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Muscle Maker, Inc.(SDOT), a leading name in the he alth-conscious restaurant industry, has recently released its unaudited financial results for the second quarter of 2023. Despite facing challenges, including supply chain disruptions and the ongoing impact of the pandemic, the company has reported revenue of $160.3 million and a net loss of $876,000. In this article, we will delve into the financial details of Muscle Maker, Inc.'s Q2 2023 performance.
Muscle Maker, Inc.'s condensed consolidated balance sheets reveal a substantial growth in assets. As of June 30, 2023, the company's total assets stood at $72.3 million, a significant increase from the $27.2 million reported on December 31, 2022. Notable areas of growth include accounts receivable, which increased to $47.5 million, and the deposit on farmland, which surged to $8.8 million. This growth in assets indicates the company's commitment to expanding its operations.
The company also reported its current liabilities, which stood at $45.5 million as of June 30, 2023. This includes accounts payable and accrued expenses of $40.9 million. Muscle Maker, Inc. has shown its dedication to financial stability by maintaining a strong stockholders' equity of $23.2 million.
Revenue Breakdown and Operating Costs
The condensed consolidated statement of operations for Q2 2023 indicates that Muscle Maker, Inc. generated a total revenue of $160.3 million during the quarter. This revenue was primarily derived from commodity sales, which accounted for $157.6 million, and company restaurant sales, net of discounts, which totaled $2.5 million. However, the company did incur significant operating costs and expenses, including commodity operating expenses, restaurant operating expenses, and various other costs and expenses. These expenses contributed to a loss from operations of $360,000.
Muscle Maker, Inc. also reported other income and expenses. The company recorded a net other income of $553,000 for the quarter. After considering income taxes, Muscle Maker, Inc. reported a net income of $190,000 for Q2 2023. This is an improvement compared to the net loss of $1.8 million reported during the same quarter in 2022.
Cash Flows and Investments
In terms of cash flows, Muscle Maker, Inc. reported a net cash used in operating activities of $4.2 million for the first half of 2023. The company invested in depositing on farmland and purchasing property and equipment, resulting in a net cash used in investing activities of $4.0 million. On the financing side, the company recorded net cash provided by financing activities of $3.4 million.
While Muscle Maker, Inc. faced challenges and reported a net loss in the second quarter of 2023, the company's commitment to expanding its assets and maintaining a strong stockholders' equity demonstrates its resilience in a competitive market. The health-conscious restaurant chain continues to navigate economic uncertainties while focusing on delivering nutritious options to its customers.