Home Bistro, Inc. Reports Record Revenue for Quarter Ended January 31, 2022

Rhea-AI Summary

Home Bistro, Inc. (OTC PINK:HBIS) reported a significant 101% increase in revenue, reaching $802,000 for Q1 2022, compared to $399,000 in Q1 2021. This growth is attributed to the integration of the Model Meals brand and successful product offerings from celebrity chefs, including Cat Cora and Daina Falk. However, operating expenses rose to $1.6 million due to consolidation costs and public company expenses, resulting in a net loss of ($2.9 million). The company's assets decreased to $7.0 million while total liabilities fell to $2.7 million, signaling ongoing financial adjustments.

Positive

• Record revenue growth of 101% year-over-year, indicating strong demand and sales.
• Successful integration of the Model Meals brand, contributing to revenue increase.
• Partnerships with multiple celebrity chefs expected to enhance product offerings.

Negative

• Operating expenses surged to $1.6 million, increasing financial strain.
• Net loss of ($2.9 million), significantly higher than the previous year's loss.
• Decrease in total assets by $1.0 million due to cash used for debt repayment.

Revenue Increases of 101% Year over Year

MIAMI BEACH, FL / ACCESSWIRE / March 18, 2022 / Home Bistro, Inc. (OTC PINK:HBIS), ("Home Bistro" or the "Company") a leading online meal delivery platform that offers celebrity chef-inspired, gourmet and lifestyle ready-made meals, today reported record first quarter revenue with its financial results for its first quarter ended January 31, 2022.

Zalmi Duchman, Home Bistro CEO, stated, "It takes up to 12 months for a newly launched celebrity chief to fully establish their cuisine on our platform and achieve significant traction. Understanding this timeline makes first quarter a solid performance as it is only now that menu offerings of Iron Chef Cat Cora are beginning to gain meaningful traction. Hungry Fan chef, Daina Falk, who launched on our platform last October, is expected to continue to build increasing momentum through this year. Newly launched Claudia Sandoval and Richard Blais will likely begin generating meaningful product sales second half of 2022 and into 2023 with an additional three celebrity chefs already signed and contracted expected to launch on our platform over the next two quarters with the likelihood to hit their revenue stride later this year and into 2023. In addition, we have two collaborative partnerships one of which just launched which perfectly complements our meal offerings. Further, Model Meals has gained traction with our nationwide launch from just three states, and will soon launch its subscription 3 meals per day offering in the southern California market."

He added, "Our goal is to continue growing our revenue at a significant rate while eyeing positive cash flow by 2023."

First Quarter 2022 Financial Highlights:

Income Statement:

• Revenue: Product sales for the first quarter 2022 increased 101% to $802,000, as compared to revenues of $399,000 for the same period in 2021. The increase in first quarter sales is attributed to the integration of the Model Meals brand, continued product sales of celebrity chefs Cat Cora,Daina Falk, as well as the mid quarter launch of Claudia Sandoval and Richard Blais. Three additional celebrity chefs and two add-on partnership offerings have been signed and currently are in que to onboard over the next couple of months.
• Operating Expenses: Excluding extraordinary non-cash expenses totaling $1.1 million, operating expenses for first quarter 2022 totaled $1.6 million compared to $274,000 for first quarter 2021. The increase in expenses is due predominately to consolidation of Model Meals operational expenses (acquired July 2021), and an upgrade in legal, accounting and other expenses associated with operating as a publicly-traded company.
• Net Loss: First quarter net loss totaled ($2.9) million or $(0.08) per basic and diluted share, which included $1.1 million of non-cash expenses and $491,000 of interest expense compared to a net loss of $(143,000) or $(0.01) per basic and diluted share for the year first quarter, which included interest expense of approximately $19,000.

Balance Sheet:

• Total Assets: On January 31, 2022, total assets were $7.0 million, a decrease of approximately $1.0 million from the prior year-end fourth quarter. The decrease is attributed to the $1.0 million reduction in cash used for paydown of debt and working capital purposes. The company's cash balance at first quarter end totaled $1.3 million.
• Total Liabilities: The Company's total liabilities decreased by approximately $537,000 during the first quarter to $2.7 million as a portion of the Company's debt was repaid.
• Shareholder's Equity: At the end of the first quarter, shareholder equity totaled approximately $4.2 million a decrease of $476,000 from October 31, 2021 fiscal year end.

First Quarter 2022 Operational Highlights

• Signed "In Good Taste Wines" partnership with whom Home Bistro has developed a unique selection of single-serving elegant wines to pair with the company's celebrity chef-inspired meals;
• Began shipping meals inspired by Celebrity MasterChef Claudia Sandoval, adding a modern take on Mexican coastal cuisine to Home Bistro's platform;
• Commenced meal shipments of "Top Chef All-Star" Richard Blais on Jan 4, 2022, offering a forward-thinking gourmet American classic cuisine;
• Signed Vegan + Sustainable, zero-waste cooking celebrity chef and Food Network Champion Priyanka Naik to its prepared meal delivery platform;
• Began exploring up-listing of its common shares to NASDAQ, securing both the expertise of Donahoe Advisory Associates and corporate legal talent of Baker McKenzie;

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, "Master Chef" Claudia Sandoval, "Top-Chef All-Star" Richard Blais and soon to launch celebrity chefs Ayesha Curry, Roblé Ali and Priyanka Naik.

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
zalmi@homebistro.com
Ph: 631.694.1111

SOURCE: Home Bistro, Inc.

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FAQ

What was Home Bistro's revenue for Q1 2022?

Home Bistro reported revenue of $802,000 for the first quarter of 2022, up 101% from the previous year.

How much did Home Bistro's net loss increase in Q1 2022?

The net loss for Q1 2022 was ($2.9 million), compared to a loss of ($143,000) in Q1 2021.

What factors contributed to Home Bistro's revenue growth?

Factors included the integration of Model Meals and successful culinary offerings from celebrity chefs.

What are the future growth expectations for Home Bistro?

The company aims for positive cash flow by 2023, with additional celebrity chef partnerships expected.

What is the current status of Home Bistro's assets and liabilities?

As of January 31, 2022, total assets were $7.0 million and total liabilities were $2.7 million.