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Laird Superfood Reports Second Quarter 2022 Financial Results

33% Year-Over-Year Improvement in Net Cash used in Operating Activities

Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” “we” and “our”), today reported financial results for its second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Net Sales of $8.7 million were down 6% versus the prior year period.
  • Online contributed 60% of total Net Sales and revenue decreased 11% year-over-year, driven by reduced working marketing spend and elimination of free shipping on orders under forty dollars.
  • Wholesale Net Sales contributed 39% of total Net Sales and revenue increased 4% year-over-year, driven by continued expansion in Grocery and growth in our Club business.
  • Gross Profit was $1.6 million and Gross Margin was 18.2% compared to Gross Profit of $2.2 million and Gross Margin of 23.8% in the prior year period.
  • Net Loss was $4.9 million, or $0.54 per diluted share, compared to a Net Loss of $6.3 million, or $0.70 per diluted share, in the prior year period.
  • Adjusted Net Loss, which is a non-GAAP financial measure, was $6.3 million, or $0.69 per diluted share, compared to Adjusted Net Loss of $6.3 million, or $0.70 per diluted share, in the prior year period. For more details on non-GAAP financial measures, refer to the information in the Non-GAAP financial measures section of this press release.
  • Net Cash Used in Operating Activities was $3.9 million, an improvement of 33% compared to $5.8 million of Net Cash Used in Operating Activities in the prior year period.

“We are encouraged by early progress on key initiatives to drive growth in Wholesale as well as optimizing our cost structure,” said Jason Vieth, President and Chief Executive Officer. “As expected, second quarter results were adversely impacted by structural headwinds in online channels as well as heightened inflationary pressures. Despite these challenges and lower net sales, we delivered a 33% improvement in operating cash flow for the quarter and our balance sheet remained strong with nearly $25 million of cash and no debt. Underlying consumer metrics also continue to trend favorably, reflecting the strength of the Laird Superfood brand and demand for our core products.

Our new leadership team is energized and doing a phenomenal job of reorienting the Company to the biggest commercial and operational opportunities, while executing well against our strategic priorities. We are taking key steps to grow and improve our business, including:

  • Realigning new sales broker partners across all classes of the retail trade, while at the same time increasing prices where appropriate and implementing a $40 threshold for free shipping in the DTC channel.
  • Rebuilding our marketing agency ecosystem and associated creative content across Social Media, Amazon, Public Relations, and Email.
  • Streamlining our operations through targeted process improvement and organizational efficiencies to match our supply capability to our anticipated demand.

Overall, we are continuing to make solid progress against our strategic plan, and we remain confident in our direction and ability to drive significant improvements to sales growth and profitability in the future.”

For the Three Months Ended June 30, 2022

Three Months Ended June 30,

2022

 

2021

$

 

% of Total

 

$

 

% of Total

Coffee creamers

$

4,694,975

 

54

%

$

5,078,739

 

55

%

Hydration and beverage enhancing supplements

 

1,296,779

 

15

%

 

1,752,820

 

19

%

Harvest snacks and other food items

 

1,713,441

 

20

%

 

1,344,802

 

15

%

Coffee, tea, and hot chocolate products

 

1,568,142

 

18

%

 

1,661,130

 

18

%

Other

 

419,390

 

5

%

 

76,232

 

1

%

Gross sales

 

9,692,727

 

112

%

 

9,913,723

 

108

%

Shipping income

 

291,410

 

3

%

 

40,750

 

0

%

Returns and discounts

 

(1,310,131

)

(15

)%

 

(773,887

)

(8

)%

Sales, net

$

8,674,006

 

100

%

$

9,180,586

 

100

%

 
Online

 

5,178,819

 

60

%

 

5,799,104

 

63

%

Wholesale

 

3,341,573

 

39

%

 

3,220,030

 

35

%

Food service

 

153,614

 

2

%

 

161,452

 

2

%

Sales, net

$

8,674,006

 

100

%

$

9,180,586

 

100

%

Net Sales decreased 6% to $8.7 million in the second quarter of 2022 compared to $9.2 million in the second quarter of 2021, driven by elevated promotional discounts while volume was nearly flat. Wholesale channel increased 4%, driven by distribution gains in Grocery and Club, while Online sales declined 11%. The decline in Online sales was primarily due to challenging results in our direct-to-consumer channel impacted by a consumer spending pull back due to inflationary concerns, elevated discounts and reduced working marketing spend as we optimize investment mix across all digital channels. Despite these factors, Amazon.com channel sales grew, reflecting momentum driven by changes we are making.

Gross Profit was $1.6 million, a 28% decrease compared to the prior year period of $2.2 million. Gross Margin was 18.2% of Net Sales in the second quarter of 2022, compared to 23.8% of Net Sales in the prior year period. The margin compression was driven by a combination of elevated promotional discounts, inflation in raw materials, packaging, and shipping costs combined with fixed cost deleverage of internal manufacturing facilities partially offset by gains in labor efficiencies and organizational optimization.

Operating Expenses were $6.5 million compared to $8.5 million in the year ago period, a 23% decline primarily driven by lower General and Administrative expenses due to stock-based compensation forfeitures. Sales and Marketing expense declined $0.2 million due to lower Advertising expense and Marketing fees. Research and Development expenses declined $0.3 million reflecting expenses associated with new product launches in the year-earlier period.

Loss from operations was $4.9 million in the second quarter of 2022, compared to a loss of $6.3 million in the prior year period, a 22% improvement versus a year ago.

Net Loss was $4.9 million, or $0.54 per diluted share, in the second quarter of 2022, compared to a net loss of $6.3 million, or $0.70 per diluted share, in the prior year period.

Adjusted Net Loss, which excludes the impact of certain one-time items, was $6.3 million, or $0.69 per diluted share, in the second quarter of 2022 compared to $6.3 million, or $0.70 per diluted share, a year earlier.

For the Six Months Ended June 30, 2022

Six Months Ended June 30,

2022

 

2021

$

 

% of Total

 

$

 

% of Total

Coffee creamers

$

10,149,382

 

56

%

$

10,100,387

 

61

%

Hydration and beverage enhancing supplements

 

2,754,210

 

15

%

 

2,982,875

 

18

%

Harvest snacks and other food items

 

3,400,232

 

19

%

 

1,487,705

 

9

%

Coffee, tea, and hot chocolate products

 

3,384,327

 

19

%

 

3,562,222

 

21

%

Other

 

657,713

 

4

%

 

127,168

 

1

%

Gross sales

 

20,345,864

 

113

%

 

18,260,357

 

110

%

Shipping income

 

539,602

 

3

%

 

66,410

 

0

%

Returns and discounts

 

(2,871,447

)

(16

)%

 

(1,749,288

)

(10

)%

Sales, net

$

18,014,019

 

100

%

$

16,577,479

 

100

%

 
Online

 

10,602,770

 

59

%

 

10,161,509

 

63

%

Wholesale

 

7,136,643

 

40

%

 

6,113,727

 

35

%

Food service

 

274,606

 

2

%

 

302,243

 

2

%

Sales, net

$

18,014,019

 

100

%

$

16,577,479

 

100

%

Net Sales increased 9% to $18.0 million in the first six months of 2022 compared to $16.6 million in the first six months of 2021. The increase in year-to-date Net Sales was due to online growth, reflecting the acquisition of Picky Bars, as well higher wholesale revenue driven by distribution gains.

Gross Profit was $3.5 million, a decrease of 12% compared to the prior year period of $4.0 million. Gross Margin was 19.6% of Net Sales in the first six months of 2022, compared to 24.2% of Net Sales in the prior year period. The year over year compression in Gross Margin was primarily due to elevated promotional activity, inflationary pressures on raw materials, packaging, and freight, partially offset by labor efficiencies and organizational optimization.

Operating Expenses were $22.4 million compared to $15.6 million in the first six months of 2022 and reflect General and Administrative expense increases of $6.7 million, primarily due to $8.0 million non-cash charge for goodwill and intangible asset impairment. Excluding the charge for the impairment of goodwill and intangible assets, General and Administrative expenses decreased by $1.4 million reflecting lower stock-based compensation and gain on sale of land. Sales and Marketing expense increased $0.5 million, primarily due to advertising and marketing fees. Research and Product Development expense decreased by $0.4 million primarily due to costs incurred to bring new products to market a year ago.

Loss from operations was $18.9 million in the first six months of 2022, compared to a loss of $11.6 million in the prior year period.

Net Loss was $19.0 million, or $2.09 per diluted share, in the first six months of 2022, compared to net loss of $11.6 million, or $1.30 per diluted share.

Adjusted Net Loss, which excludes the impact of certain one-time items, was $13.0 million, or $1.42 per diluted share, in the first six months of 2022 compared to $11.6 million, or $1.30 per diluted share in the prior year period.

Balance Sheet and Cash Flow Highlights

The Company had $24.5 million of cash and cash equivalents as of June 30, 2022, and no outstanding debt. Net cash used in operating activities was $7.5 million for the six months ended June 30, 2022, compared to $11.0 million in 2021.

Capital Expenditures totaled $1.1 million for the six months ended June 30, 2022, compared to $0.5 million a year earlier.

2022 Outlook

We are operating in an unusually uncertain economic environment with the highest inflation rates in decades, particularly in food and fuel, which has created more pressure on margin mix and operating costs than we had anticipated in the beginning of the year. We expect these trends to continue in the second half of the year and are accordingly updating our guidance for the full year 2022. We estimate that Net Sales for full year 2022 will be in a range of $36 million to $38 million and Gross Margin for full year 2022 is estimated at approximately 20%, which is inclusive of thirteen points of Outbound Distribution expense included in our Cost of Goods Sold. The Company’s guidance assumes that there are no significant disruptions to the supply chain, or its customers or consumers, including any disruptions from adverse macroeconomic factors or additional adverse changes related to the duration, magnitude and effects of the COVID-19 pandemic.

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 (844) 200-6205 from the U.S. or (929) 526-1599 internationally. The conference I.D. code is 510937. 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 conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s future financial performance and growth. 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) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (3) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (5) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (6) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (7) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (8) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (9) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and foodservice customers, as well as the health of the foodservice industry generally; (10) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (11) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (12) the costs and success of our marketing efforts, and our ability to promote our brand; (13) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (14) our ability to effectively manage our growth; (15) our ability to compete effectively with existing competitors and new market entrants; (16) the impact of adverse economic conditions; and (17) the growth rates of the markets in which we compete.

LAIRD SUPERFOOD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

June 30,

 

For the Six Months Ended

June 30,

2022

 

2021

 

2022

 

2021

Sales, net

$

8,674,006

 

$

9,180,586

 

$

18,014,019

 

$

16,577,479

 

Cost of goods sold

 

(7,096,068

)

 

(6,998,695

)

 

(14,486,271

)

 

(12,558,194

)

Gross profit

 

1,577,938

 

 

2,181,891

 

 

3,527,748

 

 

4,019,285

 

General and administrative
Salaries, wages and benefits

 

1,407,054

 

 

1,032,424

 

 

3,059,065

 

 

2,253,181

 

Stock-based compensation

 

(259,474

)

 

955,369

 

 

(313,969

)

 

1,854,604

 

Professional fees

 

562,106

 

 

609,448

 

 

1,272,231

 

 

953,070

 

Insurance expense

 

501,079

 

 

500,821

 

 

1,113,013

 

 

1,023,221

 

Impairment of goodwill

 

 

 

 

 

6,486,000

 

 

 

Impairment of long-lived intangible assets

 

 

 

 

 

1,540,000

 

 

 

Impairment of fixed assets held-for-sale

 

100,426

 

 

 

 

100,426

 

 

 

Gain on sale of land held-for-sale

 

(573,818

)

 

 

 

(573,818

)

 

 

Other expense

 

898,152

 

 

1,064,849

 

 

1,781,221

 

 

1,722,229

 

Total general and administrative expenses

 

2,635,525

 

 

4,162,911

 

 

14,464,169

 

 

7,806,305

 

Research and product development

 

116,467

 

 

374,852

 

 

220,300

 

 

615,539

 

Sales and marketing
Salaries, wages and benefits

 

722,443

 

 

630,328

 

 

1,457,468

 

 

1,264,079

 

Stock-based compensation

 

37,849

 

 

55,706

 

 

96,084

 

 

97,095

 

Advertising

 

1,567,465

 

 

1,697,860

 

 

3,359,202

 

 

3,359,504

 

General marketing

 

1,096,025

 

 

1,247,294

 

 

2,158,670

 

 

1,948,158

 

Other expense

 

329,220

 

 

290,104

 

 

653,218

 

 

550,175

 

Total sales and marketing expenses

 

3,753,002

 

 

3,921,292

 

 

7,724,642

 

 

7,219,011

 

Total expenses

 

6,504,994

 

 

8,459,055

 

 

22,409,111

 

 

15,640,855

 

Operating loss

 

(4,927,056

)

 

(6,277,164

)

 

(18,881,363

)

 

(11,621,570

)

Other income (expense)
Interest and dividend income

 

5,771

 

 

11,623

 

 

10,679

 

 

25,525

 

Rental income

 

16,765

 

 

 

 

16,765

 

 

 

Loss on sale of available-for-sale debt securities

 

 

 

 

 

(182,310

)

 

 

Other expense

 

 

 

 

 

(1,919

)

 

 

Total other income

 

22,536

 

 

11,623

 

 

(156,785

)

 

25,525

 

Loss before income taxes

 

(4,904,520

)

 

(6,265,541

)

 

(19,038,148

)

 

(11,596,045

)

Income tax expense

 

 

 

(36,718

)

 

(5,774

)

 

(36,718

)

Net loss

$

(4,904,520

)

$

(6,302,259

)

$

(19,043,922

)

$

(11,632,763

)

Net loss per share:
Basic

$

(0.54

)

$

(0.70

)

$

(2.09

)

$

(1.30

)

Diluted

$

(0.54

)

$

(0.70

)

$

(2.09

)

$

(1.30

)

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

 

9,132,632

 

 

8,967,797

 

 

9,114,527

 

 

8,931,736

 

LAIRD SUPERFOOD, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,

2022

2021

Cash flows from operating activities
Net loss

$

(19,043,922

)

 

(11,632,763

)

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

 

329,138

 

 

302,261

 

Amortization

 

245,223

 

 

103,803

 

Loss on disposal of equipment

 

635

 

 

2,325

 

Gain on sale of land held-for-sale

 

(573,818

)

 

 

Stock-based compensation

 

(198,446

)

 

2,100,077

 

Provision for inventory obsolescence

 

34,843

 

 

128,556

 

Provision for doubtful accounts

 

60,106

 

 

 

Reserve for prepaid assets

 

 

 

179,000

 

Noncash conversion of note payable to grant income

 

 

Impairment of goodwill

 

6,486,000

 

 

 

Impairment of long-lived intangible assets

 

1,540,000

 

 

 

Impairment of fixed assets held-for-sale

 

100,426

 

Deferred taxes

 

(7,534

)

 

36,718

 

Loss on sale of investment securities available-for-sale

 

182310

 

 

 

Noncash lease costs

 

530,669

 

 

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

24,659

 

 

99,047

 

Inventory

 

1,442,689

 

 

(3,888,989

)

Prepaid expenses and other current assets

 

1,055,451

 

 

729,881

 

Operating lease liability

 

(370,214

)

 

179,503

 

Deposits

 

202,839

 

 

2,602

 

Accounts payable

 

(475,332

)

 

208,131

 

Payroll liabilities

 

335,205

 

 

129,397

 

Accrued expenses

 

562,415

 

 

367,209

 

Net cash from operating activities

 

(7,536,658

)

 

(10,953,242

)

Cash flows from investing activities
Purchase of property, plant, and equipment

 

(1,121,831

)

 

(522,564

)

Deposits on equipment to be acquired

 

 

 

(407,412

)

Proceeds on sale of property, plant, and equipment

 

 

 

700

 

Purchase of software

 

(2,714

)

 

(109,795

)

Acquisition of a business, net of cash acquired (note 2)

 

 

 

(10,449,587

)

Proceeds from sale of land held-for-sale

 

1,521,212

 

 

 

Proceeds from sale of investment securities available-for-sale

 

8,513,783

 

 

 

Net cash from investing activities

 

8,910,450

 

 

(11,488,658

)

Cash flows from financing activities
Common stock issuance costs

 

 

 

(82,043

)

Recovery of short-swing profits

 

28,555

 

 

 

Employee stock purchase plan shares issued

 

28,287

 

 

 

Withholding tax payments for share based compensation

 

 

 

(219,156

)

Stock options exercised

 

64,248

 

 

394,669

 

Net cash from financing activities

 

121,090

 

 

93,470

 

Net change in cash and cash equivalents

 

1,494,882

 

 

(22,348,430

)

Cash and cash equivalents beginning of year

 

23,049,234

 

 

57,208,080

 

Cash and cash equivalents end of year

$

24,544,116

 

$

34,859,650

 

Supplemental disclosures of cash flow information
Right-of-use assets obtained in exchange for operating lease liabilities

$

5,285,330

 

$

 

Supplemental disclosures of non-cash information
Unrealized loss on available-for-sale securities

$

 

$

(24,001

)

Common stock issued in connection with the acquisition of a business (note 2)

$

 

$

1,834,857

 

Amounts reclassified from accumulated other comprehensive loss

$

61,016

 

$

 

Amounts reclassified from property, plant, and equipment to fixed assets held-for-sale

$

100,000

 

$

 

Amounts reclassified from property, plant, and equipment to intangible assets

$

153,691

 

$

 

Purchases of equipment included in deposits at the beginning of the period

$

372,507

 

$

 

Property and equipment held-and-used reclassified to held-for-sale

$

947,394

 

$

 

LAIRD SUPERFOOD, INC.
CONSOLIDATED BALANCE SHEETS
As of

June 30,

2022

December 31,

2021

Assets
Current assets
Cash, cash equivalents, and restricted cash

$

24,544,116

 

$

23,049,234

 

Accounts receivable, net

 

1,183,953

 

 

1,268,718

 

Investment securities available-for-sale

 

 

 

8,635,077

 

Inventory

 

8,743,811

 

 

10,221,343

 

Prepaid expenses and other current assets, net

 

2,772,092

 

 

3,827,543

 

Deposits

 

104,573

 

 

679,919

 

Total current assets

 

37,447,755

 

 

47,681,834

 

Noncurrent assets
Property and equipment, net

 

4,375,989

 

 

4,512,935

 

Fixed assets held-for-sale

 

100,000

 

 

 

Intangible assets, net

 

3,210,036

 

 

4,838,854

 

Goodwill

 

 

 

6,486,000

 

Right of use asset

 

7,179,389

 

 

2,327,752

 

Total noncurrent assets

 

14,865,414

 

 

18,165,541

 

Total assets

$

52,213,959

 

$

65,847,375

 

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable

$

413,436

 

$

888,768

 

Payroll liabilities

 

1,149,368

 

 

814,163

 

Accrued expenses

 

2,645,505

 

 

2,083,090

 

Lease liability, current portion

 

742,669

 

 

 

Total current liabilities

 

4,950,978

 

 

3,786,021

 

Long-term liabilities
Deferred tax liability, net

 

 

 

7,534

 

Lease liability

 

4,269,423

 

 

 

Total long-term liabilities

 

4,269,423

 

 

7,534

 

Total liabilities

 

9,384,713

 

 

3,793,555

 

Stockholders’ equity
Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 9,535,662 and 9,169,958 issued and outstanding at June 30, 2022, respectively; 9,460,243 and 9,094,539 issued and outstanding at December 31, 2021, respectively

 

9,170

 

 

9,095

 

Additional paid-in capital

 

117,826,024

 

 

117,903,455

 

Accumulated other comprehensive income (loss)

 

 

 

(61,016

)

Accumulated deficit

 

(74,841,636

)

 

(55,797,714

)

Total stockholders’ equity

 

42,993,558

 

 

62,053,820

 

Total liabilities and stockholders’ equity

$

52,213,959

 

$

65,847,375

 

Non-GAAP Financial Measures

In this press release, we report adjusted net loss and adjusted net loss per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). Management uses adjusted net loss and adjusted net loss per diluted share to evaluate financial performance because adjusted net loss and adjusted net loss per diluted share allow for period-over-period comparisons of the Company’s ongoing operations before the impact of certain items described below. Management believes this information may also be useful to investors to compare the Company’s results period-over-period. We define adjusted net loss and adjusted net loss per diluted share to exclude (1) non-cash charges for goodwill and intangible asset impairment, (2) forfeitures of unvested stock-based compensation, (3) non-recurring executive severance costs, (4) loss on sale of available-for-sale securities, (5) proceeds from an insurance settlement, and (6) gain on sale of land held-for-sale. Please be aware that adjusted net loss and adjusted net loss per diluted share have limitations and should not be considered in isolation or as a substitute for net loss or diluted net loss per share. In addition, we may calculate and/or present adjusted net loss and adjusted net loss per diluted share differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

These non-GAAP measures are reconciled to the most directly comparable GAAP measures in the table that follows.

LAIRD SUPERFOOD, INC.
NON-GAAP FINANCIAL MEASURES

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2022

 

2021

 

2022

 

2021

Loss before income taxes

$

(4,904,520

)

$

(6,265,541

)

$

(19,038,148

)

$

(11,596,045

)

Adjusted for:
Impairment of goodwill and long-lived assets (a)

 

100,426

 

 

 

 

8,126,426

 

 

 

Forfeitures of unvested stock-based compensation (b)

 

(1,023,637

)

 

 

 

(1,931,259

)

 

 

Executive severances (c)

 

143,746

 

 

 

 

470,017

 

 

 

Loss on sale of available-for-sale securities (d)

 

 

 

 

 

182,310

 

 

 

Proceeds from insurance settlement (e)

 

 

 

 

 

(204,606

)

 

 

Gain on sale of land held-for-sale

 

(573,818

)

 

 

 

(573,818

)

 

 

Adjusted net loss

$

(6,257,803

)

$

(6,265,541

)

$

(12,969,078

)

$

(11,596,045

)

Adjusted net loss per share:
diluted

 

(0.69

)

 

(0.70

)

 

(1.42

)

 

(1.30

)

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

 

9,132,632

 

 

8,967,797

 

 

9,114,527

 

 

8,931,736

 

(a) Reflects impairment charges to goodwill and long-lived intangible assets assumed in the acquisition of Picky Bars which occurred Q2 2021, in the amounts of $6.5 million and $1.5 million, respectively, as well as $0.1 million of impairment charges related to production machinery held-for-sale in Q2 2022.
(b) Represents reversals of stock-based compensation arising from the forfeitures of unvested awards following the resignation of certain executive officers.
(c) Represents compensation expense related to severances related to the resignations of certain executive officers.
(d) Represents realized losses on the liquidation of the Company's available-for-sale securities.
(e) Represents the recovery of costs incurred in connection with an insurance claim following loss of product.

 

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