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Direct-to-Consumer E-commerce Platform Drives Record 2020 E-commerce Sales GrowthFull Year E-commerce Revenue Increased 109% to a Full Year Record of $22.4 MillionFull Year 2020 Monthly Subscription Growth of over 95%; IVFH Now Offering Over 15 Unique Monthly Subscription Boxes BONITA SPRINGS, Fla., April 16, 2021 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH” or the “Company”), a leading direct-to-consumer e-commerce platform with complete multi-channel, specialty food and grocery capabilities for both consumers and professional chefs today reported its financial results for the fourth quarter and full year of 2020. “Throughout 2020, despite unprecedented industry-wide COVID-19 challenges, we accelerated our digital transformation, invested in our infrastructure, and leveraged our leading direct-to-chef and direct-to-consumer platform to support record e-commerce demand. Our full year and fourth quarter e-commerce results demonstrate the power and scalability of our DTC e-commerce platform. We successfully navigated the COVID-19 pandemic and the unprecedented disruption it caused within the specialty foodservice industry by rapidly expanding our e-commerce business thanks to the hard work of our dedicated team,” stated Sam Klepfish, CEO of Innovative Food Holdings. “We believe that our leading direct-to-consumer platform provides unparalleled 'plug and play' e-commerce capabilities both through our existing online properties as well as through the ability to build or acquire additional brands to add to our platform. We continue to see increased interest in our platform from both current and potential partners and we believe that we are well positioned to expand e-commerce efficiencies and drive top-line and bottom-line e-commerce results during 2021.” “We have emerged from the COVID-19 crisis better positioned than ever to further continue and accelerate the expansion and growth of our DTC e-commerce platform. In addition, we have been seeing improving trends within our foodservice business, and we look forward to continued improvements as restaurants, hotels, airlines, and other foodservice customers reopen for business. I am extremely proud of our success during 2020 and excited by the opportunities we have to grow our brands and create long-term value for our shareholders in 2021 and beyond,” concluded Mr. Klepfish. Financial Results E-commerce revenue for full year 2020 increased by over 100%, driven by the Company’s ability to increase conversion rates and sales. Deferred revenue which includes e-commerce orders associated with the Company’s subscription services, including both Mouth and iGourmet, and representing a pipeline of future revenues, increased by nearly 500% to $2.9 million at December 31, 2020, compared to $0.5 million at December 31, 2019. Revenues in the 2020 fourth quarter declined to $15.1 million compared to $17.7 million in the 2019 fourth quarter as specialty foodservice revenues declined 43% to $6.8 million, as a result of the continued impact the COVID-19 pandemic had on the foodservice industry. This decline was partially offset by strong e-commerce revenue growth of over 50% to $7.9 million in the 2020 fourth quarter, compared to $5.3 million in e-commerce revenues in the 2019 fourth quarter. 2020 full year total revenue was $51.7 million compared to $57.9 million in 2019. The decline in full year 2020 revenue was driven by an approximately 40% decline in foodservice revenues as a result of the continued impact the COVID-19 pandemic had on the foodservice industry. This decline which was partially offset by strong e-commerce revenue growth of over 100%. IVFH continued to build its brands and expand its e-commerce customer base and for full year 2020 IVFH had over 188,000 active and unique e-commerce customers, which is an increase of over 88% from 2019. The following table sets forth IVFH’s revenue by business category for the three and twelve months ended December 31, 2020 and December 31, 2019 (unaudited): Three Months Ended December 31, 2020 % of Net Sales December 31, 2019 % of Net Sales %Change Specialty Foodservice$6,793,000 44% $11,835,000 67% -43%E-Commerce 7,881,000 52% 5,253,000 30% 50%National Brand Management 313,000 2% 389,000 2% -20%Warehouse and Logistics Services 151,000 1% 176,000 1% -14%Total IVFH$15,138,000 100% $17,653,000 100% -14% Year Ended Months Ended December 31, 2020 % of Net Sales December 31, 2019 % of Net Sales % ChangeSpecialty Foodservice$27,544,000 53% $45,377,000 78% -39%E-Commerce 22,371,000 44% 10,704,000 19% 109%National Brand Management 1,100,000 2% 1,645,000 3% -33%Warehouse and Logistic Services 661,000 1% 176,000 0% 276%Total IVFH$51,676,000 100% $57,903,000 100% -11% For the 2020 fourth quarter, selling and administrative (SG&A) expenses were $5.6 million, compared to $4.9 million for the same period last year. For full year 2020, SG&A expenses were $19.5 million, compared to $16.5 million in the prior year period. The year-over-year increases, which included costs associated with COVID-19, were primarily driven by higher marketing and advertising costs, increases in payroll and insurance costs, and other operating expenses. The Company reported a net loss for the 2020 fourth quarter of $(1.1 million), or $(0.03) per share, compared to a net income of $195,000, or $0.01 per diluted share, in the prior year’s fourth quarter. For 2020, the Company reported a net loss of $(7.7 million), or $(0.22) per share, compared to net income of $223,000, or $0.01 per diluted share for 2019. The 2020 net loss included a non-cash $1.7 million impairment charge recorded during the 2020 first quarter and other non-cash charges of $1.5 million. The Company generated $1.8 million in cash from operating activities for the 2020 fourth quarter, compared to $2.4 million for the same period last year. Adjusted net income for the 2020 fourth quarter was a loss of $(1.0 million), or $(0.028) per share, compared to adjusted net income of $527,000, or $0.015 per diluted share, for the same period last year. For 2020, adjusted net income was a loss of $(5.0 million), or $(0.144) per share, compared to adjusted net income of $1.5 million, or $0.045 per diluted share last year. Cash EBITDA, a non-GAAP metric (see tables below), for the 2020 fourth quarter was a $(0.7 million), compared to Cash EBITDA of $0.7 million in the prior year fourth quarter. For 2020, Cash EBITDA was $(4.2 million), compared to Cash EBITDA of $2.0 million for the same period a year ago. About Innovative Food Holdings, Inc. Innovative Food Holdings (Ticker: IVFH): has built a leading D2C ecommerce platform with complete multi-channel, specialty food and grocery capabilities for both consumers and professional chefs. Wholly owned D2C brands on the platform include www.igourmet.com and www.mouth.com. Additional information is available at www.ivfh.com. Forward-Looking StatementsThis release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the “Company”) that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially” “targeting” or “expect.” Additional factors that could also cause actual results to differ materially relate to the global COVID-19 crisis and other risk factors described in our public filings. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein. Innovative Food Holdings, Inc.Consolidated Balance Sheets(unaudited) December 31, December 31, 2020 2019 ASSETS Current assets Cash and cash equivalents $5,060,015 $3,966,050 Accounts receivable, net 2,380,305 3,309,830 Inventory 3,719,786 2,350,622 Other current assets 286,815 273,689 Total current assets 11,446,921 9,900,191 Property and equipment, net 8,550,401 6,645,389 Investments 496,575 435,225 Right of use assets, operating leases, net 246,737 193,733 Right of use assets, finance leases, net 776,439 174,631 Other amortizable intangible assets, net 100,380 1,342,741 Goodwill and other unamortizable intangible assets 1,532,822 2,183,065 Total assets $23,150,275 $20,874,975 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $5,098,523 $4,009,956 Accrued interest 28,873 16,973 Deferred revenue 2,917,676 499,776 Line of Credit 2,000,000 - Notes payable - current portion, net of discount 1,741,571 727,766 Lease liability - operating leases, current 87,375 133,296 Lease liability - finance leases, current 146,004 29,832 Contingent liability - current portion 187,000 187,000 Total current liabilities 12,207,022 5,604,599 Lease liability - operating leases, non-current 159,362 60,437 Lease liability - finance leases, non-current 638,137 154,905 Contingent liability - long-term 116,600 156,600 Note payable - long term portion, net 6,151,345 3,881,037 Total liabilities 19,272,466 9,857,578 Commitments & Contingencies (see note 18) - - Stockholders' equity Common stock: $0.0001 par value; 500,000,000 shares authorized; 38,209,060 and 37,210,859 shares issued, and 35,371,480 and 34,373,279 shares outstanding at December 31, 2020 and December 31, 2019, respectively 3,817 3,718 Additional paid-in capital 37,415,155 36,889,818 Treasury stock: 2,623,171 and 2,623,171 shares outstanding at December 31, 2020 and December 31, 2019, respectively. (1,141,370) (1,141,370)Accumulated deficit (32,399,793) (24,734,769)Total stockholders' equity 3,877,809 11,017,397 Total liabilities and stockholders' equity $23,150,275 $20,874,975 Innovative Food Holdings, Inc.Consolidated Statements of Operations (unaudited) For the Three Months Ended For the Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Revenue $15,137,833 $17,652,536 51,676,028 $57,902,966 Cost of goods sold 10,621,975 12,646,843 37,859,500 41,255,076 Gross margin 4,515,858 5,005,693 13,816,528 16,647,890 Selling, general and administrative expenses 5,556,996 4,903,290 19,531,818 16,464,128 Impairment of intangible assets - - 1,698,952 - Total operating expenses 5,556,996 4,903,290 21,230,770 16,464,128 Operating (loss) income (1,041,138) 102,403 (7,414,242) 183,762 Other (income) expense: Other leasing income 10,977 (3,125) 43,810 (3,125)Gain on settlement of contingent liability - - - (132,300)Gain on sale of fixed assets 7,984 (12,495) 7,984 (12,495) Interest expense, net (90,761) 42,911 (302,576) 108,915 Total other (expense) income (71,800) 30,416 (250,782) (39,005) Net (loss) income before taxes (1,112,938) 194,917 (7,665,024) 222,767 Income tax expense - - - - Net (loss) income $(1,112,938) $194,917 (7,665,024) $222,767 Net (loss) income per share – basic $(0.03) $0.01 $(0.22) $0.01 Net (loss) income per share – diluted $(0.03) $0.01 $(0.22) $0.01 Weighted average shares outstanding – basic 34,739,378 34,116,335 34,871,785 34,116,335 Weighted average shares outstanding – diluted 34,739,378 34,116,335 34,871,785 34,116,335 Innovative Food Holdings, Inc.Consolidated Statements of Cash Flows For the For the Year Ended Year Ended December 31, December 31, 2020 2019 Cash flows from operating activities: Net (loss) income $(7,665,024) $222,767 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Impairment of intangible assets 1,698,952 - Depreciation and amortization 703,941 1,234,098 Amortization of right-of-use asset 161,926 187,254 Amortization of prepaid loan fees 12,560 1,819 Stock based compensation 525,436 414,178 Gain on settlement of contingent liability (132,300)Gain on sale of fixed assets (7,984) (12,495)Provision for doubtful accounts 254,899 36,037 Changes in assets and liabilities: Accounts receivable, net 674,626 (366,611)Inventory and other current assets, net (1,443,640) (153,633)Accounts payable and accrued liabilities 1,108,451 414,326 Deferred revenue 2,417,900 (59,539)Contingent liabilities (40,000) (4,000)Operating lease liability (161,926) (187,254)Net cash (used in) provided by operating activities (1,759,883) 1,594,647 Cash flows from investing activities: Cash paid for website development (19,250) - Cash received from the sale of fixed assets - 12,495 Acquisition of property and equipment (431,137) (1,049,604)Purchase of intangible assets - (84,000)Investment in food related company - (60,200)Net cash used in investing activities (450,387) (1,181,309) Cash flows from financing activities: Sales of common stock - 250,000 Cash paid for acquisition of treasury stock - (125,000)Loan fees related to building acquisition financing - (72,916)Cash paid in settlement of contingent liabilities in connection with acquisitions - (350,576)Proceeds from line of credit 2,000,000 - Proceeds from Payroll Protection Plan Loan 1,650,221 - Principal payments on debt (278,668) (880,752)Principal payments financing leases (67,318) (27,861)Net cash provided by (used in) financing activities 3,304,235 (1,207,105) Increase (decrease) in cash and cash equivalents 1,093,965 (793,767) Cash and cash equivalents at beginning of year 3,966,050 4,759,817 Cash and cash equivalents at end of year $5,060,015 $3,966,050 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $201,679 $112,291 Taxes $- $- Non-cash investing and financing activities: Issuance of 131,136 shares of common stock previously accrued $- $93,666 Right of use assets and liabilities - operating, upon adoption of ASU 2016-02 $- $338,581 Equipment financed under note payable $1,900,000 $- Return of equipment and reduction in amount due under equipment financing loan $- $33,075 Fair value of 19,048 shares of common stock issued for services $- $10,405 Increase in right of use assets & liabilities $214,930 $193,734 Investment in food related company $61,350 $60,500 Capital lease for purchase of fixed assets $677,021 $81,223 Note payable for acquisition of land and building $- $3,600,000 Three Months Ended (unaudited) Twelve Months Ended(unaudited) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019Adjusted Net Income and EPS (4) Revenue$15,137,833 $17,652,536 $51,676,028 $57,902,966Net Income (1,112,938) 194,917 (7,665,024) 222,767Amortization of intangible assets (1) 2,870 210,031 212,902 899,757One-time charges - - 1,917,891 -Stock related expenses (2) 147,430 121,818 525,436 414,178Adjusted Net Income$(962,638) $526,766 $(5,008,795) $1,536,702Weighted Avg. Shares Outstanding Diluted (3) 34,871,785 34,116,335 34,871,785 34,116,335Adjusted Fully Diluted EPS$(0.028) $0.015 $(0.144) $0.045 Three Months Ended(unaudited) Twelve Months Ended(unaudited) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019Cash EBITDA (4) Net Income$(1,112,938) $194,917 $(7,665,024) $222,767Interest expense, taxes 90,761 55,406 302,576 108,915Depreciation & amortization 136,137 313,003 703,941 1,234,098One-time charges - - 1,917,891 -Stock related expenses (2) 147,430 121,818 525,436 414,178Cash EBITDA$(738,610) $685,144 $(4,215,180) $1,979,958 (1) Includes non-cash amortization charges related to assets acquired(2) Includes stock and options-based compensation and expenses(3) Full Year GAAP weighted fully diluted share count(4) non-GAAP measures (not to be relied upon in substitution for GAAP measures) Company Contact:Investor and Media Contact:Ronit WallersteinAndrew M. BergerInvestor RelationsManaging DirectorInnovative Food Holdings, Inc.SM Berger & Company, Inc.(718) 645-1755(216) 464-6400rwallerstein@IVFH.comandrew@smberger.com