Borealis Foods Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing gross sales of $8,075,788, a decrease from $8,264,745 in the same period the previous year. The decline is attributed to lower demand for Ramen Express noodles.
Cost of goods sold was $6,414,629, representing 83% of net revenue, compared to 106% in the same quarter of the previous year. This improvement is due to a favorable product mix with higher-margin products.
The company reported a gross profit of $1,273,270 for the quarter, compared to a loss of $476,799 in the previous year, driven by strategic shifts towards high-margin products.
Sales and marketing expenses rose to $1,123,460 from $312,289, reflecting investments in brand development for premium products.
Net loss for the quarter was $4,832,169, compared to $6,585,101 in the previous year. The improvement is attributed to cost management and product mix adjustments.
Cash used in operating activities was $14,270,118, while cash used in investing activities was $1,708,650, primarily for property and equipment investments.
Borealis had cash-on-hand of $721,542 as of September 30, 2024, and continues to pursue additional financing to support growth and liquidity needs.
The filing also discusses risks, including dependence on a limited number of customers for a significant portion of revenue and the impact of inflation on costs.
The company identified material weaknesses in its internal controls over financial reporting and is in the process of remediation.
Borealis continues to focus on expanding its premium product lines such as Chef Woo and Woodles, with expectations of increased demand and market reach in future quarters.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Borealis Foods Inc. Warrant quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.