Greenfield Farms Food Inc (OTCMKTS:GRAS) filed form 10-Q wherein the company stated to have posted a net loss of $125,106 for the first two quarters closed June 30, 2016 as against a loss of over $1.157 million for the same period, a year earlier.
The highlights
Greenfield Farms reported that gross sales in the six months closed June 30, 2016 came at $768,622 compared to $856,628 in the same period, a year ago. Cost of goods sold came at $586,528 compared to $746,918 in the comparable quarter, last year. The sales in the FY2016 period declined $88,006 over the last year mainly due to operating just three stores in the FY2016 period compared to 4 stores in the FY2015 period, which was mainly offset by growing catering sales in the FY2016 period.
Cost of goods sold declined by nearly 21% to around 76% of sales in FY2016 compared to 87% of sales in FY2015. This decline is primarily the outcome of lower operating expenses for Carmela’s catering operation which manages with increased profit margins. The firm projects this trend will continue in the imminent future as it works to jump catering sales.
Greenfield Farms reported that total operating expenses came at $278,683 for the first two quarters closed June 30, 2016 compared to $349,656 for the first two quarters closed June 30, 2015 driving in loss from operations of $96,589 in FY2016 against $239,946 in the FY2015 periods. There were numerous factors involved in this considerable drop in operating costs including significant drop in accounting, professional and legal fees as a $50,000 note was released for professional fees in the FY2015 period and declined rent because of operating just three stores in FY2016.
Advertising costs jumped in FY2016 with aggressive marketing and coupon campaigns versus FY2015. Other expenses came at $28,517 for the first two quarters closed June 30, 2016 as against $917,423 in the same period, a year earlier. This considerable change is following the derivative liabilities linked to the firm’s convertible notes outstanding.
