Total Revenue

Approximately $19.55 million in Q1 2025; stable

Total Revenue remained steady in Q1 2025 at about $19.55 million, reflecting consistent sales figures; however, the revenue mix shifted significantly towards new segments, marking a strategic restructuring from previous periods. " " "

Revenue Mix

Complete shift to new segments

In Q1 2025, revenue was entirely derived from Digital Channels ($8.30M), National Distribution ($6.56M), Local Distribution ($4.43M), and Other Services ($0.25M), contrasting with the previous period’s legacy segments; this shift is driven by strategic repositioning aimed at capturing broader market opportunities. " "

Consolidated Net Income

Swing from a profit of $2.61M in Q4 2024 to a loss of $430K in Q1 2025

The change in Consolidated Net Income—a drop from a profit of $2.61M to a loss of $430K—indicates a substantial shift in profitability, influenced by increased costs and margin pressures in the new revenue segments, signaling challenges in transitioning from past operations to the new business model. "

Operating Income

Declined from $538K positive in Q4 2024 to a loss of $223K in Q1 2025

Operating Income deteriorated by over 100% during the period as it shifted from a positive $538K to a loss of $223K, reflecting higher operating expenses relative to revenues and the cost impact associated with the transition to new business segments compared to the previous period’s improved cost structure. "

Cash and Cash Equivalents

Dropped approximately 52%, from $2.33M to $1.11M

Cash and cash equivalents decreased sharply by about 52%—from $2.33M in Q4 2024 to $1.11M in Q1 2025—due to a combination of cash used in operating activities and possibly increased investments and principal debt repayments, highlighting tighter liquidity and an altered balance sheet profile compared to earlier periods. " "

Organic Revenue Growth

Q1 2025

25% organic growth in Q1 2025 year-to-date "

Focus on organic growth and leveraging acquisitions [see Metrics Discussed in Q1 2025 guidance]

cannot compare

Cheese Retail Business Profitability

Q1 2025

no prior guidance

Expected to achieve profitability at the current scale; reducing labor by 30% per unit "

no prior guidance

Vendor Onboarding & Catalog Expansion

Q1 2025

no prior guidance

Rebuilding catalog management platform; expected to reduce vendor onboarding time from 6–12 months to a fraction of that time " " "

no prior guidance

Integration of Acquired Businesses

Q1 2025

no prior guidance

Focused on stabilizing and integrating recently acquired businesses; positioning for revenue and profit acceleration in the back half of the year "

no prior guidance

Retail & Airline Business Growth

Q1 2025

no prior guidance

Expanding cheese conversion capabilities for airline customers and large importers; increasing cooler capacity "

no prior guidance

Potential New Product Categories

Q1 2025

no prior guidance

Exploring opportunities in adjacent categories such as cured meats, olives, gourmet shelf‐stable products, fresh seafood, and fresh beef "

no prior guidance

NASDAQ Uplisting

Q1 2025

Progressing with plans to uplist to NASDAQ, including a reverse stock split and a name change "

Plans to change the company name to Harvest Group Holdings, redomicile to Texas, and file a NASDAQ application; a reverse stock split will be announced later "

no change

Cheese Retail Business Profitability and Operational Efficiency

Q3 and Q4 emphasized negative margins during the startup phase, with strategic investments in operational efficiency (e.g., scaling production, improving cost structures, and transitioning from negative margins in test phases). " " " "

Q1 highlighted a reduction in losses (from $700K to $425K) along with concrete improvements (e.g., reducing labor costs by 30%, inventory reduction, vendor cost negotiations, and centralized processing). " " " "

Consistent focus with progressive improvement in operational efficiency and reduced losses, though profitability is still a work in progress.

Acquisition Integration and Synergy Realization

Q3 discussed initial integration progress and synergy opportunities with Golden Organics, while Q4 detailed warehouse consolidations, personnel adjustments, back-office integration, and technology adoption to drive synergy. " " " "

Q1 continued the emphasis on process stabilization, improved team talent (e.g., hiring a full‐time accountant), and the development of scalable playbooks to further realize synergies across acquisitions. " " " "

Steady integration efforts with an evolving focus on formalizing processes and realizing cross-selling opportunities, indicating a maturation of the integration strategy.

Gross Margin Trends and Stability

Q3 noted a decline due to a shift from high‐margin e-commerce to lower-margin retail and negative margins during the retail test phase; Q4 mentioned margin pressure from inventory write-offs and the ramp-up of the retail cheese business, but also SG&A improvements. " " " "

Q1 reported a 157 basis point decline overall attributable to a larger share of the lower‐margin cheese business (which now makes up 19% of sales), yet margins excluding the cheese segment improved by 282 basis points, with expectations for future improvement in cheese margins. "

Ongoing challenges with mixed sentiments: while the retail expansion pressures margins, operational improvements outside the cheese segment are strong, hinting at a potential turnaround.

Accelerated Catalog Expansion via AI Platform

Q3 did not mention the topic; Q4 discussed the initial AI initiatives (optimized product images and enhanced content via tools like Zapper) to drive catalog expansion. " "

Q1 described a further evolution where AI-driven processes are overhauling vendor onboarding (reducing a 6–12 month process and boosting SKU additions), reinforcing catalog growth and operational efficiency. " " "

Emerging as a significant new focus: initial AI efforts in Q4 have intensified in Q1, marking a strategic upgrade in catalog expansion.

Artisan Specialty Foods Business Model Challenges

Q3 did not address challenges; Q4 provided a detailed discussion on high barriers to new market entry, the 'cold start' problem, and the strategic preference for acquisitions over organic expansion. " "

Q1 did not mention this topic, focusing instead on broader digital channels and vendor onboarding challenges. " "

The topic was prominent in Q4 but has been de-emphasized in Q1, suggesting either resolution or a strategic shift away from these challenges.

E-commerce Business Dynamics and Declining Emphasis

Q3 covered divestitures (iGourmet sale, winding down Mouth.com assets) and a shift of focus from high‐margin but high‐cost e-commerce to foodservice channels. " "

Q1 continued to reflect on the decline in the Digital Channels business (notably within the US Foods marketplace), discussing ongoing vendor onboarding challenges and the strategic redirection to mitigate intensifying competition. " " "

A consistent decline in e-commerce emphasis with strategic divestitures noted earlier, now complemented by technology-driven solutions to address structural challenges in digital channels.

Startup Costs and Inventory Investment Pressures

Q3 mentioned the startup costs incurred for the retail cheese business (including inventory investments and large purchase orders) and highlighted related pressures from acquisition-related inventory financing. " " "

Q1 discussed sustained pressures with significant startup costs for the retail cheese business (e.g., long lead time imports, upfront working capital) and ongoing inventory management efforts (inventory reduction by over 50% from peak, partner-funded promotions). " "

Persistent challenges as the company scales, with continued investments in startup activities and active management of inventory pressures to support growth.