Online Meal Orders Increased Over 200% Over Previous Year First Quarter
MIAMI BEACH, FL / ACCESSWIRE / May 18, 2021 / Home Bistro, Inc. (OTC PINK:HBIS) ("Home Bistro" or the "Company"), a leading online platform that offers celebrity chef-inspired, gourmet ready-made meals shipped directly to consumers, today reported financial results for its first quarter ended March 31, 2021 and outlined future growth milestones to be achieved.
The Company reported revenue of $350,474 for the current year three-month period, compared to $303,765 for the same period of the previous year which included a discontinued line. First quarter 2021 sales of Home Bistro's prepared gourmet meals, including celebrity chef meals - excluding discontinued lines - increased 104% in the current year first quarter compared to the first quarter 2020, while the number of orders increased approximately 203% during the same period.
Key First Quarter Developments:
- Home Bistro added Daina Falk, author of "The Hungry Fan's Game Day Cookbook" and aficionado of classic tailgate cooking, to its growing list of celebrity chefs offering their gourmet cuisine on the Company's platform. Subsequent to the first quarter end, Home Bistro added Roblé Ali, former Bravo TV personality and celebrity chef caterer to movie stars and VIPS, to its growing list of celebrity chefs. Chefs Ali and Falk join Iron Chef Cat Cora on Home Bistro's platform.
- Home Bistro consummated a joint venture agreement with gourmet dessert provider, Red Velvet NYC through which the Company will offer through its platform, fully-prepared desserts from recipes created and developed by Red Velvet NYC.
The Company recently announced its plan to transition from frozen to fresh "vacuum skin-packaging" to enhance the customer experience, including taste and presentation. With vacuum skin-packaging, the meals are positioned on a tray and the packaging vacuum seals a thin film directly over the food, keeping it in position. The meals can be heated fresh using a microwave and eaten directly from the tray, virtually eliminating clean-up. Home Bistro expects to begin delivery of fresh, skin-packaged, celebrity chef-inspired meals by July 2021.
Commenting on the Company's rapid progress, Zalmi Duchman, Home Bistro's CEO, said, "During the first quarter, we continued expanding our celebrity chef partnerships and with the introduction of fresh, vacuum skin packaging, our customers will experience enhanced flavor and texture and the added convenience of simply heating the meal in its original container and have the meal perfectly plated, ready to eat."
Mr. Duchman continued, "Our vision is to position the Company to be the leading platform that offers any or all segments of the high quality, lifestyle, in-home dining experience including breakfast, lunch, dinners, appetizers, deserts, snacks and even selective beverages such as wine pairings - all with a celebrity chef's inspiration. Our current growth plan includes establishing four kitchen and distribution centers strategically positioned throughout the U.S. to reduce fulfillment and shipping time, and delivery costs of our meals. We also continue to seek other opportunities to expand our product lines through potential acquisitions, and most importantly, as we continue executing, we believe shareholder value will increase commensurate with the Company's performance.
The Company reported a net loss for the three months ended March 31, 2021 of $(521,534) or $(0.03) per basic and diluted share. This compares to a net loss of $(79,991) or $(0.01) per basic and diluted share for the same period in 2020. The first quarter 2021 loss included $145,557 of non-cash charges for the amortization of debt discount and derivative liability expense related to the Company's bridge financings completed in December 2020 and the quarter ended March 31, 2021. The Company also incurred an increase in professional fees of $161,454 due to public company related professional costs. Marketing costs of $40,730 increased during the first quarter 2021 due to the expansion of the Company's marketing strategy to include additional channels with the initial shipping of meals from its celebrity chef platform.
About Home Bistro, Inc.
Home Bistro is a leading online platform, www.homebsitro.com, that provides for the creation, production, and distribution of direct-to-consumer, heat-to-eat, celebrity chef inspired gourmet meals, which currently include inspirations developed by "Iron Chef" Cat Cora and soon to launch celebrity chefs Daina Falk and Roblé Ali.
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company's growth objectives and industry outlook (as described herein). Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among others, statements about the Company's future financial performance, the impact of management changes, any organizational restructuring and the sufficiency of capital resources to fund its ongoing operating requirements; statements about the Company's expectations regarding the capitalization, resources and ownership structure; and any other statements other than statements of historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including (i) risks related to the combined entity's access to existing capital and fundraising prospects to fund its ongoing operations, and (ii) other business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Contact:
Zalmi Duchman, CEO
[email protected]
Ph: 631.694.1111
[Company Financial Statements Follow]
HOME BISTRO, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
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|
March 31, | December 31, | ||||||
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2021 | 2020 | ||||||
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ASSETS
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(Unaudited) | |||||||
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CURRENT ASSETS:
|
||||||||
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Cash
|
$ | 523,592 | $ | 447,354 | ||||
|
Prepaid expenses and other current assets
|
78,671 | 28,588 | ||||||
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Note receivable
|
5,000 | 5,000 | ||||||
|
Total Current Assets
|
607,263 | 480,942 | ||||||
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OTHER ASSETS:
|
||||||||
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Property and equipment, net
|
116,219 | 2,728 | ||||||
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Total Assets
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$ | 723,482 | $ | 483,670 | ||||
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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||||||||
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CURRENT LIABILITIES:
|
||||||||
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Accounts payable
|
$ | 479,339 | $ | 352,466 | ||||
|
Accrued expenses and other liabilities
|
97,710 | 126,273 | ||||||
|
Liabilities to be settled with common stock
|
226,456 | - | ||||||
|
Convertible notes payable, net of debt discount
|
342,931 | 141,476 | ||||||
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Convertible notes payable - related party, net of debt discount
|
31,048 | - | ||||||
|
Notes payable - current portion
|
27,203 | 20,068 | ||||||
|
Advances payable
|
65,887 | 78,497 | ||||||
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Derivative liabilities
|
125,100 | 180,029 | ||||||
|
Unredeemed gift cards
|
36,467 | 48,311 | ||||||
|
Total Current Liabilities
|
1,432,141 | 947,120 | ||||||
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LONG-TERM LIABILITIES:
|
||||||||
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Notes payable - long-term portion
|
144,409 | 151,544 | ||||||
|
Common stock repurchase obligation
|
1,154,366 | 1,300,000 | ||||||
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Total Liabilities
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2,730,916 | 2,398,664 | ||||||
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Commitments and contingency (Note 10)
|
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STOCKHOLDERS' DEFICIT:
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||||||||
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Preferred Stock: $0.001 par value; 20,000,000 shares authorized;
|
||||||||
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Convertible Series B Preferred stock: $0.001 Par Value; 500,000 Shares Authorized; nil shares issued and outstanding as of March 31, 2021 and December 31, 2020
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- | - | ||||||
|
Common stock: $0.001 par value; 1,000,000,000 shares authorized; 19,528,152 and 19,123,768 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively
|
19,528 | 19,123 | ||||||
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Additional paid-in capital
|
4,827,961 | 4,399,272 | ||||||
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Accumulated deficit
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(6,854,923 | ) | (6,333,389 | ) | ||||
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Total Stockholders' Deficit
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(2,007,434 | ) | (1,914,994 | ) | ||||
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Total Liabilities and Stockholders' Deficit
|
$ | 723,482 | $ | 483,670 | ||||
Home Bistro, Inc. and Subsidiary
Consolidated Statements of Operations
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For the Three Months Ended March 31, |
|||||||
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2021 | 2020 | ||||||
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|
||||||||
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Product sales, net
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$ | 350,474 | $ | 303,765 | ||||
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Cost of sales
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282,386 | 191,591 | ||||||
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Gross profit
|
68,088 | 112,174 | ||||||
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Operating Expenses:
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||||||||
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Compensation and related expenses
|
76,500 | 92,519 | ||||||
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Professional and consulting expenses
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198,188 | 36,734 | ||||||
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Selling and marketing expenses
|
72,441 | 31,711 | ||||||
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General and administrative expenses
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91,210 | 30,361 | ||||||
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Total Operating Expenses
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438,339 | 191,325 | ||||||
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|
||||||||
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Operating Loss from Operations
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(370,251 | ) | (79,151 | ) | ||||
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Other Income (Expense):
|
||||||||
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Interest expense, net
|
(327,918 | ) | (840 | ) | ||||
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Change in fair value of derivative liabilities
|
150,006 | - | ||||||
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Gain on extinguishment of debt
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26,629 | - | ||||||
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Total Other Expense, net
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(151,283 | ) | (840 | ) | ||||
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|
||||||||
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Loss from Operations Before Provision for Income Taxes
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(521,534 | ) | (79,991 | ) | ||||
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Provision for Income Taxes
|
- | - | ||||||
|
Net Loss
|
$ | (521,534) | $ | (79,991) | ||||
|
|
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BASIC AND DILUTED LOSS PER COMMON SHARE:
|
||||||||
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Basic and Diluted
|
$ | (0.03 | ) | $ | (0.01 | ) | ||
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||
|
Basic
|
19,242,568 | 13,104,561 | ||||||
|
Diluted
|
19,242,568 | 13,104,561 | ||||||
SOURCE: Home Bistro, Inc.