Revenue Increases 60% Year-Over-Year

MIAMI BEACH, FL / ACCESSWIRE / March 23, 2021 / Home Bistro, Inc. (OTC PINK:HBIS) (the "Company"), a provider of direct-to-consumer, ready-made, gourmet meals, today reported financial results for its full year ended December 31, 2020. The Company reported revenue of $1.3 million for 2020, a 60% increase over the previous year's level.

Key 2020 developments:

  • Transitioned to a publicly traded entity in April 2020 in order to gain better access to growth capital through the capital markets, as well as to achieve heightened visibility for the unique Home Bistro platform;
  • Established an in-house kitchen and fulfillment operations in July 2020; transitioning away from third-party co-packers, in an effort to expand its profit margins, improve its competitive position, enhance it flexibility to create and support its strategy for the "next generation" heat-to-eat gourmet meals;
  • Launched its most aggressive marketing campaign to date - utilizing varied digital marketing strategies; and
  • Introduced its celebrity chef concept with its initial partnership with "Iron Chef" Cat Cora. Subsequent to year-end, the Company finalized its second celebrity chef partnership with tailgate food afficionado, "Hungry Fan" chef, Daina Falk.

Home Bistro reported product sales of $1,336,000 for 2020, a 60% increase over the previous year's level of $837,000. The Company reported a net loss of $(1,242,000) or $(0.07) per basic and diluted share for 2020, which included "extraordinary expenses" related to the Company's merger, such as $610,000 in non-cash, stock and warrants issued for services and $274,000 in legal and auditing expenses. This compares to a net loss of $(199,000) or $(0.02) per basic and diluted share for 2019. Net cash used in operating activities in 2020 was $274,000 compared to $30,000 in 2019.

Commenting on the Company's progress, Zalmi Duchman, Home Bistro's CEO, said, "2020 was truly an inflection year for Home Bistro. We recognized that to survive and thrive in our industry, the Company needed to control its own destiny and carve out a unique offering that set it apart from the competition. Developing menu diversity with exclusive cuisine inspired by world-renowned celebrity chefs brings gourmet dining to consumers' kitchen tables. Our objective is to elevate the Company's product offering by creating a healthy gourmet digital food destination that provides consumers with convenience, quality and culinary diversity."

Mr. Duchman continued, "In addition to raising the Company's exposure and access to capital markets, our decision to transition to a publicly traded entity was also influenced by the composition of the prepared, "heat-to-eat" meal delivery segment, which is beset with many small players. We believe the Company's publicly-traded status will enable it to take advantage of potential merger opportunities to augment its organic growth."

About Home Bistro, Inc.

Home Bistro provides direct-to-consumer, ready-made, celebrity chef inspired meals at www.homebistro.com, which includes meals inspired and created by celebrity "Iron Chef" Cat Cora, and soon to launch meals by Hungry Fan celebrity chef Daina Falk. The Company also offers restaurant quality meats and seafood through its Prime Chop www.primechop.co and Colorado Prime brands.

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company's growth objectives and industry outlook (as described herein). Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among others, statements about the Company's future financial performance, the impact of management changes, any organizational restructuring and the sufficiency of capital resources to fund its ongoing operating requirements; statements about the Company's expectations regarding the capitalization, resources and ownership structure; and any other statements other than statements of historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including (i) risks related to the combined entity's access to existing capital and fundraising prospects to fund its ongoing operations, and (ii) other business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

CONTACT:
Zalmi Duchman, CEO
zalmi@homebistro.com
Ph: 631.694.1111

Company Financial Statements Follow

HOME BISTRO, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET

 
  December 31,  
 
  2020     2019  
CURRENT ASSETS:
           
Cash
  $ 447,354     $ 7,137  
Prepaid expenses and other current assets
    28,588       916  
Note receivable
    5,000       -  
Total Current Assets
    480,942       8,053  
OTHER ASSETS:
               
Property and equipment, net
    2,728       -  
Total Assets
  $ 483,670     $ 8,053  
 
               
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
CURRENT LIABILITIES:
               
Accounts payable
  $ 352,466     $ 223,046  
Accrued expenses and other liabilities
    126,273       24,391  
Convertible notes payable, net of debt discount
    141,476       -  
Note payable - in default
    -       3,738  
Notes payable - current portion
    20,068       -  
Advances payable
    78,497       18,192  
Derivative liabilities
    180,029       -  
Unredeemed gift cards
    48,311       10,365  
Total Current Liabilities
    947,120       279,732  
LONG-TERM LIABILITIES:
               
Notes payable - long-term portion
    151,544       -  
Common stock repurchase obligation
    1,300,000       -  
Total Liabilities
    2,398,664       279,732  
 
               
STOCKHOLDERS' DEFICIT:
               
Preferred Stock: $0.001 par value; 20,000,000 shares authorized;
               
Convertible Series B Preferred stock: $0.001 Par Value; 500,000 Shares Authorized; nil shares issued and outstanding as of December 31, 2020 and 2019
    -       -  
Common stock: $0.001 par value; 1,000,000,000 shares authorized; 19,123,768 and 13,104,561 shares issued and outstanding as of December 31, 2020 and 2019
    19,123       13,105  
Additional paid-in capital
    4,399,272       4,806,944  
Accumulated deficit
    (6,333,389 )     (5,091,728 )
Total Stockholders' Deficit
    (1,914,994 )     (271,679 )
Total Liabilities and Stockholders' Deficit
  $ 483,670     $ 8,053  

Home Bistro, Inc. and Subsidiary
Consolidated Statements of Operations

 
 
Twelve Months ended
December 31
 
 
  2020     2019  
 
           
Product sales, net
  $ 1,335,859     $ 836,599  
Cost of sales
    873,289       499,396  
Gross profit
    462,570       337,203  
 
               
Operating Expenses:
               
Compensation and related expenses
    547,940       362,526  
Professional and consulting expenses
    434,450       27,231  
Product development expense
    360,000       -  
Selling and marketing expenses
    226,428       57,067  
General and administrative
    198,082       104,569  
Total operating expenses
    1,766,900       551,393  
 
               
Operating Loss from Continuing Operations
    (1,304,330 )     (214,190 )
 
               
Other income (expenses)
               
Interest expense, net
    (19,924 )     (3,341 )
Change in fair value of derivative liabilities
    32,315       -  
Gain from extinguishment of accounts payable
    7,075       18,470  
Other income
    5,000       -  
Total Other Income, net
    24,466       15,129  
 
               
Loss from Continuing Operations Before Provision for Income Taxes
    (1,279,864 )     (199,061 )
 
               
Provisions for Income Taxes
    -       -  
 
               
Loss from Continuing Operations
  $ (1,279,864 )   $ (199,061 )
Discontinued Operations:
               
Income from Disposal of Discontinued Operations Before Provisions for Income Taxes
    38,203       -  
Provision for Income Taxes
    -       -  
Income from Discontinued Operations
    38,203       -  
 
               
Net Loss
    (1,241,661)       (199,061 )
 
               
Basic and Diluted Loss per Common Share:
               
Continuing operations - basic and diluted
  $ (0.07 )   $ (0.02 )
Discontinued operations - basic
  $ (0.00 )   $ (0.00 )
 
  $ (0.00 )   $ (0.00 )
Weighted average number of common shares outstanding
Basic and Diluted
    17,393,644       13,104,561  
 
               

SOURCE: Home Bistro, Inc.



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