Barfresh(US:BRFH)2024-08-14 21:40Financial Data and Key Metrics Changes - Revenue for Q2 2024 decreased by 3% to $1.46 million compared to $1.51 million in Q2 2023, but excluding adjustments related to a manufacturer dispute, revenue increased by 6% year-over-year [13] - Gross margin for Q2 2024 was 34.8%, up from 31.4% in Q2 2023, attributed to product mix, pricing actions, and slight improvements in supply chain costs [13] - Net loss for Q2 2024 was $1 million, compared to a net loss of $742,000 in Q2 2023, primarily due to stock-based compensation and management team enhancements [15] Business Line Data and Key Metrics Changes - The company has expanded its product line and production capacity, with a 400% increase in manufacturing capacity, allowing for the production of over 120 million units annually [10] - The introduction of the new Pop & Go product line is expected to significantly increase sales volume, particularly in school lunch menus [9] Market Data and Key Metrics Changes - The company has announced over 3,100 new custom locations in the education sector, serving over 2.2 million students [8] - The sales broker network now covers 95% of the country, enhancing market reach [7] Company Strategy and Development Direction - The company is focused on long-term growth through infrastructure investments, product line expansion, and enhancing its management team [6][12] - Strategic partnerships for manufacturing are aimed at diversifying the production footprint and mitigating risks [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record quarterly revenue in Q3 and positive adjusted EBITDA in the second half of the year [6][20] - The company is well-positioned for growth with a strong product portfolio and increased operational capacity [20] Other Important Information - The company secured a $1.5 million receivables financing facility to support inventory funding and has received non-recourse litigation financing [17] - Adjusted EBITDA for Q2 2024 was a loss of approximately $682,000, compared to a loss of $617,000 in the prior year [15] Q&A Session Summary Question: What have you been seeing in the non-education channels in the second quarter? - Management noted that summer sales were flat compared to last year, with a focus on the education channel expected to increase next year [21] Question: What is the hiring outlook for the sales team? - Management indicated that the sales team is fully staffed with the recent hire of the VP of Sales and plans to expand outreach to other channels beyond education [22]