Lifeway Foods, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Lifeway Foods, Inc. has submitted its 2023 annual report on Form 10-K, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Lifeway Foods, Inc. (LWAY) filed a Annual Report (10-K) with the SEC on March 20, 2024. Lifeway Foods, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 6431 W Oakton, Morton Grove, IL 60053. Lifeway Foods, Inc. is incorporated in Illinois (IL). The filing was made on March 20, 2024.

Why It Matters

For investors and stakeholders tracking Lifeway Foods, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Lifeway Foods' financial health, operational activities, and strategic direction for the past fiscal year, which is crucial for investors and stakeholders to assess the company's performance and future prospects. As a public company, Lifeway Foods is required to file this report with the SEC, ensuring transparency and compliance with regulatory standards, offering insights into its business model, risks, and financial position.

Risk Assessment

Risk Level: low — Lifeway Foods, Inc. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant financial or operational disclosures that would alter the risk profile beyond what is typical for a public company.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Lifeway Foods' performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-20 — Filing Date (Filed as of date)
• 86 — Document Count (Public document count)
• 0000814586 — Central Index Key (Filer's Central Index Key)

Key Players & Entities

• Lifeway Foods, Inc. (company) — Filer name
• 6431 W OAKTON (address) — Business address street
• MORTON GROVE (location) — Business address city
• IL (location) — Business address state
• 60053 (postal_code) — Business address zip
• IL (location) — State of incorporation
• 1934 Act (regulation) — SEC Act
• 000-17363 (identifier) — SEC file number

FAQ

Industry Context

Lifeway Foods, Inc. operates within the dairy products industry, specifically focusing on the manufacturing and distribution of fermented dairy products.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, necessitating the filing of annual reports (Form 10-K) with the Securities and Exchange Commission (SEC).

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and balance sheet health.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the risk factors section to understand potential challenges and their impact on the company.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-20: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing provided for analysis; therefore, no comparison to a previous filing can be made.

Key Financial Figures

• $6.55 — tock was last sold as of June 30, 2023 ($6.55 per share as quoted on the Nasdaq Globa

Filing Documents

• lifeway_i10k-123123.htm (10-K) — 979KB
• lifeway_ex2100.htm (EX-21) — 3KB
• lifeway_ex2301.htm (EX-23.1) — 2KB
• lifeway_ex3101.htm (EX-31.1) — 11KB
• lifeway_ex3102.htm (EX-31.2) — 11KB
• lifeway_ex3201.htm (EX-32.1) — 4KB
• lifeway_ex3202.htm (EX-32.2) — 4KB
• lifeway_ex9901.htm (EX-99.1) — 139KB
• image_001.gif (GRAPHIC) — 3KB
• 0001683168-24-001564.txt (&nbsp;) — 5458KB
• lway-20231231.xsd (EX-101.SCH) — 39KB
• lway-20231231_cal.xml (EX-101.CAL) — 71KB
• lway-20231231_def.xml (EX-101.DEF) — 128KB
• lway-20231231_lab.xml (EX-101.LAB) — 376KB
• lway-20231231_pre.xml (EX-101.PRE) — 306KB
• lifeway_i10k-123123_htm.xml (XML) — 676KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 16 Item 1C Cybersecurity 16 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 17 Item 4. Mine Safety Disclosures 17 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. [RESERVED] 18 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 24 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 24 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 25 Item 9A.

Controls and Procedures

Controls and Procedures 25 Item 9B. Other Information 26 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 26 PART III Item 10. Directors, Executive Officers and Corporate Governance 27 Item 11.

Executive Compensation

Executive Compensation 27 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 27 Item 13. Certain Relationships and Related Transactions and Director Independence 27 Item 14. Principal Accountant Fees and Services 27 PART IV Item 15. Exhibits, Financial Statement Schedules 28 Item 16. Form 10-K Summary 30

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, readers are advised that this document, and any document incorporated by reference herein, may contain forward looking statements. Forward looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those indicated by the forward looking statements. These statements use words, variations of words, and negatives of words such as "may," "could," "believe," "future," "depend," "expect," "will," "result," "can," "remain," "assurance," "subject to," "require," "limit," "impose," "guarantee," "restrict," "continue," "become," "predict," "likely," "opportunities," "effect," "change," and "estimate." Examples of forward looking statements include, but are not limited to, (i) projections of revenues, income or loss, earnings or losses per share, capital expenditures, dividends, capital structure and other financial items, (ii) statements of Lifeway Foods, Inc.'s (which, together with its subsidiaries as the context requires, may be referred to as "Lifeway", the "Company", "our", "we" or "us") plans and objectives, including the introduction of new products, or estimates or predictions of actions by customers, suppliers, competitors or regulatory authorities, (iii) statements of future economic performance, and (iv) statements of assumptions underlying other statements and statements about the Company or its business.

Forward looking statements are based on management's

Forward looking statements are based on management's beliefs, assumptions, estimates and observations of future events based on information available to our management at the time the statements are made and include any statements that do not relate to any historical or current fact. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward looking statements due in part to the risks, uncertainties, and assumptions that include: the actions of our competitors and suppliers, including those related to price competition; the actions and decisions of our customers or consumers; our ability to successfully implement our business strategy; changes in the pricing of commodities; the effects of government regulation; disruptions to our supply chain, or our manufacturing and distribution capabilities, including those due to cybersecurity threats, wars or pandemics; and the other risks and uncertainties that are set forth in Item 1, "Business", Item 1A "Risk Factors" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and that are described from time to time in our filings with the SEC. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. We intend these forward looking statements to speak only at the date made. Except as otherwise required to be disclosed in periodic reports required to be filed by us with the SEC, we have no duty to update these statements, and we undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, futu

BUSINESS

ITEM 1. BUSINESS OVERVIEW Lifeway was founded in 1986 by Michael Smolyansky, ten years after he and his family emigrated from Eastern Europe to the United States. Lifeway was the first to successfully introduce kefir to the U.S. consumer on a commercial scale, initially catering to ethnic consumers in the Chicago, Illinois metropolitan area. Lifeway has grown to become the largest producer and marketer of kefir in the U.S. and an important player in the broader market spaces of probiotic-based products and natural, "better for you" foods. PRODUCTS Our primary product is drinkable kefir, a cultured dairy product. Lifeway kefir is tart and tangy, high in protein, calcium and vitamin D. Thanks to our exclusive blend of kefir cultures, each cup of our flagship low fat kefir contains 12 live and active cultures and 25 to 30 billion beneficial CFU (Colony Forming Units) at the time of manufacture. We manufacture (directly or through co-packers) and market products under the Lifeway, Fresh Made and GlenOaks Farms brand names, as well as under private labels on behalf of certain customers. Our product categories are: Drinkable kefir, sold in a variety of organic and non-organic sizes, flavors, and types; European-style soft cheeses, including farmer cheese, white cheese, and Sweet Kiss; Cream and other, which consists primarily of cream, a byproduct of making our kefir; ProBugs, a line of kefir products designed for children; Drinkable yogurt, sold in a variety of sizes and flavors; and Other dairy, which consists primarily of Fresh Made butter and sour cream. Net sales of products by category were as follows for the years ended December 31: 2023 2022 In thousands $ % $ % Drinkable Kefir other than ProBugs $ 127,726 80% $ 110,247 78% Cheese 13,781 9% 12,651 9% Cream and other 7,382 4% 7,465 5% Drinkable Yogurt 6,236 4% 6,105 4% Probugs Kefir 3,429 2% 3,403 3% Other dairy 1,569 1% 1,697 1% Net Sales $ 160,1

RISK FACTORS

ITEM 1A. RISK FACTORS In evaluating and understanding us and our business, you should carefully consider the risks described below, in conjunction with all of the other information included in this Annual Report on Form 10-K, including "Management's Discussion and Analysis of Financ

View Full Filing

View this 10-K filing on SEC EDGAR