Fri, Sep 20, 8:52 PM (100 days ago)
Smart for Life, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2023, with total revenues dropping by 48.3% to approximately $8.23 million from $15.90 million in 2022. This decline is attributed to cash constraints affecting production capabilities, leading to a net loss of $22.68 million, compared to a loss of $29.98 million the previous year. The company faced operating expenses totaling $20.25 million, resulting in an operating loss of $17.16 million. The firm is pursuing a buy-and-build strategy in the nutraceutical sector, but its ongoing restructuring and asset sales raise concerns about its ability to continue as a going concern. As of the end of 2023, Smart for Life had a working capital deficiency of around $19.7 million and an accumulated deficit of $67.68 million. The company is reliant on raising additional capital through equity or debt financing, with substantial risks tied to its ability to do so. Additionally, it has experienced significant impairments of intangible assets, totaling $5.84 million, reflecting challenges in its operational strategy. The outlook remains uncertain, with potential volatility in stock performance due to these financial struggles.