Financial Performance - The company has a history of operating losses since inception and expects to incur additional near-term losses, raising substantial doubt about its ability to continue as a going concern[32]. - Total revenue for the year ended December 31, 2024, was $13,857,000, a decrease of 1.4% compared to $14,049,000 in 2023[245]. - Gross profit increased to $2,312,000 in 2024, compared to $822,000 in 2023, reflecting a significant improvement in profitability[245]. - The net loss attributable to common stockholders for 2024 was $14,924,000, compared to a net loss of $10,188,000 in 2023, indicating a worsening financial position[245]. - Net income for 2024 was a loss of $11,051,000 compared to a loss of $10,188,000 in 2023, indicating a 8.5% increase in losses year-over-year[253]. - Cash provided by operating activities was $(8,516,000) in 2024, slightly improved from $(8,531,000) in 2023[253]. - The company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain operations, raising concerns about its ability to continue as a going concern[233]. - Selling, general and administrative expenses rose to $11,587,000 in 2024, compared to $10,009,000 in 2023, reflecting increased operational costs[245]. - The company incurred an interest expense of $1,219,000 in 2024, up from $390,000 in 2023, indicating higher borrowing costs[245]. - The company has net operating loss carryforwards of approximately $41.86 million for federal income tax purposes and $38.65 million for New Jersey income tax purposes as of December 31, 2024[354]. Assets and Liabilities - Total current assets rose to $7,377,000 as of December 31, 2024, up from $2,647,000 in 2023, showing improved liquidity[241]. - Total liabilities increased to $7,821,000 in 2024, compared to $6,944,000 in 2023, indicating a rise in financial obligations[242]. - The company had cash reserves of $3,530,000 as of December 31, 2024, a significant increase from $510,000 in 2023[241]. - Total inventory as of December 31, 2024, was $1,544,000, up from $678,000 in 2023, indicating a significant increase in stock levels[295]. - Accounts payable and accrued expenses rose to $4,018,000 in 2024 from $2,483,000 in 2023, showing increased liabilities[299]. - The total stockholders' equity improved to $4,094,000 in 2024, compared to a deficit of $288,000 in 2023, reflecting a positive shift in equity position[242]. Customer Concentration and Revenue Sources - Approximately 82.0% of the company's revenue for the year ended December 31, 2024, was earned from four customers, indicating a high customer concentration risk[48]. - Four customers accounted for approximately 82.0% of total revenue in 2024, with one customer alone contributing 44.0%[273]. Investments and Acquisitions - The company acquired a five-acre greenhouse facility in Grand Rapids, Michigan for $2,886,000, which is expected to enhance gross margins by reducing costs associated with contract growers[35]. - The company anticipates investing an additional $1.1 million in capital expenditures to complete the packhouse, with $410 thousand already spent[59]. - The company acquired fixed assets with debt totaling $1,390,000 in 2024[266]. - The Company acquired Edible Garden Corp. on October 1, 2024, for a nominal price of $1.00, assuming a lease with a term ending on December 31, 2029[346]. Sustainability Initiatives - Total estimated emissions avoided in 2024 are projected to be 145,803 metric tons of CO2, demonstrating the company's commitment to sustainability[81]. - The company has avoided 11,803 metric tons of non-recyclable virgin plastic by using recyclable pots for crops[82]. - Edible Garden operates with a focus on sustainability, utilizing closed-loop systems to recycle water and integrated pest management to reduce pesticide use[80]. Product Development and Market Strategy - The company currently offers over 106 stock keeping units (SKUs) and aims to cross-sell products across supermarket partners to meet demand[39]. - The company has expanded its product line to include nutraceuticals and plant-based proteins, with products sold under the Vitamin Way brand[42]. - The company plans to expand its product portfolio with shelf-stable products to increase revenue opportunities and market penetration[75]. - The company aims to reduce transportation costs and enhance local brand awareness through greenhouse expansion and acquisitions[34]. Financing and Debt Management - The company plans to seek additional funding through debt or equity financing to improve liquidity[263]. - The company entered into a promissory note for $3,000,000 with Sament Capital Investments, Inc., accruing interest at 3.5% per annum, maturing on March 30, 2025[302]. - The company received gross proceeds of $5,552,484 from the September Offering, with net proceeds of $4,795,158 after fees[322]. - The Company completed a public offering on May 23, 2024, raising gross proceeds of $5,998,120 from the sale of 2,437,000 common units and 8,720 pre-funded units[328]. - The Company entered into an Equity Distribution Agreement on January 31, 2025, allowing it to issue and sell shares for an aggregate offering price of up to $2.52 million[361]. Operational Efficiency - The company is developing a proprietary propagation system at its Edible Garden Heartland facility to improve growing efficiency[35]. - Edible Garden Heartland facility reached 60% growing capacity in 2024, reducing reliance on third-party growers and contributing to higher gross margins[62]. - The company utilizes GreenThumb software to analyze sales data and develop forecasts for contract growers, ensuring alignment with customer demand[54]. Compliance and Regulatory Matters - The company is evaluating the impact of new accounting standards to be adopted in future periods, which may affect financial disclosures starting in 2025[267]. - The company received an extension from Nasdaq until March 31, 2025, to regain compliance with the minimum bid price requirement[364].

Financial Data and Key Metrics Changes - Gross profit for 2024 grew by 181.3%, with gross margin increasing from 5.9% in 2023 to 16.7% in 2024, reflecting the strength of the core herb business and strategic plans [10][32] - Total revenue for 2024 was $13.9 million, a 1.4% decrease from $14 million in 2023, primarily due to the exit from lower-margin product lines [29][30] - Net loss for 2024 was $11.1 million, compared to a net loss of $10.2 million in 2023, attributed to increased SG&A expenses and interest costs [33] Business Line Data and Key Metrics Changes - Revenue from the core herb business grew by 1.7 million or 16.3% year-over-year, highlighting the strength of the focused approach [12][30] - The company exited lower-margin categories like lettuce and floral, which accounted for a $1.7 million decline in revenue [30] Market Data and Key Metrics Changes - The company is expanding its retail footprint across the U.S., strengthening its presence in key consumer markets [19] - The proposed acquisition of Narayan Group aims to expand the company's international footprint and diversify product offerings [16][18] Company Strategy and Development Direction - The company refocused operations around its core herb business and launched new shelf-stable products and a clean-labeled sports nutrition line [10][11] - The strategic decision to exit lower-margin categories is expected to drive long-term profitability and operational efficiency [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the momentum from the second half of 2024 will carry into 2025, with a focus on higher-margin, more profitable opportunities [12][13] - The company aims to leverage its vertically integrated model to enhance efficiency and drive growth [15][19] Other Important Information - The company signed a non-binding letter of intent to acquire Narayan Group, which could significantly enhance its product offerings and operational efficiency [16][18] - The company is committed to sustainability and innovation, with initiatives like herbicide-recyclable pots contributing to CO2 emissions reduction [24] Q&A Session Summary Question: What impacted the gross margins in Q4? - Management indicated that increased labor costs during the holiday season were a significant factor affecting gross profit margins in Q4 [40][41] Question: Can you elaborate on the proposed acquisition and cross-selling opportunities? - The acquisition of Narayan Group is expected to provide cross-selling opportunities with products like coconut water and superfoods, enhancing the company's portfolio and margins [46][48] Question: What are the expectations for the sports nutrition category in 2025? - Management highlighted the growing consumer interest in clean-label supplements and the strategic launch of Kik Sports Nutrition on Amazon, indicating strong growth potential [55][56] Question: Are there any anticipated one-time charges related to exiting lower-margin products? - Management does not anticipate any additional charges beyond those already accounted for in 2023 related to exiting the lettuce and floral business [71] Question: How does the company plan to leverage vertical integration moving forward? - Management emphasized the importance of operational efficiency gained from vertical integration, which positions the company to focus on top-line growth and new product launches [78][80]

Edible Garden AG (EDBL) Q4 2024 Earnings Call March 31, 2025 05:30 PM ET Company Participants Ted Ayvas - Head of Investor RelationJames Kras - CEO, President & ChairKostas Dafoulas - Interim Chief Financial Officer Conference Call Participants None - Analyst Operator Greetings, and welcome to the Edible Garden AG Incorporated twenty twenty four Fourth Quarter Business Update Conference Call. At this time, all participants are in a listen only mode and a question and answer session will follow the formal pr ...

Core Herb Business Grows 16% as Gross Margins Nearly Triple in 2024, Driven by Strong Operational Execution and Vertical Integration Continues to Pursue Strategic Narayan Acquisition Conference Call to Be Held Today at 8:00 am ET. BELVIDERE, N.J., March 31, 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 provided a business ...

BELVIDERE, NJ, March 24, 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, announced today that it will host a conference call on Monday March 31, 2025, at 8:00 AM Eastern Time to discuss financial results for the fourth quarter and year ended December 31, 2024, and provide a business update. The conference call will be available vi ...

Core Insights - Edible Garden AG Incorporated has been recognized as a top 50 company in the 2024 FoodTech 500 list, highlighting its leadership in controlled environment agriculture and sustainable practices [1][2][3] Company Overview - Edible Garden specializes in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce [1][6] - The company operates state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers near major U.S. markets [6] - Edible Garden's patented GreenThumb software and self-watering displays enhance operational efficiency, extend product shelf life, and reduce waste [3][6] Industry Recognition - The FoodTech 500 is a prestigious list that evaluates over 2,000 companies globally, recognizing those at the intersection of food, technology, and sustainability [2][4] - Edible Garden's inclusion in the top 50 reflects its business size, digital presence, and sustainability practices [2][3] Commitment to Sustainability - The company is dedicated to its Zero-Waste Inspired® mission, aiming to address challenges in food production while promoting sustainable practices [3] - Edible Garden's innovations contribute to a more sustainable food ecosystem, benefiting retailers, consumers, and the environment [3][6]

Core Insights - Edible Garden AG Incorporated has partnered with Freshtown Marketplace to offer its USDA Organic herb product line, enhancing accessibility for health-conscious consumers seeking fresh, sustainable produce [1][2] - The partnership aligns with Edible Garden's mission to provide flavorful herbs and supports the growing demand for organic and locally sourced products [2] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with a commitment to Zero-Waste Inspired farming practices [3] - The company operates state-of-the-art greenhouses and processing facilities in New Jersey and Michigan, and has a network of contract growers near major U.S. markets [3] - Edible Garden's proprietary technologies include the GreenThumb software for optimizing growth and a self-watering display to enhance plant shelf life and in-store experience [3] Product Offerings - The company offers a variety of USDA Organic herbs, including basil, cilantro, and parsley, cultivated with a focus on quality and sustainability [2] - In addition to herbs, Edible Garden develops plant and whey protein powders under the Vitamin Way and Vitamin Whey brands, as well as sustainable food flavoring products like Pulp gourmet sauces [3]

Core Insights - Edible Garden AG Incorporated is participating in Indoor Ag-Con 2025, focusing on Integrated Pest Management (IPM) for controlled environment agriculture (CEA) [1][2][3] - Amanda Caton, Head Grower at Edible Garden, will present best practices for IPM, aimed at enhancing pest control and crop health [1][3] - The event serves as a significant platform for industry professionals to connect and explore innovations in CEA [2][4] Company Overview - Edible Garden is a leader in CEA, providing locally grown, organic, and sustainable produce, with a commitment to Zero-Waste Inspired® practices [5] - The company operates advanced greenhouses and processing facilities in New Jersey and Michigan, and has a network of contract growers near major U.S. markets [5] - Edible Garden utilizes patented technologies such as GreenThumb software and self-watering displays to optimize production and reduce environmental impact [5]

Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce and products [6] - The company operates state-of-the-art greenhouses and processing facilities in New Jersey and Michigan, with a network of contract growers near major U.S. markets [6][7] - Edible Garden's proprietary GreenThumb software optimizes growing in vertical and traditional greenhouses, aiming to reduce pollution-generating food miles [7] Acquisition of Narayan Group - Edible Garden is pursuing the acquisition of Narayan Group, a European producer of organic coconut and superfood products, which is expected to enhance supply chain efficiencies and expand access to healthier ingredients in North America and Europe [1][3] - The acquisition is seen as a major milestone in Edible Garden's growth strategy, allowing for international expansion and the introduction of high-quality, sustainably sourced superfoods to the North American market [3] - Narayan's vertically integrated supply chain will provide greater control over sourcing, production, and distribution, enhancing operational efficiency and reducing costs [3] Event Announcement - Edible Garden will host "The Future of Food" event during Natural Products Expo West® 2025, featuring culinary advisor and James Beard Award-winning Chef JJ Johnson [1][4] - The event aims to showcase bold, globally inspired flavors using Edible Garden's fresh, sustainably grown ingredients, highlighting the intersection of culinary innovation and sustainability [4][5] - The company will also promote its Pickle Party, Pulp, and Squeezables product lines at the Expo, reinforcing its commitment to clean-label condiments [5]

Core Insights - Edible Garden AG Incorporated is participating in Natural Products Expo West® 2025, showcasing its commitment to sustainability and clean-label ingredients in the fresh condiments category [1][5] - The company is introducing its innovative product lines, including Pickle Party, Pulp, and Squeezables, which emphasize bold flavors and responsible sourcing [3][4][5] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, with a Zero-Waste Inspired® farming approach [6] - The company operates state-of-the-art greenhouses and processing facilities in New Jersey and Michigan, and has a network of contract growers near major U.S. markets [6] - Edible Garden's proprietary GreenThumb software optimizes growing processes and aims to reduce food miles, while its self-watering displays enhance plant shelf life [6] Product Lines - The Pickle Party line features the world's first functional pickle, made with sustainably sourced, fermented Kosher, Non-GMO ingredients [3] - The Pulp product line includes gourmet sauces and chili-based products available at major retailers, designed to elevate everyday meals with unique flavors [3] - Squeezables are shelf-stable, stir-in paste herbs that maintain fresh flavors and extend shelf life, aligning with the company's sustainability goals [4] Industry Context - Natural Products Expo West® 2025 is expected to attract 60,000 to 65,000 participants, with buyers making up approximately 60% of attendees, highlighting the growing interest in natural and organic products [2]