Facility to Expand Herb and Nutraceutical Production, Advance Aquaculture R&D, and Enhance Distribution Capacity as Part of Edible Garden’s Zero-Waste Inspired® and Sustainability-Focused PlatformBELVIDERE, NJ, July 23, 2025 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, today announced Edible Garden- Prairie Hills, a 6.2-acre facili ...

Core Insights - Edible Garden AG Incorporated has launched its Pickle Party™ line of fresh condiments at Uncle Giuseppe's Marketplace, coinciding with the peak summer season for consumer demand for flavorful condiments [1][3] - The Pickle Party™ line is the world's first functional pickle line, featuring raw, refrigerated, fermented, Kosher, and Non-GMO products made through traditional fermentation methods [2][3] - The company has also expanded its herb distribution with a new partnership at Scotty's Marketplace, offering hydroponic basil and various potted herbs [3] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with products available in over 5,000 stores across the US, Caribbean, and South America [4] - The company operates vertically integrated greenhouses and processing facilities in New Jersey and Michigan, utilizing patented technologies like GreenThumb software and Self-Watering displays to optimize production and reduce environmental impact [4] - Edible Garden has been recognized as a FoodTech 500 company and is a participant in Walmart's Project Gigaton sustainability initiative [4]

Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce and products [4] - The company operates state-of-the-art vertically integrated greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers strategically located near major markets in the U.S. [4] - Edible Garden's proprietary technologies include the GreenThumb software and Self-Watering in-store displays, aimed at optimizing growth and enhancing the in-store experience [4] Leadership Appointment - Sohail Ahmad has been appointed as Vice President of Finance, effective immediately, bringing over 20 years of experience in the food and consumer goods sectors [1][2] - Ahmad's previous roles include Chief Financial Officer at HOS Global Foods, a $300 million enterprise, and Global CFO at Guestworldwide, a $1.7 billion division of Sysco Corporation [2] - The CEO of Edible Garden, Jim Kras, emphasized Ahmad's strategic mindset and ability to lead transformation, which aligns with the company's growth trajectory and focus on operational efficiency [3] Product Lines and Market Position - Edible Garden offers a growing lineup of products, including Kick. Sports Nutrition, Vitamin Whey®, and Pulp, catering to health-conscious consumers [3] - The company has been recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4] - Edible Garden is also involved in developing plant and whey protein powders, as well as fresh condiments, enhancing its product diversity [4]

Core Insights - Edible Garden AG Incorporated's new Kick. Sports Nutrition line has been awarded the 2025 Sports Nutrition Product of the Year by the Mindful Awards, highlighting the company's commitment to clean-label and sustainable products [1][4] - The global sports nutrition market is projected to grow from $54.8 billion in 2023 to $103.3 billion by 2032, indicating a significant opportunity for Edible Garden to expand its market presence [4] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with a presence in over 5,000 stores across the US, Caribbean, and South America [8] - The company operates state-of-the-art vertically integrated greenhouses and processing facilities in New Jersey and Michigan, utilizing patented technologies to optimize growing and reduce food miles [8] Product Launch and Strategy - The Kick. Sports Nutrition line includes plant-based and whey protein powders, with plans for expansion into pre-workout, post-workout, and hydration formulations [3] - The product was launched in April at a major Midwest retailer and subsequently on Amazon, reflecting a strong omnichannel strategy that combines physical retail with e-commerce [3][4] Market Positioning - Edible Garden's approach aims to meet the increasing demand for natural and effective health solutions among performance-minded consumers, leveraging convenience and clean ingredients [4] - The company has been recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative, reinforcing its commitment to innovation and sustainability [8]

Core Insights - Edible Garden AG Incorporated is expanding its retail presence in the Northeast U.S. to meet the rising demand for sustainable products, including hydro basil, fresh herbs, and its Pickle Party line [1][2][3] Group 1: Expansion and Product Offerings - The company has added new retail partners in New York and New Jersey, including Waverly Gourmet Market, Key Food, Netcost Market, and Marrazzo's Market, to offer its sustainably grown products [2] - The Pickle Party line features the world's first functional pickles, which are fresh, fermented, Kosher, and Non-GMO, aimed at supporting gut health [2][4] - The expansion enhances Edible Garden's footprint in key Northeast markets, aligning with its mission to provide fresh, locally grown, and environmentally responsible products [2][3] Group 2: Company Mission and Market Position - The CEO of Edible Garden emphasized the company's commitment to cultivating a movement towards fresher, smarter food choices, highlighting the rising demand for clean-label, responsibly sourced food [3] - Edible Garden operates over 5,000 stores across the U.S., Caribbean, and South America, and is recognized as a leader in controlled environment agriculture (CEA) [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to optimize growing conditions and enhance product shelf life [4]

Financial Performance - For Q1 2025, Edible Garden reported total revenue of $2.7 million, a decrease of 13.2% from $3.1 million in Q1 2024, primarily due to the exit from lower-margin floral and lettuce product lines[8]. - Non-perishable revenue grew by 15% year-over-year, indicating strong consumer demand for higher-margin, shelf-stable products like Kick. Sport Nutrition and Pickle Party[3]. - Gross profit increased to $88,000, representing a 283% year-over-year increase from $23,000 in the prior-year period, with gross margin improving to 3.2% from 0.7%[9]. - The company experienced a net loss of $3.3 million for Q1 2025, an improvement from a net loss of $4.0 million in Q1 2024, driven by cost reductions and higher-margin product sales[11]. - Revenue decreased from $3,132 million to $2,718 million, a decline of approximately 13.2%[22]. - Cost of goods sold decreased from $3,109 million to $2,630 million, resulting in a gross profit of $88 million[22]. - Selling, general and administrative expenses decreased from $3,884 million to $3,015 million[22]. - Net loss attributable to common stockholders was $3,324 million, compared to a net loss of $3,977 million in the previous period[22]. - Net income (loss) per common share was $(2.47), compared to $(341.14) in the previous period[22]. - Loss from operations improved from $(3,861) million to $(2,926) million[22]. - Interest expense increased from $(117) million to $(440) million[22]. - Total other income (expenses) worsened from $(116) million to $(398) million[22]. - The company reported a significant decrease in gross profit margin due to higher costs relative to revenue[22]. Strategic Initiatives - Edible Garden completed a $15.5 million acquisition of assets from NaturalShrimp Farms Inc., enhancing its R&D and warehousing capabilities[4]. - The company launched or expanded retail partnerships with key accounts including Walmart and Stop & Shop, supporting growth in both fresh and non-perishable categories[5]. - Edible Garden's strategic focus on higher-margin, branded product lines is expected to strengthen its competitive positioning in both retail and e-commerce channels[7]. Market Trends - Cut herbs saw a 13% seasonal growth in Q1 2025, reflecting increased consumer preference for convenience and value[3]. - The company maintains over 90% of its operations in the U.S., minimizing exposure to global tariffs and disruptions[6]. Cost Management - Selling, general and administrative expenses decreased to $3.0 million from $3.9 million in the prior year, primarily due to lower personnel costs[10].

Core Insights - The company estimates a more than 25% year-over-year increase in preliminary herb sales during the Easter holiday period [1] - Strong performance was recorded across core herb categories, with the Poultry Mix playing a significant role in growth [2] - The CEO emphasized the alignment with evolving consumer preferences for fresh, organic, and sustainable ingredients [3] Sales Performance - Hydroponic herbs increased an estimated 31%, driven by promotional support and expanded retailer placement [5] - Cut herbs rose an estimated 22%, reflecting consistent consumer preference for fresh, high-integrity ingredients [5] - Potted herbs grew an estimated 18%, supported by targeted merchandising and the availability of the Poultry Mix [5] Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA) and operates over 5,000 retail locations [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to enhance product quality and sustainability [4] - Edible Garden is recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4]

Core Insights - Edible Garden AG Incorporated has launched its Kick. Sports Nutrition product line on Amazon, marking a significant step in its strategy to strengthen its Farm to Formula® positioning and expand into the 'Better for You' consumer products market [1][2] - The global sports nutrition market is projected to grow from $54.8 billion in 2023 to $103.3 billion by 2032, indicating a substantial opportunity for innovation and accessibility in this sector [5] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, and operates state-of-the-art vertically integrated greenhouses and processing facilities in New Jersey and Michigan [7] - The company has developed a range of products, including plant-based and whey protein powders under the Vitamin Way® and Vitamin Whey® brands, and is committed to sustainability through initiatives like Walmart's Project Gigaton [7] Product Launch Details - The Kick. Sports Nutrition line features clean-label, functional formulas designed for athletes, with an initial offering of plant-based and whey protein powders, and plans for a full range of pre-workout, post-workout, and hydration products [3][4] - The partnership with Pirawna, an e-commerce growth agency, aims to ensure a successful entry into the competitive sports nutrition market by leveraging their expertise in scaling brands on Amazon [4] Market Context - The launch of Kick. Sports Nutrition aligns with rising health awareness and a growing emphasis on fitness and active lifestyles, positioning the company to meet the evolving demands of today's health-conscious consumers [5]

[PART I — FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited statements for Q1 2025 show decreased assets, a net loss of $3.3 million, and raise substantial doubt about its going concern status [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $8.5 million and stockholders' equity fell to $1.9 million as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash | $409 | $3,530 | ($3,121) | | Total Current Assets | $4,228 | $7,377 | ($3,149) | | Total Assets | $8,535 | $11,915 | ($3,380) | | **Liabilities & Equity** | | | | | Total Current Liabilities | $5,183 | $6,210 | ($1,027) | | Total Liabilities | $6,617 | $7,821 | ($1,204) | | Total Stockholders' Equity (Deficit) | $1,918 | $4,094 | ($2,176) | [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue declined 13.2% in Q1 2025, but a reduced net loss of $3.3 million was achieved due to lower operating expenses Condensed Consolidated Statements of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,718 | $3,132 | -13.2% | | Cost of goods sold | $2,630 | $3,109 | -15.4% | | Gross profit | $88 | $23 | +282.6% | | Selling, general and administrative expenses | $3,015 | $3,884 | -22.4% | | Loss from operations | ($2,926) | ($3,861) | +24.2% | | Net Loss | ($3,324) | ($3,977) | +16.4% | | Net Loss per common share - basic and diluted | ($2.47) | ($341.14) | N/A | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Stockholders' equity decreased to $1.9 million in Q1 2025, driven by a $3.3 million net loss offset by $1.1 million in stock sale proceeds - In Q1 2025, the company issued 221,132 shares through its Equity Distribution Agreement, raising **net proceeds of $1.148 million**[17](index=17&type=chunk) - The **accumulated deficit increased by $3.324 million** during the quarter, reaching a total of $44.635 million as of March 31, 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations increased significantly to $3.3 million, resulting in a quarter-end cash balance of only $0.4 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($3,332) | ($1,059) | | Net Cash Used in Investing Activities | ($68) | ($55) | | Net Cash Provided by Financing Activities | $279 | $992 | | **Net Change in Cash** | **($3,121)** | **($122)** | | Cash at End of Period | $409 | $388 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant risks, including customer concentration, going concern doubts, and major subsequent events like an asset purchase - The company has undergone multiple reverse stock splits, including a **1-for-20 split in April 2024** and a **1-for-25 split in March 2025**[26](index=26&type=chunk) - For the three months ended March 31, 2025, four customers accounted for approximately **92.1% of total revenue**, indicating significant customer concentration risk[38](index=38&type=chunk) - Management has concluded that **substantial doubt exists about its ability to continue as a going concern** due to recurring losses and limited cash resources[32](index=32&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - Subsequent to the quarter end, the company acquired sustainable aquaculture assets from NaturalShrimp Farms Inc for **$12 million**, paid via the issuance of Series B Preferred Stock[128](index=128&type=chunk)[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 13.2% revenue decrease, an improved net loss, and significant liquidity challenges that threaten its going concern status [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell 13.2% to $2.7 million due to a strategic product exit, while reduced SG&A expenses lowered the operating loss - The **$414 thousand decrease in revenue** was primarily attributed to the company's strategic exit from the floral and lettuce categories[174](index=174&type=chunk) - **SG&A expenses decreased by $869 thousand (22.4%)** year-over-year, mainly because prior-year severance expenses were not repeated[176](index=176&type=chunk) - **Interest expense increased significantly to $440 thousand** from $117 thousand, driven by new merchant cash advance agreements[178](index=178&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces significant liquidity issues with only $409 thousand in cash and has raised capital through debt and equity offerings - The company has incurred significant losses, including a **net loss of $3.3 million in Q1 2025**, and believes existing cash will only fund operations into Q3 2025[180](index=180&type=chunk)[181](index=181&type=chunk) - To meet cash needs, the company entered into **merchant cash advance agreements**, raising net proceeds of $190,000 in February and $1.435 million in April 2025[188](index=188&type=chunk)[189](index=189&type=chunk) - The company utilized its at-the-market offering to raise **net proceeds of approximately $1.3 million**[191](index=191&type=chunk) Cash Flow Activity Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Cash Used for Operating Activities | $3,332 | $1,059 | | Cash Used in Investing Activities | $68 | $55 | | Cash Provided by Financing Activities | $279 | $992 | [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Edible Garden AG Incorporated is not required to provide the information for this item - The company is exempt from this disclosure requirement due to its status as a **smaller reporting company**[195](index=195&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025 - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[196](index=196&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[197](index=197&type=chunk) [PART II — OTHER INFORMATION](index=28&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - Management does not believe there are any pending or threatened legal proceedings that would have a **material adverse effect** on the company[198](index=198&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) The company faces a primary risk of delisting from Nasdaq due to non-compliance with stockholders' equity requirements - The company regained compliance with Nasdaq's minimum bid price rule but remains under a **discretionary panel monitor until April 8, 2026**[200](index=200&type=chunk)[201](index=201&type=chunk) - As of March 31, 2025, the company's **stockholders' equity was below the required $2.5 million** for continued listing on Nasdaq[202](index=202&type=chunk) - A **potential delisting from Nasdaq** could severely reduce stock liquidity, hinder capital raising, and damage customer confidence[205](index=205&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists key agreements and officer certifications filed as exhibits with the Form 10-Q - Key exhibits filed include the **Equity Distribution Agreement** and the **Standard Merchant Cash Advance Agreement** with Arin Funding[204](index=204&type=chunk) [Signatures](index=30&type=section&id=Signatures) The report was duly signed by the Chief Executive Officer and Interim Chief Financial Officer on May 15, 2025

Edible Garden AG (EDBL) Q1 2025 Earnings Call May 15, 2025 08:00 AM ET Company Participants Theodore Ayvas - Vice PresidentJim Kras - Chairman & CEOKostas Dafoulas - Interim Chief Financial OfficerAnthony Vendetti - Executive Managing Director Conference Call Participants None - Analyst Operator Good morning, everyone, and welcome to the Edible Garden AG Incorporated twenty twenty five First Quarter Business Update Conference. At this time, all participants are in a listen only mode and the floor will be op ...