Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39537 Laird Superfood, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 81-1589788 (State or other jurisdiction of incorp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Title of each class | Symbol | on which registered | | --- | --- | --- | | Common Stock | Trading LSF | Name of each exchange NYSE American | Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the pr ...

Financial Performance - Net sales increased to $9.3 million for Q1 2022, up 26% from $7.4 million in Q1 2021, driven by expansion in online and wholesale channels [163]. - Gross profit rose to $1.95 million in Q1 2022, a 6% increase from $1.84 million in Q1 2021, with a gross margin of 20.9% compared to 24.8% in the prior year [185]. - The cost of goods sold increased to $7.39 million in Q1 2022, up 33% from $5.56 million in Q1 2021, primarily due to sales growth and inflationary pressures [184]. - The wholesale business accounted for 41% of net sales in Q1 2022, up from 39% in Q1 2021, addressing the $800 billion grocery industry [166]. - New product launches contributed $2.5 million in sales during Q1 2022, including items like Activate Immune Support and Aloha Plant Milk [183]. - Operating loss widened to $13.95 million in Q1 2022, compared to a loss of $5.34 million in Q1 2021, reflecting increased expenses [183]. - As of March 31, 2022, accumulated net losses totaled $69.9 million, including operating losses of $14.0 million for Q1 2022 [190]. Expenses - General and administrative expenses surged to $11.83 million in Q1 2022, a 225% increase from $3.64 million in Q1 2021 [183]. - General and administrative expenses increased to $11.8 million in Q1 2022 from $3.6 million in Q1 2021, a rise of 225% primarily due to impairment of goodwill and intangible assets [187]. - Research and product development expenses decreased to $0.1 million in Q1 2022 from $0.2 million in Q1 2021, a decline of 57% due to costs incurred in Q1 2021 that were not repeated [188]. - Sales and marketing expenses rose to $4.0 million in Q1 2022 from $3.3 million in Q1 2021, an increase of 20% driven by advertising and marketing fees [188]. - Other income (expense) shifted to $(179.3) thousand in Q1 2022 from $13.9 thousand in Q1 2021, a decrease of 1390% primarily due to realized losses on the sale of available-for-sale securities [189]. - Impairment charges for goodwill were $6.5 million in Q1 2022, compared to $0 in Q1 2021 [208]. Cash Flow - Cash flows from operating activities were $(3.6) million for Q1 2022, an improvement from $(5.1) million in Q1 2021 [196]. - Cash provided by investing activities was $7.8 million for Q1 2022, compared to cash used of $(0.2) million in Q1 2021, primarily due to proceeds from the sale of investments [197]. - Cash provided by financing activities was $14.2 thousand for Q1 2022, compared to $(0.1) million used in Q1 2021 [198]. - As of March 31, 2022, the company had $27.3 million in cash-on-hand and $19.7 million available under lines of credit [192]. Business Strategy - The company estimates its products are in approximately 8,000 retail locations, with a long-term potential exceeding 20,000 locations in the U.S. [166]. - The online business represented 58% of net sales in Q1 2022, slightly down from 59% in Q1 2021, highlighting the importance of direct-to-consumer channels [165]. - The company aims to expand its product line to reduce risks and enhance growth opportunities through diversification [174].

Financial Performance - Net sales increased to $10.9 million for Q3 2021, a growth of 45% from $7.5 million in Q3 2020, driven by expansion in online channels and product offerings [182]. - Gross profit for Q3 2021 was $3.2 million, representing an 82% increase from $1.8 million in Q3 2020, with a gross margin improvement to 29.4% from 23.4% [205]. - The company reported a net loss of $5.4 million for Q3 2021, a 60% increase from a net loss of $3.4 million in Q3 2020 [205]. - Net sales for the nine months ended September 30, 2021, reached $27.4 million, up 48% from $18.5 million in the same period in 2020, attributed to growth in online and wholesale channels [214]. - Gross profit increased to $3.2 million in Q3 2021 from $1.8 million in Q3 2020, representing an 82% increase, with gross margins rising to 29.4% from 23.4% [209]. Cost and Expenses - Cost of goods sold rose to $7.7 million in Q3 2021, a 34% increase from $5.7 million in Q3 2020, primarily due to sales growth and increased shipping and personnel costs [208]. - Total operating expenses for Q3 2021 were $8.5 million, a 66% increase from $5.1 million in Q3 2020, largely driven by higher general and administrative and marketing expenses [205]. - Total operating expenses rose to $8.5 million in Q3 2021 from $5.1 million in Q3 2020, a 66% increase, driven by a 92% increase in general and administrative expenses to $4.3 million [210]. - Cost of goods sold increased to $20.2 million in YTD 2021 from $13.4 million in YTD 2020, a 51% increase, primarily due to sales growth and elevated shipping costs [215]. - Research and product development expenses increased to $0.9 million in YTD 2021 from $0.4 million in YTD 2020, a 136% increase, reflecting costs to bring new products to market [218]. Cash Flow and Financial Position - Cash flows from operating activities were $(14.2) million for YTD 2021, compared to $(7.1) million for YTD 2020, indicating a 101% increase in cash used [224]. - Cash used in investing activities was $(12.1) million for YTD 2021, a significant change from cash provided of $4.1 million in YTD 2020, primarily due to the acquisition of Picky Bars [226]. - As of September 30, 2021, the company had $39.7 million in cash and investments, down from $65.9 million as of December 31, 2020 [222]. - The company expects to incur additional operating losses as it continues to grow and may require additional capital resources to support its operations [223]. - The company has incurred accumulated net losses of $48.9 million as of September 30, 2021, including operating losses of $16.9 million for YTD 2021 [220]. Business Strategy and Market Position - The online business accounted for 58% of net sales in Q3 2021, up from 50% in Q3 2020, indicating a strong growth in direct-to-consumer sales [184]. - The wholesale revenue comprised 41% of net sales in Q3 2021, down from 49% in Q3 2020, reflecting a shift towards online sales channels [185]. - The acquisition of Picky Bars contributed $3.5 million to gross sales in Q3 2021, enhancing the product portfolio [207]. - The company aims to expand its product line significantly to reduce product-specific risks and enhance growth opportunities [195]. Accounting and Compliance - The company recognizes revenue under ASC 606, which involves a five-step model for revenue recognition based on customer control of goods or services [230]. - Compensation costs for share-based payment transactions are recognized based on the grant date fair value and are calculated over the employees' service period [231]. - The company recorded a full deferred tax valuation allowance due to its historical net loss position as of September 30, 2021, and December 31, 2020 [232]. - There are no off-balance sheet arrangements currently or during the periods presented [233]. - The company has elected to delay the adoption of new or revised accounting standards as an emerging growth company, allowing for an extended transition period [236]. - Revenue is reported net of provisions for discounts, returns, and allowances, with estimates based on historical data and sales returns [230]. - The company may be subject to interest and penalties from taxing authorities on underpayment of income taxes, which are included in income tax expense [232]. - The company has a stock incentive plan where compensation costs are recognized over the vesting period of stock awards [231]. - The company has not provided quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company [237].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39537 Laird Superfood, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 81-1589788 (State or other jurisdiction of incorporati ...