Executive Summary

Q1 2019 revenue was essentially flat year over year ($0.721M vs $0.723M), but gross profit fell sharply as cost of goods sold rose due to labor reclassification and a larger production workforce, driving a wider operating loss; diluted EPS remained $(0.01) .
No 8‑K Item 2.02 earnings press release or earnings call transcript was filed for Q1 2019; analysis is anchored on the 10‑Q and contemporaneous press releases .
Wall Street consensus estimates from S&P Global were unavailable for NLBS; the company lacks SPGI mapping, so no formal “beat/miss” context could be assessed (S&P Global data unavailable).
Management emphasized expanded manufacturing capacity (Deerfield Beach facility), new licensing (Wisconsin hemp grow/process licenses), and IP additions (testosterone oral spray and patent acquisition), but also disclosed going‑concern risk and heavy reliance on external financing .

What Went Well and What Went Wrong

Facility expansion and capacity: “NLBS has entered phase two of its build out of its new 20,000 square foot manufacturing facility in Deerfield Beach…We plan to move into the new facility by the end of the second quarter” (CEO) .
Strategic licenses: NLBS received two Wisconsin licenses to grow and process industrial hemp; management aims to become vertically integrated with cost‑reducing systems (CEO quote) .
Portfolio and IP expansion: Limited exclusive license to Orlando Pharmacy for an oral spray testosterone delivery system (royalty structure disclosed), and acquisition of patent rights (to be amortized ~11 years), broadening potential revenue avenues .

Margin compression: Gross profit fell to $0.089M from $0.367M YoY; management attributed COGS rise to reclassifying labor to production and significantly increasing the production labor force .
Elevated operating expense and financing costs: G&A more than doubled YoY to $0.901M; finance costs surged with recognition of discount expense tied to convertible debt settled in 2019 .
Going‑concern and dilution risk: The 10‑Q reiterates substantial doubt about continuing as a going concern and details extensive share issuances and financing dependence, highlighting capital structure fragility .

Metric	Q1 2018	Q3 2018	Q1 2019
Revenue ($USD Millions)	$0.723	$1.062	$0.721
Gross Profit ($USD Millions)	$0.367	$0.287	$0.089
Total Operating Expenses ($USD Millions)	$0.963	$0.969	$1.084
Net Loss ($USD Millions)	$(0.614)	$(0.717)	$(1.289)
Diluted EPS ($USD)	$(0.01)	$(0.01)	$(0.01)

Note: No formal segment reporting; NLBS operates as one reportable segment .

KPIs and Liquidity

KPI	Q3 2018	FY 2018 (12/31)	Q1 2019
Cash and Equivalents ($USD)	$0.210M	$0.420M	$0.677M
Inventories ($USD)	$0.430M	$0.291M	$0.373M
Accounts Receivable ($USD)	$0.021M	$0.044M	$0.115M
Weighted Avg Shares (Basic/Diluted)	88.64M	87.32M (FY average)	108.26M

Estimates vs Actuals

S&P Global Wall Street consensus estimates for NLBS Q1 2019 were unavailable due to missing mapping; thus, no beat/miss comparison can be provided (S&P Global data unavailable).

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Financial Guidance (Revenue, EPS, Margins)	FY 2019	None disclosed	None disclosed	Maintained
Operational Timeline – Move to Deerfield Beach Facility	Mid‑2019	N/A	“Plan to move into the new facility by the end of the second quarter”	Announced
Lease Accounting Adoption (Topic 842)	2019	N/A	Recognized ~$0.8M ROU asset and related liabilities; current portion $0.122M	Implemented

No Q1 2019 earnings call transcript was filed; themes below derive from filings and press releases.

Topic	Previous Mentions (Q3 2018)	Current Period (Q1 2019)	Trend
Going‑concern risk	Substantial doubt noted; reliance on financing	Reiterated substantial doubt; continued search for financing	Unchanged
Customer concentration	Top 5 private label customers concentrated; significant risk	Concentration risk reiterated; sales primarily private label	Unchanged
Production capacity	Existing Coconut Creek operations; planning expansion	Deerfield Beach build‑out, capacity expansion by end Q2	Positive operational capacity trend
Regulatory/compliance (CBD/hemp)	FDA/FTC framework; industry risks	Wisconsin hemp licenses obtained; continued regulatory caveats	Active expansion under constraints
Cost structure/margins	Elevated expenses; variable gross margin	COGS up from labor reclassification and staffing; margin compression	Negative margin trend

“NLBS…announced that its revenues have improved more than approximately 107% over 2017…We look forward to the increased capacity and efficiencies that will come with our new state of the art facility. We plan to move into the new facility by the end of the second quarter.” – Edgar Ward, CEO (2018 year‑end release) .
“As a company entering the bio‑life sciences space it is our goal to become vertically integrated as a trusted supplier of raw bulk materials and insure the efficacy and quality of the products produced.” – Edgar Ward, CEO (Wisconsin hemp licenses press release) .

No Q1 2019 earnings call transcript was filed; there are no analyst Q&A disclosures for the quarter .

S&P Global consensus estimates for NLBS Q1 2019 EPS and revenue were unavailable due to missing company mapping in SPGI systems; no estimate comparison is possible (S&P Global data unavailable).

Revenue stability masks severe gross margin compression: COGS rose on labor reclassification and a larger production workforce, cutting gross profit from $0.367M to $0.089M YoY and widening losses despite flat sales .
Liquidity improved sequentially with cash at $0.677M, aided by equity financing and a shareholder note conversion; but going‑concern risk persists, and dilution risk remains elevated given historical share issuance patterns .
Capacity expansion at Deerfield Beach is the near‑term operational catalyst; successful ramp could improve throughput and unit economics, but execution risk and working capital needs are non‑trivial .
Strategic optionality via hemp licenses and licensing/royalty agreements (testosterone oral spray) adds potential revenue streams, albeit early‑stage and subject to regulatory and commercialization milestones .
With no formal guidance and no analyst coverage/consensus, monitoring quarterly filings for margin trajectory, cash burn, and customer concentration is critical for both trading and medium‑term thesis development .
Traders should watch for filings on facility move‑in timing and any financing events; PMs should assess whether capacity gains and product/royalty initiatives can offset structural margin pressure and capital structure constraints in 2H19 .

Sources: Q1 2019 10‑Q ; FY 2018 10‑K ; Q3 2018 10‑Q ; Press releases and 8‑Ks (Mar–Apr 2019) .