Risks Related to Our Business, Brand, Products, and Industry We have incurred significant operating losses. As a result of continuing investments to expand our business, we may not achieve or sustain profitability. We have experienced net losses in every period since our inception. In the years ended December 31, 2022 and 2021, we incurred net losses of $44.5 million and $67.1 million (represents full year of operating company losses and includes both controlling and noncontrolling interest), respectively. We anticipate our operating expenses and capital expenditures will increase substantially in the foreseeable future as we seek to expand our retail distribution, invest in our approach to grow our community, leverage our product development capabilities, and invest in production capacity and automation. As a result of our continuing investments to expand our business in these and other areas, we expect our expenses to increase significantly, and we may not achieve profitability in the foreseeable future. These factors along with our limited history as a public company make it more difficult to forecast accurately our future operating results, which in turn makes it more difficult for us to prepare accurate budgets and implement strategic plans. If we do not address these risks successfully, our operating results could differ materially from our estimates and forecast and from the expectations of investors or analysts. Even if we are successful in broadening our consumer base and increasing net sales from new and existing customers, we may not be able to generate additional net sales in amounts that are sufficient to cover our expenses. We may incur significant losses for a number of reasons, including as a result of the other risks and uncertainties described elsewhere in this Annual Report. We cannot assure you that we will achieve profitability in the future or that, if we do become profitable, we will sustain profitability over any particular period of time. To execute our growth strategy, we need to attract new customers and consumers to our brand and increase our net sales from existing customers, and we may not be successful in achieving these objectives. Our ability to execute our growth strategy depends in part on our ability to attract new customers and consumers to our brand, retain our existing customers, and increase net sales from existing customers. However, we may not be successful in achieving these objectives, particularly increasing our net sales, as a result of a number of factors, including: • our inability to commercialize innovative and relevant products with the taste, nutritional content, quality, and value demanded by our customers and consumers; • changes in consumer preferences, including trends impacting the H&W industry and the frozen food category; • introduction of competitive products by other branded food companies, retailers, restaurants, and other industry participants; • the pricing of our products and the products of our competitors; • any decision by customers to reduce the number of our products they sell, or to limit their shelf space available for our products; • greater reliance by certain retailers on private label products; • our ability to fulfill orders in a timely manner; • perceptions regarding the taste, nutritional content, quality, and value of our products relative to those of our competitors or other food products; • our failure to effectively engage with customers or consumers through our advertising and marketing efforts, including through our social media presence; • factors impacting our current or target customers, including bankruptcy or financial hardship, changes in business strategy or operations, or industry consolidation; 10
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