Reduction in Operating Expenses Led to Decrease in Operating Loss
Key Financial Highlights for the Three Months Ended June 30, 2023
- Revenue of
$1.7 million - RAS revenues increased to
$0.5 million - Gross profit of
$0.1 million - Operating loss of
$1.1 million - Net loss of
$1.5 million (included$0.4 million of non-cash loss on settlement of stock, amortization of debt note and one-time non-recurring expenses) - Adjusted EBITDA loss of
$0.7 million - Inventory and RAS biomass of
$3.2 million atJune 30, 2023
Key Financial Highlights for the Six Months Ended
- Revenue of
$3.6 million - RAS revenues increased to
$1.1 million - Gross profit of
$0.4 million - Operating loss of
$2.0 million - Net loss of
$3.4 million (included$1.5 million of non-cash loss on settlement of stock, amortization of debt note and one-time non-recurring expenses) - Adjusted EBITDA loss of
$0.5 million
Business Highlights for the Three Months Ended June 30, 2023
- Regained compliance with NASDAQ minimum bid price requirement
- Granted option to purchase land for RAS expansion in
South Carolina - Strengthened balance sheet by paying off
$5 million asset based line of credit to zero - Entered into a supply agreement for
$1 million annually with Bloomin’ Brands - Included in two most prominent sustainability reporting standards
- Ramped shipments to Just Food For Dogs under its supply agreement for up to
$4 million annually
Management Commentary
Financial Results for the Three Months Ended June 30, 2023
- Revenue for the three months ended
June 30, 2023 , decreased by$1.3 million , or 44%, to$1.7 million compared to$3.0 million for the three months endedJune 30, 2022 . The decrease in revenue was primarily due to a decrease in poundage sold during the three months endedJune 30, 2023 . - Gross profit for the three months ended
June 30, 2023 , decreased by$0.3 million , or 76%, to$0.1 million compared to$0.3 million for the three months endedJune 30, 2022 . This decrease is attributable to a decrease in revenue. The resulting gross margin was 4.9%, compared with 11.4% for the three months endedJune 30, 2022 . - Operating loss for the three months ended
June 30, 2023 , decreased by$0.1 million , or 5%, to$1.1 million , compared to$1.1 million for the three months endedJune 30, 2022 . Operating loss for the three months endedJune 30, 2023 included non-cash or one-time non-recurring operating expenses of$0.4 million , comprised of non-cash items of$0.03 million in depreciation and amortization,$0.3 million of loss on settlement of stock,$0.2 million accrued portion of convertible debt and$0.03 million in non-cash stock compensation. - Net loss for the three months
June 30, 2023 , increased by$0.0 million , or 1%, to$1.5 million , compared to$1.4 million for the three months endedJune 30, 2022 . The increase in net loss is primarily attributable to increases of loss on settlement of debt. - Adjusted EBITDA loss for the three months ended
June 30, 2023 , decreased by$0.3 million , or 30% to$0.7 million , compared to$1.0 million for the three months endedJune 30, 2022 .
Financial Results for the Six Months Ended June 30, 2023
- Revenue for the six months ended
June 30, 2023 , decreased by$4.7 million , or 57%, to$3.6 million compared to$8.3 million for the six months endedJune 30, 2022 . The decrease in revenue was primarily due to a decrease in poundage sold during the six months endedJune 30, 2023 . - Gross profit for the six months ended
June 30, 2023 , decreased by$0.5 million , or 56%, to$0.4 million compared to$0.8 million for the six months endedJune 30, 2022 . This decrease is attributable to a decrease in revenue. The resulting gross margin was 10.3%, compared with 10.0% for the six months endedJune 30, 2022 . - Operating loss for the six months ended
June 30, 2023 , increased by$0.0 million , or 2%, to$2.0 million , compared to$2.0 million for the six months endedJune 30, 2022 . Operating loss for the six months endedJune 30, 2023 included non-cash or one-time non-recurring operating expenses of$1.5 million , comprised of non-cash items of$0.03 million in depreciation and amortization,$0.83 million of loss on settlement of stock,$0.5 million accrued portion of convertible debt and$0.08 million in non-cash stock compensation. - Net loss for the six months
June 30, 2023 , increased by$0.9 million , or 37%, to$3.4 million , compared to$2.5 million for the six months endedJune 30, 2022 . The increase in net loss is primarily attributable to increases of loss on settlement of debt and interest expense related to Lind notes amortization. - Adjusted EBITDA loss for the six months ended
June 30, 2023 , decreased by$0.8 million , or 62% to$0.5 million , compared to$1.3 million for the six months endedJune 30, 2022 .
About
Forward-Looking Statements:
The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Risks concerning the Company’s business are described in detail in the Company’s Annual Report on Form 10-K for the year ended
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Investors@bluestarfoods.com
Source:
2023 GlobeNewswire, Inc., source