Barfresh(US:BRFH)2021-08-12 03:11Financial Data and Key Metrics Changes - Revenue for Q2 2021 increased 157% to $1.3 million compared to $506,000 for the same period last year, and increased approximately 30% compared to $1 million in Q1 2021 [6] - Gross margins for Q2 2021 were 43% compared to 23% for the same period last year and 34% in Q1 2021 [7] - Net loss for Q2 2021 improved to $297,000 compared to a net loss of $1.2 million in Q2 2020 [8] - Adjusted EBITDA for Q2 2021 decreased to a loss of $386,000 compared to a loss of approximately $900,000 for the same period last year [10] - As of June 30, 2021, the company had approximately $7 million in cash and $1 million in inventory, compared to $1.9 million in cash and $0.87 million in inventory as of December 31, 2020 [8] Business Line Data and Key Metrics Changes - Increased orders for Twist & Go products in the school channel contributed to revenue growth [6] - Gradual returning sales of single serve and bulk products were noted, although bulk customers have been slower to recover due to COVID-19 [11] Market Data and Key Metrics Changes - The company expects continued revenue improvement in the second half of 2021 as schools reopen and single serve customers return [11] - The military and recreation sectors have been the most affected by the pandemic, impacting the recovery of bulk customers [11] Company Strategy and Development Direction - The company aims to double the number of school locations serving its products in the coming year, supported by new regulations and increased demand for healthy food options [12][14] - The company is focusing on expanding its presence in the education channel and maintaining relationships with large restaurant chains and QSRs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in the second half of 2021 despite industry-wide supply shortages and COVID-19 impacts [11] - The company has made significant changes to improve its cost structure and is positioned for record revenue growth [15] Other Important Information - The company completed a private placement of approximately $6 million in common stock and eliminated all prior convertible debt [9] - The first PPP loan of $568,000 was forgiven, and a second PPP loan is expected to be forgiven, leading to a debt-free status [9][15] Q&A Session Summary Question: Changes in California and Maine regarding school demand - Management noted an increase in demand from schools due to new regulations, with some schools increasing order frequency [17] Question: Update on Twist & Go products in grocery - Management stated that they are working on getting Twist & Go into grocery but no specific updates were provided [18] Question: Current number of schools using Twist & Go and WHIRLZ products - Management did not provide a specific number but mentioned they are now looking at school districts [19] Question: Budget considerations for schools - Management clarified that budget changes are dealt with at the district level, influenced by state regulations [20] Question: Pipeline status with QSRs - Management acknowledged delays due to COVID but confirmed ongoing conversations in the pipeline [21][22]