Home Bistro, Inc. Announces Fiscal Year 2020 Financial Results
Home Bistro, Inc. (OTC PINK:HBIS) reported a 60% revenue increase to $1.3 million for the year ended December 31, 2020, up from $837,000 in 2019. The transition to a publicly traded entity in April 2020 aimed to enhance capital access and visibility. Key developments included establishing in-house kitchen operations and launching a robust digital marketing campaign, along with partnerships with celebrity chefs. However, the company incurred a net loss of $(1.24 million), significantly higher than the $(199,000) loss in 2019, influenced by merger-related expenses.
- Revenue increased by 60% year-over-year to $1.3 million.
- Transitioned to a publicly traded entity to enhance access to capital.
- Established in-house kitchen operations, improving profit margins.
- Launched a successful marketing campaign.
- Partnerships with celebrity chefs enhance brand visibility.
- Net loss of $(1.24 million) for 2020, up from $(199,000) in 2019.
- Increased cash used in operating activities, totaling $274,000 in 2020.
Revenue Increases
MIAMI BEACH, FL / ACCESSWIRE / March 23, 2021 / Home Bistro, Inc. (OTC PINK:HBIS) (the "Company"), a provider of direct-to-consumer, ready-made, gourmet meals, today reported financial results for its full year ended December 31, 2020. The Company reported revenue of
Key 2020 developments:
- Transitioned to a publicly traded entity in April 2020 in order to gain better access to growth capital through the capital markets, as well as to achieve heightened visibility for the unique Home Bistro platform;
- Established an in-house kitchen and fulfillment operations in July 2020; transitioning away from third-party co-packers, in an effort to expand its profit margins, improve its competitive position, enhance it flexibility to create and support its strategy for the "next generation" heat-to-eat gourmet meals;
- Launched its most aggressive marketing campaign to date - utilizing varied digital marketing strategies; and
- Introduced its celebrity chef concept with its initial partnership with "Iron Chef" Cat Cora. Subsequent to year-end, the Company finalized its second celebrity chef partnership with tailgate food afficionado, "Hungry Fan" chef, Daina Falk.
Home Bistro reported product sales of
Commenting on the Company's progress, Zalmi Duchman, Home Bistro's CEO, said, "2020 was truly an inflection year for Home Bistro. We recognized that to survive and thrive in our industry, the Company needed to control its own destiny and carve out a unique offering that set it apart from the competition. Developing menu diversity with exclusive cuisine inspired by world-renowned celebrity chefs brings gourmet dining to consumers' kitchen tables. Our objective is to elevate the Company's product offering by creating a healthy gourmet digital food destination that provides consumers with convenience, quality and culinary diversity."
Mr. Duchman continued, "In addition to raising the Company's exposure and access to capital markets, our decision to transition to a publicly traded entity was also influenced by the composition of the prepared, "heat-to-eat" meal delivery segment, which is beset with many small players. We believe the Company's publicly-traded status will enable it to take advantage of potential merger opportunities to augment its organic growth."
About Home Bistro, Inc.
Home Bistro provides direct-to-consumer, ready-made, celebrity chef inspired meals at www.homebistro.com, which includes meals inspired and created by celebrity "Iron Chef" Cat Cora, and soon to launch meals by Hungry Fan celebrity chef Daina Falk. The Company also offers restaurant quality meats and seafood through its Prime Chop www.primechop.co and Colorado Prime brands.
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
zalmi@homebistro.com
Ph: 631.694.1111
Company Financial Statements Follow
HOME BISTRO, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
| December 31, | ||||||||
| 2020 | 2019 | |||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 447,354 | $ | 7,137 | ||||
Prepaid expenses and other current assets | 28,588 | 916 | ||||||
Note receivable | 5,000 | - | ||||||
Total Current Assets | 480,942 | 8,053 | ||||||
OTHER ASSETS: | ||||||||
Property and equipment, net | 2,728 | - | ||||||
Total Assets | $ | 483,670 | $ | 8,053 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 352,466 | $ | 223,046 | ||||
Accrued expenses and other liabilities | 126,273 | 24,391 | ||||||
Convertible notes payable, net of debt discount | 141,476 | - | ||||||
Note payable - in default | - | 3,738 | ||||||
Notes payable - current portion | 20,068 | - | ||||||
Advances payable | 78,497 | 18,192 | ||||||
Derivative liabilities | 180,029 | - | ||||||
Unredeemed gift cards | 48,311 | 10,365 | ||||||
Total Current Liabilities | 947,120 | 279,732 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Notes payable - long-term portion | 151,544 | - | ||||||
Common stock repurchase obligation | 1,300,000 | - | ||||||
Total Liabilities | 2,398,664 | 279,732 | ||||||
STOCKHOLDERS' DEFICIT: | ||||||||
Preferred Stock: | ||||||||
Convertible Series B Preferred stock: | - | - | ||||||
Common stock: | 19,123 | 13,105 | ||||||
Additional paid-in capital | 4,399,272 | 4,806,944 | ||||||
Accumulated deficit | (6,333,389 | ) | (5,091,728 | ) | ||||
Total Stockholders' Deficit | (1,914,994 | ) | (271,679 | ) | ||||
Total Liabilities and Stockholders' Deficit | $ | 483,670 | $ | 8,053 | ||||
Home Bistro, Inc. and Subsidiary
Consolidated Statements of Operations
Twelve Months ended December 31 | ||||||||
| 2020 | 2019 | |||||||
Product sales, net | $ | 1,335,859 | $ | 836,599 | ||||
Cost of sales | 873,289 | 499,396 | ||||||
Gross profit | 462,570 | 337,203 | ||||||
Operating Expenses: | ||||||||
Compensation and related expenses | 547,940 | 362,526 | ||||||
Professional and consulting expenses | 434,450 | 27,231 | ||||||
Product development expense | 360,000 | - | ||||||
Selling and marketing expenses | 226,428 | 57,067 | ||||||
General and administrative | 198,082 | 104,569 | ||||||
Total operating expenses | 1,766,900 | 551,393 | ||||||
Operating Loss from Continuing Operations | (1,304,330 | ) | (214,190 | ) | ||||
Other income (expenses) | ||||||||
Interest expense, net | (19,924 | ) | (3,341 | ) | ||||
Change in fair value of derivative liabilities | 32,315 | - | ||||||
Gain from extinguishment of accounts payable | 7,075 | 18,470 | ||||||
Other income | 5,000 | - | ||||||
Total Other Income, net | 24,466 | 15,129 | ||||||
Loss from Continuing Operations Before Provision for Income Taxes | (1,279,864 | ) | (199,061 | ) | ||||
Provisions for Income Taxes | - | - | ||||||
Loss from Continuing Operations | $ | (1,279,864 | ) | $ | (199,061 | ) | ||
Discontinued Operations: | ||||||||
Income from Disposal of Discontinued Operations Before Provisions for Income Taxes | 38,203 | - | ||||||
Provision for Income Taxes | - | - | ||||||
Income from Discontinued Operations | 38,203 | - | ||||||
Net Loss | (1,241,661) | (199,061 | ) | |||||
Basic and Diluted Loss per Common Share: | ||||||||
Continuing operations - basic and diluted | $ | (0.07 | ) | $ | (0.02 | ) | ||
Discontinued operations - basic | $ | (0.00 | ) | $ | (0.00 | ) | ||
| $ | (0.00 | ) | $ | (0.00 | ) | |||
Weighted average number of common shares outstanding Basic and Diluted | 17,393,644 | 13,104,561 | ||||||
SOURCE: Home Bistro, Inc.
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FAQ
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