Laird Superfood Reports Third Quarter 2024 Financial Results

Record Net Sales of $11.8 million, growth of 28%. Gross Margin at 43.0%. Cash increased $0.4 million.

Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” the “Company”, “we”, and “our”), today reported financial results for the third quarter ended September 30, 2024.

Jason Vieth, Chief Executive Officer, commented, “I am pleased to report that Laird Superfood is once again among the fastest growing food companies in the US, with Net Sales increasing by over 28% in the third quarter of 2024. Year-to-date our 2024 Net Sales growth rate is nearly 27% and has been driven by positive growth across both e-commerce and wholesale channels, and across all of our core categories including Creamers, Coffee, and Hydration products. Even more impressive, we have done this while expanding our Gross Margin to more than 41% during 2024, which is also among best-in-class companies in the Food industry. We continue to see strong uptake among retailers nationwide, and the growth rate in our ecommerce business demonstrates our ability to maintain a leading position in omnichannel food sales.”

Vieth continued: “It is a clear trend that consumers continue to accelerate their focus on the impact of food ingredients to their own health and wellness, and I believe that Laird Superfood is now among the best positioned brands to support them on this journey.”

Third Quarter 2024 Highlights

• Net Sales of $11.8 million compared to $9.2 million in the corresponding prior year period and $10.0 million in the second quarter of 2024.

• E-commerce sales increased by 42% year-over-year and contributed 58% of total Net Sales, with significant improvements in media efficiency in this channel. Sales on Amazon.com increased by 133% year-over-year, building on the strong performance over the last two quarters as compared to the reduced prior year sales volume stemming from out-of-stock products caused by the quality event in 2023. Direct-to-Consumer (“DTC”) platform sales grew 10% year-over-year, driven by strong performance in both subscription revenue and repeat consumer purchases, higher average order value, and improved discount rates due to strategic shifts in our promotional strategies.

• Wholesale sales increased by 13% year-over-year and contributed 42% of total Net Sales, driven by growth in grocery due to velocity improvement and distribution expansion, as well as more efficient promotional spend.

• Gross Margin was 43.0% compared to 31.0% in the corresponding prior year period, and 41.8% in the second quarter of 2024. This margin expansion was driven by lower ingredient costs due to a shift to the direct procurement of key raw materials, settlement recoveries, as well as planned reductions in trade spend.

• Net Loss was $0.2 million, or $0.02 per diluted share, compared to Net Loss of $2.7 million, or $0.28 per diluted share, in the corresponding prior year period and Net Loss of $0.2 million, or $0.02 per diluted share, in the second quarter of 2024. The improvement was driven by Gross Margin expansion, as well as lower marketing, and general and administrative (G&A) costs.

• Adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, and non-recurring items (“Adjusted EBITDA”), which is a non-GAAP financial measure, was ($11.4) thousand, or $0.00 per diluted share, compared to ($2.5) million, or ($0.27) per diluted share, in the corresponding prior year period and ($41.8) thousand, or ($0.00) per diluted share, in the second quarter of 2024. This improvement was driven by significantly expanded Gross Margins and lower sales and marketing and G&A costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.

Year-to-Date 2024 Highlights

• Net Sales of $31.7 million compared to $25.0 million in the corresponding prior year period, representing 27% growth.

• E-commerce sales increased by 41% year-over-year and contributed 59% of total Net Sales, with significant improvements in media efficiency in this channel. Sales on Amazon.com and the DTC platform increased year-over-year by 85% and 22%, respectively, driven by growth in subscription revenue and repeat consumer purchases, as well as higher order values.

• Wholesale sales increased by 11% year-over-year and contributed 41% of total Net Sales, driven by velocity improvement and distribution expansion in grocery, as well as more efficient promotional spend.

• Gross Margin was 41.7% compared to 26.4% in the corresponding prior year period. This margin expansion was driven by the full realization of the cost savings resulting from our transition to a variable cost third-party co-manufacturing business model, lower ingredient costs due to a shift to the direct procurement of key raw materials, as well as planned reductions in trade spend.

• Net Loss was $1.4 million, or $0.14 per diluted share, compared to Net Loss of $10.3 million, or $1.11 per diluted share, in the corresponding prior year period. The improvement was driven by Gross Margin expansion, and lower marketing, and G&A costs.

• Adjusted EBITDA was ($0.8) million, or ($0.08) per diluted share, compared to ($9.2) million, or ($0.99) per diluted share, in the corresponding prior year period. This improvement was driven by significantly expanded Gross Margins and lower marketing and G&A costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.

Revenue Disaggregation

 

 

Three Months Ended September 30,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

Coffee creamers

 

$

6,273,157

 

 

 

53

%

 

$

5,804,273

 

 

 

63

%

Coffee, tea, and hot chocolate products

 

 

3,298,363

 

 

 

28

%

 

 

1,981,731

 

 

 

22

%

Hydration and beverage enhancing supplements

 

 

2,520,402

 

 

 

21

%

 

 

1,726,512

 

 

 

19

%

Harvest snacks and other food items

 

 

1,558,611

 

 

 

13

%

 

 

1,747,908

 

 

 

19

%

Other

 

 

75,339

 

 

 

1

%

 

 

132,284

 

 

 

1

%

Gross sales

 

 

13,725,872

 

 

 

116

%

 

 

11,392,708

 

 

 

124

%

Shipping income

 

 

142,002

 

 

 

1

%

 

 

214,982

 

 

 

2

%

Discounts and promotional activity

 

 

(2,091,528

)

 

 

(17

)%

 

 

(2,427,909

)

 

 

(26

)%

Sales, net

 

$

11,776,346

 

 

 

100

%

 

$

9,179,781

 

 

 

100

%

 

 

Three Months Ended September 30,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

E-commerce

 

$

6,887,356

 

 

58

%

 

$

4,842,389

 

 

53

%

Wholesale

 

 

4,888,990

 

 

42

%

 

 

4,337,392

 

 

47

%

Sales, net

 

$

11,776,346

 

 

100

%

 

$

9,179,781

 

 

100

%

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

Coffee creamers

 

$

16,540,456

 

 

 

52

%

 

$

15,583,969

 

 

 

62

%

Coffee, tea, and hot chocolate products

 

 

7,977,157

 

 

 

25

%

 

 

5,894,632

 

 

 

24

%

Hydration and beverage enhancing supplements

 

 

6,855,274

 

 

 

22

%

 

 

3,395,671

 

 

 

14

%

Harvest snacks and other food items

 

 

4,546,448

 

 

 

14

%

 

 

5,350,252

 

 

 

21

%

Other

 

 

289,261

 

 

 

1

%

 

 

286,965

 

 

 

1

%

Gross sales

 

 

36,208,596

 

 

 

114

%

 

 

30,511,489

 

 

 

122

%

Shipping income

 

 

373,832

 

 

 

1

%

 

 

778,051

 

 

 

3

%

Discounts and promotional activity

 

 

(4,893,490

)

 

 

(15

)%

 

 

(6,272,730

)

 

 

(25

)%

Sales, net

 

$

31,688,938

 

 

 

100

%

 

$

25,016,810

 

 

 

100

%

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

E-commerce

 

$

18,854,020

 

 

59

%

 

$

13,409,443

 

 

54

%

Wholesale

 

 

12,834,918

 

 

41

%

 

 

11,607,367

 

 

46

%

Sales, net

 

$

31,688,938

 

 

100

%

 

$

25,016,810

 

 

100

%

Balance Sheet and Cash Flow Highlights

We had $8.2 million of cash, cash equivalents, and restricted cash as of September 30, 2024, and no outstanding debt.

Cash provided by operating activities was $0.5 million for the nine months of 2024, compared to cash used in operating activities of $10.9 million in the same period in 2023. The improvement in cash used relative to the corresponding prior year period was driven by Gross Margin expansion and significant reductions in marketing and G&A costs. Cash increased by $0.4 million in the third quarter of 2024, marking the second consecutive quarter of positive cash flow.

2024 Outlook

Based on the year-to-date 2024 results and management's best assessment of the environment today, we are raising the guidance for the full year 2024:

• Net Sales are expected to be in the range of approximately $43 to $44 million, representing growth of 26% to 29% compared to 2023.
• Gross Margin is expected to expand to approximately 41% to 42%, representing an 11 to 12-point improvement compared to 2023.

2025 Outlook

In 2025, management strategy is to drive growth well in excess of consumer goods and food industry averages:

• Net Sales are expected to grow between 20 to 25%, driven by continued expansion across Wholesale accounts and further penetration of consumers on ecommerce platforms.
• Management intends to maintain slightly positive EBITDA and Cash Flow during 2025, investing incremental margin back into the business to strategically drive topline growth initiatives.

Conference Call and Webcast Details

We will host a conference call and webcast at 5:00 p.m. ET today to discuss our financial results. Participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events”. The webcast will be archived on the Company's website and will be available for replay for at least two weeks.

About Laird Superfood

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are clean, delicious, and functional. Our products are designed to enhance a consumer's daily ritual and keep them fueled naturally throughout the day. Laird Superfood was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested and made with real ingredients. Shop all products online at www.lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

Forward-Looking Statements

This press release and the conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s anticipated cash runway, future financial performance, and growth. Such forward-looking statements may be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "outlook," "plans," "potential," predicts," "projects," "seeks," "should," "will," "would", or the antonyms of these terms or other comparable terminology. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The risks and uncertainties referred to above include, but are not limited to: (1) the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels; (2) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (3) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (5) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (6) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (7) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (8) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (9) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and food service customers, as well as the health of the food service industry generally; (10) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (11) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements, including our ability to continue as a going concern; (12) the costs and success of our marketing efforts, and our ability to promote our brand; (13) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (14) our ability to effectively manage our growth; (15) our ability to compete effectively with existing competitors and new market entrants; (16) the impact of adverse economic conditions; (17) the growth rates of the markets in which we compete, and (18) the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings we make with the Securities and Exchange Commission.

LAIRD SUPERFOOD, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Sales, net

 

$

11,776,346

 

 

$

9,179,781

 

 

$

31,688,938

 

 

$

25,016,810

 

Cost of goods sold

 

 

(6,712,214

)

 

 

(6,332,624

)

 

 

(18,483,424

)

 

 

(18,419,709

)

Gross profit

 

 

5,064,132

 

 

 

2,847,157

 

 

 

13,205,514

 

 

 

6,597,101

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

 

1,247,066

 

 

 

937,198

 

 

 

3,145,282

 

 

 

3,342,913

 

Other general and administrative

 

 

1,377,628

 

 

 

1,311,138

 

 

 

3,785,332

 

 

 

4,686,234

 

Total general and administrative expenses

 

 

2,624,694

 

 

 

2,248,336

 

 

 

6,930,614

 

 

 

8,029,147

 

Sales and marketing

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and advertising

 

 

1,579,763

 

 

 

2,320,752

 

 

 

5,016,446

 

 

 

6,505,099

 

Selling

 

 

1,057,800

 

 

 

990,437

 

 

 

2,757,695

 

 

 

2,565,271

 

Related party marketing agreements

 

 

70,465

 

 

 

74,701

 

 

 

196,532

 

 

 

242,740

 

Total sales and marketing expenses

 

 

2,708,028

 

 

 

3,385,890

 

 

 

7,970,673

 

 

 

9,313,110

 

Total operating expenses

 

 

5,332,722

 

 

 

5,634,226

 

 

 

14,901,287

 

 

 

17,342,257

 

Operating loss

 

 

(268,590

)

 

 

(2,787,069

)

 

 

(1,695,773

)

 

 

(10,745,156

)

Other income

 

 

107,891

 

 

 

132,185

 

 

 

321,957

 

 

 

452,288

 

Loss before income taxes

 

 

(160,699

)

 

 

(2,654,884

)

 

 

(1,373,816

)

 

 

(10,292,868

)

Income tax expense

 

 

(5,421

)

 

 

—

 

 

 

(47,902

)

 

 

(13,172

)

Net loss

 

$

(166,120

)

 

$

(2,654,884

)

 

$

(1,421,718

)

 

$

(10,306,040

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.02

)

 

$

(0.28

)

 

$

(0.14

)

 

$

(1.11

)

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted

 

 

10,256,802

 

 

 

9,337,789

 

 

 

9,831,927

 

 

 

9,279,541

 

LAIRD SUPERFOOD, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(1,421,718

)

 

$

(10,306,040

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

204,419

 

 

 

235,025

 

Stock-based compensation

 

 

1,073,698

 

 

 

818,647

 

Provision for inventory obsolescence

 

 

560,519

 

 

 

1,260,580

 

Allowance for credit losses

 

 

54,607

 

 

 

245,700

 

Noncash lease costs

 

 

114,254

 

 

 

114,254

 

Other operating activities, net

 

 

—

 

 

 

38,098

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(839,991

)

 

 

(937,876

)

Inventory

 

 

(393,402

)

 

 

(1,958,157

)

Prepaid expenses and other current assets

 

 

113,083

 

 

 

1,061,879

 

Operating lease liability

 

 

(97,520

)

 

 

(94,679

)

Accounts payable

 

 

50,377

 

 

 

810,908

 

Accrued expenses

 

 

1,107,932

 

 

 

(2,217,484

)

Net cash from operating activities

 

 

526,258

 

 

 

(10,929,145

)

Cash flows from investing activities

 

 

(19,178

)

 

 

567,459

 

Cash flows from financing activities

 

 

(12,495

)

 

 

(23,066

)

Net change in cash and cash equivalents

 

 

494,585

 

 

 

(10,384,752

)

Cash, cash equivalents, and restricted cash, beginning of period

 

 

7,706,806

 

 

 

17,809,802

 

Cash, cash equivalents, and restricted cash, end of period

 

$

8,201,391

 

 

$

7,425,050

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

—

 

 

$

344,382

 

Supplemental disclosures of non-cash investing activities

 

 

 

 

 

 

Settlement recovery from business interruption claims included in other current assets

 

$

—

 

 

$

158,429

 

Receivable from sale of assets held-for-sale included in other current assets at the end of the period

 

$

—

 

 

$

126,268

 

LAIRD SUPERFOOD, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

As of

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

8,201,391

 

 

$

7,706,806

 

Accounts receivable, net

 

 

1,807,756

 

 

 

1,022,372

 

Inventory, net

 

 

6,155,442

 

 

 

6,322,559

 

Prepaid expenses and other current assets

 

 

1,172,481

 

 

 

1,285,564

 

Total current assets

 

 

17,337,070

 

 

 

16,337,301

 

Noncurrent assets

 

 

 

 

 

 

Property and equipment, net

 

 

81,408

 

 

 

122,595

 

Intangible assets, net

 

 

941,177

 

 

 

1,085,231

 

Related party license agreements

 

 

132,100

 

 

 

132,100

 

Right-of-use assets

 

 

258,490

 

 

 

354,732

 

Total noncurrent assets

 

 

1,413,175

 

 

 

1,694,658

 

Total assets

 

$

18,750,245

 

 

$

18,031,959

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

1,682,851

 

 

$

1,647,673

 

Accrued expenses

 

 

3,682,495

 

 

 

2,586,343

 

Related party liabilities

 

 

29,667

 

 

 

2,688

 

Lease liabilities, current portion

 

 

141,504

 

 

 

138,800

 

Total current liabilities

 

 

5,536,517

 

 

 

4,375,504

 

Lease liabilities

 

 

161,624

 

 

 

243,836

 

Total liabilities

 

 

5,698,141

 

 

 

4,619,340

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized at September 30, 2024 and December 31, 2023; 10,644,946 and 10,270,662 issued and outstanding at September 30, 2024, respectively; and 9,749,326 and 9,383,622 issued and outstanding at December 31, 2023, respectively.

 

 

10,271

 

 

 

9,384

 

Additional paid-in capital

 

 

120,761,700

 

 

 

119,701,384

 

Accumulated deficit

 

 

(107,719,867

)

 

 

(106,298,149

)

Total stockholders’ equity

 

 

13,052,104

 

 

 

13,412,619

 

Total liabilities and stockholders’ equity

 

$

18,750,245

 

 

$

18,031,959

 

LAIRD SUPERFOOD, INC. NON-GAAP FINANCIAL MEASURES (unaudited)

In this press release, we report Adjusted EBITDA and Adjusted EBITDA per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss), adjusted to exclude: (1) interest expense and other (income) loss, (2) income tax (benefit) expense, (3) depreciation and amortization expenses, (4) stock-based compensation, (5) expenses related to a product quality issue, (6) costs incurred as part of the strategic downsizing of the Company’s operations, and (7) rebranding costs. The Company believes Adjusted EBITDA is useful to investors because it facilitates comparisons of its core business operations, excluding non-cash costs and non-recurring events, across periods on a consistent basis.

Management uses Adjusted EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest expense; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including Net Sales, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure stated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Net loss

 

$

(166,120

)

 

$

(2,654,884

)

 

$

(1,421,718

)

 

$

(10,306,040

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

65,840

 

 

 

71,493

 

 

 

204,419

 

 

 

235,025

 

Stock-based compensation

 

 

540,425

 

 

 

364,937

 

 

 

1,073,698

 

 

 

818,648

 

Income tax expense

 

 

5,421

 

 

 

—

 

 

 

47,902

 

 

 

13,172

 

Interest expense and other (income) expense, net

 

 

(107,891

)

 

 

(132,185

)

 

 

(321,957

)

 

 

(452,288

)

Product quality issue (a)

 

 

(349,115

)

 

 

(140,019

)

 

 

(384,329

)

 

 

351,842

 

Strategic organizational shifts (b)

 

 

—

 

 

 

5,342

 

 

 

—

 

 

 

(55,348

)

Company-wide rebranding costs (c)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

163,806

 

Adjusted EBITDA

 

$

(11,440

)

 

$

(2,485,316

)

 

$

(801,985

)

 

$

(9,231,183

)

Net loss per share, diluted:

 

$

(0.02

)

 

$

(0.28

)

 

$

(0.14

)

 

$

(1.11

)

Adjusted EBITDA per share, diluted:

 

$

(0.00

)

 

$

(0.27

)

 

$

(0.08

)

 

$

(0.99

)

Weighted-average shares of common stock outstanding used in computing adjusted EBITDA per share of common stock, diluted

 

 

10,256,802

 

 

 

9,337,789

 

 

 

9,831,927

 

 

 

9,279,541

 

(a) In January 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We previously incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. We reached settlement with a supplier in the third quarter of 2023 and recorded recoveries in 2024.

(b) Costs incurred and recovered during the three and nine months ended September 30, 2023, as part of the strategic downsizing of our operations, including severances, forfeitures of stock-based compensation, and other personnel costs, IT integration costs, and freight costs to move inventory to third-party facilities.

(c) Costs incurred as part of the company-wide rebranding efforts that launched in Q1 2023.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106654172/en/

Investor Relations Contact Trevor Rousseau [e-mail]