SMART FOR LIFE, INC.

CIK:0001851860|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Total revenues	$ 1,269,373	$ 2,245,555	$ 2,626,080	$ 5,186,376
Cost of revenues
Total cost of revenues	751,317	1,409,168	1,494,279	3,668,825
Gross profit	518,056	836,387	1,131,801	1,517,551
Operating expenses
General and administrative	428,554	1,174,348	1,390,638	3,580,098
Compensation – administrative	570,126	1,907,195	1,460,524	4,527,332
Professional services	422,842	348,598	1,566,484	1,568,896
Consulting fees – related parties		19,139		46,686
Impairment of intangible assets				466,737
Depreciation and amortization expense	300,636	303,538	946,888	700,723
Total operating expenses	1,722,158	3,752,818	5,364,534	10,890,472
Operating loss	(1,204,102)	(2,916,431)	(4,232,733)	(9,372,921)
Other income (expense)
Other income (expense)	(179,536)	19,820	(241,298)	324,672
Gain on debt extinguishment	194,114	16,021	286,510	205,727
Loss on sale of subsidiaries			(132,491)
Interest expense	(2,046,324)	(1,105,289)	(4,112,464)	(3,028,915)
Total other income (expense)	(2,031,746)	(1,069,448)	(4,199,743)	(2,498,516)
Loss from continuing operations	(3,235,848)	(3,985,879)	(8,432,476)	(11,871,437)
Income (loss) from discontinued operations	(30)	(358,228)	89,403	(976,982)
Net loss	$ (3,235,878)	$ (4,344,107)	$ (8,343,073)	$ (12,848,419)
(Loss) per share continuing operations, basic (in Dollars per share)	$ (0.94)	$ (6.89)	$ (3.52)	$ (38.93)
(Loss) per share continuing operations, diluted (in Dollars per share)	(0.94)	(6.89)	(3.52)	(38.93)
(Loss) earnings per share discontinued operations, basic (in Dollars per share)	0	(0.62)	0.04	(3.2)
(Loss) earnings per share discontinued operations, diluted (in Dollars per share)	0	(0.62)	0.04	(3.2)
(Loss) per share, basic (in Dollars per share)	(0.94)	(7.51)	(3.49)	(42.13)
(Loss) per share, diluted (in Dollars per share)	$ (0.94)	$ (7.51)	$ (3.49)	$ (42.13)
Weighted average shares outstanding, basic (in Shares)	3,457,980	578,686	2,392,793	304,950
Weighted average shares outstanding diluted (in Shares)	3,457,980	578,686	2,392,793	304,950
Products
Revenues
Total revenues	$ 1,269,373	$ 2,239,556	$ 2,625,965	$ 4,824,906
Cost of revenues
Total cost of revenues	751,317	1,408,646	1,494,279	3,389,788
Advertising
Revenues
Total revenues		5,999	115	361,470
Cost of revenues
Total cost of revenues		$ 522		$ 279,037

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (8,343,073)	$ (12,848,419)
Adjustments to reconcile net loss to net cash used in operating activities:
Debt issuance cost	222,446	901,389
Loss on sales of subsidiaries	132,491
Depreciation and amortization expense	946,888	700,723
Gain on extinguishment of debt	(286,510)	(205,727)
Impairment on intangible assets		466,737
Stock-based compensation	318,327	914,787
Non-cash finance fees	2,055,084
Non-cash expenses paid with debt	202,698
Non-cash operating lease costs, net	(21,106)	16,595
Provision for bad debt		193,330
Changes in operating assets and liabilities:
Accounts receivable, net	30,268	(42,183)
Inventory	677,817	596,437
Prepaid expenses and other current assets	84,320	173,439
Deposits and other assets	32,654	10,713
Accounts payable	1,054,830	164,409
Accrued expenses	1,242,320	2,018,441
Accrued expenses, related parties	239,918	389,657
Contract liabilities	(91,000)	(79,705)
Discontinued operations	984,844	676,667
Net cash used in operating activities	(516,784)	(5,952,710)
Cash flows from investing activities:
Additions to property and equipment	(5,343)
Net cash used in investing activities	(5,343)
Cash flows from financing activities:
Receipts from related parties	1,778,442	147,621
Payments to related parties	(1,914,146)	(25,586)
Proceeds from issuance of common stock, net		2,151,310
Proceeds from warrant exercise	607,903	5,425,112
Proceeds from debt	163,500	2,706,791
Repayments on debt	(232,630)	(4,507,644)
Net cash provided by financing activities	403,069	5,897,604
Net decrease in cash	(119,058)	(55,106)
Cash, beginning of period	154,666	60,790
Cash, end of period	35,608	5,684
Supplemental disclosure of cash flow information:
Interest paid	18,232	274,439
Non-cash investing and financing activities:
Non-cash debt issuance	250,000
Non-cash conversion of accounts payable to debt	1,268,261
Conversion of notes payable to equity	7,899,435
Conversion of interest to equity	2,564,788
Conversion of preferred dividends to common stock	450,500
Conversion of preferred stock to promissory note	3,650,680
Warrants exercised for debt settlement	142,540
Stock issued to settle accounts payable	34,750
Conversion of preferred stock to common stock	$ 39

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 35,608	$ 154,666
Accounts receivable, net	98,036	128,304
Inventory	747,172	1,424,989
Prepaid expenses and other current assets	68,433	152,752
Current assets of discontinued operations		145,057
Total current assets	1,660,893	2,331,710
Property and equipment, net	163,170	264,937
Intangible assets, net	6,713,077	7,135,748
Goodwill	3,045,000	3,045,000
Deposits and other assets	66,291	98,945
Operating lease right-of-use assets	1,077,311	2,164,862
Assets of discontinued operations		4,618,025
Total other assets	11,064,849	17,327,517
Total assets	12,725,742	19,659,227
Current liabilities:
Accounts payable	3,624,886	4,078,434
Accrued expenses	2,860,657	4,093,419
Accrued expenses, related parties	504,059	264,141
Contract liabilities	409,820	500,820
Preferred stock dividends payable		450,562
Operating lease liability, current	229,192	1,104,443
Debt, current, net of debt discounts	2,179,952	10,702,731
Debt, current – related party	41,211
Current liabilities of discontinued operations		861,358
Total current liabilities	9,849,777	22,055,908
Long-term liabilities:
Operating lease liability, noncurrent	919,494	1,152,900
Debt, noncurrent, net of debt issuance cost	809,225	2,190,615
Debt, noncurrent – related party	208,789
Liabilities of discontinued operations, noncurrent		647,258
Total long-term liabilities	1,937,508	3,990,773
Total liabilities	11,787,285	26,046,681
Commitments and contingencies
Stockholders’ Equity (Deficit)
Common Stock, $0.0001 par value, 7,936,508 shares authorized, 7,090,728 and 373,526 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	709	37
Additional paid in capital	76,948,974	61,280,662
Accumulated deficit	(76,011,229)	(67,668,156)
Total stockholders’ equity (deficit)	938,457	(6,387,454)
Total liabilities and stockholders’ equity (deficit)	12,725,742	19,659,227
Series B Preferred Stock
Stockholders’ Equity (Deficit)
Preferred stock, value	2	3
Series C Preferred Stock
Stockholders’ Equity (Deficit)
Preferred stock, value	1
Related Party
Current assets:
Related party receivable, net	$ 711,644	$ 325,942