Star Metro - Nepra Foods Discloses Fiscal Q2 2025 Financial Performance

Fiscal Q2 2025 was a milestone quarter, reflecting the Company's continued commitment to delivering shareholder value through diligent and prudent operational decisions, continued customer loyalty and continuing to deliver innovation and ingredient formulations that meet or exceed customer satisfaction ratings.

Q2 2025 Comparative Financial and Business Highlights:

• Revenue and Gross Profit -

  • For the quarter ended September 30, 2024, revenue increased to CAD$1,206,000 from CAD$886,000 for the comparative quarter in 2023, an increase of CAD$320,000.

  • Gross profit showed an increase of CAD$239,000 over the comparative 2023 period which was an 18.5% improvement in gross profit. This improvement is attributable to better raw material purchasing and an increase in the Company's blending revenues.

• Net Income -

  • For the quarter ended September 30, 2024, the Company reported net income of CAD$81,000 as compared to a CAD$860,422 loss for the preceding quarter ended June 30, 2024. It should be noted that this quarter is the first in the seven preceding quarters where the Company recorded a condensed consolidated net income. In addition to the increase in gross profit during the quarter, the change in net income resulted from a non-operating expense lease modification gain of CAD$708,748.

• Other Financial Highlights -

  • For the six months ended September 30, 2024, revenues increased by CAD$263,706, over the preceding six months ended September 30, 2023.

  • The condensed consolidated net loss decreased from CAD$2,015,317 to CAD$779,153, an improvement of CAD $1,263,164.

  • The Company's working capital deficiency was also reduced from CAD$2,003,585 to CAD$1,382,500 for the six months ended September 30, 2024.

• Significant Events During the Quarter -

  • The Company converted a CAD$1,335,111 short-term loan to 26,445,572 common shares and concurrently appointed William Hogan as CEO of the Company.

  • The Company renegotiated an equipment lease and paid CAD$410,960 to the lessor, thus transferring ownership of the equipment to the Company.

  • The Company secured a further CAD$495,854 loan from its CEO, William Hogan, bearing 6% interest and due July 31, 2025.

• Events Occurring Subsequent to the Quarter -

  • The Company retired an SBA loan in the amount of CAD$232,765,

  • The Company appointed two new independent directors and formalized both an audit and compensation committee.

Management is encouraged to see the results of its cost cutting measures and a reinvigorated focus on key market opportunities to increase revenue in the gluten-free ingredient supply and blending areas as keys to continued positive financial results. Management will continue to carefully manage cash flow to navigate anticipated growth.

"Nepra's Q2 results are a testament to the dedication and commitment of our team to making sacrifices that were necessary to reposition the Company both from a business and financial perspective" said William Hogan CEO. "I am so proud to tell our shareholders that the successes we will enjoy in the future have come from the willingness of everyone at Nepra to make the right decisions which saw the Company report significant Q2 results in the midst of regulatory and filing issues which prevented us from securing outside capital. This resourcefulness is rare in business today and we will be a stronger company for all our investors, having worked through these times together."

The Company's consolidated financial statements for the three months ended September 30, 2024, along with its Management Discussion and Analysis (MD&A), are available on SEDAR+ at www.sedar.com.

About Nepra Foods Inc.

Nepra Foods is a specialty food company specializing in innovative, proprietary allergen and gluten-free ingredient solutions. We assist food manufacturers worldwide by providing formulations, ingredients, and technical support for the next generation of healthy, nutritious foods. For further details, visit www.neprafoods.com."

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ON BEHALF OF THE BOARD OF DIRECTORS

Billy Hogan CEO
[email protected]

Investor Relations Toll-free (844) 566-1917

The CSE has neither approved nor disapproved the contents of this news release. The CSE does not accept responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains statements and information that, to the extent that they are not historical fact, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include, without limitation, statements related to the Conversion Transaction, including the timing and completion thereof, and other statements regarding the future developments and the business and options of the Company. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, but not limited to, statements relating to the Company's financial performance, business development, results of operations, and those listed in filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedarplus.ca). Accordingly, readers should not place undue reliance on any such forward looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.

Contact Information

Billy Hogan
CEO
[email protected]

SOURCE: Nepra Foods

O.Ouellet--SMC