Real Good Food Company, Inc.

CIK:0001871149|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 55,565	$ 37,550	$ 120,726	$ 105,935
Cost of sales	43,977	35,782	99,338	97,569
Gross profit	11,588	1,768	21,388	8,366
Operating expenses:
Selling and distribution	8,022	4,615	18,116	14,851
Marketing	2,308	1,659	5,451	4,617
Administrative	10,122	6,142	28,065	18,009
Total operating expenses	20,452	12,416	51,632	37,477
Loss from operations	(8,864)	(10,648)	(30,244)	(29,111)
Interest expense	4,257	2,469	11,488	4,650
Other income	0	0	(348)	0
Loss before income taxes	(13,121)	(13,117)	(41,384)	(33,761)
Income tax expense	0	0	0	0
Net Loss	(13,121)	(13,117)	(41,384)	(33,761)
Less: net loss attributable to non-controlling interest	(8,685)	(9,969)	(29,082)	(25,659)
Net loss attributable to The Real Good Food Company, Inc.	$ (4,436)	$ (3,148)	$ (12,302)	$ (8,102)
Earnings per share/unit, basic	$ (0.5)	$ (0.51)	$ (1.6)	$ (1.31)
Earnings per share/unit, diluted	$ (0.5)	$ (0.51)	$ (1.6)	$ (1.31)
Weighted Average Number of Shares Outstanding, Basic	8,880,552	6,180,592	7,689,930	6,174,454
Weighted Average Number of Shares Outstanding, Diluted	8,880,552	6,180,592	7,689,930	6,174,454

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net Loss	$ (41,384)	$ (33,761)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,786	1,775
Amortization of loan costs	250	165
Non-Cash interest and debt fees	7,016	2,165
Equity Compensation expense	5,930	5,217
Changes in operating assets and liabilities:
Accounts receivable	(9,513)	(8,542)
Inventories	(18,654)	(18,496)
Other assets	(918)	1,113
Accounts payable, accrued expenses and lease liabilities	23,622	852
Net cash used in operating activities	(28,865)	(49,512)
Cash flows from investing activities:
Purchase of property and equipment	(1,740)	(3,737)
Net cash used in investing activities	(1,740)	(3,737)
Cash flows from financing activities:
Proceeds from line of credit borrowings	115,305	42,237
Payments on line of credit borrowings	(88,418)	(4,768)
Payments on acquisition related Contingent consideration	0	(7,425)
Proceeds from officer note	750	0
Payments on acquisition related term loan	(99)	(616)
Payments on finance lease liabilities	(2,517)	(571)
Net cash provided by (used in) financing activities	25,021	28,857
Net decrease in cash and restricted cash	(5,584)	(24,392)
Beginning cash and restricted cash	7,597	29,745
Ending cash and restricted cash	2,013	5,353
Supplemental disclosures of cash flow information:
Cash paid for interest	4,136	2,200
Supplemental disclosures of noncash investing and financing activities:
Purchase of property and equipment in lease line of credit	0	10,213
Purchase of property and equipment in AP and accrued liabilities	240	323
Lease liabilities arising from obtaining right-of-use assets	$ 20	$ 16,470

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 78	$ 5,279
Accounts receivable, net	29,829	20,316
Inventories	58,133	39,479
Other current assets	2,574	1,026
Total current assets	90,614	66,100
Property and equipment, net	35,285	38,497
Operating lease right-of-use assets	9,800	10,881
Deferred loan cost	720	970
Goodwill	12,486	12,486
Restricted Cash	1,935	2,318
Other noncurrent assets	872	187
Total assets	151,712	131,439
Current liabilities:
Accounts payable	45,972	23,424
Operating lease liabilities	1,606	1,455
Finance lease liabilities	3,354	3,310
Business acquisition liabilities, current portion	0	946
Accrued and other current liabilities	5,356	3,719
Note Payable- Officer	750	0
Current portion of long-term debt	1,203	370
Total current liabilities	58,241	33,224
Revolving line of credit/capex line	79,390	59,481
Long-term operating lease liabilities	8,822	10,030
Long-term finance lease liabilities	21,561	24,099
Term Loan	20,000	10,000
Equipment loan	6,922	0
Long-term Business acquisition liabilities	0	2,405
Other long term liabilities	492	302
Total Liabilities	195,428	139,541
Commitments and contingencies (Note 11)
Stockholders' Equity/(Deficit):
Preferred Stock, Value, Issued	0	0
Additional Paid in Capital	62,030	56,273
Accumulated deficit	(33,428)	(21,126)
Total stockholders' equity attributable to The Real Good Food Company, Inc.	28,605	35,150
Non-controlling interest	(72,321)	(43,252)
Total stockholders' deficit	(43,716)	(8,102)
Total liabilities and stockholders' equity	151,712	131,439
Common Class A [Member]
Stockholders' Equity/(Deficit):
Common Stock, Value, Issued	1	1
Common Class B [Member]
Stockholders' Equity/(Deficit):
Common Stock, Value, Issued	$ 2	$ 2