2021 Revenue Increased 164% Year-over-Year to
$12.3 Million
Q4 2021 Revenue increased 70% to $4.3 Million compared to Q3 2021
2021 eCommerce Revenue Increased by
$5.9 Million or 174%
Year-over-Year
2021 Fulfilled eCommerce Orders Increased by
149% to 100,473 Year-over-Year
VANCOUVER, BC, March 31, 2022 /CNW/ - The Very Good Food
Company Inc. (NASDAQ: VGFC) (TSXV: VERY.V) ("VERY GOOD" or
the "Company"), a leading plant-based food technology
company, today reported its financial results for the fourth
quarter and year ended December 31,
2021.
"Q4 2021 was another strong quarter for VERY GOOD, with solid
year-over-year growth across our eCommerce and wholesale channels,"
said Mitchell Scott, co-founder and
CEO of VERY GOOD. "We successfully expanded our presence in the US
retail market, bringing our North American store count to 1,395 by
the end of 2021 and 1,651 at the end of March 2022. Our revenue in Q4 2021 was 70% higher
than the previous quarter and partly supported by seasonal demand
for our holiday products including the Stuffed Beast."
"VERY GOOD achieved certain of its strategic objectives for 2021
including scaling production, deepening brand awareness, expanding
into U.S. wholesale, and launching innovative new products. 2021
was a year focused on investment and top-line growth, and 2022 will
be more measured and focused on establishing a clear path to
profitability."
As previously announced, the Company is temporarily lowering
production throughput and headcount at some locations, to manage
inventory levels, and implementing initiatives, such as pausing
non-critical capital expenditures and lowering general &
administrative spending, to manage both short and long-term
liquidity, extend its cash runway and establish a path towards
profitability.
Financial Highlights
- Revenue in fiscal 2021 increased 164% to $12,258,783 as compared to $4,636,838 in fiscal year 2020 primarily driven
by an increase of $5,895,292 in
eCommerce sales and $1,588,582 in
wholesale revenue due to the Company's scaling of production and
distribution to meet demand in both sales channels. $5,267,144 of revenue was attributed to
United States sales due to the
Company's strategic focus on the United
States market as a key growth opportunity for the
future.
-
- In Q4 2021, revenue was $4,298,922 compared to $2,536,097 in Q3 2021.
- Wholesale revenue increased 189% to $2,429,072 in fiscal 2021 compared to
$840,490 in fiscal 2020.
-
- Wholesale revenue was $781,363 in
Q4 2021, a decrease of 8% compared to $846,749 in Q3 2021. This decrease was largely
due to large seasonal orders being placed in Q3 2021 and pipeline
orders for onboarded new retailers in Q3 2021.
- Wholesale distribution points1 increased 273%
to 4,847 at the end of 2021 compared to 1,300 at the end of 2020.
As at March 31, 2022, the Company had
approximately 5,539 retail distribution points in 1,651 stores
across North America.
- eCommerce sales increased 174% to $9,227,750 in fiscal 2021 compared to
$3,382,458 in fiscal 2020.
-
- eCommerce sales were $3,340,107
in Q4 2021, an increase of 116% compared to $1,546,146 in Q3 2021.
- eCommerce orders fulfilled increased 149% to 100,473 in
fiscal 2021 compared to 40,322 orders fulfilled in fiscal 2020.
- Gross margin was 28% of revenue and gross profit was
$3,398,851 in fiscal 2021 compared to
18% and $827,106 in fiscal 2020.
-
- Q4 gross margin was 38% of revenue and gross profit was
$1,653,262 compared to 19% and
$476,893 in Q3 2021.
- General and administrative
expense2 was $32,129,489 in fiscal 2021 compared to
$7,084,795 in fiscal 2020.
-
- Q4 general and administrative expense was $8,630,775 compared to $7,089,277 in Q3 2021.
- Adjusted general and administrative
expense2 increased 215% to $14,114,252 in fiscal 2021 compared to
$4,484,044 in fiscal 2020.
-
- Adjusted general and administrative expense was $5,741,337 in Q4 2021, an increase of 45%
compared to $3,963,524 in Q3 2021.
The increase was primarily driven by increases in insurance fees of
$484,187, legal and professional fees
of $387,636, accounting and audit
fees of $355,540, and salaries and
wages of $1,853,870.
- Marketing and investor relations expense increased 248%
to $11,276,537 in fiscal 2021,
compared to $3,243,210 in fiscal
2020, mainly due to an increase in digital marketing initiatives of
$6,416,848, wages and benefits of
$764,068 and share-based compensation
expense of $856,481 due to the
expansion of the marketing team to support sales growth.
- Net loss2 was $(54,559,923) in fiscal 2021 compared to
$(13,858,800) in fiscal 2020.
-
- In Q4 2021, net loss was $(13,330,908) compared to
$(13,699,706) in Q3, 2021.
- Adjusted EBITDA2 was a loss of
$(24,253,335) in fiscal 2021 compared
to $(8,344,117) in fiscal 2020.
-
- In Q4 2021, adjusted EBITDA loss was $(5,014,266) compared to $(8,174,024) in Q3 2021.
As of December 31, 2021, the
Company had cash and cash equivalents of $21,975,653. The Company has experienced a
greater than expected cash burn in the last several months as the
Company scaled its operations to meet its growth targets, which has
reduced its cash position and has strained its short-term
liquidity. We believe we have sufficient cash on hand and available
liquidity to meet our future operating expenses and finance our
operational, core capital expenditure and debt service requirements
for approximately the next 3 to 5 months. The Company is
currently evaluating financing options to support the business with
as little dilution as possible.
_________________________
|
1 Wholesale distribution points are
defined as the number of retail stores multiplied by the number of
product SKUs.
|
2 Required to discuss IFRS results
before non-IFRS results.
|
Operational Highlights
Production Update
- Increased Stuffed Beast production and distribution for
the 2021 holiday season. The product can be found in 123 Real
Canadian Superstore locations nationally and 40 Loblaw and Zehrs
stores throughout Ontario; along
with other Canadian retailers such as WholeFoods, Thrifty Foods, La
Moisson, Country Grocer, Natures Emporium, Organic Garage, Fiesta
Farms, Good Rebel, Vegan Supply, and many more natural and
independent stores.
- Launched three new products in Q1 2022: Spicy
mmm…Meatballs- a spicy iteration of the NEXTY Award winning
Mmmmm…Meatballs, and two plant-based ground meat products - A Cut
Above Pork and A Cut Above Beef. The new plant-based grounds
introduce VERY GOOD's offerings into a new subcategory of
refrigerated plant-based meat.
- Began producing Taco Stuffer at the Patterson facility in California on a commercial grade kitchen in
the fourth quarter of 2021 to meet growing sales volume driven by
its expanded distribution at retail stores.
Capital Markets Update
- On October 13, 2021, VERY GOOD's
common shares (the "Common Shares") commenced trading on the NASDAQ
Capital Market under the ticker symbol "VGFC".
- On October 19, 2021, VERY GOOD
completed an SEC-registered direct offering ("SEC Direct Offering"
for gross proceeds of US$30,000,000.
VERY GOOD has been using the net proceeds from the SEC Direct
Offering to scale its operations, to expand its geographical reach,
for research and development, for marketing initiatives and for
general corporate and other working capital purposes.
- On January 11, 2022, VERY GOOD
received notification from the Listing Qualifications Department of
Nasdaq that, for the previous 30 consecutive business days, the bid
price of the Common Shares had closed below the minimum
US$1.00 per share requirement for
continued inclusion on the Nasdaq Capital Market pursuant to Nasdaq
Listing Rule 5550(a)(2) (the "Bid Price Rule"). The Nasdaq
notification has no immediate effect on the listing of the Common
Shares. VERY GOOD is also listed on the TSXV and the notification
does not affect the Company's compliance status with such
listing.
Under Nasdaq rule 5810(c)(3)(A), VERY GOOD has until July 11, 2022
to regain compliance with the Bid Price Rule. If at any time over
this period the bid price of the Common Shares close at US$1.00 per
Common Share or more for a minimum of 10 consecutive business days,
VERY GOOD will regain compliance, unless Nasdaq exercises its
discretion to extend this 10-day compliance period.
In the event the Company does not regain compliance, the Company
may be eligible for an additional compliance period of 180 calendar
days. To qualify, the Company will be required to meet the
continued listing requirement for market value of publicly held
shares and all other initial listing standards of the Nasdaq
Capital Market, with the exception of the Bid Price Rule, and will
need to provide written notice of its intention to cure the
deficiency during this second compliance period. If the Company
does not qualify for the additional compliance period, then the
Common Shares will be subject to delisting, at which time the
Company may appeal the delisting determination to a Nasdaq Hearings
Panel.
The management's discussion and analysis for the period and the
accompanying financial statements and notes are available under the
Company's profile on SEDAR at www.sedar.com and have been
furnished on a Report on Form 6-K on EDGAR at www.sec.gov.
VERY GOOD will also file an Annual Report on Form 20-F no later
than April 30, 2022, which will incorporate by reference the
Company's annual filings and will be available on EDGAR
at www.sec.gov.
Q4 and Fiscal Year End 2021 Conference Call Details
VERY GOOD will host a conference call on Tuesday, April 5, 2022 at 4:30 pm Eastern Time/ 1:30
am Pacific Time to discuss the financial results and
business outlook.
Participant Dial-In Numbers:
Toll-Free: 1-877-425-9470
Toll / International: 1-201-389-0878
* Participants should request The Very Good Food Company Fourth
Quarter Earnings Call.
The call will be available via webcast on VERY GOOD's investor
page of the Company website at www.verygoodfood.com/investors until
April 30, 2022. Participants who
would like to ask a question during the live Q&A must login via
webcast.
Please visit the website at least 15 minutes before the call to
register, download, and install any necessary audio software. A
replay of the call will be available on VERY GOOD's investor page
approximately two hours after the conference call has ended.
Financial Highlights
|
Three months ended
December 31
|
Year ended
December 31
|
|
2021
|
2020
|
2021
|
2020
|
Revenue by
channel
|
|
|
|
|
eCommerce
|
$
3,340,107
|
$
1,438,931
|
$
9,277,750
|
$
3,382,458
|
Wholesale
|
781,363
|
255,276
|
2,429,072
|
840,490
|
Butcher Shop,
Restaurant and Other
|
177,452
|
142,475
|
551,961
|
413,890
|
|
$
4,298,922
|
$
1,836,682
|
$
12,258,783
|
$
4,636,838
|
Gross
Profit(1)
|
$
1,653,262
|
$
260,472
|
$
3,398,851
|
$ 827,106
|
Gross
Margin(1)
|
38%
|
14%
|
28%
|
18%
|
Net Loss
|
$
(13,330,908)
|
$
(5,813,13)
|
$
(54,559,923)
|
$
(13,858,80)
|
Adjusted
EBITDA(1)
|
$
(5,014,266)
|
$
(3,279,266)
|
$
(24,253,335)
|
$(8,344,117)
|
Loss per share –
basic and diluted
|
$ (0.12)
|
$ (0.06)
|
$ (0.53)
|
$ (0.21)
|
Weighted average
number of shares outstanding – basic and diluted
|
115,381,279
|
89,689,807
|
103,401,995
|
66,388,474
|
|
(1) See "Non-IFRS Financial Measures"
starting on page 21 of the 2021 MD&A for more information on
Non-IFRS financial measures and reconciliations thereof to the
nearest comparable measures under IFRS.
|
Consolidated Statements of Financial
Position
(Expressed in Canadian dollars)
As
at
|
|
Notes
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
21,975,653
|
|
$
25,084,083
|
Accounts
receivable
|
|
4
|
|
2,101,842
|
|
449,583
|
Inventory
|
|
5
|
|
8,474,255
|
|
1,195,535
|
Prepaids and
deposits
|
|
6
|
|
8,640,286
|
|
1,887,035
|
Loan to related
party
|
|
14
|
|
410,268
|
|
-
|
Total current
assets
|
|
|
|
41,602,304
|
|
28,616,236
|
|
|
|
|
|
|
|
Right-of-use
assets
|
|
7
|
|
16,659,502
|
|
5,046,597
|
Property and
equipment
|
|
8
|
|
15,450,608
|
|
740,728
|
Prepaids and
deposits
|
|
6
|
|
707,110
|
|
779,036
|
Deferred financing
costs
|
|
12
|
|
3,924,743
|
|
-
|
Total
assets
|
|
|
|
$
78,344,267
|
|
$
35,182,597
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
10
|
|
$
8,109,161
|
|
$
1,871,728
|
Deferred
revenue
|
|
|
|
32,137
|
|
102,239
|
Current portion of
lease liabilities
|
|
11
|
|
849,935
|
|
146,935
|
Current portion of
loans payable and other liabilities
|
|
12
|
|
1,947,642
|
|
-
|
Contingent
considerations
|
|
9,22
|
|
1,048,000
|
|
-
|
Derivative
liabilities
|
|
15
|
|
3,942,002
|
|
-
|
Total current
liabilities
|
|
|
|
15,928,877
|
|
2,120,902
|
|
|
|
|
|
|
|
Lease
liabilities
|
|
11
|
|
16,764,458
|
|
5,389,352
|
Loans payable and
other liabilities
|
|
12
|
|
5,474,605
|
|
30,000
|
Total
liabilities
|
|
|
|
38,167,940
|
|
7,540,254
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
16
|
|
84,751,366
|
|
39,335,150
|
Equity
reserves
|
|
|
|
26,719,047
|
|
5,009,980
|
Subscription received
and receivable
|
|
|
|
(3,750)
|
|
8,250
|
Accumulated other
comprehensive (loss) income
|
|
|
|
(12,716)
|
|
6,660
|
Deficit
|
|
|
|
(71,277,620)
|
|
(16,717,697)
|
Total
shareholders' equity
|
|
|
|
40,176,327
|
|
27,642,343
|
Total liabilities
and shareholders' equity
|
|
|
|
$
78,344,267
|
|
$
35,182,597
|
Nature of operations
and going concern uncertainty (Note 1)
|
|
|
|
|
|
|
Commitments (Notes 11
and 25)
|
|
|
|
|
|
|
Events after the
reporting period (Notes 14, 17 and 18)
|
|
|
|
|
|
|
Consolidated Statements of Net Loss and Comprehensive
Loss
(Expressed in Canadian dollars)
|
|
Notes
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
12,258,783
|
|
$
4,636,838
|
Procurement
expense
|
|
7, 8, 23
|
|
(8,859,932)
|
|
(3,809,732)
|
Fulfilment
expense
|
|
7, 8, 23
|
|
(10,267,444)
|
|
(1,907,621)
|
General and
administrative expense
|
|
7, 8, 23
|
|
(32,129,489)
|
|
(7,084,795)
|
Marketing and
investor relations expense
|
|
23
|
|
(11,276,537)
|
|
(3,243,210)
|
Research and
development expense
|
|
7, 8, 23
|
|
(1,974,530)
|
|
(477,750)
|
Pre-production
expense
|
|
23
|
|
(3,214,797)
|
|
-
|
Operating
loss
|
|
|
|
(55,463,946)
|
|
(11,886,270)
|
|
|
|
|
|
|
|
Finance
expense
|
|
19
|
|
(3,024,451)
|
|
(1,842,853)
|
Other
expense
|
|
20
|
|
(514,638)
|
|
(129,677)
|
Change in fair value
of derivative liabilities
|
|
15
|
|
7,922,647
|
|
-
|
Impairment of
goodwill
|
|
9
|
|
(3,479,535)
|
|
-
|
Net
loss
|
|
|
|
(54,559,923)
|
|
(13,858,800)
|
|
|
|
|
|
|
|
Foreign currency
translation (loss) income
|
|
|
|
(19,376)
|
|
6,660
|
Total
comprehensive loss
|
|
|
|
$
(54,579,299)
|
|
$
(13,852,140)
|
Loss per share -
basic and diluted
|
|
|
|
$
(0.53)
|
|
$
(0.21)
|
Weighted average
number of shares outstanding - basic and
diluted
|
|
|
|
103,401,995
|
|
66,388,474
|
Consolidated Statements of Cash Flows
(Expressed in
Canadian dollars)
|
December 31,
2021
|
December 31,
2020
|
|
|
|
|
|
|
Operating
activities
|
|
|
Net loss for the
year
|
$
(54,559,923)
|
$
(13,858,800)
|
Adjustments for items
not affecting cash:
|
|
|
Finance
expense
|
3,024,451
|
1,842,853
|
Change in fair value
of derivative liabilities
|
(7,922,647)
|
-
|
Depreciation
|
1,938,058
|
425,276
|
(Gain) loss on
termination of lease
|
(1,600)
|
7,533
|
Lease
concessions
|
-
|
(16,800)
|
Loss on disposal of
equipment
|
32,816
|
-
|
Impairment of
equipment
|
101,077
|
-
|
Impairment of
goodwill
|
3,479,535
|
-
|
Share-based
compensation
|
21,605,880
|
2,780,488
|
Shares, units and
warrants issued for services
|
227,471
|
458,533
|
|
|
|
Changes in non-cash
working capital items
|
|
|
Accounts
receivable
|
(1,612,791)
|
(376,739)
|
Inventory
|
(6,871,350)
|
(1,120,057)
|
Prepaids and
deposits
|
(4,995,707)
|
(1,804,382)
|
Accounts payable and
accrued liabilities
|
3,698,504
|
1,882,671
|
Deferred
revenue
|
(70,102)
|
94,663
|
Due from related
parties
|
-
|
24,280
|
Net cash and cash
equivalents used in operating activities
|
(41,926,328)
|
(9,660,481)
|
|
|
|
Investing
activities
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
(1,315,694)
|
-
|
Purchase of property
and equipment
|
(12,021,319)
|
(564,437)
|
Security deposits paid
for property and equipment
|
(2,840,116)
|
-
|
Acquisition of
right-of-use assets
|
(67,335)
|
-
|
Loans to related
parties
|
(1,250,000)
|
-
|
Repayment received
from loans to related parties
|
839,732
|
-
|
Net cash and cash
equivalents used in investing activities
|
(16,654,732)
|
(564,437)
|
|
|
|
Financing
activities
|
|
|
Proceeds from the
issuance of common shares and units for cash, net of issuance
costs
|
52,713,503
|
24,416,725
|
Proceeds from the
exercise of warrants
|
2,401,483
|
10,863,951
|
Proceeds from the
exercise of stock options
|
120,599
|
608,126
|
Proceeds from
subscriptions received
|
-
|
19,500
|
Proceeds from loans
payable
|
5,171,222
|
499,129
|
Repayment of loans
payable and other liabilities
|
(902,863)
|
(490,309)
|
Deferred financing
costs paid
|
(2,262,039)
|
-
|
Proceeds from loan
payable to related parties
|
-
|
400,000
|
Repayment of loan
payable to related parties
|
-
|
(400,000)
|
Payments of lease
liabilities
|
(1,591,300)
|
(163,811)
|
Payments of lease
deposits
|
-
|
(779,036)
|
Interest
paid
|
(159,276)
|
(73,288)
|
Net cash and cash
equivalents provided by financing activities
|
55,491,329
|
34,900,987
|
|
|
|
Effects of
exchange rate changes on cash and cash equivalents
|
(18,699)
|
2,404
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
(3,108,430)
|
24,678,473
|
Cash and cash
equivalents, beginning of year
|
25,084,083
|
405,610
|
Cash and cash
equivalents, end of year
|
$
21,975,653
|
$
25,084,083
|
|
|
|
Cash and cash
equivalents consist of:
|
|
|
Cash
|
$
21,875,653
|
$
24,019,083
|
Redeemable guaranteed
investment certificate ("GIC")
|
-
|
1,000,000
|
Restricted redeemable
GIC
|
100,000
|
65,000
|
Total
cash and cash equivalents
|
$
21,975,653
|
$
25,084,083
|
Supplemental cash
flow information (Note 21)
|
|
|
NON-IFRS FINANCIAL MEASURES
Non-IFRS financial measures are metrics used by management that
do not have any standardized meaning prescribed by IFRS and may not
be comparable to similar measures presented by other companies.
Adjusted EBITDA
Management defines adjusted EBITDA as net loss before finance
expense, tax, depreciation and amortization, share-based
compensation and other non-cash items, including impairment of
goodwill, loss on disposal of equipment, loss on termination of
leases, finance expense and shares, units and warrants issued for
services. Management believes adjusted EBITDA is a useful financial
metric to assess its operating performance because it adjusts for
items that either do not relate to the Company's underlying
business performance or that are items that are not reasonably
likely to recur.
|
|
|
|
|
|
|
|
Three months
ended December
31,
|
Three months
ended September
30,
|
Three months
ended December
31,
|
Year ended
December 31,
|
Year ended
December 31,
|
Year ended
December 31,
|
|
2021
|
2021
|
2020
|
2021
|
2020
|
2019
|
Net loss as
reported
|
$(13,330,908)
|
$(13,699,706)
|
$
(5,813,132)
|
$(54,559,923)
|
$(13,858,800)
|
$(2,341,544)
|
Adjustments:
|
|
|
|
|
|
|
Depreciation
|
480,272
|
616,111
|
153,295
|
1,938,035
|
425,276
|
161,583
|
Impairment of
goodwill
|
3,479,535
|
-
|
-
|
3,479,535
|
-
|
-
|
Loss on disposal of
equipment
|
-
|
10,255
|
-
|
32,816
|
-
|
-
|
Loss on termination
of lease1
|
-
|
-
|
-
|
(1,600)
|
7,533
|
-
|
Finance
expense
|
1,157,411
|
1,102,858
|
148,014
|
3,024,451
|
1,842,853
|
173,268
|
Share-based
compensation
|
3,199,424
|
3,796,458
|
1,951,150
|
21,605,880
|
2,780,488
|
200,933
|
Shares, units and
warrants issued for services
|
-
|
-
|
281,407
|
227,471
|
458,533
|
477,500
|
Adjusted
EBITDA
|
$
(5,014,266)
|
$
(8,174,024)
|
$
(3,279,266)
|
$(24,253,335)
|
$
(8,344,117)
|
$
(1,328,260)
|
|
1 On
September 22, 2020, the Company terminated 17 lease agreements and
purchased the related leased equipment for $79,118. The difference
between the related lease liabilities and right-of-use-assets of
$7,533 was recognized as a loss on termination of leases. During
the years ended December 31, 2021,and 2020, the Company
terminated 2 lease agreements and recognized a $1,600 gain on
termination of leases.
|
Gross Profit and Gross Margin
Management utilizes gross profit and gross margin to provide a
representation of performance in the period, which are determined
by deducting procurement expense from revenue.
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
Three months
ended September
30,
|
Three months
ended
December 31,
|
Year ended
December 31,
|
Year ended
December 31,
|
Year ended
December 31,
|
|
2021
|
2021
|
2020
|
2021
|
2020
|
2019
|
Revenue
|
$
4,298,922
|
$
2,536,097
|
$
1,836,682
|
$
12,258,783
|
$
4,636,838
|
$
999,797
|
Procurement
expense
|
(2,645,660)
|
(2,059,204)
|
(1,576,210)
|
(8,859,932)
|
(3,809,732)
|
(1,169,583)
|
Gross
profit
|
$
1,653,262
|
$ 476,893
|
$ 260,472
|
$
3,398,851
|
827,106
|
$
(169,786)
|
Gross
margin
|
38%
|
19%
|
14%
|
28%
|
18%
|
(17%)
|
Adjusted General and Administrative Expense
Management defines adjusted general and administrative expense
as general and administrative expense excluding non-cash items such
as share-based compensation and depreciation expense. Management
believes adjusted general and administrative expense provides
useful information as it represents the corporate costs to operate
the business excluding any non-cash items.
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
Three months
ended September
30,
|
Three months
ended
December 31,
|
Year ended
December 31,
|
Year ended
December 31,
|
Year ended
December 31,
|
|
2021
|
2021
|
2020
|
2021
|
2020
|
2019
|
General and
administrative expense
|
$
(8,630,775)
|
$
(7,089,277)
|
$
(3,858,273)
|
$
(32,129,489)
|
$
(7,084,795)
|
$
(1,622,541)
|
Adjustments:
|
|
|
|
|
|
|
Share-based
compensation
|
2,808,617
|
3,043,998
|
1,605,184
|
17,740,461
|
2,370,059
|
179,227
|
Depreciation
|
80,821
|
81,755
|
98,398
|
274,776
|
230,692
|
8,707
|
Adjusted general
and administrative expense
|
$
(5,741,337)
|
$
(3,963,524)
|
$
(2,154,691)
|
$
(14,114,252)
|
$
(4,484,044)
|
$
(1.434.607)
|
About The Very Good Food Company Inc.
The Very Good Food Company Inc. is an emerging plant-based food
technology company that produces nutritious and delicious
plant-based meat and cheese products under VERY GOOD's core brands:
The Very Good Butchers and The Very Good Cheese Co.
www.verygoodfood.com.
OUR MISSION IS LOFTY, BADASS BUT BEAUTIFULLY SIMPLE: GET
MILLIONS TO RETHINK THEIR FOOD CHOICES WHILE HELPING THEM DO THE
WORLD A WORLD OF GOOD. BY OFFERING PLANT-BASED FOOD OPTIONS SO
DELICIOUS AND NUTRITIOUS, WE'RE HELPING THIS KIND OF DIET BECOME
THE NORM.
ON BEHALF OF THE VERY GOOD FOOD COMPANY INC
Mitchell Scott
Founder and Chief Executive Officer
Forward-Looking Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws in Canada and "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including Section 21E of the Securities
Exchange Act of 1934, as amended (collectively referred to as
"forward-looking information"), for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
Forward-looking information may be identified by words such as
"plans", "proposed", "expects", "anticipates", "intends",
"estimates", "may", "will", and similar expressions.
Forward-looking information contained or referred to in this news
release includes, but is not limited to, statements regarding the
Company's plans to lower throughput and headcount at some
locations, manage inventory levels and implement initiatives, such
as temporarily pausing non-critical capital expenditures and
lowering SG&A spending, to manage both short and long-term
liquidity, extend its cash runway and establish a path towards
profitability; the Company's ability to meet its future
operating expenses and finance our operational, capital expenditure
and debt service requirements for approximately the next
three to five months; the Company's use of proceeds from
the SEC Direct Offering; the Company's plan to file an Annual
Report on Form 20-F by April 30,
2022; the Company's intended transition from a focus on top
line growth to balancing top line growth and profitability; future
workforce reductions; management's belief that the initiatives
being implemented will allow the Company to manage both its
short-term and long-term liquidity and increase its cash runway;
and management's efforts to evaluate ways to support the business
with as little dilution as possible. Forward-looking information is
based on a number of factors and assumptions which have been used
to develop such information, but which may prove to be incorrect
including, but not limited to, material assumptions with respect to
the Company's ability to successfully implement the cost
improvement initiatives and measures and achieve their intended
benefits, the Company's ability to remain listed on the Nasdaq, the
availability of sufficient financing on reasonable terms or at all
to fund VERY GOOD's capital and operating requirements, the
Company's ability to accurately forecast customer demand for its
products and manage its inventory levels, continued demand for VERY
GOOD's products, continued growth of the popularity of meat
alternatives and the plant-based food industry, no material
deterioration in general business and economic conditions, the
successful placement of VERY GOOD's products in retail stores, VERY
GOOD's ability to successfully enter new markets and manage its
international expansion, VERY GOOD's ability to obtain necessary
production equipment and human resources as needed, VERY GOOD's
relationship with its suppliers, distributors and third-party
logistics providers, and management's ability to position VERY GOOD
competitively. Although the Company believes that the expectations
reflected in such forward-looking information are reasonable, undue
reliance should not be placed on forward-looking information
because VERY GOOD can give no assurance that such expectations will
prove to be correct. Risks and uncertainties that could cause
actual results, performance or achievements of VERY GOOD to differ
materially from those expressed or implied in such forward-looking
information include, among others, the impact of, uncertainties and
risks associated with negative cash flow and future financing
requirements to sustain and grow operations, limited history of
operations and revenues and no history of earnings or dividends,
competition, risks relating to the availability of raw materials,
risks relating to regulation on social media, expansion of
facilities, risks related to credit facilities, dependence on
senior management and key personnel, availability of labour,
general business risk and liability, regulation of the food
industry, change in laws, regulations and guidelines, compliance
with laws, risks related to third party logistics providers,
unfavorable publicity or consumer perception, increased costs as a
result of being a United States
public company, product liability and product recalls, risks
related to intellectual property, risks relating to
co-manufacturing, risks related to expansion into the United States; risks related to our
acquisition strategy, taxation risks, difficulties with
forecasts, management of growth and litigation as well as the risks
associated with the ongoing COVID-19 pandemic. For a more
comprehensive discussion of the risks faced by VERY GOOD, please
refer to VERY GOOD's most recent Annual Information Form filed with
Canadian securities regulatory authorities at www.sedar.com and as
an exhibit to the Form 6-K filed with the SEC on March 31, 2022 and available at www.sec.gov. The
forward-looking information in this news release reflects the
current expectations, assumptions and/or beliefs of the Company
based on information currently available. Any forward-looking
information speaks only as of the date of this news release. VERY
GOOD undertakes no obligation to publicly update or revise any
forward-looking information whether because of new information,
future events or otherwise, except as otherwise required by law.
The forward-looking information contained in this news release is
expressly qualified by this cautionary statement.
None of the Nasdaq Stock Market LLC, TSX Venture Exchange, the
SEC or any other securities regulator has either approved or
disapproved the contents of this news release. None of the Nasdaq,
the TSX Venture Exchange or its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange),
the SEC or any other securities regulator accepts responsibility
for the adequacy or accuracy of this news release.
View original
content:https://www.prnewswire.com/news-releases/the-very-good-food-company-reports-fourth-quarter-and-fiscal-year-2021-financial-results-301515526.html
SOURCE The Very Good Food Company Inc.