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 Second Quarter 2021 Financial Results By: Laird Superfood, Inc. via Business Wire August 11, 2021 at 16:15 PM EDT Net Sales Increase 64% Year Over Year to $9.2 Million Direct-To-Consumer Sales Up 94% Year Over Year Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”, “we” and “our”), today reported financial results for its second quarter ended June 30, 2021. Second Quarter 2021 Highlights Net Sales increased to $9.2 million, an increase of 64% year over year. Online sales contributed 63% of net sales, increasing 57% year over year with direct-to-consumer up 94%. Wholesale sales contributed 35% of net sales, increasing 77% year over year, and included continued traction in grocery and liquid creamer gains. Gross profit was $2.2 million and gross margin was 23.9% compared to gross profit of $1.3 million and gross margin of 23.6% in the prior year quarter. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. “Broad-based growth was a key theme from our second quarter results as we delivered solid gains across all major channels and categories,” said Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood. “Our direct-to-consumer sales were up 94% reflecting our strong metrics around attracting, converting and retaining customers. Wholesale increased 77% as we continued to make solid progress expanding our presence in the grocery channel. We introduced several new innovative products during the quarter and are very pleased with the early results from the acquisition of Picky,” concluded Hodge. “Our powerful omnichannel platform remains a key point of differentiation enabling multiple growth drivers for new and existing products. During the second quarter, approximately one-third of our revenue growth was attributable to products introduced over the past year. As we continue gaining share in our legacy categories and expanding our total addressable market via new offerings, Laird Superfood’s long-term vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual comes closer to reality.” For the Three Months Ended June 30, 2021 Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 5,078,739 55% $ 4,005,430 71% Hydration and beverage enhancing supplements 1,511,630 16% 981,471 17% Coffee, tea, and hot chocolate products 1,661,130 18% 1,222,617 22% Harvest snacks and other food items 1,344,802 15% - 0% Other 317,422 3% 173,607 3% Gross sales 9,913,723 108% 6,383,125 114% Shipping income 40,750 0% 43,793 1% Returns and discounts (758,687 ) (8%) (818,088 ) (15%) Sales, net 9,195,786 100% 5,608,830 100% Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 5,799,104 63% $ 3,684,526 66% Wholesale 3,235,230 35% 1,823,188 33% Food service 161,452 2% 101,116 2% Sales, net $ 9,195,786 100% $ 5,608,830 100% Net sales increased 64% to $9.2 million in the second quarter of 2021 compared to $5.6 million in the second quarter of 2020. Growth in net sales in the second quarter of 2021 was due primarily to solid gains in DTC, including two months of newly acquired Picky Bars. Gross profit was $2.2 million, a 66% increase compared to the prior year period of $1.3 million. Gross margin was 23.9% of net sales in the second quarter of 2021, compared to 23.6% of net sales in the prior year period. The year over year increase in gross margin was primarily due to optimization of direct-to-consumer shipping costs and improvements in liquid creamer distribution and disposals. Operating expenses were $8.5 million compared to $4.3 million in the year ago period and reflect General and Administrative expense increases of $2.3 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $1.5 million, primarily due to advertising and marketing fees. Loss from operations was $6.3 million in the second quarter of 2021, compared to a loss of $3.0 million in the prior year period. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, in the second quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “In addition to delivering strong top-line growth, we’ve made significant strides operationally through the first half of 2021 putting us firmly on track toward our long-term goals around margins and profitability. Continued optimization of our direct-to-consumer shipping expenses, driven by an improvement in our average order value, aided our gross margin this quarter. Similarly, continued improvements related to our liquid creamer products, including an extended shelf life and logistical enhancements, resulted in significant improvement in manufacturing waste and spoils. With over $43 million of cash and investments and essentially no debt, our balance sheet remains strong providing the capacity and flexibility to pursue multiple growth drivers on our path to scale and profitability.” For the Six Months Ended June 30, 2021 Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 10,100,647 61% $ 8,024,792 72% Hydration and beverage enhancing supplements 2,576,206 15% 1,840,177 17% Coffee, tea, and hot chocolate products 3,561,962 21% 1,963,189 18% Harvest snacks and other food items 1,487,705 9% - 0% Other 533,838 3% 233,197 2% Gross sales 18,260,358 110% 12,061,355 109% Shipping income 66,410 0% 195,345 2% Returns and discounts (1,704,729 ) (10%) (1,164,645 ) (10%) Sales, net 16,622,039 100% 11,092,055 100% Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 10,161,510 61% $ 6,335,267 59% Wholesale 6,158,286 37% 4,551,000 41% Food service 302,243 2% 205,788 1% Sales, net $ 16,622,039 100% $ 11,092,055 100% Net sales increased 50% to $16.6 million in the first six months of 2021 compared to $11.1 million in the first six 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. In addition, we completed the acquisition of Picky Bars in early May, which significantly increased our business in Harvest snacks and other food products. Gross profit was $4.1 million, an increase of 18% compared to the prior year period of $3.4 million. Gross margin was 24.4% of net sales in the first six months of 2021, compared to 31.0% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to elevated outbound shipping costs combined with the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com, increased personnel costs and costs associated with our liquid creamer product line. Operating expenses were $15.7 million compared to $8.5 million in the first six months of 2021 and reflect General and Administrative expense increases of $4.4 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $2.5 million, primarily due to advertising and marketing fees. Loss from operations was $11.6 million in the first six months of 2021, compared to a loss of $5.0 million in the prior year period. Net loss attributable to common stockholders was $11.6 million, or $1.30 per diluted share, in the first six months of 2021, compared to net loss attributable to common stockholders of $6.0 million, or $1.40 per diluted share. Balance Sheet and Cash Flow Highlights The Company’s current assets include cash, cash equivalents, and restricted cash of $34.9 million and investment securities of $8.7 million as of June 30, 2021. Total outstanding debt was $51,000 as of June 30, 2021. Net cash used in operating activities was $11.0 million in the six months ended June 30, 2021, compared to $4.6 million in the comparative prior year period. Capital expenditures totaled $0.5 million for the six months ended June 30, 2021, compared to $0.3 million in the comparative prior year period. Leadership Transition Also announced today, Paul Hodge, Jr. will be transitioning to a non-executive role and stepping down as President and Chief Executive Officer. The Company’s Board of Directors has commenced a search for his successor. Additional details on this transition can be found in a separate media release issued this afternoon. 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 3667069. 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) the effects of the current COVID-19 pandemic, or of other 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) our expectations 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) our expectations regarding real or perceived quality 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) expectations 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 foodservice customers, as well as the health of the foodservice industry generally; (10) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (11) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (12) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (13) the costs and success of our marketing efforts, and our ability to promote our brand; (14) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (15) our ability to effectively manage our growth; (16) our ability to compete effectively with existing competitors and new market entrants; (17) the impact of adverse economic conditions; and (18) the growth rates of the markets in which we compete. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Sales, net $ 9,195,786 $ 5,608,830 $ 16,622,039 $ 11,092,055 Cost of goods sold (6,998,695 ) (4,285,128 ) (12,558,194 ) (7,650,736 ) Gross profit 2,197,091 1,323,702 4,063,845 3,441,319 General and administrative Salaries, wages and benefits 1,019,845 804,903 2,225,698 1,621,075 Stock-based compensation 955,369 116,249 1,854,604 299,452 Professional fees 609,448 191,130 953,070 373,177 Insurance expense 500,821 25,866 1,023,221 57,061 Office expense 206,448 108,883 393,279 222,248 Occupancy 62,957 56,343 119,478 109,774 Merchant service fees 151,882 89,014 258,257 145,049 Netsuite subscription expense 74,117 30,923 129,138 57,318 Impairment on asset held for sale - 239,734 - 239,734 Other expense 582,024 169,397 847,235 307,124 Total general and administrative expenses 4,162,911 1,832,442 7,803,980 3,432,012 Research and product development Salaries, wages and benefits 116,187 72,931 186,548 147,833 Stock-based compensation 5,385 2,192 8,952 4,384 Product development expense 249,948 40,175 412,792 97,917 Other expense 3,332 2,499 7,247 10,977 Total research and product development expenses 374,852 117,797 615,539 261,111 Sales and marketing Salaries, wages and benefits 630,328 697,547 1,264,079 1,443,556 Stock-based compensation 55,706 35,938 97,095 110,434 Advertising 1,699,865 1,154,060 3,381,209 2,090,423 General marketing 1,260,489 261,662 1,971,012 570,884 Amazon selling fee 210,842 208,317 413,118 395,889 Travel expense 11,604 3,950 20,360 73,964 Other expense 67,658 34,227 116,698 103,368 Total sales and marketing expenses 3,936,492 2,395,701 7,263,571 4,788,518 Total expenses 8,474,255 4,345,940 15,683,090 8,481,641 Operating loss (6,277,164 ) (3,022,238 ) (11,619,245 ) (5,040,322 ) Other income (expense) Interest and dividend income 11,623 8,171 25,525 31,025 Loss on sale of fixed assets - - (2,325 ) - Gain on sale of available-for-sale securities - 7,677 - 7,677 Total other income (expense) 11,623 15,848 23,200 38,702 Loss before income taxes (6,265,541 ) (3,006,390 ) (11,596,045 ) (5,001,620 ) Income tax expense (36,718 ) - (36,718 ) - Net loss $ (6,302,259 ) $ (3,006,390 ) $ (11,632,763 ) $ (5,001,620 ) Less deemed dividend of beneficial conversion feature - (825,366 ) - (825,366 ) Less deemed dividend on warrant discount - (179,427 ) - (179,427 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (6,302,259 ) $ (4,011,183 ) $ (11,632,763 ) $ (6,006,413 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Diluted $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 8,967,797 4,325,265 8,931,736 4,303,305 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2021 2020 Cash flows used in operating activities Net loss $ (11,632,763 ) $ (5,001,620 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 302,261 229,284 Amortization 103,803 5,048 Loss on disposal of equipment 2,325 - Stock-based compensation 2,100,077 471,320 Provision for inventory obsolescence 18,266 - Reserve for prepaid assets 179,000 - Restricted stock awards - 62,431 Impairment on asset held for sale - 239,734 Gain on sale of investment securities available-for-sale - 7,677 Changes in operating assets and liabilities: Accounts receivable 98,534 (324,211 ) Accrued investment income receivable 513 - Inventory (3,778,699 ) (1,048,010 ) Prepaid expenses and other current assets 729,881 (371,883 ) Deferred rent 179,503 180,677 Deposits 2,602 10,941 Accounts payable 208,131 568,088 Payroll liabilities 129,397 167,576 Accrued expenses 367,209 155,943 Deferred taxes 36,718 - Net cash from operating activities (10,953,242 ) (4,647,005 ) Cash flows used in (provided by) investing activities Purchase of property, plant, and equipment (522,564 ) (312,746 ) Deposits on equipment to be acquired (407,412 ) (319,174 ) Purchase of software (109,795 ) - Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) - Sale of investment securities available-for-sale - 513,544 Proceeds from maturities of investment securities available-for-sale - 475,000 Net cash from investing activities (11,488,658 ) 356,624 Cash flows from financing activities Issuance of common stock - 1,997,665 Issuance of preferred stock - 10,000,006 Common stock issuance costs (82,043 ) - Preferred stock issuance costs - (147,721 ) Withholding tax payments for share based compensation (219,156 ) - Restricted stock units issued 3 - Repurchased common stock - (20,532 ) Stock options exercised 394,666 6,030 Net cash from financing activities 93,470 11,835,448 Net change in cash and cash equivalents (22,348,430 ) 7,545,067 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 34,859,650 $ 8,549,176 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (24,001 ) $ 17,345 LAIRD SUPERFOOD, INC. BALANCE SHEETS As of June 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 34,859,650 $ 57,208,080 Accounts receivable, net 789,642 839,659 Investment securities available-for-sale 8,682,330 8,706,844 Inventory 10,782,337 6,295,898 Prepaid expenses and other current assets, net 2,175,604 2,847,319 Deposits 508,484 97,674 Total current assets 57,798,047 75,995,474 Noncurrent assets Property and equipment, net 3,786,144 3,513,488 Intangible assets, net 5,073,084 137,092 Goodwill 6,486,000 - Deferred rent 2,517,143 2,696,646 Total noncurrent assets 17,862,371 6,347,226 Total assets $ 75,660,418 $ 82,342,700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 1,571,418 $ 1,315,964 Payroll liabilities 861,501 722,915 Accrued expenses 1,219,863 704,543 Total current liabilities 3,652,782 2,743,422 Long-term liabilities Deferred tax liability, net 36,718 - Note payable 51,000 51,000 Total long-term liabilities 87,718 51,000 Total liabilities 3,740,500 2,794,422 Stockholders' equity Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 9,365,085 and 8,999,381 issued and outstanding at June 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 8,999 $ 8,893 Additional paid-in capital 115,480,644 111,452,346 Accumulated other comprehensive income (loss) (9,794 ) 14,207 Accumulated deficit (43,559,931 ) (31,927,168 ) Total stockholders' equity 71,919,918 79,548,278 Total liabilities and stockholders' equity $ 75,660,418 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005847/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 Second Quarter 2021 Financial Results By: Laird Superfood, Inc. via Business Wire August 11, 2021 at 16:15 PM EDT Net Sales Increase 64% Year Over Year to $9.2 Million Direct-To-Consumer Sales Up 94% Year Over Year Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”, “we” and “our”), today reported financial results for its second quarter ended June 30, 2021. Second Quarter 2021 Highlights Net Sales increased to $9.2 million, an increase of 64% year over year. Online sales contributed 63% of net sales, increasing 57% year over year with direct-to-consumer up 94%. Wholesale sales contributed 35% of net sales, increasing 77% year over year, and included continued traction in grocery and liquid creamer gains. Gross profit was $2.2 million and gross margin was 23.9% compared to gross profit of $1.3 million and gross margin of 23.6% in the prior year quarter. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. “Broad-based growth was a key theme from our second quarter results as we delivered solid gains across all major channels and categories,” said Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood. “Our direct-to-consumer sales were up 94% reflecting our strong metrics around attracting, converting and retaining customers. Wholesale increased 77% as we continued to make solid progress expanding our presence in the grocery channel. We introduced several new innovative products during the quarter and are very pleased with the early results from the acquisition of Picky,” concluded Hodge. “Our powerful omnichannel platform remains a key point of differentiation enabling multiple growth drivers for new and existing products. During the second quarter, approximately one-third of our revenue growth was attributable to products introduced over the past year. As we continue gaining share in our legacy categories and expanding our total addressable market via new offerings, Laird Superfood’s long-term vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual comes closer to reality.” For the Three Months Ended June 30, 2021 Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 5,078,739 55% $ 4,005,430 71% Hydration and beverage enhancing supplements 1,511,630 16% 981,471 17% Coffee, tea, and hot chocolate products 1,661,130 18% 1,222,617 22% Harvest snacks and other food items 1,344,802 15% - 0% Other 317,422 3% 173,607 3% Gross sales 9,913,723 108% 6,383,125 114% Shipping income 40,750 0% 43,793 1% Returns and discounts (758,687 ) (8%) (818,088 ) (15%) Sales, net 9,195,786 100% 5,608,830 100% Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 5,799,104 63% $ 3,684,526 66% Wholesale 3,235,230 35% 1,823,188 33% Food service 161,452 2% 101,116 2% Sales, net $ 9,195,786 100% $ 5,608,830 100% Net sales increased 64% to $9.2 million in the second quarter of 2021 compared to $5.6 million in the second quarter of 2020. Growth in net sales in the second quarter of 2021 was due primarily to solid gains in DTC, including two months of newly acquired Picky Bars. Gross profit was $2.2 million, a 66% increase compared to the prior year period of $1.3 million. Gross margin was 23.9% of net sales in the second quarter of 2021, compared to 23.6% of net sales in the prior year period. The year over year increase in gross margin was primarily due to optimization of direct-to-consumer shipping costs and improvements in liquid creamer distribution and disposals. Operating expenses were $8.5 million compared to $4.3 million in the year ago period and reflect General and Administrative expense increases of $2.3 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $1.5 million, primarily due to advertising and marketing fees. Loss from operations was $6.3 million in the second quarter of 2021, compared to a loss of $3.0 million in the prior year period. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, in the second quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “In addition to delivering strong top-line growth, we’ve made significant strides operationally through the first half of 2021 putting us firmly on track toward our long-term goals around margins and profitability. Continued optimization of our direct-to-consumer shipping expenses, driven by an improvement in our average order value, aided our gross margin this quarter. Similarly, continued improvements related to our liquid creamer products, including an extended shelf life and logistical enhancements, resulted in significant improvement in manufacturing waste and spoils. With over $43 million of cash and investments and essentially no debt, our balance sheet remains strong providing the capacity and flexibility to pursue multiple growth drivers on our path to scale and profitability.” For the Six Months Ended June 30, 2021 Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 10,100,647 61% $ 8,024,792 72% Hydration and beverage enhancing supplements 2,576,206 15% 1,840,177 17% Coffee, tea, and hot chocolate products 3,561,962 21% 1,963,189 18% Harvest snacks and other food items 1,487,705 9% - 0% Other 533,838 3% 233,197 2% Gross sales 18,260,358 110% 12,061,355 109% Shipping income 66,410 0% 195,345 2% Returns and discounts (1,704,729 ) (10%) (1,164,645 ) (10%) Sales, net 16,622,039 100% 11,092,055 100% Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 10,161,510 61% $ 6,335,267 59% Wholesale 6,158,286 37% 4,551,000 41% Food service 302,243 2% 205,788 1% Sales, net $ 16,622,039 100% $ 11,092,055 100% Net sales increased 50% to $16.6 million in the first six months of 2021 compared to $11.1 million in the first six 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. In addition, we completed the acquisition of Picky Bars in early May, which significantly increased our business in Harvest snacks and other food products. Gross profit was $4.1 million, an increase of 18% compared to the prior year period of $3.4 million. Gross margin was 24.4% of net sales in the first six months of 2021, compared to 31.0% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to elevated outbound shipping costs combined with the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com, increased personnel costs and costs associated with our liquid creamer product line. Operating expenses were $15.7 million compared to $8.5 million in the first six months of 2021 and reflect General and Administrative expense increases of $4.4 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $2.5 million, primarily due to advertising and marketing fees. Loss from operations was $11.6 million in the first six months of 2021, compared to a loss of $5.0 million in the prior year period. Net loss attributable to common stockholders was $11.6 million, or $1.30 per diluted share, in the first six months of 2021, compared to net loss attributable to common stockholders of $6.0 million, or $1.40 per diluted share. Balance Sheet and Cash Flow Highlights The Company’s current assets include cash, cash equivalents, and restricted cash of $34.9 million and investment securities of $8.7 million as of June 30, 2021. Total outstanding debt was $51,000 as of June 30, 2021. Net cash used in operating activities was $11.0 million in the six months ended June 30, 2021, compared to $4.6 million in the comparative prior year period. Capital expenditures totaled $0.5 million for the six months ended June 30, 2021, compared to $0.3 million in the comparative prior year period. Leadership Transition Also announced today, Paul Hodge, Jr. will be transitioning to a non-executive role and stepping down as President and Chief Executive Officer. The Company’s Board of Directors has commenced a search for his successor. Additional details on this transition can be found in a separate media release issued this afternoon. 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 3667069. 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) the effects of the current COVID-19 pandemic, or of other 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) our expectations 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) our expectations regarding real or perceived quality 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) expectations 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 foodservice customers, as well as the health of the foodservice industry generally; (10) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (11) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (12) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (13) the costs and success of our marketing efforts, and our ability to promote our brand; (14) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (15) our ability to effectively manage our growth; (16) our ability to compete effectively with existing competitors and new market entrants; (17) the impact of adverse economic conditions; and (18) the growth rates of the markets in which we compete. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Sales, net $ 9,195,786 $ 5,608,830 $ 16,622,039 $ 11,092,055 Cost of goods sold (6,998,695 ) (4,285,128 ) (12,558,194 ) (7,650,736 ) Gross profit 2,197,091 1,323,702 4,063,845 3,441,319 General and administrative Salaries, wages and benefits 1,019,845 804,903 2,225,698 1,621,075 Stock-based compensation 955,369 116,249 1,854,604 299,452 Professional fees 609,448 191,130 953,070 373,177 Insurance expense 500,821 25,866 1,023,221 57,061 Office expense 206,448 108,883 393,279 222,248 Occupancy 62,957 56,343 119,478 109,774 Merchant service fees 151,882 89,014 258,257 145,049 Netsuite subscription expense 74,117 30,923 129,138 57,318 Impairment on asset held for sale - 239,734 - 239,734 Other expense 582,024 169,397 847,235 307,124 Total general and administrative expenses 4,162,911 1,832,442 7,803,980 3,432,012 Research and product development Salaries, wages and benefits 116,187 72,931 186,548 147,833 Stock-based compensation 5,385 2,192 8,952 4,384 Product development expense 249,948 40,175 412,792 97,917 Other expense 3,332 2,499 7,247 10,977 Total research and product development expenses 374,852 117,797 615,539 261,111 Sales and marketing Salaries, wages and benefits 630,328 697,547 1,264,079 1,443,556 Stock-based compensation 55,706 35,938 97,095 110,434 Advertising 1,699,865 1,154,060 3,381,209 2,090,423 General marketing 1,260,489 261,662 1,971,012 570,884 Amazon selling fee 210,842 208,317 413,118 395,889 Travel expense 11,604 3,950 20,360 73,964 Other expense 67,658 34,227 116,698 103,368 Total sales and marketing expenses 3,936,492 2,395,701 7,263,571 4,788,518 Total expenses 8,474,255 4,345,940 15,683,090 8,481,641 Operating loss (6,277,164 ) (3,022,238 ) (11,619,245 ) (5,040,322 ) Other income (expense) Interest and dividend income 11,623 8,171 25,525 31,025 Loss on sale of fixed assets - - (2,325 ) - Gain on sale of available-for-sale securities - 7,677 - 7,677 Total other income (expense) 11,623 15,848 23,200 38,702 Loss before income taxes (6,265,541 ) (3,006,390 ) (11,596,045 ) (5,001,620 ) Income tax expense (36,718 ) - (36,718 ) - Net loss $ (6,302,259 ) $ (3,006,390 ) $ (11,632,763 ) $ (5,001,620 ) Less deemed dividend of beneficial conversion feature - (825,366 ) - (825,366 ) Less deemed dividend on warrant discount - (179,427 ) - (179,427 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (6,302,259 ) $ (4,011,183 ) $ (11,632,763 ) $ (6,006,413 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Diluted $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 8,967,797 4,325,265 8,931,736 4,303,305 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2021 2020 Cash flows used in operating activities Net loss $ (11,632,763 ) $ (5,001,620 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 302,261 229,284 Amortization 103,803 5,048 Loss on disposal of equipment 2,325 - Stock-based compensation 2,100,077 471,320 Provision for inventory obsolescence 18,266 - Reserve for prepaid assets 179,000 - Restricted stock awards - 62,431 Impairment on asset held for sale - 239,734 Gain on sale of investment securities available-for-sale - 7,677 Changes in operating assets and liabilities: Accounts receivable 98,534 (324,211 ) Accrued investment income receivable 513 - Inventory (3,778,699 ) (1,048,010 ) Prepaid expenses and other current assets 729,881 (371,883 ) Deferred rent 179,503 180,677 Deposits 2,602 10,941 Accounts payable 208,131 568,088 Payroll liabilities 129,397 167,576 Accrued expenses 367,209 155,943 Deferred taxes 36,718 - Net cash from operating activities (10,953,242 ) (4,647,005 ) Cash flows used in (provided by) investing activities Purchase of property, plant, and equipment (522,564 ) (312,746 ) Deposits on equipment to be acquired (407,412 ) (319,174 ) Purchase of software (109,795 ) - Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) - Sale of investment securities available-for-sale - 513,544 Proceeds from maturities of investment securities available-for-sale - 475,000 Net cash from investing activities (11,488,658 ) 356,624 Cash flows from financing activities Issuance of common stock - 1,997,665 Issuance of preferred stock - 10,000,006 Common stock issuance costs (82,043 ) - Preferred stock issuance costs - (147,721 ) Withholding tax payments for share based compensation (219,156 ) - Restricted stock units issued 3 - Repurchased common stock - (20,532 ) Stock options exercised 394,666 6,030 Net cash from financing activities 93,470 11,835,448 Net change in cash and cash equivalents (22,348,430 ) 7,545,067 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 34,859,650 $ 8,549,176 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (24,001 ) $ 17,345 LAIRD SUPERFOOD, INC. BALANCE SHEETS As of June 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 34,859,650 $ 57,208,080 Accounts receivable, net 789,642 839,659 Investment securities available-for-sale 8,682,330 8,706,844 Inventory 10,782,337 6,295,898 Prepaid expenses and other current assets, net 2,175,604 2,847,319 Deposits 508,484 97,674 Total current assets 57,798,047 75,995,474 Noncurrent assets Property and equipment, net 3,786,144 3,513,488 Intangible assets, net 5,073,084 137,092 Goodwill 6,486,000 - Deferred rent 2,517,143 2,696,646 Total noncurrent assets 17,862,371 6,347,226 Total assets $ 75,660,418 $ 82,342,700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 1,571,418 $ 1,315,964 Payroll liabilities 861,501 722,915 Accrued expenses 1,219,863 704,543 Total current liabilities 3,652,782 2,743,422 Long-term liabilities Deferred tax liability, net 36,718 - Note payable 51,000 51,000 Total long-term liabilities 87,718 51,000 Total liabilities 3,740,500 2,794,422 Stockholders' equity Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 9,365,085 and 8,999,381 issued and outstanding at June 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 8,999 $ 8,893 Additional paid-in capital 115,480,644 111,452,346 Accumulated other comprehensive income (loss) (9,794 ) 14,207 Accumulated deficit (43,559,931 ) (31,927,168 ) Total stockholders' equity 71,919,918 79,548,278 Total liabilities and stockholders' equity $ 75,660,418 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005847/en/Contacts ICR Reed Anderson 646-277-1260 Reed.Anderson@icrinc.com
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”, “we” and “our”), today reported financial results for its second quarter ended June 30, 2021. Second Quarter 2021 Highlights Net Sales increased to $9.2 million, an increase of 64% year over year. Online sales contributed 63% of net sales, increasing 57% year over year with direct-to-consumer up 94%. Wholesale sales contributed 35% of net sales, increasing 77% year over year, and included continued traction in grocery and liquid creamer gains. Gross profit was $2.2 million and gross margin was 23.9% compared to gross profit of $1.3 million and gross margin of 23.6% in the prior year quarter. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. “Broad-based growth was a key theme from our second quarter results as we delivered solid gains across all major channels and categories,” said Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood. “Our direct-to-consumer sales were up 94% reflecting our strong metrics around attracting, converting and retaining customers. Wholesale increased 77% as we continued to make solid progress expanding our presence in the grocery channel. We introduced several new innovative products during the quarter and are very pleased with the early results from the acquisition of Picky,” concluded Hodge. “Our powerful omnichannel platform remains a key point of differentiation enabling multiple growth drivers for new and existing products. During the second quarter, approximately one-third of our revenue growth was attributable to products introduced over the past year. As we continue gaining share in our legacy categories and expanding our total addressable market via new offerings, Laird Superfood’s long-term vision of delivering better for you, plant-based alternatives for every moment of consumers’ daily ritual comes closer to reality.” For the Three Months Ended June 30, 2021 Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 5,078,739 55% $ 4,005,430 71% Hydration and beverage enhancing supplements 1,511,630 16% 981,471 17% Coffee, tea, and hot chocolate products 1,661,130 18% 1,222,617 22% Harvest snacks and other food items 1,344,802 15% - 0% Other 317,422 3% 173,607 3% Gross sales 9,913,723 108% 6,383,125 114% Shipping income 40,750 0% 43,793 1% Returns and discounts (758,687 ) (8%) (818,088 ) (15%) Sales, net 9,195,786 100% 5,608,830 100% Three Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 5,799,104 63% $ 3,684,526 66% Wholesale 3,235,230 35% 1,823,188 33% Food service 161,452 2% 101,116 2% Sales, net $ 9,195,786 100% $ 5,608,830 100% Net sales increased 64% to $9.2 million in the second quarter of 2021 compared to $5.6 million in the second quarter of 2020. Growth in net sales in the second quarter of 2021 was due primarily to solid gains in DTC, including two months of newly acquired Picky Bars. Gross profit was $2.2 million, a 66% increase compared to the prior year period of $1.3 million. Gross margin was 23.9% of net sales in the second quarter of 2021, compared to 23.6% of net sales in the prior year period. The year over year increase in gross margin was primarily due to optimization of direct-to-consumer shipping costs and improvements in liquid creamer distribution and disposals. Operating expenses were $8.5 million compared to $4.3 million in the year ago period and reflect General and Administrative expense increases of $2.3 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $1.5 million, primarily due to advertising and marketing fees. Loss from operations was $6.3 million in the second quarter of 2021, compared to a loss of $3.0 million in the prior year period. Net loss attributable to common stockholders was $6.3 million, or $0.70 per diluted share, in the second quarter of 2021, compared to net loss attributable to common stockholders of $4.0 million, or $0.93 per diluted share, in the prior year period. Valerie Ells, Chief Financial Officer, commented, “In addition to delivering strong top-line growth, we’ve made significant strides operationally through the first half of 2021 putting us firmly on track toward our long-term goals around margins and profitability. Continued optimization of our direct-to-consumer shipping expenses, driven by an improvement in our average order value, aided our gross margin this quarter. Similarly, continued improvements related to our liquid creamer products, including an extended shelf life and logistical enhancements, resulted in significant improvement in manufacturing waste and spoils. With over $43 million of cash and investments and essentially no debt, our balance sheet remains strong providing the capacity and flexibility to pursue multiple growth drivers on our path to scale and profitability.” For the Six Months Ended June 30, 2021 Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Coffee creamers $ 10,100,647 61% $ 8,024,792 72% Hydration and beverage enhancing supplements 2,576,206 15% 1,840,177 17% Coffee, tea, and hot chocolate products 3,561,962 21% 1,963,189 18% Harvest snacks and other food items 1,487,705 9% - 0% Other 533,838 3% 233,197 2% Gross sales 18,260,358 110% 12,061,355 109% Shipping income 66,410 0% 195,345 2% Returns and discounts (1,704,729 ) (10%) (1,164,645 ) (10%) Sales, net 16,622,039 100% 11,092,055 100% Six Months Ended June 30, 2021 2020 $ % of Total $ % of Total Online $ 10,161,510 61% $ 6,335,267 59% Wholesale 6,158,286 37% 4,551,000 41% Food service 302,243 2% 205,788 1% Sales, net $ 16,622,039 100% $ 11,092,055 100% Net sales increased 50% to $16.6 million in the first six months of 2021 compared to $11.1 million in the first six 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. In addition, we completed the acquisition of Picky Bars in early May, which significantly increased our business in Harvest snacks and other food products. Gross profit was $4.1 million, an increase of 18% compared to the prior year period of $3.4 million. Gross margin was 24.4% of net sales in the first six months of 2021, compared to 31.0% of net sales in the prior year period. The year over year decrease in gross margin was primarily due to elevated outbound shipping costs combined with the launch of a free shipping initiative for direct online purchases made on lairdsuperfood.com, increased personnel costs and costs associated with our liquid creamer product line. Operating expenses were $15.7 million compared to $8.5 million in the first six months of 2021 and reflect General and Administrative expense increases of $4.4 million, primarily due to stock-based compensation, personnel costs, insurance expense, reserves against prepaid assets, and professional fees, as well as Sales and Marketing expense increases of $2.5 million, primarily due to advertising and marketing fees. Loss from operations was $11.6 million in the first six months of 2021, compared to a loss of $5.0 million in the prior year period. Net loss attributable to common stockholders was $11.6 million, or $1.30 per diluted share, in the first six months of 2021, compared to net loss attributable to common stockholders of $6.0 million, or $1.40 per diluted share. Balance Sheet and Cash Flow Highlights The Company’s current assets include cash, cash equivalents, and restricted cash of $34.9 million and investment securities of $8.7 million as of June 30, 2021. Total outstanding debt was $51,000 as of June 30, 2021. Net cash used in operating activities was $11.0 million in the six months ended June 30, 2021, compared to $4.6 million in the comparative prior year period. Capital expenditures totaled $0.5 million for the six months ended June 30, 2021, compared to $0.3 million in the comparative prior year period. Leadership Transition Also announced today, Paul Hodge, Jr. will be transitioning to a non-executive role and stepping down as President and Chief Executive Officer. The Company’s Board of Directors has commenced a search for his successor. Additional details on this transition can be found in a separate media release issued this afternoon. 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 3667069. 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) the effects of the current COVID-19 pandemic, or of other 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) our expectations 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) our expectations regarding real or perceived quality 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) expectations 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 foodservice customers, as well as the health of the foodservice industry generally; (10) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (11) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (12) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (13) the costs and success of our marketing efforts, and our ability to promote our brand; (14) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (15) our ability to effectively manage our growth; (16) our ability to compete effectively with existing competitors and new market entrants; (17) the impact of adverse economic conditions; and (18) the growth rates of the markets in which we compete. LAIRD SUPERFOOD, INC. STATEMENTS OF OPERATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Sales, net $ 9,195,786 $ 5,608,830 $ 16,622,039 $ 11,092,055 Cost of goods sold (6,998,695 ) (4,285,128 ) (12,558,194 ) (7,650,736 ) Gross profit 2,197,091 1,323,702 4,063,845 3,441,319 General and administrative Salaries, wages and benefits 1,019,845 804,903 2,225,698 1,621,075 Stock-based compensation 955,369 116,249 1,854,604 299,452 Professional fees 609,448 191,130 953,070 373,177 Insurance expense 500,821 25,866 1,023,221 57,061 Office expense 206,448 108,883 393,279 222,248 Occupancy 62,957 56,343 119,478 109,774 Merchant service fees 151,882 89,014 258,257 145,049 Netsuite subscription expense 74,117 30,923 129,138 57,318 Impairment on asset held for sale - 239,734 - 239,734 Other expense 582,024 169,397 847,235 307,124 Total general and administrative expenses 4,162,911 1,832,442 7,803,980 3,432,012 Research and product development Salaries, wages and benefits 116,187 72,931 186,548 147,833 Stock-based compensation 5,385 2,192 8,952 4,384 Product development expense 249,948 40,175 412,792 97,917 Other expense 3,332 2,499 7,247 10,977 Total research and product development expenses 374,852 117,797 615,539 261,111 Sales and marketing Salaries, wages and benefits 630,328 697,547 1,264,079 1,443,556 Stock-based compensation 55,706 35,938 97,095 110,434 Advertising 1,699,865 1,154,060 3,381,209 2,090,423 General marketing 1,260,489 261,662 1,971,012 570,884 Amazon selling fee 210,842 208,317 413,118 395,889 Travel expense 11,604 3,950 20,360 73,964 Other expense 67,658 34,227 116,698 103,368 Total sales and marketing expenses 3,936,492 2,395,701 7,263,571 4,788,518 Total expenses 8,474,255 4,345,940 15,683,090 8,481,641 Operating loss (6,277,164 ) (3,022,238 ) (11,619,245 ) (5,040,322 ) Other income (expense) Interest and dividend income 11,623 8,171 25,525 31,025 Loss on sale of fixed assets - - (2,325 ) - Gain on sale of available-for-sale securities - 7,677 - 7,677 Total other income (expense) 11,623 15,848 23,200 38,702 Loss before income taxes (6,265,541 ) (3,006,390 ) (11,596,045 ) (5,001,620 ) Income tax expense (36,718 ) - (36,718 ) - Net loss $ (6,302,259 ) $ (3,006,390 ) $ (11,632,763 ) $ (5,001,620 ) Less deemed dividend of beneficial conversion feature - (825,366 ) - (825,366 ) Less deemed dividend on warrant discount - (179,427 ) - (179,427 ) Net loss attributable to Laird Superfood, Inc. common stockholders $ (6,302,259 ) $ (4,011,183 ) $ (11,632,763 ) $ (6,006,413 ) Net loss per share attributable to Laird Superfood, Inc common stockholders: Basic $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Diluted $ (0.70 ) $ (0.93 ) $ (1.30 ) $ (1.40 ) Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 8,967,797 4,325,265 8,931,736 4,303,305 LAIRD SUPERFOOD, INC. STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2021 2020 Cash flows used in operating activities Net loss $ (11,632,763 ) $ (5,001,620 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation 302,261 229,284 Amortization 103,803 5,048 Loss on disposal of equipment 2,325 - Stock-based compensation 2,100,077 471,320 Provision for inventory obsolescence 18,266 - Reserve for prepaid assets 179,000 - Restricted stock awards - 62,431 Impairment on asset held for sale - 239,734 Gain on sale of investment securities available-for-sale - 7,677 Changes in operating assets and liabilities: Accounts receivable 98,534 (324,211 ) Accrued investment income receivable 513 - Inventory (3,778,699 ) (1,048,010 ) Prepaid expenses and other current assets 729,881 (371,883 ) Deferred rent 179,503 180,677 Deposits 2,602 10,941 Accounts payable 208,131 568,088 Payroll liabilities 129,397 167,576 Accrued expenses 367,209 155,943 Deferred taxes 36,718 - Net cash from operating activities (10,953,242 ) (4,647,005 ) Cash flows used in (provided by) investing activities Purchase of property, plant, and equipment (522,564 ) (312,746 ) Deposits on equipment to be acquired (407,412 ) (319,174 ) Purchase of software (109,795 ) - Acquisition of a business, net of cash acquired (note 2) (10,449,587 ) - Sale of investment securities available-for-sale - 513,544 Proceeds from maturities of investment securities available-for-sale - 475,000 Net cash from investing activities (11,488,658 ) 356,624 Cash flows from financing activities Issuance of common stock - 1,997,665 Issuance of preferred stock - 10,000,006 Common stock issuance costs (82,043 ) - Preferred stock issuance costs - (147,721 ) Withholding tax payments for share based compensation (219,156 ) - Restricted stock units issued 3 - Repurchased common stock - (20,532 ) Stock options exercised 394,666 6,030 Net cash from financing activities 93,470 11,835,448 Net change in cash and cash equivalents (22,348,430 ) 7,545,067 Cash and cash equivalents beginning of period 57,208,080 1,004,109 Cash and cash equivalents end of period $ 34,859,650 $ 8,549,176 Supplemental disclosures of non-cash information Unrealized gain (loss) on available-for-sale securities $ (24,001 ) $ 17,345 LAIRD SUPERFOOD, INC. BALANCE SHEETS As of June 30, 2021 December 31, 2020 Assets Current assets Cash and cash equivalents $ 34,859,650 $ 57,208,080 Accounts receivable, net 789,642 839,659 Investment securities available-for-sale 8,682,330 8,706,844 Inventory 10,782,337 6,295,898 Prepaid expenses and other current assets, net 2,175,604 2,847,319 Deposits 508,484 97,674 Total current assets 57,798,047 75,995,474 Noncurrent assets Property and equipment, net 3,786,144 3,513,488 Intangible assets, net 5,073,084 137,092 Goodwill 6,486,000 - Deferred rent 2,517,143 2,696,646 Total noncurrent assets 17,862,371 6,347,226 Total assets $ 75,660,418 $ 82,342,700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 1,571,418 $ 1,315,964 Payroll liabilities 861,501 722,915 Accrued expenses 1,219,863 704,543 Total current liabilities 3,652,782 2,743,422 Long-term liabilities Deferred tax liability, net 36,718 - Note payable 51,000 51,000 Total long-term liabilities 87,718 51,000 Total liabilities 3,740,500 2,794,422 Stockholders' equity Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 9,365,085 and 8,999,381 issued and outstanding at June 30, 2021, respectively; 9,247,758 and 8,892,886 issued and outstanding at December 31, 2020, respectively $ 8,999 $ 8,893 Additional paid-in capital 115,480,644 111,452,346 Accumulated other comprehensive income (loss) (9,794 ) 14,207 Accumulated deficit (43,559,931 ) (31,927,168 ) Total stockholders' equity 71,919,918 79,548,278 Total liabilities and stockholders' equity $ 75,660,418 $ 82,342,700 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005847/en/