Executive Summary

Q2 2023 from continuing operations showed a return to positive gross profit ($24K; 0% margin) despite lower revenue $6.27M (-4.7% YoY), driven by improved efficiency at Golden Ridge and MGI; however, elevated legal costs tied to the strategic review kept operating losses roughly flat YoY .
The company completed the divestiture of its stabilized rice bran (SRB) business during the quarter; this triggered a $8.6M loss on sale and a $8.5M loss from discontinued operations, taking total net loss to $10.33M and total EPS to $(1.54) .
Liquidity tightened materially: cash fell to $0.30M (from $3.94M at YE22); current liquidity (cash + factoring availability) was $0.6M, after $3.0M of repayments on factoring/LOC/term debt and leases in 1H23 .
No earnings call or guidance; management is “exploring any and all alternatives” and skipped the call to avoid partial disclosures amid the ongoing strategic process, which is the key stock narrative and potential catalyst path forward .

What Went Well and What Went Wrong

What Went Well

Positive gross profit returned in Q2 (0% margin; $24K) after prior gross losses, attributed to “improved efficiency, recent capacity enhancements and higher volumes” at Golden Ridge and MGI .
Golden Ridge delivered higher milling revenues YoY, offsetting part of MGI’s decline; management cited elimination of certain inefficiencies at MGI as supportive of gross margin recovery .
Management emphasized cost rationalization and optionality creation following the SRB business sale, positioning the company to “explore strategic alternatives” and “realize the value of its remaining assets” .
- Quote: “The divestiture of our stabilized rice bran (‘SRB’) business during the second quarter was the first step in a process aimed to reduce costs and curb losses…” — Eric Tompkins, Executive Chairman .

What Went Wrong

Revenue declined sequentially and YoY due to lower MGI milling revenue; total revenue fell to $6.27M (vs $9.27M in Q1 and $6.58M in Q2’22) .
SG&A rose $0.4M YoY due to increased legal costs tied to the strategic review, offsetting gross margin improvements and keeping operating losses similar to last year .
Discontinued operations loss of $8.5M (including ~$8.6M loss on SRB sale) drove total net loss to $10.33M; extremely tight liquidity (cash $0.30M; liquidity $0.6M) raises near-term financing risk .

Financial Results

Summary vs Prior Periods (GAAP)

Metric (USD)	Q4 2022	Q1 2023	Q2 2023
Revenue ($000)	$10,616	$9,269	$6,269
Gross Profit (Loss) ($000)	$(87)	$(282)	$24
Gross Margin %	(1%)	(3%)	0%
SG&A ($000)	$1,525	$1,731	$1,644
Operating Loss ($000)	$(1,612)	$(2,013)	$(1,620)
Interest Expense ($000)	$(163)	$(177)	$(166)
Loss from Continuing Ops ($000)	$(1,679) (proxy: net loss)	$(2,028) (proxy: net loss)	$(1,836)
Loss from Discontinued Ops ($000)	—	—	$(8,495)
Net Loss ($000)	$(1,679)	$(2,028)	$(10,331)
EPS – Continuing Ops ($)	$(0.28) (proxy: total)	$(0.31) (total)	$(0.27)
EPS – Discontinued Ops ($)	—	—	$(1.27)
EPS – Total ($)	$(0.28)	$(0.31)	$(1.54)

Notes: Q4 2022 and Q1 2023 did not separately disclose discontinued operations; total EPS is used as a proxy for continuing operations in those periods .

Q2 2023 vs Q2 2022 (YoY)

Metric (USD)	Q2 2022	Q2 2023	YoY
Revenue ($000)	$6,581	$6,269	(5%)
Gross Profit (Loss) ($000)	$(389)	$24	NM
SG&A ($000)	$(1,215)	$(1,644)	+35%
Operating Loss ($000)	$(1,604)	$(1,620)	+1%
Loss from Continuing Ops ($000)	$(2,174)	$(1,836)	Improved
Loss from Discontinued Ops ($000)	$(447)	$(8,495)	NM
Net Loss ($000)	$(2,621)	$(10,331)	294%
EPS – Continuing Ops ($)	$(0.41)	$(0.27)	Improved
EPS – Discontinued Ops ($)	$(0.09)	$(1.27)	NM
EPS – Total ($)	$(0.50)	$(1.54)	208%

Balance Sheet & Liquidity

Metric (USD)	YE 2022	Q1 2023	Q2 2023
Cash and Cash Equivalents ($000)	$3,941	$3,412	$302
Total Current Assets ($000)	$11,068	$10,300	$4,803
Total Current Liabilities ($000)	$11,277	$12,163	$9,457
Total Debt – Current + Non-current ($000)	$7,459	$7,220	$4,193
Current Liquidity (Cash + Factoring Availability) ($000)	—	—	$600

Operational cash use in 1H23 from continuing operations was $(1.3)M; capex $(0.3)M; debt/facility repayments totaled ~$3.0M in 1H23 .

Segment/Business Commentary

The company does not disclose quantified segment revenue in the release; management noted higher Golden Ridge milling revenue offsetting lower MGI milling revenue in Q2 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	2023	Not provided	Not provided	—
Gross Margin/Margins	2023	Not provided	Not provided	—
SG&A/OpEx	2023	Not provided	Not provided	—
EPS/Net Income	2023	Not provided	Not provided	—

No quantitative guidance was issued; management skipped the Q2 call given the ongoing strategic process and indicated focus on cost rationalization while exploring alternatives .

Earnings Call Themes & Trends

Note: The company did not host a Q2 2023 call; Q1 2023 and Q4 2022 calls provide trend context.

Topic	Previous Mentions (Q4 2022)	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
Strategic review/alternatives	Board initiated strategic review; exploring possibilities .	“Substantial progress” in strategic review; cannot provide details; no Q&A .	Board “continues to advance strategic review” after SRB sale; forgoing call until more progress .	Intensifying; core focus of narrative
SRB business/value-add derivatives	Value-add SRB derivatives faced major challenges; drag on results .	Declines in SRB derivatives continued; increased competition .	SRB business divested; $8.6M loss on sale recognized .	Portfolio rationalization executed
Milling operations (Golden Ridge, MGI)	Golden Ridge delivered first full-quarter positive contribution; MGI capacity +50% .	MGI capacity upgrade completed; Golden Ridge improvement under Gander Foods .	Positive gross profit aided by efficiency and higher volumes; GR up, MGI down YoY .	Operational improvements continue
Cost structure/SG&A	SG&A down YoY; cost discipline .	SG&A flat YoY; expense control .	SG&A up YoY due to legal costs for strategic process .	Legal costs temporarily elevate SG&A
Investor communications	Normal call	Call held but no Q&A due to sensitivity .	No call during strategic process .	Reduced disclosures during process
Liquidity/financing	YE22 cash $3.9M .	Cash $3.4M at 3/31/23 .	Cash $0.3M; liquidity $0.6M; ~$3.0M debt repayments YTD .	Liquidity tightened materially

Management Commentary

“The divestiture of our stabilized rice bran (‘SRB’) business during the second quarter was the first step in a process aimed to reduce costs and curb losses, creating more optionality to explore strategic alternatives and better position the Company to realize the value of its remaining assets.” — Eric Tompkins, Executive Chairman .
“RiceBran delivered positive gross profit in 2Q23 from continuing operations… due to improved efficiency, recent capacity enhancements and higher volumes.” — Eric Tompkins .
“We… have opted to forgo a quarterly conference call until a time when we are in a better position to share more meaningful disclosures on our strategic progress.” — Eric Tompkins .
Prior context: “There is active interest in the assets of the Company and a variety of potential outcomes are being evaluated.” — Peter Bradley, Q1 2023 call .

Q&A Highlights

No Q2 2023 call was held due to the ongoing strategic process .
In Q1 2023, management explicitly declined Q&A citing sensitivity: “we are unable to provide further details at this time and therefore will not be taking any questions” .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2023 EPS and Revenue was unavailable for RIBT at the time of retrieval (S&P Global CIQ mapping not found). As a result, we cannot assess beats/misses versus consensus for this quarter.

Key Takeaways for Investors

Strategic process is the core catalyst: SRB divestiture is a meaningful step; expect updates on asset monetization/alternatives—timing and outcomes will likely drive the stock more than near-term operations .
Operations inflected at gross margin: continuing ops turned to positive gross profit in Q2, supported by Golden Ridge and MGI efficiency gains; sustaining this amid lower volumes is key .
Liquidity risk elevated: cash of $0.3M and total liquidity of $0.6M post ~$3.0M in repayments indicates a near-term financing or structure event may be necessary absent rapid operational cash improvement .
SG&A pressure from legal fees should abate post-process; near-term P&L volatility likely as strategic costs run through results .
Sequential top-line pressure: Q2 revenue fell to $6.27M from $9.27M in Q1; focus on stabilizing MGI volumes while maintaining Golden Ridge momentum .
No guidance and reduced communications heighten uncertainty; position sizing should reflect process, liquidity, and disclosure risks .
Watch for additional non-GAAP or one-time items tied to portfolio actions; Q2’s discontinued ops loss overshadowed underlying operational improvement .

RiceBran Technologies (RIBT)·Q2 2023 Earnings Summary