Blue Star Foods Reports $1.9 Million Revenue for First Quarter Ended March 31, 2023
May 23 2023 - 8:30AM
Blue Star Foods Corp., (“Blue Star,” the “Company,” “we,” “our” or
“us”) (NASDAQ:
BSFC), an
integrated Environmental, Social, and Governance (“ESG”)
sustainable seafood company with a focus on Recirculatory
Aquaculture Systems (“RAS”), announced unaudited financial and
operational results for the three months ended March 31, 2023.
Key Financial Highlights for
the Three Months Ended
March
31,
2023
- Revenue of $1.9 million
- RAS revenues increased to $0.6
million
- Gross profit of $0.3 million
- Operating loss of $0.9 million
- Net loss of $2.0 million (included
$1.1 million of non-cash loss on settlement of stock, amortization
of debt note and one-time non-recurring expenses)
- Adjusted EBITDA loss of $0.9
million
- Inventory and RAS biomass of $3.5
million at March 31, 2023 ($4.8 million at December 31, 2022)
Business Highlights for the
Three Months Ended
March
31,
2023
- Raised $1.8 million with Aegis
Capital Corp. in an underwritten public offering
- Entered into a supply agreement for
up to $4 million annually with JustFoodForDogs, LLC
- Engaged ShareIntel-Shareholder
Intelligence Services, LLC to combat alleged illegal short
selling
Business Highlights Subsequent
to the Three
Months Ended March
31,
2023
- 2022 ESG report included in two
most prominent sustainability reporting standards
- Ramped shipments to Just Food For
Dogs under its supply agreement for up to $4 million annually
Management Commentary
John Keeler, Chairman and CEO of Blue Star,
commented, “We got off to a slow beginning for 2023, but started to
see some increase in demand and orders towards the end of the first
quarter. Our RAS business continues to perform well and, although
our 10X RAS expansion plans are taking longer than previously
expected, remain poised for expansion. We hope to have specific
details on our RAS expansion to share over the next few
months.”
Mr. Keeler concluded, “Subsequent to the end of
the first quarter, we raised $150,000 in equity priced at $0.20
with an institutional fund, who has also agreed to purchase up to
an additional $10,000,000 of the Company’s common stock, with the
timing, exact dollar amounts and pricing up to the Company. In
addition, we entered into a non-binding term sheet with Lind Global
Fund II, L.P. that contemplates the Company entering into a
new securities purchase agreement with Lind, pursuant to
which the Company will issue to Lind a secured, two-year,
convertible promissory note in the principal amount of
approximately $1,200,000 and a common stock purchase warrant to
acquire shares of common stock of the Company. As to Nasdaq’s
letter scheduling the delisting and suspension of trading of the
Company’s common stock: We have requested the hearing before
the Nasdaq Hearings Panel. The Company’s request for a hearing will
stay any suspension or delisting action by Nasdaq pending the
Panel’s final decision. At the hearing, the Company will provide
its plan to regain compliance with Nasdaq’s Minimum Bid Price
Requirement, which includes but is not limited to an already
shareholder approved reverse stock split if necessary. We look
forward to the remainder of 2023 and look forward to providing
updates on our progress.”
Financial Results for the
Three Months
Ended March
31,
2023
- Revenue for the three months ended
March 31, 2023, decreased by $3.4 million, or 64%, to $1.9 million
compared to $5.3 million for the three months ended March 31, 2022.
The decrease in revenue was primarily due to a decrease in poundage
sold during the three months ended March 31, 2023.
- Gross profit for the three months
ended March 31, 2023, decreased by $0.2 million, or 42%, to $0.3
million compared to $0.5 million for the three months ended March
31, 2022. This decrease is attributable to a decrease in revenue.
The resulting gross margin was 15.0%, compared with 9.2% for the
three months ended March 31, 2022.
- Operating loss for the three months
ended March 31, 2023, increased by $0.1 million, or 12%, to $0.9
million, compared to $0.8 million for the three months ended March
31, 2022. Operating loss for the three months ended March 31, 2023
included non-cash or one-time non-recurring operating expenses of
$1.1 million, comprised of non-cash items of $3k in depreciation
and amortization, $0.65 million of loss on settlement of stock,
$0.27 million accrued portion of convertible debt and $0.05 million
in non-cash stock compensation.
- Net loss for the three months March
31, 2023, increased by $0.9 million, or 85%, to $2.0 million,
compared to $1.1 million for the three months ended March 31, 2022.
The increase in net loss is primarily attributable to increases in
other operating expenses and loss on settlement of debt.
- Adjusted EBITDA loss for the three
months ended March 31, 2023, increased by $0.5 million, or 125% to
$0.9 million, compared to $0.4 million for the three months ended
March 31, 2022.
About Blue Star Foods Corp. (NASDAQ:
BSFC)Blue Star Foods Corp. is an integrated ESG seafood
company that processes, packages and sells high-value seafood
products. The Company believes it utilizes best-in-class
technology, in both resource sustainability management and
traceability, and ecological packaging. The Company also owns and
operates the oldest continuously operating RAS full grow-out salmon
farm in North America. The Company is based in Miami, Florida, and
its corporate website is: https://bluestarfoods.com
Forward-Looking Statements:
The foregoing material may contain
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, each as amended. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, including without limitation statements regarding
the Company’s product development and business prospects, and can
be identified by the use of words such as “may,” “will,” “expect,”
“project,” “estimate,” “anticipate,” “plan,” “believe,”
“potential,” “should,” “continue” or the negative versions of those
words or other comparable words. Forward-looking statements are not
guarantees of future actions or performance. These forward-looking
statements are based on information currently available to the
Company and its current plans or expectations and are subject to a
number of risks and uncertainties that could significantly affect
current plans. Risks concerning the Company’s business are
described in detail in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2022, and other periodic and current
reports filed with the Securities and Exchange Commission. The
Company is under no obligation, and expressly disclaims any such
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Investor Contact:Investors@bluestarfoods.com
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