• A Beyond Meat or Impossible Foods focused on a wider variety of sustainable, ready-to-eat meals.
• An Amy's Kitchen if it were a fast-growing food tech startup developing affordable, sustainable ready-to-eat meals.

• Ready-to-Eat Meals: Borealis Foods develops nutritious, sustainable, and affordable pre-prepared meals designed to meet consumer needs and address global food challenges.

Major Customers of Borealis Foods Inc.

Borealis Foods Inc. (BRLS) primarily sells its ready-to-eat meal products to other companies, specifically large retail chains. Their products, which include brands like Chef Woo Ramen and The Naked Market, are then sold to individual consumers through these retail partners.

Based on their public filings, the major customers of Borealis Foods Inc. include:

• Walmart Inc. (WMT) - A significant portion of Borealis Foods' revenue comes from sales to Walmart.
• The Kroger Co. (KR) - Kroger also represents a substantial customer for the company.
• Albertsons Companies Inc. (ACI) - This includes chains like Safeway.
• Sprouts Farmers Market, Inc. (SFM)
• Whole Foods Market (owned by Amazon, AMZN)

The key risks for Borealis Foods (BRLS) primarily revolve around its financial viability, profitability, and market positioning.

1. Going Concern Uncertainty, Liquidity, and Debt: Borealis Foods faces substantial doubt about its ability to continue as a going concern, as highlighted by its former auditor's reports for 2023 and 2024, which cited significant debt due within 12 months and a negative cash flow position. The company has a severe liquidity shortfall, with very low cash reserves compared to its near-term obligations, resulting in negative working capital. Borealis Foods has less than a year of cash runway based on its current free cash flow. Furthermore, the company has experienced financial default challenges with its lender, Frontwell Capital Partners, due to ongoing events of default, leading to the imposition of a default interest rate and potential refusal of future loan requests. This credit strain exacerbates its already high leverage, including significant related-party debt, posing substantial refinancing and repayment risks.
2. Unprofitability and Negative Cash Flow: Borealis Foods has consistently been loss-making, reporting a net loss of approximately $8.79 million for the six months ended June 30, 2025, and an earnings before interest and tax (EBIT) loss of $17 million in the prior year. The company continues to burn cash from operations, with a negative cash flow of approximately $3.57 million for the six months ended June 30, 2025. This ongoing unprofitability and cash burn directly contribute to its liquidity issues and further necessitate external financing, which could lead to investor dilution if new equity is raised.
3. Customer Concentration and Competitive Pressures: A significant portion of Borealis Foods' revenue is concentrated among a few customers, with sales to four customers accounting for approximately 61% of its revenue during the three-month period ended June 30, 2025. This high customer concentration poses a risk, as the loss or reduction of business from any of these key customers could materially impact its financial performance. Additionally, the company faces challenges in its competitive positioning; it struggles to price its products low enough to compete with cheaper alternatives without sacrificing gross margins, yet raising prices could expose it to increased competition from other high-protein options, raising questions about the long-term viability of its business model.

Addressable Markets for Borealis Foods (BRLS)

Borealis Foods (NASDAQ: BRLS) operates in the fast-growing market of nutritious, sustainable, and affordable ready-to-eat meals, with a focus on products like high-protein ramen noodles (e.g., Chef Woo) and whole-wheat ramen (Woodles). The company's products fall within the broader categories of ready-to-eat meals and convenience foods, with a significant emphasis on plant-based and healthy options.

Global Market Sizes:

• Ready Meals Market (Global): The global ready meals market was estimated to be around USD 190.09 billion in 2025 and is forecast to grow to approximately USD 374.99 billion by 2035, with a Compound Annual Growth Rate (CAGR) of 7.03% from 2026 to 2035. Other estimates place the global ready-to-eat foods market at USD 425.39 billion in 2025, projected to reach USD 706.78 billion by 2034 with a CAGR of 5.88%. Another report valued the market at USD 213.9 billion in 2025, anticipating growth to USD 563.5 billion by 2036 at a CAGR of 9.2%.
• Convenience Food Market (Global): The global convenience foods market, a broader category encompassing ready-to-eat meals, was valued at USD 835.38 billion in 2025 and is projected to grow to USD 1,386.03 billion by 2034, exhibiting a CAGR of 5.86%. Another report estimated the market at USD 512 billion in 2024, expected to reach nearly USD 903 billion in 2032.
• Plant-Based Ready Meals Market (Global): This highly relevant segment for Borealis Foods was valued at an estimated USD 11.3 billion in 2024. It is expected to grow at a CAGR of 12.2% between 2024 and 2033, reaching an estimated USD 35.9 billion by 2033. Plant-based ready meals currently represent a significant 40.3% market share of the overall ready-meal market globally.

North American Market Sizes:

• Ready-to-Eat Foods Market (U.S.): The U.S. ready-to-eat foods market is projected to reach USD 116.96 billion by 2032.
• Ready to Eat Meals Market (U.S.): Separately, the U.S. ready to eat meals market was USD 19.5 billion in 2024 and is projected to reach USD 62.0 billion by 2035, growing at a CAGR of 11.09% from 2025 to 2035.
• Ready to Eat Meals Market (Canada): The ready-to-eat meals market in Canada is projected to grow at a 10.63% CAGR from 2025 to 2035. Health-focused meals are identified as the largest segment, and plant-based ready-to-eat meals are the fastest-growing segment in Canada.

Here are the expected drivers of future revenue growth for Borealis Foods (BRLS) over the next 2-3 years:

1. Expansion into Foodservice and Institutional Channels: Borealis Foods is strategically expanding its reach into new revenue verticals, specifically targeting foodservice and institutional clients such as K-12 schools, prisons, the U.S. military, and disaster relief programs. The company has already secured a large foodservice customer contributing significantly to sales and is partnering with national brokerage and distribution firms to broaden its market presence in these sectors.
2. International Market Expansion: The company anticipates an expansion into new international retail markets, with plans to begin in Europe, specifically Germany, and then progress to Switzerland, France, and England. Borealis Foods already distributes its products across the United States, Canada, Mexico, Central America, South America, and parts of Europe, indicating an established foundation for further international growth.
3. Growth in E-commerce Sales: Borealis Foods is focusing on growing its e-commerce presence through platforms like Amazon.com and Walmart.com, which have shown significant growth. The company has achieved a milestone of over 2 million units sold on Amazon and has seen an 871% increase in monthly online sales and a 250% growth in its subscription service in 2024, demonstrating the strong potential of digital sales channels.
4. Strategic Partnerships and Brand Collaborations: The company is leveraging strategic partnerships to enhance its brand visibility and manufacturing capabilities. This includes collaborations with major multinational food companies, becoming an exclusive manufacturing partner for a rapidly expanding U.S. grocery chain's branded ramen, and partnerships with culinary figures like Gordon Ramsay, which are expected to elevate brand awareness and market reach for its high-end noodle products.

Share Repurchases

• Borealis Foods authorized a stock buyback program for up to $3.0 million of its common shares, effective June 6, 2024.
• The program was scheduled to expire on May 30, 2025.
• The authorization was made based on the belief that the stock's valuation did not accurately reflect the company's business strength and opportunity.

Share Issuance

• The number of shares outstanding increased from 6.56 million at the end of 2022 to 21.46 million at the end of 2025 and as of March 2026.
• Additional Paid-In Capital increased from $39.79 million in fiscal year 2021 to $90.41 million as of September 30, 2025.

Inbound Investments

• Borealis Foods Inc. received $2.785 million in funding in May 2025.
• Alta Partners LLC reported a 6.3% stake, equivalent to 1,435,364 warrant shares, in February 2026.
• The company has engaged in discussions regarding a proposed secured credit facility refinancing in February 2026.

Outbound Investments

• No information is available regarding outbound investments made by Borealis Foods within the last 3-5 years.

Capital Expenditures

• Capital expenditures were approximately $1.65 million in fiscal year 2024.
• Capital expenditures were approximately $4.47 million in fiscal year 2023.
• A primary focus of capital expenditures has been the establishment of a technologically advanced manufacturing facility.