2025, compared to a gross profit of $7.7 million for the same period in 2024, a decrease of $14.0 million or 182.8%[325] - Net loss attributable to Sadot Group Inc. was $15.2 million for the three months ended September 30, 2025, compared to a net income of $1.2 million in the same period of 2024, a change of $16.4 million or 1406.0%[322] - Net loss attributable to Sadot Group Inc. was $13.9 million in 2025, compared to a net income of $3.3 million in 2024, a change of $17.1 million or 524.2%[335] - Total other income/expense, net for 2025 was a loss of $3.1 million, compared to a loss of $0.3 million in 2024, an increase in loss of 1098.1%[345] Expenses and Costs - Sales, general and administrative expenses increased to $7.39 million in Q3 2025 from $3.42 million in Q3 2024, reflecting an increase of approximately 116.5%[308] - Cost of goods sold decreased to $6.6 million in Q3 2025 from $193.2 million in Q3 2024, a reduction of $186.6 million or 96.6%[328] - Sales, general and administrative expenses increased to $7.4 million in Q3 2025 from $3.4 million in Q3 2024, an increase of $4.0 million or 115.8%[331] - Stock-based expenses decreased to $0.6 million in Q3 2025 from $1.7 million in Q3 2024, a decrease of $1.1 million or 65.9%[330] - Depreciation and amortization expenses decreased to $22.0 thousand in Q3 2025 from $49.0 thousand in Q3 2024, a decrease of $27.0 thousand or 55.1%[329] - Stock-based expenses decreased by $2.0 million, from $4.4 million in 2024 to $2.4 million in 2025, a reduction of 45.1%[343] - Depreciation and amortization expenses decreased by 67.2%, from $0.2 million in 2024 to $0.1 million in 2025[342] Financial Position and Liquidity - Total assets as of September 30, 2025, were $72.96 million, down from $171.03 million as of September 30, 2024[333] - Working capital decreased to $(1.5) million in 2025 from $20.5 million in 2024, indicating a significant decline in liquidity[348] - Current ratio fell from 1.16 in 2024 to 0.97 in 2025, reflecting a decrease in the company's short-term financial health[348] - The working capital deficit was $1.5 million, a decrease of $22.0 million compared to a surplus of $20.5 million on December 31, 2024[352] - Net cash used in operating activities from continuing operations was $7.2 million for the nine months ended September 30, 2025, compared to a net cash provided of $1.4 million for the same period in 2024[359] - The company experienced a net loss of $14.2 million for the nine months ended September 30, 2025[359] - Current ratio decreased to 0.97 from 1.16 on December 31, 2024, indicating a decline in liquidity[352] Management and Strategic Actions - The company is experiencing significant trading difficulties, including capital constraints and legal disputes, which are impacting its business model and may lead to asset impairments in Q4 2025[309] - Sadot Group's management is actively assessing alternatives to address the current financial situation, with all options being evaluated[305] - Management is actively managing collections and negotiating repayment arrangements to support liquidity requirements[354] - There is substantial doubt about the company's ability to continue as a going concern within one year after the issuance of the financial statements[357] - The company may need to raise additional capital, which could result in significant dilution to existing shareholders[356] Business Transformation - Sadot Group is undergoing a transformation from a U.S.-centric restaurant business to a global Agri-Foods supply chain organization[304] - The company has a majority-owned subsidiary operating a 5,000-acre farm in Zambia, focusing on major commodities and high-value crops[305] Financing Activities - Net cash provided by financing activities from continuing operations was $6.1 million, consisting of proceeds from notes payable of $12.1 million and common stock issuance of $2.4 million[361] - The company increased its borrowing by $1.3 million during Q3 2025 to cover collection delays[353]
Sadot (SDOT) - 2025 Q3 - Quarterly Report