Revenue Increases 60% Year-Over-Year
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 $1.3 million for 2020, a 60% increase over the previous year's level.
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 $1,336,000 for 2020, a 60% increase over the previous year's level of $837,000. The Company reported a net loss of $(1,242,000) or $(0.07) per basic and diluted share for 2020, which included "extraordinary expenses" related to the Company's merger, such as $610,000 in non-cash, stock and warrants issued for services and $274,000 in legal and auditing expenses. This compares to a net loss of $(199,000) or $(0.02) per basic and diluted share for 2019. Net cash used in operating activities in 2020 was $274,000 compared to $30,000 in 2019.
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.
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.
Zalmi Duchman, CEO
Company Financial Statements Follow
HOME BISTRO, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
|Prepaid expenses and other current assets||28,588||916|
|Total Current Assets||480,942||8,053|
|Property and equipment, net||2,728||-|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|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||-|
|Unredeemed gift cards||48,311||10,365|
|Total Current Liabilities||947,120||279,732|
|Notes payable - long-term portion||151,544||-|
|Common stock repurchase obligation||1,300,000||-|
|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 December 31, 2020 and 2019||-||-|
|Common stock: $0.001 par value; 1,000,000,000 shares authorized; 19,123,768 and 13,104,561 shares issued and outstanding as of December 31, 2020 and 2019||19,123||13,105|
|Additional paid-in capital||4,399,272||4,806,944|
|Total Stockholders' Deficit||(1,914,994||)||(271,679||)|
|Total Liabilities and Stockholders' Deficit||$||483,670||$||8,053|
Home Bistro, Inc. and Subsidiary
Consolidated Statements of Operations
|Twelve Months ended December 31|
|Product sales, net||$||1,335,859||$||836,599|
|Cost of sales||873,289||499,396|
|Compensation and related expenses||547,940||362,526|
|Professional and consulting expenses||434,450||27,231|
|Product development expense||360,000||-|
|Selling and marketing expenses||226,428||57,067|
|General and administrative||198,082||104,569|
|Total operating expenses||1,766,900||551,393|
|Operating Loss from Continuing Operations||(1,304,330||)||(214,190||)|
|Other income (expenses)|
|Interest expense, net||(19,924||)||(3,341||)|
|Change in fair value of derivative liabilities||32,315||-|
|Gain from extinguishment of accounts payable||7,075||18,470|
|Total Other Income, net||24,466||15,129|
|Loss from Continuing Operations Before Provision for Income Taxes||(1,279,864||)||(199,061||)|
|Provisions for Income Taxes||-||-|
|Loss from Continuing Operations||$||(1,279,864||)||$||(199,061||)|
|Income from Disposal of Discontinued Operations Before Provisions for Income Taxes||38,203||-|
|Provision for Income Taxes||-||-|
|Income from Discontinued Operations||38,203||-|
|Basic and Diluted Loss per Common Share:|
|Continuing operations - basic and diluted||$||(0.07||)||$||(0.02||)|
|Discontinued operations - basic||$||(0.00||)||$||(0.00||)|
|Weighted average number of common shares outstandingBasic and Diluted||17,393,644||13,104,561|
SOURCE: Home Bistro, Inc.
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