Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Laird Superfood Reports Third Quarter 2021 Financial Results By: Laird Superfood, Inc. via Business Wire November 10, 2021 at 16:05 PM EST Net Sales Increase 45% Year Over Year to $10.9 Million Direct-To-Consumer Sales Up 108% Year Over Year Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” “we” and “our”), today reported financial results for its third quarter ended September 30, 2021. Third Quarter 2021 Highlights Net Sales increased 45% year over year to $10.9 million. Online sales contributed 58% of net sales, increasing 70% year over year with direct-to-consumer up 108%. Wholesale sales contributed 41% of net sales, increasing 21% year over year, with continued traction in coffee creamers. Gross profit was $3.2 million and gross margin was 29.4% compared to gross profit of $1.8 million and gross margin of 23.4% in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, compared to a net loss of $4.0 million, or $0.86 per diluted share, in the prior year period. “In the third quarter, we delivered solid growth across our portfolio,” said Paul Hodge Jr., Co-Founder, President and Chief Executive Officer of Laird Superfood. “The power of our digitally native brand continued to be reflected in our direct-to-consumer sales, which rose 108%, fueled by our expanding product offerings and the ongoing strength of customer metrics around conversion and retention, including leading performance from the newest cohorts. Our new products in hydration and beverage supplements continue to grow at a strong pace, and we remain highly encouraged by results from the recently acquired Picky portfolio,” continued Hodge. “Operationally, we are hyper focused on efficiency and have made solid progress on several initiatives to move towards profitability as we continue rapidly scaling our powerful omnichannel platform. We remain steadfast in our vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual.” For the Three Months Ended September 30, 2021 Three months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 6,489,895 60 % $ 5,261,175 70 % Hydration and beverage enhancing supplements 1,330,906 12 % 1,037,517 14 % Coffee, tea, and hot chocolate products 1,724,919 16 % 2,153,702 29 % Harvest snacks and other food items 1,866,709 17 % — 0 % Other 452,002 4 % 159,906 2 % Gross sales 11,864,431 109 % 8,612,300 115 % Shipping income 195,085 2 % 25,737 0 % Returns and discounts (1,193,602 ) (11 %) (1,147,395 ) (15 %) Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Three months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 6,331,003 58 % $ 3,713,773 50 % Wholesale 4,415,867 41 % 3,650,854 49 % Food service 119,044 1 % 126,015 1 % Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Net sales increased 45% to $10.9 million in the third quarter of 2021 compared to $7.5 million in the third quarter of 2020, primarily driven by strong gains in direct-to-consumer (“DTC”) sales. Growth was broad based, including solid increases in Coffee creamers and Hydration and beverage enhancing supplements from both legacy offerings as well as recent product launches, plus the addition of Harvest Snacks. Gross profit was $3.2 million, an 82% increase compared to the prior year period of $1.8 million. Gross margin was 29.4% of net sales in the third quarter of 2021, compared to 23.4% of net sales in the prior year period. The year over year increase in gross margin reflected several factors, including optimization of inventory cost and DTC parcel cost, as well as improvement in liquid creamer disposals, partially offset by elevated wholesale fulfilment related expenses. Operating expenses were $8.5 million compared to $5.1 million in the year ago period and reflect General and Administrative expense increases of $2.0 million, with $0.8 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased insurance expense, professional fees and personnel costs. Sales and Marketing expense further contributed with increases of $1.2 million, primarily due to advertising and marketing fees. Loss from operations was $5.3 million in the third quarter of 2021, compared to a loss of $3.4 million in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, in the third quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.86 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “Our continued focus on optimization helped drive favorable trends in margins and expense levels during the third quarter, along with robust sales growth. We are very pleased with the direction and progress towards our long-term targets. Our balance sheet remains strong with nearly $40 million of cash and investments and effectively zero debt, and we remain focused on maximizing the leverage across our business to continue driving forward toward profitability, while maintaining strong growth rates.” For the Nine Months Ended September 30, 2021 Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 16,590,542 60 % $ 13,285,967 72 % Hydration and beverage enhancing supplements 3,907,111 14 % 2,877,694 16 % Coffee, tea, and hot chocolate products 5,286,882 19 % 4,116,891 22 % Harvest snacks and other food items 3,353,178 12 % — 0 % Other 987,076 4 % 378,318 2 % Gross sales 30,124,789 110 % 20,658,870 112 % Shipping income 261,495 1 % 221,082 1 % Returns and discounts (2,942,890 ) (11 %) (2,381,455 ) (13 %) Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 16,492,513 60 % $ 10,049,039 54 % Wholesale 10,529,593 38 % 8,117,655 44 % Food service 421,288 2 % 331,803 2 % Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Net sales increased 48% to $27.4 million in the first nine months of 2021 compared to $18.5 million in the first nine months of 2020. Year-to-date growth in net sales was due to growth in both online and wholesale channels, and broad based with all categories showing strong double-digit increases. Gross profit was $7.2 million, an increase of 41% compared to the prior year period of $5.1 million. Gross margin was 26.3% of net sales in the first nine months of 2021, compared to 27.6% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to the full period impact from the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com combined with increased co-packing and distribution expenses associated with our liquid creamer product line, partially offset by optimization of DTC shipping costs. Operating expenses were $24.2 million compared to $13.5 million in the first nine months of 2020 and reflect General and Administrative expense increases of $6.4 million, with $2.4 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased personnel costs, insurance expense, professional fees, and reserves against prepaid assets. Sales and Marketing expense further contributed with increases of $3.7 million, primarily due to advertising and marketing fees. Loss from operations was $16.9 million in the first nine months of 2021, compared to a loss of $8.4 million in the prior year period. Net loss attributable to common stockholders was $17.0 million, or $1.90 per diluted share, in the first nine months of 2021, compared to net loss attributable to common stockholders of $10.0 million, or $2.26 per diluted share, in the prior year period. Balance Sheet and Cash Flow Highlights The Company had $39.7 million of cash, cash equivalents, and investment securities as of September 30, 2021 and total outstanding debt was $51,000. Net cash used in operating activities was $14.2 million for the nine months ended September 30, 2021, compared to $7.1 million in the comparative prior year period. Capital expenditures totaled $1.0 million for the nine months ended September 30, 2021, compared to $0.9 million in the prior year period. Conference Call and Webcast Details The Company will host a conference call and webcast at 5:00 p.m. ET today to discuss results. The live conference call can be accessed by dialing (833) 772-0381 from the U.S. or (236) 384-2050 internationally. The conference I.D. code is 3562448. Alternatively, participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events.” About Laird Superfood Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company's products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company 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 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 earnings 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 future financial performance, including our outlook for fiscal year 2021. 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) our limited operating history and ability to become profitable; (2) our reliance on third parties for raw materials and production of some of our products; (3) our ability to manage our growth and scale our manufacturing and processing capabilities effectively, including our human resource requirements; (4) our future capital needs; (5) our ability to retain and grow our customer base; (6) our reliance on independent distributors for a substantial portion of our sales; (7) our ability to evaluate and measure our business, prospects and performance metrics; (8) our ability to compete and succeed in a highly competitive and evolving industry; (9) the health of the premium organic and natural food industry as a whole; (10) risks related to our intellectual property rights and developing a strong brand; (11) our reliance on key personnel, including Laird Hamilton and Gabrielle Reece; (12) regulatory risks; (13) risks associated with the COVID-19 pandemic, including those related to any variant strains of the virus that may emerge; (14) risks related to our international operations; (15) the risk of substantial dilution from future issuances of our equity securities; and (16) the other risks described in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2021 2020 2021 2020 Sales, net $ 10,865,914 $ 7,490,642 $ 27,443,394 $ 18,498,497 Cost of goods sold (7,667,075 ) (5,734,144 ) (20,225,269 ) (13,384,880 ) Gross profit 3,198,839 1,756,498 7,218,125 5,113,617 General and administrative Salaries, wages and benefits 1,252,664 1,031,425 3,478,362 2,652,500 Stock-based compensation 911,467 290,148 2,766,071 589,600 Professional fees 551,368 274,244 1,504,438 647,422 Insurance expense 537,174 89,136 1,560,395 146,197 Office expense 235,109 142,269 628,388 364,518 Occupancy 68,251 57,378 187,729 167,151 Merchant service fees 171,050 103,306 429,307 248,355 Netsuite subscription expense 64,886 33,173 194,024 90,491 Impairment on property, plant, and equipment 8,317 — 8,317 239,734 Other expense 453,838 197,740 1,303,398 504,864 Total general and administrative expenses 4,254,124 2,218,819 12,060,429 5,650,832 Research and product development Salaries, wages and benefits 118,105 54,454 304,653 202,287 Stock-based compensation 7,864 2,310 16,816 6,694 Product development expense 107,418 43,589 520,210 141,506 Other expense 9,217 2,526 16,464 13,503 Total research and product development expenses 242,604 102,879 858,143 363,990 Sales and marketing Salaries, wages and benefits 589,941 613,961 1,854,020 2,057,517 Stock-based compensation 65,441 520,022 162,536 630,456 Advertising 1,954,377 1,140,369 5,313,881 3,146,592 General marketing 1,131,023 312,402 3,079,181 883,286 Amazon selling fee 196,053 179,425 609,171 575,313 Travel expense 11,828 4,908 32,188 78,872 Other expense 66,090 45,543 182,788 148,911 Total sales and marketing expenses 4,014,753 2,816,630 11,233,765 7,520,947 Total expenses 8,511,481 5,138,328 24,152,337 13,535,769 Operating loss (5,312,642 ) (3,381,830 ) (16,934,212 ) (8,422,152 ) Other income (expense) Interest and dividend income 10,721 20,496 36,246 51,521 Gain on sale of available-for-sale securities — 6,250 — 13,927 Total other income (expense) 10,721 26,746 36,246 65,448 Loss before income taxes (5,301,921 ) (3,355,084 ) (16,897,966 ) (8,356,704 ) Income tax expense (49,777 ) — (86,495 ) — Net loss $ (5,351,698 ) $ (3,355,084 ) $ (16,984,461 ) $ (8,356,704 ) Less deemed dividend of beneficial conversion feature — — — (825,366 ) Less deemed dividend on warrant discount — (645,939 ) — (825,366 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (5,351,698 ) $ (4,001,023 ) $ (16,984,461 ) $ (10,007,436 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Diluted $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 9,001,912 4,672,041 8,954,875 4,427,114 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Nine Months EndedSeptember 30, 2021 2020 Cash flows from operating activities Net loss $ (16,984,461 ) $ (8,356,704 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 454,400 344,162 Amortization 243,578 7,599 Loss on disposal of equipment 5,600 — Stock-based compensation 3,142,517 1,320,433 Reserve for prepaid assets 179,000 — Restricted stock awards — 62,431 Impairment on property, plant, and equipment 8,317 239,734 Gain on sale of investment securities available-for-sale — 13,927 Changes in operating assets and liabilities: Accounts receivable (72,150 ) (397,669 ) Inventory (3,314,086 ) (1,441,766 ) Prepaid expenses and other current assets 1,137,741 (1,582,315 ) Deferred rent 267,787 270,731 Deposits 2,601 33,009 Accounts payable 184,722 1,613,754 Payroll liabilities 81,694 207,675 Accrued expenses 333,246 567,103 Deferred taxes 86,495 — Net cash from operating activities (14,242,999 ) (7,097,896 ) Cash flows from investing activities Purchase of property, plant, and equipment (1,039,350 ) (874,764 ) Proceeds from sale of property, equipment, and software 700 — Deposits on equipment to be acquired (462,507 ) — Purchase of software (141,546 ) — Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) — Sale of investment securities available-for-sale — 516,459 Proceeds from maturities of investment securities available-for-sale — 4,475,000 Net cash from investing activities (12,092,290 ) 4,116,695 Cash flows from financing activities Issuance of common stock — 66,104,477 Issuance of preferred stock — 10,000,006 Common stock issuance costs (82,043 ) (1,131,291 ) Preferred stock issuance costs — (147,721 ) Withholding tax payments for share based compensation (219,157 ) — Restricted stock units issued 31 — Repurchased common stock — (20,532 ) Stock options exercised 485,916 119,838 Net cash from financing activities 184,747 74,924,777 Net change in cash and cash equivalents (26,150,542 ) 71,943,576 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 31,057,538 $ 72,947,685 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (22,049 ) $ 924 Purchases of equipment included in deposits at the beginning of the period $ — $ 14,699 LAIRD SUPERFOOD, INC. BALANCE SHEET As of September 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 31,057,538 $ 57,208,080 Accounts receivable, net 956,870 839,659 Investment securities available-for-sale 8,688,251 8,706,844 Inventory 10,335,990 6,295,898 Prepaid expenses and other current assets, net 1,767,744 2,847,319 Deposits 563,580 97,674 Total current assets 53,369,973 75,995,474 Noncurrent assets Property and equipment, net 4,139,199 3,513,488 Intangible assets, net 4,965,060 137,092 Goodwill 6,486,000 — Deferred rent 2,428,859 2,696,646 Total noncurrent assets 18,019,118 6,347,226 Total assets $ 71,389,091 $ 82,342,700 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 1,548,009 $ 1,315,964 Payroll liabilities 813,798 722,915 Accrued expenses 1,185,900 704,543 Total current liabilities 3,547,707 2,743,422 Long-term liabilities Deferred tax liability, net 86,495 — Note payable 51,000 51,000 Total long-term liabilities 137,495 51,000 Total liabilities 3,685,202 2,794,422 Stockholders’ equity Common stock, $0.001 par value, 100,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 9,402,959 and 9,037,499 issued and outstanding at September 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 9,037 $ 8,893 Additional paid-in capital 116,614,323 111,452,346 Accumulated other comprehensive income (loss) (7,842 ) 14,207 Accumulated deficit (48,911,629 ) (31,927,168 ) Total stockholders’ equity 67,703,889 79,548,278 Total liabilities and stockholders’ equity $ 71,389,091 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006126/en/Contacts ICR Reed Anderson 646-277-1260 Reed.Anderson@icrinc.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Laird Superfood Reports Third Quarter 2021 Financial Results By: Laird Superfood, Inc. via Business Wire November 10, 2021 at 16:05 PM EST Net Sales Increase 45% Year Over Year to $10.9 Million Direct-To-Consumer Sales Up 108% Year Over Year Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” “we” and “our”), today reported financial results for its third quarter ended September 30, 2021. Third Quarter 2021 Highlights Net Sales increased 45% year over year to $10.9 million. Online sales contributed 58% of net sales, increasing 70% year over year with direct-to-consumer up 108%. Wholesale sales contributed 41% of net sales, increasing 21% year over year, with continued traction in coffee creamers. Gross profit was $3.2 million and gross margin was 29.4% compared to gross profit of $1.8 million and gross margin of 23.4% in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, compared to a net loss of $4.0 million, or $0.86 per diluted share, in the prior year period. “In the third quarter, we delivered solid growth across our portfolio,” said Paul Hodge Jr., Co-Founder, President and Chief Executive Officer of Laird Superfood. “The power of our digitally native brand continued to be reflected in our direct-to-consumer sales, which rose 108%, fueled by our expanding product offerings and the ongoing strength of customer metrics around conversion and retention, including leading performance from the newest cohorts. Our new products in hydration and beverage supplements continue to grow at a strong pace, and we remain highly encouraged by results from the recently acquired Picky portfolio,” continued Hodge. “Operationally, we are hyper focused on efficiency and have made solid progress on several initiatives to move towards profitability as we continue rapidly scaling our powerful omnichannel platform. We remain steadfast in our vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual.” For the Three Months Ended September 30, 2021 Three months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 6,489,895 60 % $ 5,261,175 70 % Hydration and beverage enhancing supplements 1,330,906 12 % 1,037,517 14 % Coffee, tea, and hot chocolate products 1,724,919 16 % 2,153,702 29 % Harvest snacks and other food items 1,866,709 17 % — 0 % Other 452,002 4 % 159,906 2 % Gross sales 11,864,431 109 % 8,612,300 115 % Shipping income 195,085 2 % 25,737 0 % Returns and discounts (1,193,602 ) (11 %) (1,147,395 ) (15 %) Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Three months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 6,331,003 58 % $ 3,713,773 50 % Wholesale 4,415,867 41 % 3,650,854 49 % Food service 119,044 1 % 126,015 1 % Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Net sales increased 45% to $10.9 million in the third quarter of 2021 compared to $7.5 million in the third quarter of 2020, primarily driven by strong gains in direct-to-consumer (“DTC”) sales. Growth was broad based, including solid increases in Coffee creamers and Hydration and beverage enhancing supplements from both legacy offerings as well as recent product launches, plus the addition of Harvest Snacks. Gross profit was $3.2 million, an 82% increase compared to the prior year period of $1.8 million. Gross margin was 29.4% of net sales in the third quarter of 2021, compared to 23.4% of net sales in the prior year period. The year over year increase in gross margin reflected several factors, including optimization of inventory cost and DTC parcel cost, as well as improvement in liquid creamer disposals, partially offset by elevated wholesale fulfilment related expenses. Operating expenses were $8.5 million compared to $5.1 million in the year ago period and reflect General and Administrative expense increases of $2.0 million, with $0.8 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased insurance expense, professional fees and personnel costs. Sales and Marketing expense further contributed with increases of $1.2 million, primarily due to advertising and marketing fees. Loss from operations was $5.3 million in the third quarter of 2021, compared to a loss of $3.4 million in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, in the third quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.86 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “Our continued focus on optimization helped drive favorable trends in margins and expense levels during the third quarter, along with robust sales growth. We are very pleased with the direction and progress towards our long-term targets. Our balance sheet remains strong with nearly $40 million of cash and investments and effectively zero debt, and we remain focused on maximizing the leverage across our business to continue driving forward toward profitability, while maintaining strong growth rates.” For the Nine Months Ended September 30, 2021 Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 16,590,542 60 % $ 13,285,967 72 % Hydration and beverage enhancing supplements 3,907,111 14 % 2,877,694 16 % Coffee, tea, and hot chocolate products 5,286,882 19 % 4,116,891 22 % Harvest snacks and other food items 3,353,178 12 % — 0 % Other 987,076 4 % 378,318 2 % Gross sales 30,124,789 110 % 20,658,870 112 % Shipping income 261,495 1 % 221,082 1 % Returns and discounts (2,942,890 ) (11 %) (2,381,455 ) (13 %) Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 16,492,513 60 % $ 10,049,039 54 % Wholesale 10,529,593 38 % 8,117,655 44 % Food service 421,288 2 % 331,803 2 % Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Net sales increased 48% to $27.4 million in the first nine months of 2021 compared to $18.5 million in the first nine months of 2020. Year-to-date growth in net sales was due to growth in both online and wholesale channels, and broad based with all categories showing strong double-digit increases. Gross profit was $7.2 million, an increase of 41% compared to the prior year period of $5.1 million. Gross margin was 26.3% of net sales in the first nine months of 2021, compared to 27.6% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to the full period impact from the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com combined with increased co-packing and distribution expenses associated with our liquid creamer product line, partially offset by optimization of DTC shipping costs. Operating expenses were $24.2 million compared to $13.5 million in the first nine months of 2020 and reflect General and Administrative expense increases of $6.4 million, with $2.4 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased personnel costs, insurance expense, professional fees, and reserves against prepaid assets. Sales and Marketing expense further contributed with increases of $3.7 million, primarily due to advertising and marketing fees. Loss from operations was $16.9 million in the first nine months of 2021, compared to a loss of $8.4 million in the prior year period. Net loss attributable to common stockholders was $17.0 million, or $1.90 per diluted share, in the first nine months of 2021, compared to net loss attributable to common stockholders of $10.0 million, or $2.26 per diluted share, in the prior year period. Balance Sheet and Cash Flow Highlights The Company had $39.7 million of cash, cash equivalents, and investment securities as of September 30, 2021 and total outstanding debt was $51,000. Net cash used in operating activities was $14.2 million for the nine months ended September 30, 2021, compared to $7.1 million in the comparative prior year period. Capital expenditures totaled $1.0 million for the nine months ended September 30, 2021, compared to $0.9 million in the prior year period. Conference Call and Webcast Details The Company will host a conference call and webcast at 5:00 p.m. ET today to discuss results. The live conference call can be accessed by dialing (833) 772-0381 from the U.S. or (236) 384-2050 internationally. The conference I.D. code is 3562448. Alternatively, participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events.” About Laird Superfood Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company's products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company 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 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 earnings 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 future financial performance, including our outlook for fiscal year 2021. 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) our limited operating history and ability to become profitable; (2) our reliance on third parties for raw materials and production of some of our products; (3) our ability to manage our growth and scale our manufacturing and processing capabilities effectively, including our human resource requirements; (4) our future capital needs; (5) our ability to retain and grow our customer base; (6) our reliance on independent distributors for a substantial portion of our sales; (7) our ability to evaluate and measure our business, prospects and performance metrics; (8) our ability to compete and succeed in a highly competitive and evolving industry; (9) the health of the premium organic and natural food industry as a whole; (10) risks related to our intellectual property rights and developing a strong brand; (11) our reliance on key personnel, including Laird Hamilton and Gabrielle Reece; (12) regulatory risks; (13) risks associated with the COVID-19 pandemic, including those related to any variant strains of the virus that may emerge; (14) risks related to our international operations; (15) the risk of substantial dilution from future issuances of our equity securities; and (16) the other risks described in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2021 2020 2021 2020 Sales, net $ 10,865,914 $ 7,490,642 $ 27,443,394 $ 18,498,497 Cost of goods sold (7,667,075 ) (5,734,144 ) (20,225,269 ) (13,384,880 ) Gross profit 3,198,839 1,756,498 7,218,125 5,113,617 General and administrative Salaries, wages and benefits 1,252,664 1,031,425 3,478,362 2,652,500 Stock-based compensation 911,467 290,148 2,766,071 589,600 Professional fees 551,368 274,244 1,504,438 647,422 Insurance expense 537,174 89,136 1,560,395 146,197 Office expense 235,109 142,269 628,388 364,518 Occupancy 68,251 57,378 187,729 167,151 Merchant service fees 171,050 103,306 429,307 248,355 Netsuite subscription expense 64,886 33,173 194,024 90,491 Impairment on property, plant, and equipment 8,317 — 8,317 239,734 Other expense 453,838 197,740 1,303,398 504,864 Total general and administrative expenses 4,254,124 2,218,819 12,060,429 5,650,832 Research and product development Salaries, wages and benefits 118,105 54,454 304,653 202,287 Stock-based compensation 7,864 2,310 16,816 6,694 Product development expense 107,418 43,589 520,210 141,506 Other expense 9,217 2,526 16,464 13,503 Total research and product development expenses 242,604 102,879 858,143 363,990 Sales and marketing Salaries, wages and benefits 589,941 613,961 1,854,020 2,057,517 Stock-based compensation 65,441 520,022 162,536 630,456 Advertising 1,954,377 1,140,369 5,313,881 3,146,592 General marketing 1,131,023 312,402 3,079,181 883,286 Amazon selling fee 196,053 179,425 609,171 575,313 Travel expense 11,828 4,908 32,188 78,872 Other expense 66,090 45,543 182,788 148,911 Total sales and marketing expenses 4,014,753 2,816,630 11,233,765 7,520,947 Total expenses 8,511,481 5,138,328 24,152,337 13,535,769 Operating loss (5,312,642 ) (3,381,830 ) (16,934,212 ) (8,422,152 ) Other income (expense) Interest and dividend income 10,721 20,496 36,246 51,521 Gain on sale of available-for-sale securities — 6,250 — 13,927 Total other income (expense) 10,721 26,746 36,246 65,448 Loss before income taxes (5,301,921 ) (3,355,084 ) (16,897,966 ) (8,356,704 ) Income tax expense (49,777 ) — (86,495 ) — Net loss $ (5,351,698 ) $ (3,355,084 ) $ (16,984,461 ) $ (8,356,704 ) Less deemed dividend of beneficial conversion feature — — — (825,366 ) Less deemed dividend on warrant discount — (645,939 ) — (825,366 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (5,351,698 ) $ (4,001,023 ) $ (16,984,461 ) $ (10,007,436 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Diluted $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 9,001,912 4,672,041 8,954,875 4,427,114 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Nine Months EndedSeptember 30, 2021 2020 Cash flows from operating activities Net loss $ (16,984,461 ) $ (8,356,704 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 454,400 344,162 Amortization 243,578 7,599 Loss on disposal of equipment 5,600 — Stock-based compensation 3,142,517 1,320,433 Reserve for prepaid assets 179,000 — Restricted stock awards — 62,431 Impairment on property, plant, and equipment 8,317 239,734 Gain on sale of investment securities available-for-sale — 13,927 Changes in operating assets and liabilities: Accounts receivable (72,150 ) (397,669 ) Inventory (3,314,086 ) (1,441,766 ) Prepaid expenses and other current assets 1,137,741 (1,582,315 ) Deferred rent 267,787 270,731 Deposits 2,601 33,009 Accounts payable 184,722 1,613,754 Payroll liabilities 81,694 207,675 Accrued expenses 333,246 567,103 Deferred taxes 86,495 — Net cash from operating activities (14,242,999 ) (7,097,896 ) Cash flows from investing activities Purchase of property, plant, and equipment (1,039,350 ) (874,764 ) Proceeds from sale of property, equipment, and software 700 — Deposits on equipment to be acquired (462,507 ) — Purchase of software (141,546 ) — Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) — Sale of investment securities available-for-sale — 516,459 Proceeds from maturities of investment securities available-for-sale — 4,475,000 Net cash from investing activities (12,092,290 ) 4,116,695 Cash flows from financing activities Issuance of common stock — 66,104,477 Issuance of preferred stock — 10,000,006 Common stock issuance costs (82,043 ) (1,131,291 ) Preferred stock issuance costs — (147,721 ) Withholding tax payments for share based compensation (219,157 ) — Restricted stock units issued 31 — Repurchased common stock — (20,532 ) Stock options exercised 485,916 119,838 Net cash from financing activities 184,747 74,924,777 Net change in cash and cash equivalents (26,150,542 ) 71,943,576 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 31,057,538 $ 72,947,685 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (22,049 ) $ 924 Purchases of equipment included in deposits at the beginning of the period $ — $ 14,699 LAIRD SUPERFOOD, INC. BALANCE SHEET As of September 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 31,057,538 $ 57,208,080 Accounts receivable, net 956,870 839,659 Investment securities available-for-sale 8,688,251 8,706,844 Inventory 10,335,990 6,295,898 Prepaid expenses and other current assets, net 1,767,744 2,847,319 Deposits 563,580 97,674 Total current assets 53,369,973 75,995,474 Noncurrent assets Property and equipment, net 4,139,199 3,513,488 Intangible assets, net 4,965,060 137,092 Goodwill 6,486,000 — Deferred rent 2,428,859 2,696,646 Total noncurrent assets 18,019,118 6,347,226 Total assets $ 71,389,091 $ 82,342,700 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 1,548,009 $ 1,315,964 Payroll liabilities 813,798 722,915 Accrued expenses 1,185,900 704,543 Total current liabilities 3,547,707 2,743,422 Long-term liabilities Deferred tax liability, net 86,495 — Note payable 51,000 51,000 Total long-term liabilities 137,495 51,000 Total liabilities 3,685,202 2,794,422 Stockholders’ equity Common stock, $0.001 par value, 100,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 9,402,959 and 9,037,499 issued and outstanding at September 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 9,037 $ 8,893 Additional paid-in capital 116,614,323 111,452,346 Accumulated other comprehensive income (loss) (7,842 ) 14,207 Accumulated deficit (48,911,629 ) (31,927,168 ) Total stockholders’ equity 67,703,889 79,548,278 Total liabilities and stockholders’ equity $ 71,389,091 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006126/en/Contacts ICR Reed Anderson 646-277-1260 Reed.Anderson@icrinc.com
Net Sales Increase 45% Year Over Year to $10.9 Million Direct-To-Consumer Sales Up 108% Year Over Year
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” “we” and “our”), today reported financial results for its third quarter ended September 30, 2021. Third Quarter 2021 Highlights Net Sales increased 45% year over year to $10.9 million. Online sales contributed 58% of net sales, increasing 70% year over year with direct-to-consumer up 108%. Wholesale sales contributed 41% of net sales, increasing 21% year over year, with continued traction in coffee creamers. Gross profit was $3.2 million and gross margin was 29.4% compared to gross profit of $1.8 million and gross margin of 23.4% in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, compared to a net loss of $4.0 million, or $0.86 per diluted share, in the prior year period. “In the third quarter, we delivered solid growth across our portfolio,” said Paul Hodge Jr., Co-Founder, President and Chief Executive Officer of Laird Superfood. “The power of our digitally native brand continued to be reflected in our direct-to-consumer sales, which rose 108%, fueled by our expanding product offerings and the ongoing strength of customer metrics around conversion and retention, including leading performance from the newest cohorts. Our new products in hydration and beverage supplements continue to grow at a strong pace, and we remain highly encouraged by results from the recently acquired Picky portfolio,” continued Hodge. “Operationally, we are hyper focused on efficiency and have made solid progress on several initiatives to move towards profitability as we continue rapidly scaling our powerful omnichannel platform. We remain steadfast in our vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual.” For the Three Months Ended September 30, 2021 Three months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 6,489,895 60 % $ 5,261,175 70 % Hydration and beverage enhancing supplements 1,330,906 12 % 1,037,517 14 % Coffee, tea, and hot chocolate products 1,724,919 16 % 2,153,702 29 % Harvest snacks and other food items 1,866,709 17 % — 0 % Other 452,002 4 % 159,906 2 % Gross sales 11,864,431 109 % 8,612,300 115 % Shipping income 195,085 2 % 25,737 0 % Returns and discounts (1,193,602 ) (11 %) (1,147,395 ) (15 %) Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Three months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 6,331,003 58 % $ 3,713,773 50 % Wholesale 4,415,867 41 % 3,650,854 49 % Food service 119,044 1 % 126,015 1 % Sales, net $ 10,865,914 100 % $ 7,490,642 100 % Net sales increased 45% to $10.9 million in the third quarter of 2021 compared to $7.5 million in the third quarter of 2020, primarily driven by strong gains in direct-to-consumer (“DTC”) sales. Growth was broad based, including solid increases in Coffee creamers and Hydration and beverage enhancing supplements from both legacy offerings as well as recent product launches, plus the addition of Harvest Snacks. Gross profit was $3.2 million, an 82% increase compared to the prior year period of $1.8 million. Gross margin was 29.4% of net sales in the third quarter of 2021, compared to 23.4% of net sales in the prior year period. The year over year increase in gross margin reflected several factors, including optimization of inventory cost and DTC parcel cost, as well as improvement in liquid creamer disposals, partially offset by elevated wholesale fulfilment related expenses. Operating expenses were $8.5 million compared to $5.1 million in the year ago period and reflect General and Administrative expense increases of $2.0 million, with $0.8 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased insurance expense, professional fees and personnel costs. Sales and Marketing expense further contributed with increases of $1.2 million, primarily due to advertising and marketing fees. Loss from operations was $5.3 million in the third quarter of 2021, compared to a loss of $3.4 million in the prior year period. Net loss attributable to common stockholders was $5.4 million, or $0.59 per diluted share, in the third quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.86 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “Our continued focus on optimization helped drive favorable trends in margins and expense levels during the third quarter, along with robust sales growth. We are very pleased with the direction and progress towards our long-term targets. Our balance sheet remains strong with nearly $40 million of cash and investments and effectively zero debt, and we remain focused on maximizing the leverage across our business to continue driving forward toward profitability, while maintaining strong growth rates.” For the Nine Months Ended September 30, 2021 Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 16,590,542 60 % $ 13,285,967 72 % Hydration and beverage enhancing supplements 3,907,111 14 % 2,877,694 16 % Coffee, tea, and hot chocolate products 5,286,882 19 % 4,116,891 22 % Harvest snacks and other food items 3,353,178 12 % — 0 % Other 987,076 4 % 378,318 2 % Gross sales 30,124,789 110 % 20,658,870 112 % Shipping income 261,495 1 % 221,082 1 % Returns and discounts (2,942,890 ) (11 %) (2,381,455 ) (13 %) Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Nine months ended September 30, 2021 2020 $ % of Total $ % of Total Online $ 16,492,513 60 % $ 10,049,039 54 % Wholesale 10,529,593 38 % 8,117,655 44 % Food service 421,288 2 % 331,803 2 % Sales, net $ 27,443,394 100 % $ 18,498,497 100 % Net sales increased 48% to $27.4 million in the first nine months of 2021 compared to $18.5 million in the first nine months of 2020. Year-to-date growth in net sales was due to growth in both online and wholesale channels, and broad based with all categories showing strong double-digit increases. Gross profit was $7.2 million, an increase of 41% compared to the prior year period of $5.1 million. Gross margin was 26.3% of net sales in the first nine months of 2021, compared to 27.6% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to the full period impact from the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com combined with increased co-packing and distribution expenses associated with our liquid creamer product line, partially offset by optimization of DTC shipping costs. Operating expenses were $24.2 million compared to $13.5 million in the first nine months of 2020 and reflect General and Administrative expense increases of $6.4 million, with $2.4 million attributable to increased non-cash expenses, such as stock-based compensation and amortization of intangibles, as well as increased personnel costs, insurance expense, professional fees, and reserves against prepaid assets. Sales and Marketing expense further contributed with increases of $3.7 million, primarily due to advertising and marketing fees. Loss from operations was $16.9 million in the first nine months of 2021, compared to a loss of $8.4 million in the prior year period. Net loss attributable to common stockholders was $17.0 million, or $1.90 per diluted share, in the first nine months of 2021, compared to net loss attributable to common stockholders of $10.0 million, or $2.26 per diluted share, in the prior year period. Balance Sheet and Cash Flow Highlights The Company had $39.7 million of cash, cash equivalents, and investment securities as of September 30, 2021 and total outstanding debt was $51,000. Net cash used in operating activities was $14.2 million for the nine months ended September 30, 2021, compared to $7.1 million in the comparative prior year period. Capital expenditures totaled $1.0 million for the nine months ended September 30, 2021, compared to $0.9 million in the prior year period. Conference Call and Webcast Details The Company will host a conference call and webcast at 5:00 p.m. ET today to discuss results. The live conference call can be accessed by dialing (833) 772-0381 from the U.S. or (236) 384-2050 internationally. The conference I.D. code is 3562448. Alternatively, participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events.” About Laird Superfood Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company's products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company 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 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 earnings 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 future financial performance, including our outlook for fiscal year 2021. 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) our limited operating history and ability to become profitable; (2) our reliance on third parties for raw materials and production of some of our products; (3) our ability to manage our growth and scale our manufacturing and processing capabilities effectively, including our human resource requirements; (4) our future capital needs; (5) our ability to retain and grow our customer base; (6) our reliance on independent distributors for a substantial portion of our sales; (7) our ability to evaluate and measure our business, prospects and performance metrics; (8) our ability to compete and succeed in a highly competitive and evolving industry; (9) the health of the premium organic and natural food industry as a whole; (10) risks related to our intellectual property rights and developing a strong brand; (11) our reliance on key personnel, including Laird Hamilton and Gabrielle Reece; (12) regulatory risks; (13) risks associated with the COVID-19 pandemic, including those related to any variant strains of the virus that may emerge; (14) risks related to our international operations; (15) the risk of substantial dilution from future issuances of our equity securities; and (16) the other risks described in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2021 2020 2021 2020 Sales, net $ 10,865,914 $ 7,490,642 $ 27,443,394 $ 18,498,497 Cost of goods sold (7,667,075 ) (5,734,144 ) (20,225,269 ) (13,384,880 ) Gross profit 3,198,839 1,756,498 7,218,125 5,113,617 General and administrative Salaries, wages and benefits 1,252,664 1,031,425 3,478,362 2,652,500 Stock-based compensation 911,467 290,148 2,766,071 589,600 Professional fees 551,368 274,244 1,504,438 647,422 Insurance expense 537,174 89,136 1,560,395 146,197 Office expense 235,109 142,269 628,388 364,518 Occupancy 68,251 57,378 187,729 167,151 Merchant service fees 171,050 103,306 429,307 248,355 Netsuite subscription expense 64,886 33,173 194,024 90,491 Impairment on property, plant, and equipment 8,317 — 8,317 239,734 Other expense 453,838 197,740 1,303,398 504,864 Total general and administrative expenses 4,254,124 2,218,819 12,060,429 5,650,832 Research and product development Salaries, wages and benefits 118,105 54,454 304,653 202,287 Stock-based compensation 7,864 2,310 16,816 6,694 Product development expense 107,418 43,589 520,210 141,506 Other expense 9,217 2,526 16,464 13,503 Total research and product development expenses 242,604 102,879 858,143 363,990 Sales and marketing Salaries, wages and benefits 589,941 613,961 1,854,020 2,057,517 Stock-based compensation 65,441 520,022 162,536 630,456 Advertising 1,954,377 1,140,369 5,313,881 3,146,592 General marketing 1,131,023 312,402 3,079,181 883,286 Amazon selling fee 196,053 179,425 609,171 575,313 Travel expense 11,828 4,908 32,188 78,872 Other expense 66,090 45,543 182,788 148,911 Total sales and marketing expenses 4,014,753 2,816,630 11,233,765 7,520,947 Total expenses 8,511,481 5,138,328 24,152,337 13,535,769 Operating loss (5,312,642 ) (3,381,830 ) (16,934,212 ) (8,422,152 ) Other income (expense) Interest and dividend income 10,721 20,496 36,246 51,521 Gain on sale of available-for-sale securities — 6,250 — 13,927 Total other income (expense) 10,721 26,746 36,246 65,448 Loss before income taxes (5,301,921 ) (3,355,084 ) (16,897,966 ) (8,356,704 ) Income tax expense (49,777 ) — (86,495 ) — Net loss $ (5,351,698 ) $ (3,355,084 ) $ (16,984,461 ) $ (8,356,704 ) Less deemed dividend of beneficial conversion feature — — — (825,366 ) Less deemed dividend on warrant discount — (645,939 ) — (825,366 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (5,351,698 ) $ (4,001,023 ) $ (16,984,461 ) $ (10,007,436 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Diluted $ (0.59 ) $ (0.86 ) $ (1.90 ) $ (2.26 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 9,001,912 4,672,041 8,954,875 4,427,114 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Nine Months EndedSeptember 30, 2021 2020 Cash flows from operating activities Net loss $ (16,984,461 ) $ (8,356,704 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 454,400 344,162 Amortization 243,578 7,599 Loss on disposal of equipment 5,600 — Stock-based compensation 3,142,517 1,320,433 Reserve for prepaid assets 179,000 — Restricted stock awards — 62,431 Impairment on property, plant, and equipment 8,317 239,734 Gain on sale of investment securities available-for-sale — 13,927 Changes in operating assets and liabilities: Accounts receivable (72,150 ) (397,669 ) Inventory (3,314,086 ) (1,441,766 ) Prepaid expenses and other current assets 1,137,741 (1,582,315 ) Deferred rent 267,787 270,731 Deposits 2,601 33,009 Accounts payable 184,722 1,613,754 Payroll liabilities 81,694 207,675 Accrued expenses 333,246 567,103 Deferred taxes 86,495 — Net cash from operating activities (14,242,999 ) (7,097,896 ) Cash flows from investing activities Purchase of property, plant, and equipment (1,039,350 ) (874,764 ) Proceeds from sale of property, equipment, and software 700 — Deposits on equipment to be acquired (462,507 ) — Purchase of software (141,546 ) — Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) — Sale of investment securities available-for-sale — 516,459 Proceeds from maturities of investment securities available-for-sale — 4,475,000 Net cash from investing activities (12,092,290 ) 4,116,695 Cash flows from financing activities Issuance of common stock — 66,104,477 Issuance of preferred stock — 10,000,006 Common stock issuance costs (82,043 ) (1,131,291 ) Preferred stock issuance costs — (147,721 ) Withholding tax payments for share based compensation (219,157 ) — Restricted stock units issued 31 — Repurchased common stock — (20,532 ) Stock options exercised 485,916 119,838 Net cash from financing activities 184,747 74,924,777 Net change in cash and cash equivalents (26,150,542 ) 71,943,576 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 31,057,538 $ 72,947,685 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (22,049 ) $ 924 Purchases of equipment included in deposits at the beginning of the period $ — $ 14,699 LAIRD SUPERFOOD, INC. BALANCE SHEET As of September 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 31,057,538 $ 57,208,080 Accounts receivable, net 956,870 839,659 Investment securities available-for-sale 8,688,251 8,706,844 Inventory 10,335,990 6,295,898 Prepaid expenses and other current assets, net 1,767,744 2,847,319 Deposits 563,580 97,674 Total current assets 53,369,973 75,995,474 Noncurrent assets Property and equipment, net 4,139,199 3,513,488 Intangible assets, net 4,965,060 137,092 Goodwill 6,486,000 — Deferred rent 2,428,859 2,696,646 Total noncurrent assets 18,019,118 6,347,226 Total assets $ 71,389,091 $ 82,342,700 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 1,548,009 $ 1,315,964 Payroll liabilities 813,798 722,915 Accrued expenses 1,185,900 704,543 Total current liabilities 3,547,707 2,743,422 Long-term liabilities Deferred tax liability, net 86,495 — Note payable 51,000 51,000 Total long-term liabilities 137,495 51,000 Total liabilities 3,685,202 2,794,422 Stockholders’ equity Common stock, $0.001 par value, 100,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 9,402,959 and 9,037,499 issued and outstanding at September 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 9,037 $ 8,893 Additional paid-in capital 116,614,323 111,452,346 Accumulated other comprehensive income (loss) (7,842 ) 14,207 Accumulated deficit (48,911,629 ) (31,927,168 ) Total stockholders’ equity 67,703,889 79,548,278 Total liabilities and stockholders’ equity $ 71,389,091 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006126/en/