Experienced Financial Strategist to Lead Finance Function Through Next Phase of Growth IRVING, Texas, June 10, 2025 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) ("Sow Good" or "the Company"), a trailblazer in the freeze dried candy and treat industry, today announced the appointment of Donna Guy, CPA, as Chief Financial Officer, effective June 5, 2025. Ms. Guy succeeds Brendan Fischer, who served as Interim CFO since April 2024. Ms. Guy brings over 25 years of experience in financial leadership across p ...

Sow Good (SOWG) Q1 2025 Earnings Call May 14, 2025 10:00 AM ET Company Participants Cody Slach - Senior Managing DirectorClaudia Goldfarb - Co-Founder, CEO & DirectorBrendon Fischer - Interim Chief Financial OfficerIgor Novgorodtsev - Principal Conference Call Participants George Kelly - Managing Director, Senior Research Analyst Operator Good morning, everyone, and thank you for participating in today's conference call to discuss Good financial results for first quarter ended 03/31/2025. Joining us today a ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $2.5 million, a significant decrease from $11.4 million in Q1 2024, primarily due to softening demand and increased competitive pressure [7] - Gross profit in Q1 2025 was $1.1 million compared to $4.6 million in the same period last year, with a gross margin improvement to 45% from 41% due to lower cost of goods sold [8][10] - Net loss for Q1 2025 was $2.6 million, or a loss of $0.23 per diluted share, compared to net income of $511,000, or $0.06 per diluted share, in Q1 2024 [10] - Adjusted EBITDA for Q1 2025 was negative $800,000, down from $2.5 million in Q1 2024 [10] - Cash and cash equivalents decreased to $1.6 million from $3.7 million as of December 31, 2024 [10] Business Line Data and Key Metrics Changes - The company reported a 79% increase in revenue from Q4 2024, indicating a recovery trend despite the overall decline year-over-year [5] - The freeze-dried candy line has seen renewed consumer enthusiasm, although competitive pressure from larger CPG companies remains a challenge [6] Market Data and Key Metrics Changes - The company is experiencing a slow increase in sell-through data, with units per door rising from 12-13 to 16 over recent weeks [27] - Retail partners like Five Below and Ace Hardware are showing positive initial demand and reorders, indicating a return to normal reorder cadences [29][31] Company Strategy and Development Direction - The company is focusing on cost savings, cash conservation, and expanding candy distribution while exploring new category opportunities [12] - Strategic actions include reducing overhead costs, enhancing operational efficiency through automation, and postponing certain production activations to align with demand [13][14] - The company plans to enter new categories such as beef jerky and freeze-dried yogurt snacks, emphasizing clean label ingredients [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, expecting modest improvement in Q2 over Q1 as new partnerships take hold [23] - The company acknowledges ongoing challenges but believes it is positioning itself to emerge stronger through innovation and category expansion [24] Other Important Information - The company has entered into exchange agreements with noteholders to extend maturities by five years, reflecting confidence in its recovery plan [11][14] - Initial orders from the Middle East market exceeded expectations, presenting a significant growth opportunity [20] Q&A Session Summary Question: What is the trend in weekly or monthly velocities and retail inventory position? - Management noted a slow increase in sell-through data, with units per door rising to 16, and excess inventory at Five Below is being worked through successfully [27][29] Question: How does the company view its inventory quality and expectations for the next quarters? - Management indicated that most heat-affected inventory has been identified and removed, and they have a two-year shelf life on most products, allowing time to work through remaining inventory [37][38] Question: What are the competitive dynamics with larger CPG companies? - Management observed that smaller competitors have exited the space, and while larger CPGs have entered, they are not performing as expected, with significant declines in their sell-through rates [41][43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Commission File Number: 001-42037 (Exact Name of Registrant as Specified in its Charter) | Delaware | 27-2345075 | | --- | --- | | ( State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 1440 N Union Bower Rd, Irving, TX | 75061 ...

Core Insights - Sow Good Inc. is launching two new products: Freeze Dried Caramel and Raw Caramel at the 2025 Sweets & Snacks Expo [3] - The new products will be available for purchase starting June 2025 through the company's website and retail partners [4] - Sow Good Inc. focuses on innovative freeze drying techniques to transform traditional confections, aiming to deliver unique textures and flavors [5] Product Details - Freeze Dried Caramel: A product designed to offer a unique texture and flavor experience [3] - Raw Caramel: Another innovative offering that complements the freeze dried variant [3] - Seasonal SKUs will also be launched at the end of the second quarter [3] Company Background - Sow Good Inc. is based in Dallas, TX, and is dedicated to reimagining classic treats through innovative techniques [5] - The company emphasizes the production of its confections in the USA [4]

IRVING, Texas, April 30, 2025 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) (“Sow Good” or “the Company”), a trailblazer in the freeze dried candy and treat industry, will hold a conference call on Wednesday, May 14, 2025, at 10:00 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2025. The Company will provide its financial results in a press release prior to the conference call. Date: Wednesday, May 14, 2025Time: 10:00 a.m. Eastern timeRegistration Link: https://register-co ...

Product Development and Manufacturing - Sow Good launched its freeze dried candy product line in Q1 2023, with 21 SKUs as of December 31, 2024[42]. - The company operates a 20,945 square foot freeze drying facility in Irving, Texas, capable of producing up to 24 million units of freeze dried candy annually[25]. - Sow Good's Crunch Cream line, launched in October 2023, includes 3 SKUs of freeze dried ice cream products[43]. - The company has invested over $10 million in developing its manufacturing facility and freeze drying equipment[33]. - The company utilizes a proprietary freeze drying process that removes up to 99% of moisture, enhancing flavor and texture[24]. - The company has six operational freeze driers in its Irving, Texas facility, with plans to have an additional six operational by the end of 2025[61]. - The company plans to vertically integrate operations to enhance manufacturing efficiency and control quality[40]. - Sow Good is exploring adjacent product categories, such as yogurt snacks, to broaden its product offerings[44]. Market Presence and Distribution - Sow Good's products are available in approximately 3,000 retail outlets across the U.S., with less than 2% of sales coming from e-commerce as of December 31, 2024[23]. - The company estimates its products are available in approximately 3,000 retail locations across the United States, providing a strong competitive advantage and a larger total addressable market (TAM)[62]. - The company has a diverse omnichannel distribution strategy, including retailers, e-commerce, and distributors, enhancing its market reach[60]. - The company believes its existing treats could represent a multi-billion-dollar TAM, focusing on distribution expansion and increased marketing to drive growth[65]. Financial Performance and Projections - Revenue increased from approximately $88.4 thousand in 2021 to approximately $16.1 million in 2023, with a projected $32.0 million for 2024[115]. - Sow Good Inc. incurred net losses of approximately $3.6 million and $3.1 million for the years ended December 31, 2024 and 2023, respectively[109]. - Significant revenue declines were observed in the third and fourth quarters of 2024, attributed to increased competition and loss of significant customers[115][130]. - The company anticipates significant increases in operating expenses as it seeks to expand retail distribution and invest in brand awareness and production capacity[109]. Regulatory and Compliance Issues - The company operates under a comprehensive food safety plan compliant with the Food Safety Modernization Act (FSMA), ensuring rigorous food safety and quality management[54]. - Sow Good's operations are subject to extensive regulation by the FDA and other authorities, which may impact compliance and operational costs[106]. - The company has instituted audits to address allergen control and sanitation, ensuring compliance with food safety regulations[58]. - Noncompliance with food product quality regulations could result in enforcement actions, including product recalls and legal liabilities[160]. - The company is subject to numerous privacy and data security regulations, and failure to comply could result in significant liability and reputational harm[189]. Challenges and Risks - The retail food and non-chocolate confectionary segments are highly competitive, posing risks to the company's market position[106]. - The competitive landscape is intensifying, with new entrants potentially reducing market share and revenue[126][136]. - The company faces challenges in managing growth effectively, which could adversely affect financial results and operational execution[121][124]. - The company relies on a small number of suppliers for raw materials, which could disrupt its supply chain[106]. - The company may encounter challenges in successfully integrating newly acquired products or businesses, which could adversely affect profitability and operational efficiency[223]. Employee and Operational Considerations - The company has 86 full-time employees as of December 31, 2024, and provides a living wage, full benefits, and stock options to all employees[76]. - Labor costs are a significant component of operating expenses, and any increase in labor costs or shortages could adversely affect growth and financial results[176]. - The company relies heavily on the continued efforts of senior management, and loss of key personnel could severely disrupt operations[216]. Marketing and Brand Management - The company manages all marketing activities in-house, focusing on authentic engagement with its community through social media and its website[67]. - Brand visibility and reputation are critical for growth, with potential negative impacts from product quality issues and public perception[141][142]. - The effectiveness of the company's digital marketing strategy is crucial for brand positioning and customer retention, with risks associated with negative publicity and compliance with legal requirements[177]. Future Outlook and Capital Needs - Future growth depends on factors such as increasing sales and marketing efforts, expanding production capacity, and managing supply chain costs[116][122]. - Future capital needs may require raising additional funds, which could lead to dilution of existing stockholder equity[114]. - Economic conditions and consumer spending trends are critical, with potential declines in revenue during economic turmoil or uncertainty impacting the company's business strategy[220]. Miscellaneous - The company has not paid dividends on its common stock and does not intend to do so in the foreseeable future[106]. - The market price of Sow Good's common stock is likely to be highly volatile and subject to wide fluctuations[106]. - The company maintains a cybersecurity incident response plan to manage risks from cybersecurity threats, overseen by an internal IT specialist[231].

Financial Data and Key Metrics Changes - Revenue in Q4 2024 was $1.4 million, down from $9.5 million in Q4 2023, while full-year revenue increased to $32 million from $16.1 million in 2023 [13][14] - Gross loss for Q4 2024 was $1.2 million, compared to a gross profit of $3.4 million in Q4 2023, resulting in a gross margin of negative 88% versus 36% in the prior year [14][15] - Net loss in Q4 2024 was $4.2 million or negative $0.40 per diluted share, compared to net income of $1.3 million or $0.26 per diluted share in Q4 2023 [17] - Adjusted EBITDA for Q4 2024 was negative $2.8 million, compared to $2.3 million for the same period in 2023, while full-year adjusted EBITDA was $4.1 million compared to $0.1 million in 2023 [18] Business Line Data and Key Metrics Changes - The decline in Q4 revenue was attributed to increased competitive pressure, shipment pauses, and higher promotional activity [14] - Full-year gross profit increased significantly to $13 million from $4.5 million in 2023, with a gross margin for the year at 41% compared to 20% in 2023 [15] Market Data and Key Metrics Changes - The company faced challenges from low-quality imports from China and increased competition from major candy companies like Mars and Hershey [7][8] - Despite challenges, there are early signs of recovery in the sales pipeline for candy in Q1 2025 [9] Company Strategy and Development Direction - The company aims to expand its retail footprint, optimize manufacturing, and launch new product categories, including beef jerky and freeze-dried yogurt snacks [11][27] - Cost-saving initiatives and operational efficiencies are prioritized, with a focus on maintaining high food safety standards [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 but expressed confidence in navigating them and emphasized a strategic path forward in the freeze-dried candy market [9][11] - The company is optimistic about Q1 2025 being marginally better than Q4 2024, with expectations for Q2 to outperform Q1 [37] Other Important Information - The company ended 2024 with cash and cash equivalents of $3.7 million, up from $2.4 million at the end of 2023, primarily due to a public offering [18][19] - Inventory at year-end increased to $20.3 million from $19.4 million, driven by new production [19] Q&A Session Summary Question: Inquiry about new product categories - Management explained the attraction to freeze-dried yogurt and beef jerky due to existing expertise and market opportunities, with a feasible second-half launch timeline [40][42] Question: Signs of improvement in sales - Management noted recovery in key customers and stabilization in sales velocity, particularly in core retail channels [46][49] Question: Strategy for reducing inventory - Management confirmed that inventory has a minimum two-year shelf life and is stored in a temperature-controlled environment, with a focus on opening new retail doors to drive sales [55][58]

Sow Good Inc. (SOWG) came out with a quarterly loss of $0.40 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -90.48%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.33, delivering a surprise of -94.12%.Over the last four quarters, the company has surp ...

Core Insights - Sow Good Inc. reported significant challenges in 2024, including product integrity issues and increased competition, leading to a notable decline in fourth-quarter revenue and gross profit [2][3][7] - The company is focusing on innovation and expanding its product portfolio, including new categories like jerky and yogurt melts, to drive future growth [4][11] - Despite a challenging fourth quarter, Sow Good's annual revenue for 2024 increased significantly compared to 2023, reflecting the growing market for freeze-dried candy [7][13] Financial Performance - Fourth-quarter revenue for 2024 was $1.4 million, a decrease from $9.5 million in the same quarter of 2023, primarily due to competitive pressures and quality concerns [7] - Gross profit for the fourth quarter was a loss of $1.2 million, with a gross margin of (88)%, compared to a profit of $3.4 million and a margin of 36% in the prior year [7] - For the full year 2024, revenue increased to $32.0 million from $16.1 million in 2023, with gross profit rising to $13.0 million and a gross margin of 41% [7][13] Operating Expenses - Operating expenses in the fourth quarter of 2024 were $2.9 million, up from $1.6 million in the same period in 2023, driven by increased share compensation and other growth-related expenses [7] - For the year ended December 31, 2024, total operating expenses were $14.5 million compared to $4.5 million in 2023, reflecting the company's rapid growth [13] Net Loss and Adjusted EBITDA - The net loss for the fourth quarter of 2024 was $4.2 million, or $(0.40) per diluted share, compared to net income of $1.3 million, or $0.26 per diluted share, in the same quarter of 2023 [7][23] - Adjusted EBITDA for the fourth quarter was $(2.8) million, a decline from income of $2.3 million in the previous year [7][31] - For the full year, the net loss was $3.7 million, or $(0.40) per diluted share, compared to a net loss of $3.1 million, or $(0.59) per diluted share, in 2023 [13][23] Cash Position - Cash and cash equivalents at the end of 2024 were $3.7 million, an increase from $2.4 million at the end of 2023 [13] - The company reported a net cash used in operating activities of $(9.4) million for the year ended December 31, 2024 [29]