Third Quarter 2023 Revenue Grew 11% Year-Over-Year to $13.1 millionAdjusted EBITDA Growth of 95% Year-Over-YearEPS Growth of 77% Year-Over-Year TAMPA, Fla., Nov. 13, 2023 (GLOBE NEWSWIRE) — Better Choice Company, Inc. (“Better Choice” or the “Company”) (NYSE American: BTTR), a pet health and wellness company, today announced its results for the third quarter ended September 30, 2023 (“Q3 2023”). THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS Revenue increased 24% from second quarter 2023, and 11% year-over-year (“YOY”) to $13.1 millionOperating loss improved 59% YOY to $(2.6) millionOperating margin improved 3,403 basis points YOY to (-20%)Net loss improved 75% YOY to $(1.6) millionEarnings (loss) per share (“EPS”) improved 77% YOY to ($0.05)Adjusted EBITDA improved 95% YOY to $(0.1) million1Adjusted EBITDA margin improved 2,311 basis points YOY to (-1%)1 NINE MONTHS 2023 FINANCIAL HIGHLIGHTS Gross margin increased 429 basis points YOY to 34%Operating loss improved 42% YOY to $(8.5) millionNet loss improved 46% YOY to $(8.1) millionEPS improved 48% YOY to ($0.26)Adjusted EBITDA improved 47% YOY to $(3.8) million1Adjusted EBITDA margin improved 406 basis points YOY to (-11%)1 THIRD QUARTER 2023 OPERATIONAL UPDATE Better Choice generated $13.1 million in net sales over Q3 2023, with approximately 75% driven by its Halo Holistic® product line. Point-of-sale2 growth and strength of digital presence drove 24% revenue growth from the second quarter of 2023. The Halo Holistic® plant-based vegan products continue to take share across the E-Commerce platform, with the highest organic traffic in the plant-based segment on Chewy. As projected, the Company secured continuity of dry kibble supply through a successful transition to its newest co-manufacturing partner, Alphia, Inc. “The third quarter was highlighted by our organic digital growth,” commented newly appointed CEO of Better Choice, Kent Cunningham.“ The year-to-date gross margin improvement was fueled by strategic pricing initiatives, and a 3% YOY improvement of average equivalized unit conversion and input costs in the first nine months of 2023. We are focused on keeping product quality and continuous improvement initiatives at the forefront to fuel our future growth trajectory. Our further continued focus on financial and operational discipline is reflected in the 95% Adjusted EBITDA growth during the quarter. We look to close out the remainder of 2023 with a solid footing to build digital momentum and enhanced brand awareness in 2024.” _______________1 Adjusted EBITDA is a non-GAAP measure. Reconciliation of Adjusted EBITDA and to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.2 Point-of-sale growth is a non-GAAP measure. Better Choice Company Inc.Unaudited Condensed Consolidated Statements of Operations(Dollars in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales$13,117 $11,865 $32,890 $45,394 Cost of goods sold 8,681 7,700 21,625 31,795 Gross profit 4,436 4,165 11,265 13,599 Operating expenses: Selling, general and administrative 7,052 10,569 19,721 28,225 Total operating expenses 7,052 10,569 19,721 28,225 Loss from operations (2,616) (6,404) (8,456) (14,626)Other expenses: Interest expense, net (344) (142) (952) (324)Change in fair value of warrant liability 1,339 — 1,339 — Total other expense, net 995 (142) 387 (324)Net loss before income taxes (1,621) (6,546) (8,069) (14,950)Income tax expense — 1 — 4 Net loss available to common stockholders$(1,621) $(6,547) $(8,069) $(14,954)Weighted average number of shares outstanding, basic 30,975,556 29,364,712 30,679,905 29,339,918 Weighted average number of shares outstanding, diluted 30,975,566 29,364,712 30,679,905 29,339,918 Net loss per share available to common stockholders, basic$(0.05) $(0.22) $(0.26) $(0.51)Net loss per share available to common stockholders, diluted$(0.05) $(0.22) $(0.26) $(0.51) Better Choice Company Inc.Unaudited Condensed Consolidated Balance Sheets(Dollars in thousands, except share and per share amounts) September 30, 2023 December 31, 2022Assets Cash and cash equivalents$3,800 $3,173 Restricted cash — 6,300 Accounts receivable, net 8,582 6,744 Inventories, net 7,541 10,257 Prepaid expenses and other current assets 992 1,051 Total Current Assets 20,915 27,525 Fixed assets, net 258 375 Right-of-use assets, operating leases 134 173 Intangible assets, net 8,914 10,059 Other assets 828 544 Total Assets$31,049 $38,676 Liabilities & Stockholders’ Equity Current Liabilities Accounts payable$7,807 $2,932 Accrued and other liabilities 2,525 2,596 Line of credit 1,917 Warrants liabilities 869 Operating lease liability 56 52 Total Current Liabilities 13,174 5,580 Non-current Liabilities Line of credit, net — 11,444 Term loan, net 2,714 Operating lease liability 82 124 Total Non-current Liabilities 2,796 11,568 Total Liabilities 15,970 17,148 Stockholders’ Equity Common Stock, $0.001 par value, 200,000,000 shares authorized, 32,077,148 & 29,430,267 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively 32 29 Additional paid-in capital 321,688 320,071 Accumulated deficit (306,641) (298,572)Total Stockholders’ Equity 15,079 21,528 Total Liabilities and Stockholders’ Equity$31,049 $38,676 Better Choice Company Inc.Non-GAAP Measures Adjusted EBITDA We define Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items to net (loss) income: interest expense, tax expense, depreciation and amortization, share-based compensation, loss on disposal of assets, strategic branding initiatives and product launch expenses, co-manufacturing partner transition, and other non-recurring expenses. We present Adjusted EBITDA as it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We believe that the disclosure of Adjusted EBITDA is useful to investors as this non-GAAP measure forms the basis of how our management team reviews and considers our operating results. By disclosing this non-GAAP measure, we believe that we create for investors a greater understanding of and an enhanced level of transparency into the means by which our management team operates our company. We also believe this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items that do not directly affect our ongoing operating performance or cash flows. Adjusted EBITDA does not represent cash flows from operations as defined by GAAP. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net (loss) income, gross margin, and our other GAAP results. The following table presents a reconciliation of net loss, the closest GAAP financial measure, to EBITDA and Adjusted EBITDA for each of the periods indicated (in thousands): Reconciliation of Net Loss to EBITDA and Adjusted EBITDA(Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net loss available to common stockholders$(1,621) $(6,547) $(8,069) $(14,954)Interest expense, net 344 142 952 324 Income tax expense — 1 — 4 Depreciation and amortization 416 426 1,262 1,265 EBITDA (861) (5,978) (5,855) (13,361)Non-cash share-based compensation (a) 473 562 1,618 2.454 Loss on disposal of assets — 23 11 26 Strategic branding initiatives and product launches (b) 41 277 73 948 Co-manufacturing partner transition (c) — — 6 — Other single occurrence expenses (d) 208 2,205 397 2,390 Launch expensed (e) — 43 — 523 Adjusted EBITDA$(139) $(2,868) $(3,750) $(7,020)(a) Non-cash expenses related to equity compensation awards. Share-based compensation is an important part of the Company’s compensation strategy and without our equity compensation plans, it is probable that salaries and other compensation related costs would be higher.(b) Single occurrence expenses related to marketing agency and design, strategic re-branding initiatives, Elevate® launch, product innovation and reformulations.(c) Single occurrence expenses related to the transition of our dry kibble co-manufacturing supplier.(d) Single occurrence expenses related to legal settlements, employee severance, executive recruitment, and other non-recurring professional fees.(e) Reflects non-recurring launch expenses related to the Elevate® launch. About Better Choice Company Inc. Better Choice Company Inc. is a pet health and wellness company focused on providing pet products and services that help dogs and cats live healthier, happier and longer lives. We offer a broad portfolio of pet health and wellness products for dogs and cats sold under our Halo brand across multiple forms, including kibble, canned food, freeze-dried raw food and treats, vegan dog food and treats, oral care products, toppers and other chews and supplements. We have a demonstrated, multi-decade track record of success and are well positioned to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. Halo’s core products are made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. For more information, please visit https://www.betterchoicecompany.com. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Company Contact:Better Choice Company Inc.Kent Cunningham, CEO Investor Contact:KCSA Strategic CommunicationsValter Pinto, Managing DirectorT: 212-896-1254Valter@KCSA.com