Thu, Mar 20, 7:02 PM (37 days ago)
### Summary of Innovative Food Holdings, Inc. (IVFH) 2024 Annual Report **Financial Performance:** - **Revenue:** $72.1 million, a 2.5% increase from $70.4 million in 2023. - **Gross Margin:** 23.4%, a decline of 85 basis points due to liquidation of inventory from divested businesses and the ramp-up of the lower-margin retail business. - **Net Income:** $2.6 million, a significant improvement from a net loss of $3.7 million in 2023. **Operating Expenses:** - **Cash Operating Expenses:** Decreased by $904,000, reflecting cost-cutting efforts and restructuring initiatives. - **Non-Cash Operating Expenses:** Decreased by $557,000, primarily due to the absence of impairment costs and reduced depreciation and amortization expenses. **Strategic Overview:** - **Direct-to-Chef Specialty Foodservice Platform:** Focus on growing this platform, which generates strong cash flow and has great growth potential. - **Drop Ship Business:** Diversify with more partners and additional sales channels. - **Specialty Food Distribution Business:** Expand through mergers and acquisitions in new markets. **Future Outlook:** - **Growth Opportunities:** Continue to grow the direct-to-chef specialty foodservice platform, diversify the drop ship business, and expand the specialty food distribution business. - **Strategic Initiatives:** Invest in digital transformation, enhance e-commerce capabilities, and expand the distribution network. **Risk Factors:** - **Dependence on Major Customers:** Significant revenue from U.S. Foods, Inc. and Gate Gourmet. - **Economic Conditions:** Changes in economic conditions can affect consumer confidence and spending. - **Competition:** Highly competitive specialty food and foodservice industries. - **Supply Chain Disruptions:** Reliance on outside vendors and shippers for specialty food products. - **Regulatory Compliance:** Changes in government regulation and supervision could impair sources of revenue and limit business expansion. **Financial Condition:** - **Liquidity:** As of December 31, 2024, IVFH had current assets of $23.9 million, including cash and cash equivalents of $2.3 million, and current liabilities of $9.4 million. - **Capital Needs:** Significant capital expenditures planned for growth initiatives and operational improvements. **Market Position Changes:** - **Revenue Breakdown:** Digital Channels contributed 52.5% of total revenue, National Distribution 24.9%, Local Distribution 16.8%, Direct-to-Consumer 4.3%, and Other Services 1.5%. **Earnings per Share:** - **Net Income per Share from Continuing Operations:** $0.05, an improvement from a loss of $0.08 in 2023. **Acquisitions and Share Issuance:** - **Golden Organics:** Acquired for $1,580,000, including a cash payment of $1,230,000 and a promissory note of $350,000. - **LoCo Foods:** Acquired for $304,269, with an additional earnout of $53,430 if certain revenue and EBITDA targets are met. - **Share Issuance:** 2,031,250 shares issued at $1.60 per share, raising $3,250,000. **Ticker:** IVFH