Arizona Tribune - Labor Smart, Inc. Shareholder Letter - Q1 2025 From the Office of the CEO

As we close out the first quarter of 2025, I want to take a moment to acknowledge the progress we've made and the path ahead. The transformation of Labor Smart from a single-brand, direct-to-consumer business into a diversified, multinational beverage and wellness conglomerate is well underway. Though the numbers in this quarter may not yet fully reflect the scale of our ambitions, they reveal a company gaining real momentum-built on strategy, structure, and execution.

Turning a Corner

Q1 revenue surged to $3.39 million, representing a year-over-year increase of more than 1300%. This explosive growth didn't happen by accident-it is a direct result of our shift in vision and the disciplined execution of our growth-through-acquisition strategy.

Through the acquisition of Creager Mercantile, we've immediately expanded our footprint into over 9,000 retail locations. This was not just an acquisition of revenue-it was an acquisition of infrastructure, relationships, and access. We now control a critical piece of the supply chain, giving us the distribution backbone needed to build and scale multiple brands under one roof.

From Lockd'In to Go Fast and More!

Our roots as a single-brand, direct-to-consumer company served their purpose. But our future lies in building and acquiring high-margin brands, developing channel-agnostic distribution strategies, and unlocking institutional and B2B revenue across independent stores, chain retail, school districts, hotels, and on-premise locations.

We've paired this innovation with a refreshed marketing push for Go Fast Energy, aligning it with an omnichannel growth strategy. These efforts signal a focused intent: not just to participate in the consumer goods market-but to lead it.

Managing the Growth Curve

We are under no illusions-turnarounds are difficult. Growth comes with complexity, and complexity often comes before profitability. We closed the quarter with a net loss, but it's critical to understand why: our expenses reflect strategic investments in personnel, marketing, legal work, and infrastructure required to scale. We are confident that these short-term costs will yield long-term returns.

At the same time, we have been aggressive in cleaning up our balance sheet. Carefully balancing the cost of expansion with a careful blend of equity and debt, that will be offset by significantly increased revenues and improved margins that will scale with profitability as we strategically attack liabilities and dilution with this transformation of the company. This is all part of a long-term strategy that will make sense in the coming quarters. We remain committed to thoughtful capital deployment. While some dilution is necessary to fund key acquisitions and partnerships, shareholder value remains a top priority. We will create a strategy and eventually execute the plan that will enhance the cap table while improving the value to the shareholder.

Looking Ahead

Labor Smart is no longer just a company with a vision-we are a company with traction. With each quarter, you will see further progress: more revenue, more brands, deeper market penetration, and growing alignment between our operational model and financial performance.

Our north star is sustainable profitability. And while that won't happen overnight, it will happen-with discipline, execution, and your continued support.

Thank you for believing in our transformation. The journey isn't easy-but the destination is worth it.

Sincerely,
Brad Wyatt
Chief Executive Officer
Labor Smart, Inc.

About Labor Smart, Inc.

Labor Smart Inc. (OTC PINK:LTNC) is a forward-thinking brand development and product innovation company specializing in the consumer packaged goods industry. The Company is committed to delivering high-quality products that resonate with consumers while driving growth through strategic partnerships and market expansion. Focused on the snack and beverage sectors, Labor Smart aims to meet the evolving demands of today's consumers with innovative, convenient, and high-quality offerings.

Forward-Looking and Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements, which include the Company's new name, ticker symbol, and transformation, involve risks and uncertainties that could cause actual results to differ materially from those expressed. These statements are based on current expectations and assumptions, which are subject to various risks. Labor Smart, Inc. assumes no obligation to update or revise any forward-looking statements, except as required by law.

Contact Information
Investor Relations
[email protected]

SOURCE: Labor Smart, Inc.

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N.Mitchell--AT