Edible Garden AG Incorporated (“Edible Garden” or the
“Company”) (Nasdaq: EDBL), a leader in
controlled environment agriculture (CEA), locally grown, organic
and sustainable produce and products, today provided a business
update and reported financial results for the three months ended
September 30, 2024.
Jim Kras, Chief Executive Officer of Edible
Garden, commented, " We are pleased to report another strong
quarter. Earlier this year, we made a strategic shift away from
lower margin floral and lettuce products. This decision continues
to pay dividends, highlighted by a $687,000 increase in gross
profit for the third quarter of 2024 compared to the same period
last year, representing gross profit margin expansion of 27% as
compared to the third quarter of 2023. This remarkable improvement
reflects the consistent margin growth that has fueled our progress
in recent quarters, while marginally impacting our revenue growth
in the second and third quarters. Furthermore, our gross profit for
the first nine months of 2024 surged by $1.7 million—an impressive
324% increase over the prior year.”
“Our core business is stronger than ever, as
demonstrated by a 55% increase in sales of cut herbs for the first
nine months of 2024 compared to 2023. Revenue for the first nine
months ended September 30, 2024, showed a slight year-over-year
increase. Third-quarter revenue for 2024 was down from the same
period last year, driven by our strategic decision to phase out
lower-margin products and categories. For example, in connection
with phasing out our legacy floral business at our Edible Garden
Heartland facility in Grand Rapids, Michigan, we have installed a
new production line to expand our capacity to drive the growth of
our higher margin products. We believe these initiatives will help
us accelerate achieving our goal of sustainable cash flow and
profitability.”
“We also strengthened our balance sheet through
our September S1 offering, raising approximately $5.65 million in
gross proceeds. We allocated a portion of these funds to pay down
$3.2 million in debt due in 2025, helping to deleverage our
business and advance our goal of achieving positive free cash flow.
Additionally, we invested in working capital ahead of the
fourth-quarter holiday season, positioning us to better meet
customer demand.”
"Our partnership with Walmart continues to grow
in meaningful ways, including the introduction of our sustainably
grown Hydro Basil, showcased through a custom-designed Basil
Station display that integrates seamlessly into Walmart’s produce
sections without disrupting existing planograms. Additionally, we
have launched Edible Garden’s Vitamin Whey line of whey and plant
protein powders, under the Vitamin Whey® and Vitamin Way® brands,
on Walmart Marketplace. This move not only broadens consumer access
to our Vitamin Whey products but also paves the way for expanding
our offerings on Walmart’s platform, with plans to include our
shelf-stable Pulp line of gourmet, sustainable sauces, and
chili-based products, along with other shelf-stable items currently
in development. The growth potential on Walmart Marketplace is
tremendous, and we are confident our innovative products will
resonate with the evolving tastes of a widening consumer base. We
believe that this deepening collaboration with Walmart will boost
Edible Garden’s revenue growth in 2024 and beyond."
"Our Pulp Flavors line of USDA organic,
fermented and sustainable line of gourmet sauces experienced sales
growth in the third quarter of 2024 as we continue to add to our
existing distribution network which includes prominent retailers
such as Target, Whole Foods, Meijer, Morton Williams, Dierbergs
Markets, Woodman’s, and distributors like KeHE and UNFI. With the
global sauces and condiments market projected by Research and
Markets to grow from $172.79 billion in 2021 to $240.7 billion by
2028, we believe Pulp is well positioned to satisfy consumers’
appetite for bold, unique flavors that elevate meals from 'Bland to
Bold®.’”
"We also introduced our innovative Kick Sports Nutrition line,
offering premium performance products tailored for today’s
health-conscious athletes. Kick. is designed to meet the evolving
priorities of athletes who are increasingly mindful of their
nutritional intake. According to IMARC Group, the global sports
nutrition market is projected to grow from $54.8 billion in 2023 to
$103.3 billion by 2032, fueled by health-conscious consumers who
seek personalized, clean-label products that enhance athletic
performance, align with dietary preferences, prioritize natural
ingredients, and offer convenient, on-the-go solutions."
“The Company also received grants from the USDA Organic
Certification Program, providing key support to offset organic
certification and processing costs at our facilities in Belvidere,
NJ, and Grand Rapids, MI. These funds will also fuel R&D for
new organic product innovations, aligning with our Zero-Waste
Inspired® mission. This partnership with the USDA strengthens our
commitment to sustainable, local, and organic agriculture,
reinforcing our role as a leader in controlled environment farming
and our dedication to positively impacting the industry and the
communities we serve.”
“We believe we have streamlined our business, eliminating
elements that previously limited gross margin and revenue growth
and that our core business operations are healthy and performing
well. Given the current trends that we are seeing, we feel
confident that the fourth quarter of 2024 will deliver significant
growth in both margins and revenue, potentially marking one of the
strongest quarters in the Company’s history. With a solid
foundation and infrastructure in place, we believe we are poised
not only to achieve strong results in the coming quarters but also
to drive sustained growth and long-term value for our
shareholders,” concluded Mr. Kras.
Financial results for the three months ended September
30, 2024
For the three months ended September 30, 2024,
revenue totaled $2.6 million, compared to $3.3 million for the
three months ended September 30, 2023. The decrease was primarily
driven by our strategic shift away from the sale of lower margin
products; specifically, lettuce and floral. The absence of these
two products accounted for a decrease of $597,000 in revenue and
certain shipments of our nutraceutical products were delayed due to
a hurricane in the Gulf of Mexico, which caused $215,000 of revenue
to shift to the fourth quarter.
Cost of goods sold totaled $1.9 million for the
three months ended September 30, 2024, compared to $3.3 million for
the three months ended September 30, 2023. The decrease was
primarily driven by our seasonally low sales in the current quarter
and the elimination of the use of large third-party growers that
previously made up a material portion of our cost of goods
sold.
Selling, general and administrative (“SG&A”)
expenses were $2.2 million for the three months ended September 30,
2024, compared to $2.4 million for the three months ended September
30, 2023. The decrease was primarily due to a reduction in labor
costs and professional fees.
Net loss was $2.1 million, or ($0.65) per share,
for the three months ended September 30, 2024, compared to a net
loss of $2.4 million, or ($13.83) per share, for the three months
ended September 30, 2023. The improvement in net loss was primarily
driven by a 27% expansion of gross profit margin and lower SG&A
offset by other expenses.
The complete financial results for the three
months ended September 30, 2024, are available in the Company’s
Quarterly Report on Form 10-Q, which will be filed with the
Securities and Exchange Commission and available at:
www.sec.gov.
Conference Call
Edible Garden will host a conference call today
at 8:00 A.M. Eastern Time to discuss the Company’s financial
results for the quarter ended September 30, 2024, as well as the
Company’s corporate progress and other developments.
The conference call will be available via
telephone by dialing toll-free +1 877-545-0523 for U.S. callers or
+1 973-528-0016 for international callers and entering access code
493366. A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2914/51613 or on the
investor relations section of the company’s website,
https://ediblegardenag.com/presentations/.
A webcast replay will be available on the
investor relations section of the Company’s website at
https://ediblegardenag.com/presentations/ through November 13,
2025. A telephone replay of the call will be available
approximately one hour following the call, through Wednesday,
November 27, 2024, and can be accessed by dialing +1 877-481-4010
for U.S. callers or +1 919-882-2331 for international callers and
entering access code 51613.
ABOUT EDIBLE GARDEN®
Edible Garden AG Incorporated is a leader in
controlled environment agriculture (CEA), locally grown, organic,
and sustainable produce and products backed by Zero-Waste Inspired®
next generation farming. Offered at over 5,000 stores in the US,
Edible Garden is disrupting the CEA and sustainability technology
movement with its safety-in-farming protocols, use of sustainable
packaging, patented GreenThumb software and self-watering in-store
displays. The Company currently operates its own state-of-the-art
greenhouses and processing facilities in Belvidere, New Jersey and
Grand Rapids, Michigan, and has a network of contract growers, all
strategically located near major markets in the U.S. Its
proprietary GreenThumb 2.0 patented (US Nos.: US 11,158,006 B1, US
11,410,249 B2 and US 11,830, 088 B2) software optimizes growing in
vertical and traditional greenhouses while seeking to reduce
pollution-generating food miles. Its proprietary patented (U.S.
Patent No. D1,010,365) Self-watering display is designed to
increase plant shelf life and provide an enhanced in-store plant
display experience. Edible Garden is also a developer of
ingredients and proteins, providing an accessible line of plant and
whey protein powders under the Vitamin Way® and Vitamin Whey®
brands. In addition, the Company’s Kick Sports Nutrition line
features premium performance products that cater to today’s
health-conscious athletes. Furthermore, Edible Garden offers a line
of sustainable food flavoring products such as Pulp gourmet sauces
and chili-based products. For more information on Pulp products go
to https://www.pulpflavors.com/. For more information on Vitamin
Whey® products go to https://vitaminwhey.com/. For more information
on Edible Garden go to https://ediblegardenag.com/.
Forward-Looking Statements
This press release contains forward-looking
statements, including with respect to the Company’s ability to
improve its financial results, the Company’s growth strategies, the
Company’s ability to expand its existing customer relationships and
into new product lines, and its performance as a public company.
The words “believe,” “design,” “expect,” “objective,” “plan,”
“potential,” “project,” “seek,” “will,” and similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are subject to a number of risks,
uncertainties, and assumptions, including market and other
conditions and the Company’s ability to achieve its growth
objectives, and other factors set forth in the Company’s filings
with the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2023 and subsequent quarterly reports on Form 10-Q. Actual
results might differ materially from those explicit or implicit in
the forward-looking statements. The Company undertakes no
obligation to update any such forward-looking statements after the
date hereof to conform to actual results or changes in
expectations, except as required by law.
Investor Contacts:Crescendo
Communications, LLC212-671-1020EDBL@crescendo-ir.com
(tables follow)
EDIBLE GARDEN AG INCORPORATEDCONDENSED
CONSOLIDATED BALANCE SHEETS(unaudited, in thousands, except
shares) |
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash |
|
$ |
2,214 |
|
|
$ |
510 |
|
Accounts receivable, net |
|
|
1,665 |
|
|
|
1,249 |
|
Inventory, net |
|
|
1,437 |
|
|
|
678 |
|
Prepaid expenses and other current assets |
|
|
78 |
|
|
|
210 |
|
Total current assets |
|
|
5,394 |
|
|
|
2,647 |
|
|
|
|
|
|
|
|
|
|
Property, equipment and leasehold improvements, net |
|
|
3,266 |
|
|
|
3,893 |
|
Finance
lease right-of-use assets |
|
|
125 |
|
|
|
- |
|
Intangible assets, net |
|
|
44 |
|
|
|
47 |
|
Other
assets |
|
|
34 |
|
|
|
69 |
|
TOTAL ASSETS |
|
$ |
8,863 |
|
|
$ |
6,656 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT) |
LIABILITIES: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other accrued expenses |
|
$ |
3,487 |
|
|
$ |
2,517 |
|
Current maturities of finance lease liabilities |
|
|
40 |
|
|
|
- |
|
Short-term debt, net of discounts |
|
|
1,343 |
|
|
|
387 |
|
Total current liabilities |
|
|
4,870 |
|
|
|
2,904 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Long-term debt, net of discounts |
|
|
649 |
|
|
|
4,040 |
|
Long-term finance lease liabilities |
|
|
85 |
|
|
|
- |
|
Total long-term liabilities |
|
|
734 |
|
|
|
4,040 |
|
Total liabilities |
|
|
5,604 |
|
|
|
6,944 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIT): |
|
|
|
|
|
|
|
|
Common stock ($0.0001 par value, 100,000,000 shares authorized,
6,228,392 and 285,282 shares outstanding as of September 30, 2024
and December 31, 2023, respectively (1)) |
|
|
2 |
|
|
|
1 |
|
Series A Convertible Preferred stock ($0.0001 par value, 10,000,000
shares authorized; nil shares outstanding as of September 30, 2024
and December 31, 2023) |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
41,298 |
|
|
|
29,971 |
|
Obligation to issue shares |
|
|
191 |
|
|
|
- |
|
Accumulated deficit |
|
|
(38,232 |
) |
|
|
(30,260 |
) |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity (deficit) |
|
|
3,259 |
|
|
|
(288 |
) |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
$ |
8,863 |
|
|
$ |
6,656 |
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect stock
splits
EDIBLE GARDEN AG INCORPORATEDCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited,
in thousands, except share and per-share information) |
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,584 |
|
|
$ |
3,289 |
|
|
$ |
9,985 |
|
|
$ |
9,965 |
|
Cost of
goods sold |
|
|
1,885 |
|
|
|
3,277 |
|
|
|
7,696 |
|
|
|
9,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
699 |
|
|
|
12 |
|
|
|
2,289 |
|
|
|
540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
2,189 |
|
|
|
2,387 |
|
|
|
8,823 |
|
|
|
7,458 |
|
Loss
from operations |
|
|
(1,490 |
) |
|
|
(2,375 |
) |
|
|
(6,534 |
) |
|
|
(6,918 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(409 |
) |
|
|
(57 |
) |
|
|
(944 |
) |
|
|
(334 |
) |
Gain (Loss) from extinguishment of debt |
|
|
(164 |
) |
|
|
- |
|
|
|
(498 |
) |
|
|
70 |
|
Employee retention credit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,233 |
|
Other income / (loss) |
|
|
- |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
Total other income (expenses) |
|
|
(573 |
) |
|
|
(56 |
) |
|
|
(1,438 |
) |
|
|
970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,063 |
) |
|
$ |
(2,431 |
) |
|
$ |
(7,972 |
) |
|
$ |
(5,948 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Series A Preferred Dividend |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO COMMON STOCK |
|
$ |
(2,063 |
) |
|
$ |
(2,431 |
) |
|
$ |
(7,972 |
) |
|
$ |
(5,952 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income / (Loss) per common share - basic and diluted (1) |
|
$ |
(0.65 |
) |
|
$ |
(13.83 |
) |
|
$ |
(4.73 |
) |
|
$ |
(47.72 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Number of Common Shares Outstanding Basic and
Diluted (1) |
|
|
3,160,392 |
|
|
|
175,762 |
|
|
|
1,686,432 |
|
|
|
124,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect stock
splits
Edible Garden (NASDAQ:EDBLW)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Edible Garden (NASDAQ:EDBLW)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024