Lifeway Foods, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Lifeway Foods, Inc. has filed its Q1 2024 10-Q report detailing financial performance and operational status.</b>

AI Summary

Lifeway Foods, Inc. (LWAY) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Lifeway Foods, Inc. filed its Form 10-Q for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal business address is 6431 W Oakton, Morton Grove, IL 60053. Lifeway Foods, Inc. is classified under the SIC code 2020 (Dairy Products). The filing was made on May 14, 2024.

Why It Matters

For investors and stakeholders tracking Lifeway Foods, Inc., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data for Lifeway Foods, Inc., enabling assessment of the company's performance in the first quarter of 2024. Understanding the details within this report is crucial for evaluating the company's financial health, operational efficiency, and future prospects within the dairy products industry.

Risk Assessment

Risk Level: low — Lifeway Foods, Inc. shows low risk based on this filing. The risk is low as this is a standard quarterly filing (10-Q) providing routine financial updates, with no immediate red flags indicated in the provided header information.

Analyst Insight

Review the detailed financial statements and management discussion within the full 10-Q filing to assess Lifeway Foods' Q1 2024 performance and identify any emerging trends or risks.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-14 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Q1 2024 period)
• 2023-03-31 — Prior Year Q1 End Date (Prior year period)

Key Players & Entities

• Lifeway Foods, Inc. (company) — Filer name
• 6431 W OAKTON (address) — Business address
• MORTON GROVE (location) — Business address city
• IL (location) — Business address state
• 60053 (postal_code) — Business address zip
• 847-967-1010 (phone_number) — Business phone

FAQ

Industry Context

Lifeway Foods, Inc. operates within the dairy products industry, specifically focusing on fermented dairy products like kefir.

Regulatory Implications

As a publicly traded company, Lifeway Foods, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly reports on Form 10-Q.

What Investors Should Do

1. Analyze the revenue and net income figures for Q1 2024.
2. Examine the balance sheet for changes in assets, liabilities, and equity compared to the previous quarter and year.
3. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and outlook.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data provided for the Q1 2024 period; comparative data from the previous filing (likely Q4 2023 or Q1 2023) would be needed for a direct comparison.

Key Financial Figures

• $11.25 m — l covenant, as defined, of no less than $11.25 million, in each of the fiscal quarters e

Filing Documents

• lifeway_i10q-033124.htm (10-Q) — 562KB
• 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) — 85KB
• image_001.gif (GRAPHIC) — 3KB
• 0001683168-24-003353.txt (&nbsp;) — 3873KB
• lway-20240331.xsd (EX-101.SCH) — 31KB
• lway-20240331_cal.xml (EX-101.CAL) — 53KB
• lway-20240331_def.xml (EX-101.DEF) — 102KB
• lway-20240331_lab.xml (EX-101.LAB) — 299KB
• lway-20240331_pre.xml (EX-101.PRE) — 241KB
• lifeway_i10q-033124_htm.xml (XML) — 467KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements . 3 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations . 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk . 24 Item 4.

Controls and Procedures

Controls and Procedures . 24

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1. Legal Proceedings . 25 Item 1A. Risk Factors . 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds . 25 Item 3. Defaults Upon Senior Securities . 25 Item 5. Other Information . 25 Item 6. Exhibits . 25 Signatures . 26 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2024 and December 31, 2023 (In thousands) March 31, 2024 December 31, (Unaudited) 2023 Current assets Cash and cash equivalents $ 12,025 $ 13,198 Accounts receivable, net of allowance for credit losses and discounts & allowances of $ 1,640 and $ 1,270 at March 31, 2024 and December 31, 2023 respectively 15,064 13,875 Inventories, net 8,130 9,104 Prepaid expenses and other current assets 1,988 2,019 Refundable income taxes 378 – Total current assets 37,585 38,196 Property, plant and equipment, net 24,627 22,764 Operating lease right-of-use asset 172 192 Goodwill 11,704 11,704 Intangible assets, net 6,763 6,898 Other assets 1,900 1,900 Total assets $ 82,751 $ 81,654 Current liabilities Current portion of note payable $ 1,250 $ 1,250 Accounts payable 10,024 9,976 Accrued expenses 3,604 4,916 Accrued income taxes – 474 Total current liabilities 14,878 16,616 Note payable 1,235 1,483 Operating lease liabilities 102 118 Deferred income taxes, net 3,001 3,001 Total liabilities 19,216 21,218 Commitments and contingencies (Note 9) – – Stockholders' equity Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding at March 31, 2024 and December 31, 2023 – – Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 14,691 outstanding at March 31, 2024 and December 31, 2023 6,509 6,509 Paid-in capital 5,498 4,825 Treasury stock, at cost ( 16,695 ) ( 16,695 ) Retained earnings 68,223 65,797 Total stockholders' equity 63,535 60,436 Total liabilities and stockholders' equity $ 82,751 $ 81,654 See accompanying notes to consolidated financial statements 3 LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Statements of Operations For the three ended March 31, 2024 and 2023 (Unaudited) (In

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (In thousands, except per share data) Note 1 – Basis of Presentation The accompanying unaudited consolidated financial financial information, and do not include certain information and footnote disclosures required for complete, audited financial statements. In the opinion of management, these statements include all adjustments necessary for a fair presentation of the results of all interim periods reported herein. The consolidated financial statements and related notes should be read in conjunction with the consolidated financial of operations for any interim period are not necessarily indicative of future or annual results. Principles of consolidation The consolidated financial statements include the accounts of Lifeway Foods, Inc. and all its wholly owned subsidiaries (collectively "Lifeway" or the "Company"). All significant intercompany accounts and transactions have been eliminated. Note 2 – Summary of Significant Accounting Policies Our significant accounting policies, which are summarized in detail in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, have not materially changed. The following is a description of certain of our significant accounting policies. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant

View Full Filing

View this 10-Q filing on SEC EDGAR