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

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $2,700,000, a decrease of 13.2% compared to $3,100,000 in Q1 2024, primarily due to the strategic exit from lower margin floral and lettuce categories [13][15] - Gross profit increased to $88,000 from $23,000 year over year, representing a 283% increase, while gross margin improved to 3.2% from 0.7% [10][14] - Net loss for Q1 2025 was $3,300,000, an improvement from a net loss of $4,000,000 in Q1 2024, driven by cost reductions and increased contributions from higher margin non-perishable product sales [15] Business Line Data and Key Metrics Changes - Non-perishable revenue grew 15% year over year, indicating strong performance from shelf-stable brands like Kick Sports Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Whey [7][13] - Cutter sales rose 13% on a seasonal basis, reflecting sustained consumer demand for freshness and convenience [7] Market Data and Key Metrics Changes - The company expanded relationships with major retailers including Walmart, Stop and Shop, and ShopRite, which are driving growth across both fresh and non-perishable categories [6][7] - The acquisition of Natural Shrimp Farms is expected to enhance operational capabilities and support the company's vertical integration strategy [11][41] Company Strategy and Development Direction - The company is realigning towards higher margin, shelf-stable products, which is gaining traction and contributing to margin expansion [6][8] - The acquisition of Natural Shrimp Farms is aimed at enhancing R&D capabilities and supporting sustainability initiatives [11][41] - The company is focused on expanding its national retail presence and leveraging patented in-store merchandising solutions [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic transformation and the potential for long-term value creation for customers and shareholders [12][41] - The company is optimistic about the growth of its non-perishable product lines and the positive impact of recent acquisitions on its operational foundation [41][42] Other Important Information - The company has been recognized in the FoodTech 500 as a top 50 company, highlighting its leadership in controlled environment agriculture [12] - Sustainability initiatives have helped avoid significant amounts of virgin plastic and conserve resources, reinforcing the company's commitment to environmental responsibility [12] Q&A Session Summary Question: Can you talk about the initial plans for Natural Shrimp and potential synergies? - Management highlighted immediate initiatives including leveraging the facility for warehousing and R&D, which will support expansion into new markets and enhance product offerings [18][19][21] Question: What were the revenues for Natural Shrimp in 2024, and will it be margin accretive? - Management indicated that current revenues are nominal, but future growth and margin improvements are expected as the business is expanded and integrated [24][25] Question: How did the sports nutrition line perform this quarter? - Management expressed enthusiasm about the sports nutrition line, noting new distribution agreements and upcoming product launches that are expected to drive growth [26][30] Question: What are the drivers behind the sustained improvement in gross margin? - Management attributed the improvement to strategic investments in people, products, and marketing, as well as a focus on SKU rationalization and diversification of the product portfolio [35][37]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $2,700,000, a decrease of 13.2% compared to $3,100,000 in Q1 2024, primarily due to the strategic exit from lower margin floral and lettuce products [13][14] - Gross profit increased to $88,000 from $23,000 year over year, representing a 283% increase, while gross margin improved to 3.2% from 0.7% [10][15] - Net loss for Q1 2025 was $3,300,000, an improvement from a net loss of $4,000,000 in Q1 2024, driven by cost reductions and increased contributions from higher margin non-perishable product sales [16] Business Line Data and Key Metrics Changes - Non-perishable revenue grew 15% year over year, indicating strong performance from shelf-stable brands like Kick Sports Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Whey [7][14] - Cutter sales rose 13% on a seasonal basis, reflecting sustained consumer demand for freshness and convenience [7] Market Data and Key Metrics Changes - The company expanded relationships with major retailers including Walmart, Stop and Shop, and ShopRite, which are driving growth across both fresh and non-perishable categories [6][7] - The acquisition of Natural Shrimp Farms is expected to enhance operational capabilities and support market penetration in the Midwest [11][21] Company Strategy and Development Direction - The company is focusing on a strategic transformation towards higher margin, shelf-stable products, which is gaining traction and visibility across the business [6][8] - The acquisition of Natural Shrimp Farms is aimed at strengthening the balance sheet, enhancing vertical integration, and supporting sustainability initiatives [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, highlighting the strong foundation built through expanded retail relationships and growing e-commerce reach [46][47] - The commitment to sustainability remains central to the company's identity, with initiatives that have already shown measurable impact [12] Other Important Information - The company has been recognized in the FoodTech 500 as a top 50 company, reflecting its leadership in controlled environment agriculture [12] - The company is investing in marketing and branding to support the growth of its product lines [40] Q&A Session Summary Question: Can you talk about the initial plans for Natural Shrimp and potential synergies? - Management highlighted immediate initiatives including leveraging the facility for warehousing and R&D, which will support expansion into new markets and enhance logistics [20][21] Question: What were the revenues for Natural Shrimp in 2024, and will it be margin accretive? - Management indicated that current sales are nominal and not margin accretive, but future expansion and leveraging of the facility will lead to margin improvements [26][27] Question: How did the sports nutrition line perform this quarter? - Management expressed excitement about the sports nutrition line, noting new distribution in a major Midwest retailer and upcoming product launches [28][29]

Core Insights - Edible Garden AG Incorporated reported a strategic shift towards higher-margin, shelf-stable products, resulting in a 15% year-over-year growth in non-perishable revenue and a nearly fourfold increase in gross profit compared to the previous year [1][3][8]. Financial Performance - For the quarter ended March 31, 2025, total revenue was $2.7 million, a decrease of 13.2% from $3.1 million in the same quarter of 2024, primarily due to the exit from lower-margin floral and lettuce product lines [8]. - Gross profit increased to $88,000 from $23,000 in the prior year, representing an increase of approximately 283% year-over-year, with gross margin improving to 3.2% from 0.7% [9]. - The net loss for the quarter was $3.3 million, an improvement from a net loss of $4.0 million in the same period last year, driven by cost reductions and increased sales from higher-margin products [11]. Strategic Initiatives - The company is focusing on expanding its consumer-packaged goods (CPG) portfolio with brands like Kick. Sport Nutrition, Pickle Party, Squeezables, and Pulp®, which are gaining traction in the market [3][4]. - Edible Garden completed a $15.5 million acquisition of assets from NaturalShrimp Farms Inc., enhancing its R&D and warehousing capabilities, and securing patents for water treatment technologies to support sustainability efforts [3][8]. Market Positioning - The company is enhancing its national distribution footprint by launching and growing retail partnerships with major accounts such as Walmart and Stop & Shop, leveraging patented merchandising solutions [4][5]. - Edible Garden maintains a U.S.-focused production model, with over 90% of its operations based domestically, minimizing exposure to global tariffs and disruptions [6][7]. Product Development - The company is actively reshaping its product mix by phasing out less profitable SKUs and focusing on higher-margin, less commoditized offerings, which has led to a 13% seasonal growth in cut herbs [3][8].

Core Insights - Edible Garden AG Incorporated has acquired assets from NaturalShrimp Farms Inc. for $12 million in preferred stock, enhancing its balance sheet and increasing shareholder equity [1][3] - The acquisition includes patented water treatment technologies and a shrimp farming facility, which will support Edible Garden's sustainability initiatives and vertically integrated model [1][2] Financial Impact - The transaction strengthens Edible Garden's financial position by adding $3 million in cash through a private placement, with a total investment in preferred stock reaching $15.5 million [1][3] - The acquisition is structured to avoid additional debt, aligning with the company's capital-efficient growth strategy [3] Strategic Initiatives - The patented water treatment technology is expected to improve agricultural efficiency and sustainability across Edible Garden's controlled environment agriculture (CEA) operations [2][3] - The Iowa facility is anticipated to serve as a scalable platform for advanced research and expanded herb production, reinforcing the company's leadership in sustainable food production [3] Collaborations and Innovations - Edible Garden collaborates with organizations like the EPA and FDA, yielding results such as a 55% increase in crop yield and a 30% reduction in harvest cycle duration through nanobubble irrigation trials [4] - The company is recognized as a "Giga-Guru" in Walmart's Project Gigaton initiative, aiming to eliminate one billion metric tons of emissions from the global supply chain by 2030 [4] Market Position - Edible Garden is positioned as a leader in controlled environment agriculture, with its products available in over 5,000 stores across the US, Caribbean, and South America [7] - The company has been named a Top 50 company in the 2024 FoodTech 500 by Forward Fooding, highlighting its impact at the intersection of food, technology, and sustainability [4][7]

Core Viewpoint - Edible Garden AG Incorporated will host a conference call on May 15, 2025, to discuss its financial results for the first quarter of 2025 and provide a business update [1]. Company Overview - Edible Garden 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 greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers near major U.S. markets [4]. - Edible Garden's proprietary GreenThumb 2.0 software optimizes growing in vertical and traditional greenhouses, aiming to reduce pollution-generating food miles [4]. - The company offers a range of products, including plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands, as well as sustainable food flavoring products like Pulp gourmet sauces [4]. Conference Call Details - The conference call will be accessible via telephone for U.S. callers at +1 877-545-0523 and for international callers at +1 973-528-0016, with an access code of 336637 [2]. - A webcast of the call can be accessed on the company's investor relations website [2]. - A replay of the call will be available on the investor relations section of the website through May 15, 2026, and a telephone replay will be available until May 29, 2025 [3].

Core Insights - Edible Garden AG Incorporated has expanded the distribution of its sustainably grown herb product line to additional Stop & Shop retail locations across New York, enhancing accessibility for consumers [1][2] - The CEO emphasized the company's commitment to quality, sustainability, and environmental stewardship, aiming to meet the rising demand for locally sourced products [2] - Edible Garden operates over 5,000 stores in the US, Caribbean, and South America, utilizing advanced farming technologies and sustainable practices [3] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce [3] - The company employs patented technologies such as GreenThumb software and Self-Watering displays to optimize growth and enhance product shelf life [3] - Edible Garden is recognized as a FoodTech 500 company and is involved in Walmart's Project Gigaton sustainability initiative [3] Product Offerings - The company provides a range of products including fresh herbs, plant and whey protein powders, and functional condiments [3] - Its Kick. Sports Nutrition line targets health-conscious athletes with cleaner labeled options [3]