Executive Summary

Q4 performance: revenue grew 32% YoY to $10.6M, with sequential improvement in gross margin (-1% vs -7% in Q3) and smaller operating and adjusted EBITDA losses; however, the company remained unprofitable as Value-Add SRB derivatives continued to weigh on margins .
Mill turnaround: Golden Ridge delivered its first full-quarter positive contribution to adjusted EBITDA, and MGI’s expansion lifted capacity by 50%, underpinning improved contribution trends exiting 2022 .
Mixed core execution: Core-SRB posted double-digit growth, but incremental costs and technical issues with a new pet food application limited contribution; Value-Add SRB derivatives declined on feedstock/processing challenges and heightened competition .
Strategic review launched, providing a potential catalyst as management evaluates alternatives to improve shareholder returns; no formal numerical guidance issued for 2023 in the Q4 release .

What Went Well and What Went Wrong

What Went Well

Golden Ridge turnaround: “first time…delivered a full quarter of positive contribution to adjusted EBITDA in the fourth quarter” under the Gander Foods operating agreement .
MGI scale-up: “MGI now has 50% more capacity and a broader range of manufacturing capabilities,” supporting a stronger platform for growth and contribution .
SG&A discipline: Q4 SG&A fell 5% YoY to $1.5M; FY22 SG&A declined 6% YoY, aided by lower director compensation and corporate overhead, including subletting HQ .

What Went Wrong

Value-Add SRB derivatives: Significant decline in revenue and contribution due to raw material and processing issues and increased competition; this segment was the primary drag on margins in 2022 .
Core-SRB execution: While volumes grew double digits, “higher input and operating costs” and technical performance issues with a new pet food application limited contribution and led to loss of engagement with certain customers .
Profitability still elusive: Despite operational progress at the mills, Q4 posted net loss of $(1.7)M and adjusted EBITDA loss of $(0.7)M; the company ended 2022 with negative net cash (debt) of $(3.5)M .

Financial Results

Consolidated P&L: YoY and QoQ comparisons

Metric	Q4 2021	Q3 2022	Q4 2022
Revenue ($000)	$8,043	$10,252	$10,616
Gross Profit (Loss) ($000)	$(107)	$(697)	$(87)
Gross Margin (%)	-1%	-7%	-1%
SG&A ($000)	$1,611	$1,765	$1,525
Operating Loss ($000)	$(5,634)	$(2,462)	$(1,612)
Net Loss ($000)	$(5,404)	$(2,042)	$(1,679)
Diluted EPS ($)	$(1.04)	$(0.38)	$(0.28)
Adjusted EBITDA ($000)	$(806)	$(1,404)	$(654)

Liquidity and Leverage

KPI	Q4 2021	Q3 2022	Q4 2022
Cash & Cash Equivalents ($000)	$5,825	$4,374	$3,941
Total Debt, Current + Non-current ($000)	$6,046	$8,899	$7,459
Net Cash (Debt) ($000)	$(221)	$(4,525)	$(3,518)

Note: In Q4, the company raised ~$2.1M (including ~$1.3M net equity and ~$0.9M from refinancing Golden Ridge’s term loan) to bolster liquidity ; an October 11 8-K detailed a $900k over-advance from the factoring facility ahead of restructuring .

FY Context

Metric	FY 2021	FY 2022
Revenue ($000)	$31,131	$41,617
Gross Profit (Loss) ($000)	$442	$(759)
SG&A ($000)	$7,087	$6,690
Operating Loss ($000)	$(10,566)	$(7,302)
Net Loss ($000)	$(8,949)	$(7,858)
Adjusted EBITDA ($000)	$(2,927)	$(3,766)

Segment/Operational Commentary (qualitative)

Area	Q2 2022	Q3 2022	Q4 2022	Trend
Golden Ridge	Operating improvements underway; exit primary milling contemplated	New operating agreement; near-term costs but expected improvement	First full-quarter positive adj. EBITDA contribution	Improving
MGI	Capacity expansion underway	+50% throughput project largely complete; strong growth	50% more capacity; strong contribution	Improving
Core-SRB	Double-digit growth; new pet food customer added	Double-digit growth; technical issue slows ramp	Held its own; higher costs offset gains; pet food issues	Mixed
Value-Add SRB Derivatives	Production issues; missed demand	Negative margin; feedstock issues	Significant decline; raw material/processing issues, competition	Weak

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2022	Q4 revenue expected to “mirror” levels in the first three quarters of 2022	No formal quantitative guidance provided in Q4; company announced a strategic review	Maintained qualitative direction; no numeric update
Profitability/Adj. EBITDA	2023 outlook	Management targeted improved contributions from Golden Ridge and MGI; Value-Add to recover as issues resolve (Q3 commentary)	No explicit numeric guidance; strategic review underway	No formal guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Golden Ridge operations	New partner agreement; near-term maintenance spend; improvement expected	First full-quarter positive contribution to adj. EBITDA	Improving
MGI capacity and mix	Major mechanical upgrade to add 50% throughput	Operating at +50% capacity with broader capabilities supporting growth	Improving
Core-SRB growth & pet food	Added large pet food customer; expected to accelerate growth	Technical performance issues led to loss of engagement with some pet customers; higher costs offset benefits	Mixed
Value-Add SRB derivatives	Production/feedstock issues led to lost sales and write-downs	Ongoing feedstock/processing challenges; increased competition; negative contribution	Weak
Supply chain/feedstock	Thai drought and enzyme changes caused quality/process issues (Q2); import feedstock challenges persisted (Q3)	Raw material challenges still cited among causes of derivative declines	Stabilizing slowly
Liquidity and financing	Added short-term borrowing capacity; equity raise post-Q3	Ended FY22 with $3.9M cash; raised ~$2.1M in Q4; over-advance ahead of loan restructuring	Adequate near term
Strategic review	—	Board commenced strategic review of alternatives	New development

Management Commentary

“For the first time, Golden Ridge delivered a full quarter of positive contribution to adjusted EBITDA in the fourth quarter.” — Peter Bradley, Executive Chairman .
“MGI now has 50% more capacity and a broader range of manufacturing capabilities, providing a solid platform for growth.” — Peter Bradley .
“The benefits of the revenue growth and solid pricing action…were offset by both higher raw material and operating costs.” — Peter Bradley (Core-SRB) .
“We were unable to maintain our engagement with…new customers in the pet food category because we were unable to resolve certain technical performance issues.” — Peter Bradley .
“The Board is in the midst of a strategic review of all the possibilities for RiceBran Technologies.” — Peter Bradley .
“Adjusted EBITDA losses were $654,000 in the fourth quarter…Total cash was $3.9 million at the end of the year.” — Todd Mitchell, CFO/COO .

Q&A Highlights

The Q4 2022 transcript reflects prepared remarks; no analyst Q&A session was captured in the filed transcript for Q4 2022 .

Estimates Context

Wall Street consensus from S&P Global was not available for RIBT Q4 2022 using our S&P Global pipeline (no CIQ mapping for RIBT), so we cannot provide a definitive “vs. estimates” comparison. As a result, estimate-based beats/misses are not assessed here [GetEstimates attempt; mapping unavailable].

Key Takeaways for Investors

Operational inflection at the mills: Golden Ridge’s first positive quarter and MGI’s 50% capacity increase materially improved contribution trends in Q4, supporting the path to lower losses in 2023 if sustained .
Margin headwind concentrated in Value-Add derivatives: Ongoing feedstock/process issues and competition continue to suppress gross margin; resolving this is pivotal for a return to positive gross profit .
Core-SRB demand intact but execution risk: Double-digit growth persists, yet incremental costs and technical issues (pet food application) muted contribution; solving the application challenge could restore the growth thesis in companion animal .
Liquidity bridged but tight: Year-end cash of $3.9M and ~$2.1M raised in Q4, plus a $900k over-advance ahead of restructuring, provide near-term runway; negative net cash (debt) highlights the need for continued operational improvement or strategic action .
Strategic review is the swing factor: The Board’s exploration of alternatives could catalyze value (asset sales, partnerships, restructuring), but outcomes/timing are uncertain; monitor communications closely .
Near-term setup: With Q4 revenue consistent with earlier 2022 quarters and sequential improvement in adjusted EBITDA loss, continued mill execution plus any stabilization in Value-Add derivatives could drive further loss reduction near term .

Appendix: Prior Two Quarters Reference

Q3 2022: Revenue $10.3M; gross margin -7%; operating loss $(2.5)M; adjusted EBITDA $(1.4)M; liquidity supported by post-quarter equity raise .
Q2 2022: Revenue $10.2M; gross margin -5%; adjusted EBITDA $(1.3)M; Value-Add production disruptions and feedstock issues drove losses; pet food customer added in Core-SRB .

RiceBran Technologies (RIBT)·Q4 2022 Earnings Summary