0001701756 false 0001701756 2023-08-09 2023-08-09 iso4217:USD xbrli:shares iso4217:USD xbrli:shares






Washington, DC 20549





Pursuant to Section 13 OR 15(d) of the Securities and Exchange Act of 1934


Date of Report (Date of earliest event reported): August 9, 2023


Commission File Number 001-39223


Sadot Group Inc.

(Exact name of small business issuer as specified in its charter)


Nevada   47-2555533

(State or other jurisdiction of

incorporation or organization)


(I.R.S. Employer

Identification No.)


1751 River Run, Suite 200, Fort Worth, Texas 76107

(Address of principal executive offices)


(832) 604-9568

(Issuer’s telephone number)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


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.


Securities registered pursuant to Section 12(b) of the Act: Not applicable.


Title of each class   Trading Symbol   Name of each exchange on which registered
Common Stock, $0.0001 par value   SDOT   The Nasdaq Stock Market







Item 2.02 Results of Operations and Financial Condition.


On August 9, 2023, Sadot Group Inc. (the “Company”) issued a press release regarding its financial results for the quarter and six months ended June 30, 2023. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.


The information contained in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01 Financial Statements and Exhibits


(d) Index of Exhibits


Exhibit No.   Description
99.1   Press Release dated August 9, 2023
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)







Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


  By: /s/ Michael Roper
  Name: Michael Roper
  Title: Chief Executive Officer


Date: August 9, 2023




Exhibit 99.1


A logo for a company

Description automatically generated


Sadot Group Inc. Reports Second Quarter 2023 Results


Reports First Profitable Quarter in Company History as Q2 Revenue Rises to $160 Million


Fort Worth, Texas, August 9, 2023 (ACCESSWIRE) – Sadot Group Inc. (Nasdaq: SDOT) (the “Sadot Group” or the “Company”), an emerging player in the global food supply chain sector, today announced its second quarter results ending June 30, 2023. Chief Executive Officer, Michael Roper and Chief Financial Officer, Jennifer Black will host a conference call at 11:00 AM Eastern Daylight Time on August 10, 2023, to discuss the results. All interested parties are invited to join this call (please see registration details at the bottom of this release). The Q2 2023 financial statements for the quarter ended June 30, 2023, are available on the Investors Section of our website as well as on Nasdaq.com.


“We are pleased and proud to report that Q2 was a strong continuation of the past two quarters highlighted with our first ever profitable quarter in the company’s history,” said Michael Roper, CEO of Sadot Group Inc. “We have begun reaping the financial benefits of our global diversification strategy, which exemplifies our strategic approach to expanding into each of our three main business units (“Sadot Agri-Foods” also known as “Sadot LLC”, “Sadot Farm Operations” and “Sadot Food Service Operations”). By broadening our perspective, we seized the opportunity to venture into new markets and businesses within the global food industry. This move not only offers significant financial prospects but also generates social and environmental value.”


Financial highlights for the three months ended June 30, 2023:


Q2 2023 net income of $190k compared to a net loss of approximately $1.8 million for the prior year ended June 30, 2022.
The Company reported Q2 2023 consolidated revenue of $160 million, a significant increase compared to $3 million for Q2 2022.
Non-GAAP adjusted EBITDA from operations was $1.1 million in the second quarter of 2023 compared to a $1.2 million EBITDA loss in the second quarter 2022.
This marks eight consecutive months of at least $45 million in revenue per month.
Sadot Group Inc. as of June 30, 2023, had a cash balance of $5.1 million and a working capital surplus of $7.7 million.





Strategic and operational highlights during the second quarter of 2023 include:


On July 26, 2023, the Company announced that Muscle Maker, Inc. had taken a significant step in its journey by changing the Company’s name to Sadot Group Inc. This name change recognizes the Company’s evolution of our core business and aligns with our strategic vision.


Sadot Group amended its Services Agreement with Aggia LLC FZ (Aggia) which is reflected in our second quarter earnings. The new amendment modifies the formula by which Sadot Group would issue shares of common stock earned by Aggia for net income generated through our Agri-Foods unit from 80% of net income to 40% of net income on an accounting basis. As a result, the quarterly non-cash expense related to stock issuances to Aggia was reduced by 50%. Following the amendment, all shares to be earned by Aggia under the agreement have been issued and will retain voting rights, vesting over time using the 40% of net income formula.


On June 26, 2023, Sadot Group Inc. was added to the Russell Microcap Index, further solidifying our position in the market.


Sadot Agri-Foods Operations


Completed 21 transactions in Q2 with the average revenue per transaction of $7.5 million.
Average COGS per transaction of $7.3 million.
These 21 transactions were completed throughout 10 different countries.
Entered into a strategic service agreement with Buenaventura Trading LLC thereby expanding our commodity trade routes into the Americas.


Food Service Operations unit


47 units across two fast casual concepts, with 32 units being the flagship Pokémoto brand.
58 Pokémoto franchise agreements sold but not yet open.
Shifting to a franchise, royalty-generating model focused on our Pokémoto concept.
Restructuring of restaurant subsidiaries, reducing restaurant operating expense and overhead as well as working capital demands by closing underperforming units while refranchising (or selling) most of our remaining company-owned units.
Seeking strategic alternatives for our Superfit Foods concept.


Operating Results


For the three months ended June 30, 2023, the Company reported consolidated revenue of $160 million, an increase of $157 million or over 5,000% from the comparative period in 2022. The Company’s net income for the three months ended June 30, 2023, was $190k compared to an approximate $1.8 million loss from the comparative period in 2022. The increase from the second quarter of the prior year can be attributed to the formation of the Sadot Agri-Foods unit. As of June 30, 2023, the Company had a cash balance of $5.1 million and a working capital surplus of $7.7 million. The cash decrease in the second quarter of 2023, was due primarily to cash used in operations of $4.2 million. In addition, the company deployed capital into smaller size trades which tend to generate higher margins. The company has over $7.6 million in net, short term receivables that are due in less than 60 days.







“Looking back on the remarkable work we’ve accomplished to date, we take immense pride in our achievements, but what truly excites us is the boundless potential of our future. I am thrilled to announce that the days, weeks, and months ahead will be filled with exciting news, as we continue to shape the trajectory of Sadot Group Inc. Our unwavering focus is on driving shareholder value, delivering sustainable growth, and maximizing returns for our valued investors through strategic decision-making. We eagerly look forward to sharing our journey, progress, and milestones with you.” - Michael Roper, CEO of Sadot Group Inc.


Webcast Details


Date: August 10, 2023

Time: 11:00 AM EDT / 8:00 AM PDT

To register, please use the link below:




* Please note that when logging into the Webcast individuals must, when prompted to, “allow video and audio” access to your device to view and hear the call.


About Sadot Group Inc.


Sadot Group Inc., formerly known as Muscle Maker Inc., has rapidly established itself as an emerging player in the global food supply chain. Sadot provides innovative and sustainable supply chain solutions that address the world’s growing food security challenges.


The Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.


The Sadot Group currently operates within three key verticals of the global food supply chain including 1) global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, 2) farm operations producing grains and tree crops in Southern Africa, and 3) food service operations with 47 restaurants across the U.S. and Kuwait.


The Sadot Group is headquartered in Ft. Worth, Texas with subsidiary operations in Miami, Dubai, Singapore, Kyiv and Zambia. The Company continues to grow in size, diversity of operations, as well as in human and financial capital, but the principles that guided the Company remain the same – sourcing and providing healthier foods. For more information please visit www.sadotgroupinc.com.





Muscle Maker, Inc.

Condensed Consolidated Balance Sheets



   June 30, 2023   December 31, 2022 
   $’000   $’000 
Current assets:          
Cash   5,090    9,898 
Accounts receivable, net of allowance for doubtful accounts of $34.2 thousand and $23.4 thousand as of June 30, 2023 and December 31, 2022, respectively   47,502    135 
Inventory   307    298 
Prepaid expenses and other current assets   319    317 
Total current assets   53,218    10,648 
Right to use assets   2,059    2,433 
Property and equipment, net   1,497    1,895 
Goodwill   2,626    2,626 
Intangible assets, net   4,019    4,611 
Deposit on farmland   8,802    4,914 
Security deposits and other assets   102    103 
Total assets   72,323    27,230 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable and accrued expenses   40,967    1,953 
Accrued stock-based compensation expense - related party   -    3,603 
Notes payable, current   3,727    222 
Operating lease liability, current   511    560 
Deferred revenue, current   93    95 
Other current liabilities   204    182 
Total current liabilities   45,502    6,615 
Notes payable, non-current   685    759 
Operating lease liability, non-current   1,673    2,019 
Deferred revenue, non-current   1,295    1,276 
Total liabilities   49,155    10,669 
Commitments and Contingencies          
Stockholders’ equity:          
Common stock, $0.0001 par value, 150 million shares authorized, 36.0 million and 29.3 million shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively   4    3 
Additional paid-in capital   103,395    95,913 
Accumulated deficit   (80,231)   (79,355)
Total stockholders’ equity   23,168    16,561 
Total liabilities and stockholders’ equity   72,323    27,230 





Muscle Maker, Inc.

Condensed Consolidated Statement of Operations



   Three Months Ended June 30,   Six Months Ended June 30, 
   2023   2022   2023   2022 
   $’000   $’000   $’000   $’000 
Commodity sales   157,559    -    367,925    - 
Company restaurant sales, net of discounts   2,487    2,751    4,788    5,445 
Franchise royalties and fees   238    163    522    371 
Franchise advertising fund contributions   20    16    36    34 
Other revenues   13    -    13    - 
Total revenues   160,317    2,930    373,284    5,850 
Operating Costs and Expenses:                    
Commodity operating expenses:                    
Commodity cost   153,240    -    358,295    - 
Labor   852    -    1,472    - 
Other commodity operating expenses   485    -    639    - 
Total commodity operating expenses   154,577    -    360,406    - 
Restaurant operating expenses:                    
Food and beverage costs   867    1,117    1,706    2,143 
Labor   956    903    1,836    1,976 
Rent   290    327    564    667 
Other restaurant operating expenses   551    688    1,023    1,338 
Total restaurant operating expenses   2,664    3,035    5,129    6,124 
Depreciation and amortization expenses   441    489    1,074    965 
Franchise advertising fund expenses   20    16    36    34 
Pre-opening expenses   -    -    36    - 
Post-closing expenses   19    -    113    - 
Stock-based consulting expenses   1,068    -    4,427    - 
Sales, general and administrative expenses   1,888    1,127    4,030    2,451 
Total costs and expenses   160,677    4,667    375,251    9,574 
Loss from operations   (360)   (1,737)   (1,967)   (3,724)
Other Income / (Expense):                    
Other income / (expense)   251    (15)   251    (34)
Interest income / (expense), net   (22)   (10)   (19)   (28)
Change in fair value of accrued compensation   324    -    865    - 
Gain on debt extinguishment   -    -    -    140 
Total other income / (expense), net   553    (25)   1,097    78 
Income / (Loss) Before Income Tax   193    (1,762)   (870)   (3,646)
Income tax   3    12    6    14 
Net income / (loss)   190    (1,774)   (876)   (3,660)
Net Income / (Loss) Per Share:                    
Basic   0.01    (0.06)   (0.03)   (0.13)
Diluted   0.01    (0.06)   (0.03)   (0.13)
Weighted-Average # of Common Shares Outstanding:                    
Basic   33,362,887    28,668,116    31,407,362    28,235,052 
Diluted   33,567,719    28,668,116    31,407,362    28,235,052 





Muscle Maker, Inc.

Condensed Consolidated Statements of Cash Flows



   Six Months Ended June 30, 
   2023   2022 
   $’000   $’000 
Cash Flows from Operating Activities          
Net loss   (876)   (3,660)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   1,074    965 
Stock-based compensation   318    89 
Gain on extinguishments of debt   -    (140)
Stock-based consulting expenses   4,427    - 
Change in fair value of compensation   (865)   - 
Loss on disposal of assets   53    267 
Bad debt expense   34    (59)
Changes in operating assets and liabilities:          
Accounts receivable, net   (47,401)   (123)
Inventory   (9)   45 
Prepaid expenses and other current assets   (2)   1,194 
Security deposits and other assets   1    (12)
Accounts payable and accrued expenses   39,014    (611)
Accrued stock-based compensation expense - related party   -    - 
Deferred rent   -    (128)
Operating right of use asset and liability, net   (21)   131 
Deferred revenue   17    228 
Other current liabilities   22    (91)
Total adjustments   (3,338)   1,755 
Net cash used in operating activities   (4,214)   (1,905)
Cash Flows from Investing Activities          
Deposit on farmland   (3,888)   - 
Purchases of property and equipment   (247)   (283)
Disposal of property and equipment   110    - 
Net cash used in investing activities   (4,025)   (283)
Cash Flows from Financing Activities          
Repayments of convertible note   -    (50)
Proceeds from other notes payable   3,500    - 
Repayments of notes payables   (69)   (63)
Net cash provided by (used in) financing activities   3,431    (113)
Net Decrease in Cash   (4,808)   (2,301)
Cash – beginning of period   9,898    15,767 
Cash – end of period   5,090    13,466 





Reconciliations of EBITDA, Adjusted EBITDA and Other Non-GAAP Measures


The following table presents a reconciliation of EBITDA and Adjusted EDITDA from the most comparable U.S. GAAP measure, Net loss, and the calculations of the Net loss margin and Adjusted EBITDA Margin for the three and six months ended June 30, 2023 and 2022:



For the Three Months Ended

June 30,


For the Six Months Ended

June 30,

   2023   2022   2023   2022 
   $’000   $’000   $’000   $’000 
Net income / (loss)   190    (1,774)   (876)   (3,660)
Adjustments to EBITDA:                    
Depreciation and amortization expenses   441    489    1,074    965 
Interest expense, net   22    10    19    28 
Income tax   3    12    6    14 
EBITDA   656    (1,263)   223    (2,653)
Adjustments to Adjusted EBITDA:                    
Other income / (expense)   (251)   15    (251)   34 
Change in fair value of accrued compensation   (324)       (865)    
Gain on debt extinguishment               (140)
Stock-based consulting expenses   1,068        4,427     
Adjusted EBITDA   1,149    (1,248)   3,534    (2,759)
Total revenue   160,317    2,930    373,284    5,850 
Net income / (loss) Margin   0.1%   (60.5)%   (0.2)%   (62.6)%
Adjusted EBITDA Margin   0.7%   (42.6)%   0.9%   (47.2)%


Forward-Looking Statements


This press release may include “forward-looking statements” pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as “should”, “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes.” Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.


Investor Relations:

Frank Pogubila

SVP, Integrous Communications

W - 951.946.5288 E - IR@sadotco.com





Aug. 09, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 09, 2023
Entity File Number 001-39223
Entity Registrant Name Sadot Group Inc.
Entity Central Index Key 0001701756
Entity Tax Identification Number 47-2555533
Entity Incorporation, State or Country Code NV
Entity Address, Address Line One 1751 River Run
Entity Address, Address Line Two Suite 200
Entity Address, City or Town Fort Worth
Entity Address, State or Province TX
Entity Address, Postal Zip Code 76107
City Area Code (832)
Local Phone Number 604-9568
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.0001 par value
Trading Symbol SDOT
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Elected Not To Use the Extended Transition Period false

Historical Stock Chart
From Nov 2023 to Dec 2023 Click Here for more Sadot Charts.
Historical Stock Chart
From Dec 2022 to Dec 2023 Click Here for more Sadot Charts.