Lifeway Foods Files Q2 2024 10-Q

TL;DR

Lifeway Foods Q2 2024 10-Q filed. Financials and operations detailed.

AI Summary

Lifeway Foods, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors and stakeholders with the official financial health and operational status of Lifeway Foods for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• Lifeway Foods, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240813 (date) — Filing date

FAQ

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-063024.htm (10-Q) — 713KB
• lifeway_ex1001.htm (EX-10.1) — 31KB
• lifeway_ex3101.htm (EX-31.1) — 10KB
• lifeway_ex3102.htm (EX-31.2) — 10KB
• lifeway_ex3201.htm (EX-32.1) — 4KB
• lifeway_ex3202.htm (EX-32.2) — 3KB
• lifeway_ex9901.htm (EX-99.1) — 100KB
• image_001.gif (GRAPHIC) — 3KB
• 0001683168-24-005522.txt ( ) — 4313KB
• lway-20240630.xsd (EX-101.SCH) — 30KB
• lway-20240630_cal.xml (EX-101.CAL) — 53KB
• lway-20240630_def.xml (EX-101.DEF) — 105KB
• lway-20240630_lab.xml (EX-101.LAB) — 301KB
• lway-20240630_pre.xml (EX-101.PRE) — 247KB
• lifeway_i10q-063024_htm.xml (XML) — 570KB

– 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 . 18 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 June 30, 2024 and December 31, 2023 (In thousands) June 30, 2024 December 31, (Unaudited) 2023 Current assets Cash and cash equivalents $ 14,633 $ 13,198 Accounts receivable, net of allowance for credit losses and discounts & allowances of $ 1,550 and $ 1,270 at June 30, 2024 and December 31, 2023 respectively 14,526 13,875 Inventories, net 8,454 9,104 Prepaid expenses and other current assets 1,488 2,019 Refundable income taxes 180 – Total current assets 39,281 38,196 Property, plant and equipment, net 25,276 22,764 Operating lease right-of-use asset 154 192 Goodwill 11,704 11,704 Intangible assets, net 6,628 6,898 Other assets 1,900 1,900 Total assets $ 84,943 $ 81,654 Current liabilities Current portion of note payable $ – $ 1,250 Accounts payable 9,370 9,976 Accrued expenses 4,487 4,916 Accrued income taxes – 474 Total current liabilities 13,857 16,616 Note payable – 1,483 Operating lease liabilities 88 118 Deferred income taxes, net 3,001 3,001 Total liabilities 16,946 21,218 Commitments and contingencies (Note 9) – – Stockholders' equity Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding at June 30, 2024 and December 31, 2023 – – Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 14,791 outstanding at June 30, 2024 and December 31, 2023 6,509 6,509 Paid-in capital 5,532 4,825 Treasury stock, at cost ( 16,050 ) ( 16,695 ) Retained earnings 72,006 65,797 Total stockholders' equity 67,997 60,436 Total liabilities and stockholders' equity $ 84,943 $ 81,654 See accompanying notes to consolidated financial 3 LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Statements of Operations For the three and six months ended June 30, 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