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The Real Good Food Company, Inc.(RGF) has reported a net loss of $13.7 mi llion, reflecting the company's financial performance during the three-month period ending March 31. The company's revenue for the same period stood at $29.8 million. Let's delve deeper into the financial details of the company's operations during this quarter.
Current Assets Show Stable Position
The company's current assets indicate a stable financial position, with total current assets amounting to $67.1 million as of March 31, 2023. These assets include cash of $550,000, accounts receivable netting at $19.9 million, inventories valued at $45.4 million, and other current assets totaling $1.3 million.
Property and Equipment Holding Steady
The value of the company's property and equipment, net of depreciation and amortization, stood at $37.6 million. In addition, operating lease right-of-use assets were recorded at $10.5 million, and goodwill remained at $12.5 million. Other noncurrent assets contributed $187,000 to the total asset value.
The company's current liabilities totaled $30.6 million, including accounts payable at $22.9 million, operating lease liabilities at $1.5 million, and finance lease liabilities at $3.2 million. The company's total liabilities stood at $151.1 million. On the equity side, stockholders' equity attributable to The Real Good Food Company, Inc. was recorded at $33.2 million, while non-controlling interest accounted for a deficit of $53.2 million.
Decline in Net Sales Affects Gross Profit
The company reported net sales of $29.8 million for the first quarter of 2023, which represents a decrease from the previous year's first quarter net sales of $37.6 million. This decline in net sales has led to a decrease in the gross profit, which was reported at $4.9 million.
Operational Expenses Impact the Bottom Line
The company's operating expenses, including selling and distribution, marketing, and administrative costs, amounted to $15.7 million, contributing to a loss from operations of $10.7 million. Interest expenses added up to $3.3 million, while other income amounted to a negative $348,000.
Net Loss Attributed to The Real Good Food Company, Inc
The company's net loss for the first quarter of 2023 was $13.7 million, compared to a net loss of $9.6 million in the same period of the previous year. After adjusting for the net loss attributable to non-controlling interest, the net loss attributed to The Real Good Food Company, Inc. for the first quarter of 2023 was $3.7 million.
The financial results of The Real Good Food Company, Inc. for the first quarter of 2023 reflect a challenging period, marked by a decline in net sales and increased operating expenses. The company will need to strategize and implement measures to address these challenges, improve operational efficiency, and enhance profitability in the upcoming quarters.