SMART FOR LIFE, INC. SEC 10-Q Report

Smart for Life, Inc., a company specializing in the manufacturing and packaging of nutraceutical products, has released its Form 10-Q report for the second quarter of 2024. The report provides a comprehensive overview of the company's financial performance and operational highlights for the six months ended June 30, 2024. The company has shown significant improvements in several key financial metrics despite facing challenges in product sales.

Financial Highlights

Total Revenues: Smart for Life, Inc. reported total revenues of $1.36 million for the six months ended June 30, 2024, compared to $2.94 million for the same period in 2023. This decrease is primarily attributed to lower product sales.

Gross Profit: The company's gross profit stood at $0.61 million for the six months ended June 30, 2024, down from $0.68 million in the same period of 2023, indicating a slight decrease in profitability.

Operating Loss: Operating loss improved to $(3.03) million for the six months ended June 30, 2024, from $(6.46) million in the same period of 2023, reflecting better operating efficiency.

Net Loss: Net loss was reduced to $(5.11) million for the six months ended June 30, 2024, compared to $(8.50) million for the same period in 2023, showing a reduction in overall losses.

Loss per Share, Basic and Diluted: The loss per share significantly improved to $(4.73) for the six months ended June 30, 2024, from $(360.70) for the same period in 2023.

Business Highlights

Revenue Segments: The company generates product revenues primarily through the manufacturing and packaging of nutraceutical products as a contract manufacturer for customers. For the three months ended June 30, 2024, revenue was made up of contract manufacturing and online marketing. For the six months ended June 30, 2024, revenue included contract manufacturing, online marketing, wholesale, and direct marketing.

Geographical Performance: Smart for Life, Inc. operates in various regions, with significant operations in Florida, USA, and a retail presence in Montreal, Canada. The retail store in Montreal was closed on January 8, 2024, impacting the company's geographical footprint.

Sales Units: The company operates FDA-certified manufacturing facilities in Doral and Riviera Beach, Florida, producing nutritional products for a significant number of customers. The facilities manufacture and sell weight management foods and related products.

New Production Launches: On March 6, 2024, the company entered into a sale and leaseback agreement relating to its Bonne Sante Natural Manufacturing, Inc. (BSNM) facility, indicating a strategic move to optimize production capabilities.

Future Outlook: The company is focused on expanding its M&A growth initiatives through the identification, negotiation, financing, and acquisition of companies. The dissolution of the Smart Acquisition Group, LLC joint venture on September 22, 2023, reflects a shift in strategic focus.

Operational Adjustments: The company reclassified BSNM from discontinued operations to continuing operations, indicating a strategic decision to continue operating this business line. This reclassification involved moving equipment and inventory to the Riviera Beach facility and surrendering the BSNM facility back to the landlord.

SEC Filing: SMART FOR LIFE, INC. [ SMFL ] - 10-Q - May. 23, 2025