Executive Summary

Q1 2022 revenue was $5.79M, down 34.5% year over year (vs. $8.84M in Q1 2021) and down ~34.9% sequentially from Q4 2021 ($8.9M), primarily due to the sale of Dryel and the end of the Batiste distribution agreement, plus BIZ supply chain constraints and China lockdowns impacting Alpha Skin Care exports .
Gross margin expanded to 50.7% (vs. 45.3% in Q1 2021 and 36.7% in Q3 2021), reflecting mix shifts and lower cost of sales, while operating expenses fell 21.6% YoY to $3.235M; net loss improved sequentially to $(0.451)M from $(7.3)M in Q4 2021 .
Interest expense rose sharply to $0.150M (vs. $0.035M in Q1 2021) amid higher financing costs; cash fell to $0.397M and inventories rose sequentially, highlighting continued logistics/fuel cost inflation and supply chain pressures .
No formal guidance or earnings call transcript was provided; Wall Street consensus from S&P Global was unavailable for SLGD, limiting estimate-based beat/miss analysis .

What Went Well and What Went Wrong

What Went Well

Gross margin expanded to 50.7% from 45.3% YoY and 36.7% in Q3, indicating improved product mix and cost discipline .
YoY operating expenses decreased from $4.124M to $3.235M, reflecting overhead reductions and efficiency initiatives .
Management continued portfolio optimization and innovation; new line extensions set the foundation for future growth. “We’ve launched new line extensions that we believe set the foundation to deliver on our future growth plans.” — Tisha Pedrazzini, President .

What Went Wrong

Revenue declined sharply due to the Dryel sale and conclusion of Batiste distribution (collectively $2.5M in Q1 2021), plus BIZ powder booster supply chain issues and China lockdowns impacting Alpha Skin Care exports .
Interest expense increased to $0.150M vs. $0.035M YoY, and cash declined to $0.397M, underscoring financing costs and liquidity pressure amid inflationary logistics and fuel costs .
Inventories rose sequentially to $6.174M (from $5.677M at year-end), highlighting ongoing supply chain uncertainty and working capital intensity .

Financial Results

Consolidated P&L and Key Metrics

Metric	Q3 2021	Q4 2021	Q1 2022
Revenue ($USD Millions)	$8.555	$8.900	$5.790
Gross Profit ($USD Millions)	$3.142	N/A	$2.934
Gross Profit Margin (%)	36.7% (3.142/8.555)	N/A	50.7% (2.934/5.790)
Operating Expenses ($USD Millions)	$4.067	N/A	$3.235
Loss from Operations ($USD Millions)	$(0.925)	N/A	$(0.301)
Interest Expense ($USD Millions)	$0.208	N/A	$0.150
Net Loss ($USD Millions)	$(2.468)	$(7.300)	$(0.451)
Net Income Margin (%)	−28.9% (−2.468/8.555)	N/A	−7.8% (−0.451/5.790)
EPS (Basic & Diluted, $USD)	$(0.20)	N/A	$(0.04)
Weighted Avg Shares (Millions)	12.642	N/A	12.739

Note: Q1 2022 press release highlights referenced $5.8M vs. $9.4M; the detailed statement shows $5.790M vs. $8.844M — we use the consolidated statement for precision and note the discrepancy .

Balance Sheet KPIs

Metric	Q3 2021	Q4 2021	Q1 2022
Cash & Restricted Cash ($USD Millions)	$0.012 (Cash)	$1.270 (Cash $0.770 + Restricted $0.500)	$0.397 (Cash $0.022 + Restricted $0.375)
Accounts Receivable ($USD Millions)	$4.284	$3.516	$2.399
Inventories ($USD Millions)	$6.639	$5.677	$6.174
Total Debt ($USD Millions)	$7.519 (Current $1.000 + Long-term $6.519)	$2.876 (Current $1.000 + Long-term $1.876)	$2.161 (Current $0.840 + Long-term $1.321)
Total Liabilities ($USD Millions)	$14.890	$9.328	$8.140
Shareholders’ Equity ($USD Millions)	$18.807	$11.541	$11.153

Brand/Category Commentary (Qualitative)

Brand/Category	Q1 2022 Commentary	Impact vs Prior Year
Dryel	Sold in Q4 2021; removal impacted Q1 revenue	Negative
Batiste	Distribution agreement concluded; removal impacted Q1 revenue	Negative
BIZ (Powder Booster)	Sales declined due to supply chain issues	Negative
Alpha Skin Care	Sales decreased due to China lockdowns (export constraints)	Negative
Kids N Pets / Messy Pet	Slight YoY sales increases due to targeted marketing	Positive

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	None provided	None provided	Maintained (no guidance)
Gross Margin	FY/Quarter	None provided	None provided	Maintained (no guidance)
OpEx	FY/Quarter	None provided	None provided	Maintained (no guidance)
EPS	FY/Quarter	None provided	None provided	Maintained (no guidance)
Tax Rate	FY/Quarter	None provided	None provided	Maintained (no guidance)
Segment/Brand Guidance	FY/Quarter	None provided	None provided	Maintained (no guidance)
Dividend	FY/Quarter	None provided	None provided	Maintained (no guidance)

Earnings Call Themes & Trends

No earnings call transcript located for Q1 2022; themes below reflect press releases and disclosures.

Topic	Previous Mentions (Q3 2021)	Previous Mentions (Q4 2021)	Current Period (Q1 2022)	Trend
Supply chain & logistics inflation	Logistics costs and delays; inventory impairment	Continued increases in logistics costs; non-cash impairments	High logistics costs and rising fuel impacting rates	Persistent headwind
Portfolio optimization/divestitures	Evaluating brands; potential monetization	Sold Dryel; proceeds used to reduce net debt	Dryel/Batiste exit reduced Q1 revenue	Active portfolio reshaping
Financing/liquidity	New $2M loan; UMB amendment	Reduced net debt with Dryel proceeds	Cash down to $0.397M; debt down to $2.161M	Liquidity tight; deleveraging
E-commerce & innovation	Accelerating e-commerce; modernizing packaging	New products launched on Amazon	New line extensions launched	Ongoing product innovation
International exposure (China)	Not highlighted	Not highlighted	China lockdowns impacted Alpha exports	New macro headwind

Management Commentary

“We are proud of our team for their efforts to help mitigate the volatile and challenging environment… we’ve launched new line extensions that we believe set the foundation to deliver on our future growth plans. We continue to focus on both sales growth initiatives and cost structure efficiencies to drive profit improvements in the short and long term.” — Tisha Pedrazzini, President .
“In 2021, we continued to face supply chain disruptions that impacted sales and increased logistics costs… We have positioned our highest potential brands for growth by focusing on innovation with new products recently launched on Amazon.” — Tisha Pedrazzini .
“One of our key strategic priorities has been evaluating and optimizing Scott’s portfolio of brands… We made a key step towards this goal in the fourth quarter of 2021 with our sale of the Dryel brand, the proceeds of which we used to reduce net debt.” — Dan Roller, Chairman .

Q&A Highlights

No Q1 2022 earnings call transcript was found; therefore, no analyst Q&A, guidance clarifications, or tone dynamics are available for this period [ListDocuments returned none].

Estimates Context

S&P Global/Capital IQ consensus estimates were unavailable for SLGD for Q1 2022 (missing mapping; no data returned). As a result, beat/miss analysis versus Street is not possible at this time [GetEstimates error].

Metric	Period	S&P Global Consensus	Actual	Surprise
Revenue ($USD Millions)	Q1 2022	Unavailable	$5.790	N/A
EPS ($USD)	Q1 2022	Unavailable	$(0.04)	N/A

Key Takeaways for Investors

Sequential net loss improved materially to $(0.451)M from $(7.3)M in Q4 2021, aided by lower operating expenses and absence of large impairments, but revenue fell ~35% QoQ on brand exits and supply chain headwinds .
Gross margin expansion to 50.7% is a positive surprise given cost inflation; mix changes and lower cost of sales offset volume declines — watch sustainability as logistics/fuel costs remain elevated .
Liquidity tightened (cash + restricted cash $0.397M) while inventories rose; despite this, total debt decreased to $2.161M — balance sheet management remains a priority for near-term risk mitigation .
Brand portfolio actions (Dryel sale; Batiste distribution end) are structurally lowering revenue near-term but may improve focus and margins longer term — monitor progress in Kids N Pets/Messy Pet and new line extensions .
With no formal guidance and no call transcript, near-term catalysts hinge on resolving BIZ supply chain issues, China reopening for Alpha exports, and execution in e-commerce/product innovation .
Short-term: Stock likely sensitive to liquidity and working capital developments (cash/inventory trends) and any updates on supply chain normalization or brand performance; lack of consensus estimates may reduce event-driven trading clarity .
Medium-term: Thesis rests on portfolio focus, margin discipline, and deleveraging; watch for recurring gross margin stability and OpEx control alongside growth in core brands and online channels .

Scott's Liquid Gold - Inc. (SLGD)·Q1 2022 Earnings Summary