vitl-10q_20200628.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number: 001-39411

 

 

Vital Farms, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

27-0496985

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

3601 South Congress Avenue

Suite C100

Austin, Texas

 

78704

(Address of principal executive offices)

(Zip Code)

(877) 455-3063

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock,  par value $0.0001 per share

 

VITL

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes No

As of September 4, 2020, the registrant had 39,432,161 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations

4

 

Condensed Statements of Redeemable Convertible Preferred Stock, Redeemable Noncontrolling Interest and Stockholders’ Equity

5

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

39

Item 4.

Controls and Procedures

40

PART II.

OTHER INFORMATION

41

Item 1.

Legal Proceedings

41

Item 1A.

Risk Factors

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

64

Item 3.

Defaults Upon Senior Securities

65

Item 4.

Mine Safety Disclosures

65

Item 5.

Other Information

65

Item 6.

Exhibits

66

 

Signatures

 

 

 

 

 

 

 

i


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

 

the effects of the current COVID-19 pandemic, or of other global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels;

 

our expectations regarding our revenue, expenses and other operating results;

 

our ability to acquire new customers and successfully retain existing customers;

 

our ability to attract and retain our suppliers, distributors and co-manufacturers;

 

our ability to sustain or increase our profitability;

 

our ability to procure sufficient high quality eggs, butter and other raw materials;

 

real or perceived quality with our products or other issues that adversely affect our brand and reputation;

 

changes in the tastes and preferences of our consumers;

 

the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and foodservice customers, as well as the health of the foodservice industry generally;

 

real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation;

 

the ability of our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations;

 

future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

 

the costs and success of our marketing efforts, and our ability to promote our brand;

 

our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

 

our ability to effectively manage our growth;

 

our focus on a specific public benefit purpose and producing a positive effect for society may negatively influence our financial performance;

 

our ability to compete effectively with existing competitors and new market entrants;

 

the impact of adverse economic conditions;

 

the sufficiency of our cash to meet our liquidity needs and service our indebtedness;

 

seasonality; and

 

the growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

1


In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Unless the context otherwise requires, the terms “Vital Farms,” “the Company,” “we,” “our,” “us” or similar references in this Quarterly Report on Form 10-Q refer to Vital Farms, Inc. and its subsidiaries.

 

2


PART IFINANCIAL INFORMATION

 

VITAL FARMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share amounts)

 

 

 

June 28,

2020

 

 

December 29,

2019

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,094

 

 

$

1,274

 

Accounts receivable, net

 

 

16,016

 

 

 

16,108

 

Inventories

 

 

9,922

 

 

 

12,947

 

Income taxes receivable

 

 

 

 

 

1,615

 

Prepaid expenses and other current assets

 

 

3,199

 

 

 

2,706

 

Total current assets

 

 

46,231

 

 

 

34,650

 

Property, plant and equipment, net

 

 

26,823

 

 

 

22,458

 

Notes receivable from related party

 

 

844

 

 

 

831

 

Goodwill

 

 

3,858

 

 

 

3,858

 

Deposits and other assets

 

 

181

 

 

 

151

 

Total assets

 

$

77,937

 

 

$

61,948

 

Liabilities, Redeemable Noncontrolling Interest, Redeemable

   Convertible Preferred Stock and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,107

 

 

$

13,510

 

Accrued liabilities

 

 

7,820

 

 

 

8,608

 

Current portion of long-term debt

 

 

1,460

 

 

 

2,160

 

Lease obligation, current

 

 

460

 

 

 

449

 

Contingent consideration, current

 

 

159

 

 

 

270

 

Income taxes payable

 

 

355

 

 

 

 

Total current liabilities

 

 

25,361

 

 

 

24,997

 

Long-term debt, net of current portion

 

 

8,315

 

 

 

2,896

 

Lease obligation, net of current portion

 

 

565

 

 

 

797

 

Contingent consideration, non-current

 

 

54

 

 

 

382

 

Deferred tax liabilities, net

 

 

2,306

 

 

 

755

 

Other liability, non-current

 

 

421

 

 

 

272

 

Total liabilities

 

 

37,022

 

 

 

30,099

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

175

 

 

 

175

 

Redeemable convertible preferred stock (Series B, Series C and Series D), $0.0001 par

   value per share; 8,192,876 shares authorized, issued, and outstanding as of June 28,

   2020 (unaudited) and December 29, 2019; aggregate liquidation preference of $40,436

   as of June 28, 2020 (unaudited) and December 29, 2019

 

 

23,036

 

 

 

23,036

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value per share, 40,348,565 shares authorized as of

   June 28, 2020 (unaudited) and December 29, 2019; 31,683,486 and 31,429,898

   shares issued as of June 28, 2020 (unaudited) and December 29, 2019, respectively;

   26,188,568 and 25,934,980 shares outstanding as of June 28, 2020 (unaudited)

   and December 29, 2019, respectively

 

 

3

 

 

 

3

 

Treasury stock, at cost, 5,494,918 common shares as of June 28, 2020

   (unaudited) and December 29, 2019

 

 

(16,276

)

 

 

(16,276

)

Additional paid-in capital

 

 

20,789

 

 

 

19,593

 

Retained earnings

 

 

13,148

 

 

 

5,239

 

Total stockholders’ equity attributable to Vital Farms, Inc. stockholders

 

 

17,664

 

 

 

8,559

 

Noncontrolling interests

 

 

40

 

 

 

79

 

Total stockholders’ equity

 

$

17,704

 

 

$

8,638

 

Total liabilities, redeemable noncontrolling interest, redeemable

   convertible preferred stock and stockholders’ equity

 

$

77,937

 

 

$

61,948

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

3


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)

(Unaudited)

 

 

 

13-Weeks Ended

 

 

26-Weeks Ended

 

 

 

June 28, 2020

 

 

June 30, 2019

 

 

June 28, 2020

 

 

June 30, 2019

 

Net revenue

 

$

59,341

 

 

$

32,285

 

 

$

106,920

 

 

$

65,230

 

Cost of goods sold

 

 

36,643

 

 

 

21,285

 

 

 

68,367

 

 

 

42,724

 

Gross profit

 

 

22,698

 

 

 

11,000

 

 

 

38,553

 

 

 

22,506

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

9,970

 

 

 

4,758

 

 

 

19,648

 

 

 

9,922

 

Shipping and distribution

 

 

3,666

 

 

 

2,333

 

 

 

6,940

 

 

 

4,412

 

Total operating expenses

 

 

13,636

 

 

 

7,091

 

 

 

26,588

 

 

 

14,334

 

Income from operations

 

 

9,062

 

 

 

3,909

 

 

 

11,965

 

 

 

8,172

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(97

)

 

 

(79

)

 

 

(255

)

 

 

(165

)

Other (expense) income, net

 

 

(181

)

 

 

53

 

 

 

(161

)

 

 

1,322

 

Total other (expense) income, net

 

 

(278

)

 

 

(26

)

 

 

(416

)

 

 

1,157

 

Net income before income taxes

 

 

8,784

 

 

 

3,883

 

 

 

11,549

 

 

 

9,329

 

Provision for income taxes

 

 

2,848

 

 

 

1,095

 

 

 

3,679

 

 

 

2,516

 

Net income

 

 

5,936

 

 

 

2,788

 

 

 

7,870

 

 

 

6,813

 

Less: Net (loss) income attributable to

   noncontrolling interests

 

 

(28

)

 

 

(11

)

 

 

(39

)

 

 

956

 

Net income attributable to Vital Farms, Inc. common

   stockholders

 

$

5,964

 

 

$

2,799

 

 

$

7,909

 

 

$

5,857

 

Net income per share attributable to Vital Farms, Inc.

   stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.23

 

 

$

0.11

 

 

$

0.30

 

 

$

0.23

 

Diluted:

 

$

0.16

 

 

$

0.08

 

 

$

0.21

 

 

$

0.17

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

26,007,459

 

 

 

26,440,796

 

 

 

25,974,873

 

 

 

25,426,563

 

Diluted:

 

 

37,896,742

 

 

 

36,241,488

 

 

 

37,755,675

 

 

 

35,067,996

 

 

See accompanying notes to the unaudited condensed consolidated financial statements

 

 

4


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK , REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share amounts)

(Unaudited)

 

 

 

Redeemable

Convertible

Preferred Stock

 

 

Redeemable

Noncontrolling

Interest

 

 

 

Common

Stock

 

 

Treasury

Stock

 

 

 

 

 

 

 

 

 

 

Total

Stockholders’

Equity

Attributable

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

to Vital

Farms, Inc.

Stockholders’

 

 

Noncontrolling

Interests

 

 

Total

Stockholders’

Equity

 

Balances at December 29. 2019

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,429,898

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

19,593

 

 

$

5,239

 

 

$

8,559

 

 

$

79

 

 

$

8,638

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

7,588

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

448

 

 

 

 

 

 

448

 

 

 

 

 

 

448

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

Net income attributable to

   Vital Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,945

 

 

 

1,945

 

 

 

 

 

 

1,945

 

Balances at March 29, 2020

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,437,486

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

20,051

 

 

$

7,184

 

 

$

10,962

 

 

$

68

 

 

$

11,030

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

49,200

 

 

 

 

 

 

 

 

 

 

 

 

160

 

 

 

 

 

 

160

 

 

 

 

 

 

160

 

Exercise of warrant

 

 

 

 

 

 

 

 

 

 

 

 

196,800

 

 

 

 

 

 

 

 

 

 

 

 

282

 

 

 

 

 

 

282

 

 

 

 

 

 

282

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

296

 

 

 

 

 

 

296

 

 

 

 

 

 

296

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28

)

 

 

(28

)

Net income attributable to

   Vital Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,964

 

 

 

5,964

 

 

 

 

 

 

5,964

 

Balances at June 28, 2020

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,683,486

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

20,789

 

 

$

13,148

 

 

$

17,664

 

 

$

40

 

 

$

17,704

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

5


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share amounts)

(Unaudited)

 

 

 

Redeemable

Convertible

Preferred Stock

 

 

Redeemable

Noncontrolling

Interest

 

 

Common

Stock

 

 

Treasury

Stock

 

 

 

 

 

 

 

 

 

 

Total

Stockholders’

Equity

Attributable

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

to Vital

Farms, Inc.

Stockholders’

 

 

Noncontrolling

Interests

 

 

Total

Stockholders’

Equity

 

Balances at December 30, 2018

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

28,461,978

 

 

$

3

 

 

 

(2,642,148

)

 

$

(1,987

)

 

$

4,245

 

 

$

2,854

 

 

$

5,115

 

 

$

(848

)

 

$

4,267

 

Issuance of common stock, net of

   issuance costs of $497

 

 

 

 

 

 

 

 

 

 

 

1,407,506

 

 

 

 

 

 

 

 

 

 

 

 

7,003

 

 

 

 

 

 

7,003

 

 

 

 

 

 

7,003

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

Net income attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

967

 

 

 

967

 

Net income attributable to Vital

   Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,058

 

 

 

3,058

 

 

 

 

 

 

3,058

 

Balances at March 31, 2019

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

29,869,484

 

 

$

3

 

 

 

(2,642,148

)

 

$

(1,987

)

 

$

11,391

 

 

$

5,912

 

 

$

15,319

 

 

$

119

 

 

$

15,438

 

Issuance of common stock, net of

   issuance costs of $406

 

 

 

 

 

 

 

 

 

 

 

1,407,506

 

 

 

 

 

 

 

 

 

 

 

 

7,094

 

 

 

 

 

 

7,094

 

 

 

 

 

 

7,094

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

147,840

 

 

 

 

 

 

 

 

 

 

 

 

218

 

 

 

 

 

 

218

 

 

 

 

 

 

218

 

Repurchase of common

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,852,770

)

 

 

(14,289

)

 

 

 

 

 

 

 

 

(14,289

)

 

 

 

 

 

(14,289

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

Net income attributable to Vital

   Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,799

 

 

 

2,799

 

 

 

 

 

 

2,799

 

Balances at June 30, 2019

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

31,424,830

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

18,846

 

 

$

8,711

 

 

$

11,284

 

 

$

108

 

 

$

11,392

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

6


 

VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

 

26-Weeks Ended

 

 

 

June 28, 2020

 

 

June 30, 2019

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

7,870

 

 

$

6,813

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

954

 

 

 

726

 

Non-cash interest expense

 

 

11

 

 

 

4

 

Bad debt recovery

 

 

(150

)

 

 

 

Inventory provisions

 

 

165

 

 

 

(67

)

Change in fair value of contingent consideration

 

 

(350

)

 

 

38

 

Stock-based compensation expense

 

 

744

 

 

 

286

 

Loss on write-off of construction in progress

 

 

209

 

 

 

 

Deferred taxes

 

 

1,551

 

 

 

 

Non-cash interest income

 

 

(13

)

 

 

(66

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

241

 

 

 

(225

)

Inventories

 

 

2,860

 

 

 

(5,737

)

Income taxes payable

 

 

1,970

 

 

 

1,100

 

Prepaid expenses and other current assets

 

 

848

 

 

 

222

 

Deposits and other assets

 

 

(28

)

 

 

85

 

Accounts payable

 

 

2,290