Online Meal Orders Increased Over 30% From Previous Year Second Quarter
MIAMI BEACH, FL / ACCESSWIRE / August 17, 2021 / Home Bistro, Inc. (OTC PINK:HBIS) ("Home Bistro" or the "Company"), a leading online platform that offers celebrity chef-inspired, gourmet and lifestyle ready-made meals shipped directly to consumers, today reported financial results for its second quarter ended June 30, 2021 and outlined recent developments and future growth milestones to be achieved.
While the Company reported revenue of $309,161 for the current year three-month period, compared to $362,001 for the same period of the previous year, the decrease was predominantly due to the gradual attrition of a discontinuing offline brand. Orders for the Company's core business - celebrity chef-inspired, gourmet and lifestyle ready-made meals online meals - increased over 30% from the same period of the previous year.
Commenting on the Company's results, Zalmi Duchman, Home Bistro's CEO, stated, "We are extremely excited that orders for our core business continued to grow by over 30% despite temporarily reallocating our resources to focus on recently achieved major milestones that will serve to shape the Company's immediate and long-term future -
- The Company announced on April 13, 2021 its plan to transition to fresh meal delivery utilizing vacuum skin-packaging technology and began delivering freshly prepared meals in mid-July, of its private label Home Bistro and "Iron Chef" Cat Cora brands, while launching the Dana Falk "Hungry Fan" brand.
- During the second and third quarters of this year, we worked on completing the acquisition of Model Meals which added a West Coast production facility to Home Bistro's operations in addition to over $2 million in annual revenue generated via distribution to only three states. Withs its assimilation into Home Bistro, distribution of Model Meals cuisine is scheduled to be expanded to all 48 contiguous states by October 2021.
- In response to the increase in production, our continual recruitment of celebrity chefs and onboarding of our newest celebrity chefs - including Ayesha Curry, Claudia Sandoval and Roblé Ali, the Company recently relocated its East Coast operations to a state-of-the-art, 5,000 square foot food production and fulfillment facility in south Florida."
Mr. Duchman added, "We should expect to see a significant acceleration of revenue into the fourth quarter, historically the Company's busiest time of year, as we expand Model Meals to nationwide distribution, begin simultaneous distribution of all five of our current celebrity chef meal brands, and implement a planned increase in our marketing spend. This is an exciting time in the evolution of Home Bistro."
About Home Bistro, Inc.
Home Bistro is a leading online platform, www.homebistro.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, "Hungry Fan" Chef Daina Falk and soon to launch celebrity chefs Ayesha Curry, Roblé Ali and Claudia Sandoval.
Home Bistro's Model Meals lifestyle brand www.modelmeals.com is a Whole30 and Paleo approved, ready-to-eat, meal prep service, offering a weekly rotating menu that is prepared by professional chefs, using only the highest quality ingredients available, sourced responsibly and locally, and delivered in sustainable, eco-friendly packaging.
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
| March 31, | December 31, | ||||||
2021 | 2020 | ||||||
ASSETS | (Unaudited) | ||||||
CURRENT ASSETS: | |||||||
Cash | $ | 523,592 | $ | 447,354 | |||
Prepaid expenses and other current assets | 78,671 | 28,588 | |||||
Note receivable | 5,000 | 5,000 | |||||
Total Current Assets | 607,263 | 480,942 | |||||
OTHER ASSETS: | |||||||
Property and equipment, net | 116,219 | 2,728 | |||||
Total Assets | $ | 723,482 | $ | 483,670 | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||
CURRENT LIABILITIES: | |||||||
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 | |||||
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 | |||||
Derivative liabilities | 125,100 | 180,029 | |||||
Unredeemed gift cards | 36,467 | 48,311 | |||||
Total Current Liabilities | 1,432,141 | 947,120 | |||||
LONG-TERM LIABILITIES: | |||||||
Notes payable - long-term portion | 144,409 | 151,544 | |||||
Common stock repurchase obligation | 1,154,366 | 1,300,000 | |||||
Total Liabilities | 2,730,916 | 2,398,664 | |||||
Commitments and contingency (Note 10) | |||||||
STOCKHOLDERS' DEFICIT: | |||||||
Preferred Stock: $0.001 par value; 20,000,000 shares authorized; | |||||||
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 | - | - | |||||
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 | |||||
Additional paid-in capital | 4,827,961 | 4,399,272 | |||||
Accumulated deficit | (6,854,923 | ) | (6,333,389 | ) | |||
Total Stockholders' Deficit | (2,007,434 | (1,914,994 | |||||
Total Liabilities and Stockholders' Deficit | $ | 723,482 | $ | 483,670 | |||
Home Bistro, Inc. and Subsidiary
Consolidated Statements of Operations
| For the Three Months Ended March 31, | ||||||
| 2021 | 2020 | |||||
Product sales, net | $ | 350,474 | $ | 303,765 | ||
Cost of sales | 282,386 | 191,591 | ||||
Gross profit | 68,088 | 112,174 | ||||
Operating Expenses: | ||||||
Compensation and related expenses | 76,500 | 92,519 | ||||
Professional and consulting expenses | 198,188 | 36,734 | ||||
Selling and marketing expenses | 72,441 | 31,711 | ||||
General and administrative expenses | 91,210 | 30,361 | ||||
Total Operating Expenses | 438,339 | 191,325 | ||||
Operating Loss from Operations | (370,251 | ) | (79,151 | ) | ||
Other Income (Expense): | ||||||
Interest expense, net | (327,918 | ) | (840 | ) | ||
Change in fair value of derivative liabilities | 150,006 | - | ||||
Gain on extinguishment of debt | 26,629 | - | ||||
Total Other Expense, net | (151,283 | ) | (840 | ) | ||
Loss from Operations Before Provision for Income Taxes | (521,534 | ) | (79,991 | ) | ||
Provision for Income Taxes | - | - | ||||
Net Loss | $ | (521,534 | ) | $ | (79,991 | ) |
BASIC AND DILUTED LOSS PER COMMON SHARE: | ||||||
Basic and Diluted | $ | (0.03 | ) | $ | (0.01 | ) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||
Basic | 19,242,568 | 13,104,561 | ||||
Diluted | 19,242,568 | 13,104,561 | ||||
SOURCE: Home Bistro, Inc.