Mon, Jul 15, 9:08 PM (54 days ago)
Rocky Mountain Chocolate Factory, Inc. reported a net loss of $1.7 million for Q1 2024, compared to a loss of $0.8 million in Q1 2023. Revenues were flat at $6.4 million, with a 5.2% increase in product and retail sales offset by a 23.1% decline in royalty and marketing fees. Operating loss widened slightly to $1.6 million from $1.5 million. Gross margin fell to -5.8% due to increased raw material and labor costs. The company faced liquidity issues, with working capital decreasing to $0.8 million and a current ratio of 1.10. Non-compliance with a credit agreement covenant raises substantial doubt about its ability to continue as a going concern. The company is exploring various options to strengthen its liquidity position and ensure compliance with debt covenants.