Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.6 million, down from $3.6 million in Q3 2024, primarily due to lower average selling prices from discontinued SKUs [10] - Gross loss for Q3 2025 was $8.9 million compared to a gross profit of $0.6 million in the same period last year, resulting in a gross margin of negative 576% versus 16% [10] - Net loss for Q3 2025 was $10.9 million, or negative $0.90 per diluted share, compared to a net loss of $3.4 million, or negative $0.33 per diluted share in Q3 2024 [11] - Adjusted EBITDA for Q3 2025 was negative $10.9 million, worsening from negative $1.9 million in Q3 2024, mainly due to inventory charges [11] - Cash and cash equivalents at the end of Q3 2025 were $387.3 million, a significant increase from $3.7 million at the end of 2024 [12] Business Line Data and Key Metrics Changes - The company has streamlined operations and reduced fixed costs, including vacating the Mockingbird facility and planning to vacate the Rock Quarry facility, leading to significant cost savings [4][5] - Payroll efficiencies have lowered monthly costs by approximately $40,000 while maintaining quality and innovation [5] Market Data and Key Metrics Changes - The company is launching two new SKUs in March 2026 with a national retailer, which will include the Caramel Crunch SKU, marking a significant retail strategy milestone [6] - There is a noted shift in retailer demand towards innovative SKUs featuring proprietary textures and clean ingredients, reflecting broader market trends [8] Company Strategy and Development Direction - The company is focused on optimizing its cost structure, expanding retail distribution, and executing private label partnerships to drive long-term growth and return to profitability [13][14] - Future initiatives include digital asset strategies to enhance capital efficiency and shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with a leaner and more efficient structure, ready to scale profitably [16] - The company anticipates gradual margin improvement starting mid-2026, supported by operational efficiencies and new product launches [15] Other Important Information - The company has received commitments for additional capital, with insiders committing $1 million, reflecting confidence in the company's strategy [9] Q&A Session Summary Question: Can you provide any more details on the financial commitments that you have in hand at this point? - Management confirmed a commitment of $1 million from insiders [19] Question: What do you think your current cash burn is on a monthly basis at this point? - Management indicated that cash burn will decrease significantly after January, providing a runway for private label initiatives [22] Question: Is this million dollars coming in, is it equity, debt, or it's not formal yet at this point? - Management stated that the commitment is not formal yet but should be finalized within the next week [24] Question: When do you think you need to do revenue to break even at this point or after January? - Management noted that break-even visibility will improve around March or April, with expected monthly expenses in the $450-$550 range [26] Question: Are the economics of the Caramel Crunch business very similar to your other products? Or is it higher margin? - Management indicated that the Caramel Crunch will have similar economics, with potential for improved margins as manufacturing processes are fine-tuned [27] Question: Can you talk about how effective the expanded sales effort has been? - Management expressed satisfaction with the sales team's performance, particularly in securing private label partnerships and expanding into non-traditional retail environments [32]

Customer Acquisition - Sow Good Inc. announced a major retail customer win on October 27, 2025[7] Funding and Strategy - The company is pursuing additional funding for a crypto asset strategy[7] Cost Management - Sow Good Inc. is implementing additional cost optimization measures[7]

Financial Performance - Revenues for the three months ended September 30, 2025, were $1.6 million, a decrease of $2.0 million or 56% compared to $3.6 million for the same period in 2024, primarily due to reduced demand from increased competitive pressure [172]. - Cost of goods sold for the same period increased to $10.5 million, an increase of $7.5 million or 250% compared to $3.0 million in 2024, driven by inventory reserve charges [173]. - Gross profit for the three months ended September 30, 2025, was $(8.9) million, a decrease of $(9.5) million or 1709% from a gross profit of $0.6 million in 2024, attributed to lower revenues and higher costs [174]. - The gross margin loss was (576%) for the three months ended September 30, 2025, compared to a gross margin profit of 16% for the same period in 2024, reflecting lower sales and increased costs [175]. - Revenues for the nine months ended September 30, 2025, were $5.9 million, a decrease of $24.7 million or (81%) compared to $30.6 million for the same period in 2024, driven by reduced demand due to increased competition [187]. - Gross loss for the nine months ended September 30, 2025, was $(8.9) million, a decrease of $22.2 million or (156%) compared to a gross profit of $14.2 million for the same period in 2024 [189]. - The gross profit margin for the nine months ended September 30, 2025, was (135.5)%, a significant decrease from 46.37% for the same period in 2024, due to decreased sales and increased overhead costs [190]. - The net loss before tax provision for the nine months ended September 30, 2025, was $(17.7) million, a decrease of $18.4 million or (2775%) compared to a net income of $0.7 million for the same period in 2024 [199]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $11.1 million, a decrease of $502.5 thousand or (4%) compared to $11.6 million for the same period in 2024 [186]. - Salaries and benefits for the nine months ended September 30, 2025, were $5.7 million, a decrease of $648.9 thousand or (10%) compared to $6.4 million for the same period in 2024 [191]. - Professional services expenses for the nine months ended September 30, 2025, were $548.1 thousand, a decrease of $834.3 thousand or (60%) compared to $1.4 million for the same period in 2024 [193]. - The company recognized impairment charges of $24.7 thousand during the nine months ended September 30, 2025, related to the derecognition of the Rock Quarry lease [196]. Capital and Financing - As of September 30, 2025, the company had working capital of $9.1 million, a decrease from $17.7 million as of December 31, 2024, primarily due to a decrease in cash and inventory [203]. - The company expects to incur significant capital expenditures related to the development of its freeze-dried candy business and may require additional financing, raising concerns about its ability to continue as a going concern [202]. - The Company restructured its current debt by issuing Convertible Notes totaling $2.8 million, maturing on April 30, 2030, with interest rates between 6% and 8% [204]. - Net cash used in operating activities decreased to $3.3 million for the nine months ended September 30, 2025, from $6.1 million in the same period of 2024, primarily due to reduced inventory spending and lower accounts receivable [206]. - Net cash used in investing activities was $1.1 thousand for the nine months ended September 30, 2025, a significant decrease of $4.5 million compared to $4.5 million in 2024, which was mainly for building additional freezers and office improvements [207]. - The Company reported no net cash provided by financing activities for the nine months ended September 30, 2025, compared to $15.1 million in 2024, which included $12.0 million from a public offering and $3.7 million from private placements [208]. Facilities and Operations - The company has built a 20,945 square foot freeze drying facility in Irving, Texas, capable of producing up to 24 million units of freeze dried candy per year [151]. - As of September 30, 2025, the company has fifteen stock keeping units (SKUs) in its Sow Good Candy line, with products available in approximately 5,000 retail outlets across the U.S. [150]. - The company aims to expand its market presence by increasing its SKU portfolio and distribution channels, including two Middle East distributors [154]. - The company plans to diversify its product line to include freeze dried snacks beyond candy, such as yogurt snacks and jerky, to reduce product-specific risks [159]. - The Company has a real property lease for a 20,945 square foot facility at a monthly rate of $10.0 thousand, with a lease term extending through September 15, 2025 [209]. - An additional warehouse lease of approximately 9,000 square feet was entered into on July 1, 2023, at a rate of $8,456 per month, with a 4% annual escalation [210]. - The Company entered into a 62-month industrial lease for approximately 324,000 square feet, starting at $122,175 per month, with payments increasing to $297,289.14 by the end of the lease [211]. - A new lease agreement for approximately 51,264 square feet was established on October 26, 2023, starting at approximately $42.5 thousand per month, increasing to $51.7 thousand by the last year of the term [212]. Risk Management - The Company does not expect significant effects from commodity price risk outside of inherent inflationary risks [216]. - The Company does not anticipate entering into transactions that would expose it to direct interest rate risk [217].

Core Insights - Sow Good Inc. reported a net loss of $10.9 million for Q3 2025, a significant increase from a net loss of $3.4 million in Q3 2024, primarily due to noncash inventory reserve charges and decreased sales [6][20][28] - The company is focusing on operational efficiency and cost reduction, achieving over $5 million in annualized savings through facility vacating and payroll optimization [2][5] - Sow Good secured its first private-label partnership with a national retailer for its new Caramel Crunch product, set to launch in the first half of 2026, indicating a shift towards clean-label products [3][4] Financial Performance - Revenue for Q3 2025 was $1.6 million, down from $3.6 million in Q3 2024, reflecting a change in sales mix and lower average selling prices due to discontinued SKUs [6][20] - Gross loss for Q3 2025 was $8.9 million, with a gross margin of (576)%, compared to a gross profit of $0.6 million and a margin of 16% in the prior year [6][20] - Operating expenses decreased slightly to $3.7 million in Q3 2025 from $3.8 million in Q3 2024, attributed to lower payroll costs [6][20] Strategic Initiatives - The company is engaged in discussions with other national retailers for additional private-label opportunities, indicating confidence in its manufacturing capabilities [4][5] - Sow Good is advancing strategic initiatives to strengthen its balance sheet and diversify funding sources, aiming for a return to profitability [5][6] - The launch of new SKUs and expansion of influencer marketing partnerships are part of the company's strategy to enhance brand visibility and market reach [3][4]

Core Insights - Sow Good Inc. will hold a conference call on November 14, 2025, at 10:00 a.m. Eastern time to discuss its third-quarter financial results for the period ending September 30, 2025 [1] - The company is recognized as a leader in the freeze-dried candy and treat industry, focusing on innovative and flavorful products [4] Company Overview - Sow Good Inc. specializes in freeze-dried candy and snacks, utilizing proprietary freeze-drying technology and a specialized manufacturing facility [4] - The company aims to create positive experiences for customers and growth opportunities for investors and employees through its core pillars: innovation, scalability, manufacturing excellence, meaningful employment opportunities, and food quality standards [4] Conference Call Details - The conference call will be accessible via a registration link, and participants will receive dial-in instructions upon registration [2] - The call will be broadcast live and available for replay on the company's website [3]

Core Insights - Sow Good (SOWG) announced a significant retail partnership and strategic financial moves aimed at enhancing operational efficiency and supporting a digital asset strategy [1] Group 1: Business Developments - Sow Good secured a private-label partnership with a 600-store national retail chain to launch its Caramel Crunch line, set to ship in April 2026 [1] - The company will introduce two new flavors with Albertsons Companies in summer 2026, featuring Sow Good-branded displays that will showcase ten top-performing SKUs [1] - The upcoming product launches have generated strong enthusiasm from retailers, marking Sow Good's largest national rollouts to date [1] Group 2: Financial Strategy - Sow Good has received commitments for a $2 million capital raise to support its digital asset strategy, with co-founders Claudia and Ira Goldfarb personally committing $1 million [1] - The capital raise is expected to close in early November [1] Group 3: Cost Optimization - Sow Good negotiated amendments to its Mockingbird and Rock Quarry facility leases, resulting in over $5 million in annualized rent savings [1] - The company implemented workforce efficiencies that reduce monthly payroll by approximately $40,000 while retaining essential personnel [1] - These measures are part of a strategic realignment focused on reducing fixed expenses while maintaining production capacity through enhanced efficiency and automation [1]

Core Insights - Sow Good Inc. announced a significant retail partnership and funding for a digital asset strategy, alongside cost optimization measures to enhance profitability [1][4][6] Group 1: Retail Expansion and Product Launches - Sow Good has secured a private-label partnership with a 600-store national retail chain to launch its Caramel Crunch line, set to ship in April 2026 [2] - The Caramel Crunch product utilizes proprietary freeze-drying technology and is the company's first fully vertically integrated SKU, made without artificial dyes or flavors [2] - Additionally, Sow Good plans to launch two new flavors with Albertsons Companies in summer 2026, showcasing ten top-performing SKUs in branded displays [3] Group 2: Financial and Operational Improvements - The company has raised $2 million in working capital, with co-founders committing $1 million, to support its digital asset strategy [4] - Sow Good has negotiated lease amendments for its facilities, resulting in over $5 million in annualized rent savings, while maintaining production capacity through enhanced efficiency [5] - Workforce efficiencies have led to a reduction in monthly payroll by approximately $40,000, aligning with the company's focus on vertical integration and disciplined capital management [6]

FedEx Corporation - FedEx Corporation reported better-than-expected financial results for the first quarter of fiscal 2026, leading to a sharp rise in its shares by 4.8% to $237.50 in pre-market trading [1] - The company expects revenue growth of 4% to 6% year-over-year for fiscal 2026 and reaffirmed plans for permanent cost reductions of $1 billion through structural cost reductions and the advancement of Network 2.0 [1] AGM Group Holdings Inc. - AGM Group Holdings Inc. saw its shares gain 111.6% to $4.72 after announcing the sale of its subsidiary Nanjing Lucun Semiconductor Co. Ltd. for $57.45 million [5] Other Notable Gainers - AlphaVest Acquisition Corp increased by 71.4% to $25.90 [5] - 22nd Century Group, Inc. rose 45.5% to $2.56 after repaying $3.9 million of its senior secured debt [5] - Millennium Group International Holdings Limited jumped 29.1% to $3.15 [5] - Robo.ai Inc. gained 25.1% to $2.44 following an investment announcement [5] - Adaptimmune Therapeutics plc surged 23.4% to $0.1993 after a significant increase the previous day [5] - Sow Good Inc. rose 19.3% to $1.15 [5] - Asset Entities Inc. increased by 11.8% to $4.27 [5] Notable Losers - CEVA, Inc. fell 8.2% to $28.51 after a previous gain [5] - Reviva Pharmaceuticals Holdings, Inc. dipped 28.8% to $0.2987 following a public offering announcement [5] - AtlasClear Holdings, Inc. shares decreased by 12% to $1.03 after securing financing [5] - Fathom Holdings Inc. declined 10.8% to $2.14 after announcing a proposed stock offering [5] - AquaBounty Technologies Inc. fell 10.3% to $1.33 after regaining Nasdaq compliance [5] - Scholastic Corp dropped 10.3% to $24.70 after reporting disappointing financial results [5] - Lennar Corp fell 2.8% to $129.17 after posting weaker-than-expected third-quarter results, with adjusted earnings of $2 per share, missing the consensus estimate of $2.10 [5]

Summary of So Good (SOWG) 2025 Conference Call Company Overview - So Good (SOWG) has been operational for six years, initially focusing on freeze drying technology before entering the consumer packaged goods (CPG) market with freeze dried fruits, vegetables, and candy [6][7] - The company has sold approximately $24.4 million in revenue and 4.4 million units over the past year, with products available in nearly 17,000 retail locations [7] Industry Insights - The freeze dried candy market is experiencing significant growth, with an estimated annual growth rate of 8.5%, outpacing the overall candy market growth of 4% [15][16] - Major competitors like Hershey's and Mars have entered the freeze dried candy space, validating its market potential [11][16] - The candy category has been stagnant, and the introduction of freeze dried candy has revitalized interest among retailers and consumers [12] Competitive Positioning - So Good remains the number one independent freeze dried candy brand despite competitive pressures from larger CPG brands [7][11] - The company differentiates itself through manufacturing expertise, custom-built freeze dryers, and a broad product mix that includes sweet, sour, chocolate, and ice cream options [8][11][22] - So Good holds a 30-34% market share among independent brands, with four of the top ten freeze dried candy items [15][18] Financial Performance - The company reported net revenues of $1.9 million for the second quarter, down from $15.7 million the previous year, with a margin decline to negative 7% [33][34] - Overhead costs and underutilized capacity in freeze dryers have negatively impacted margins, but management expects improvements as sales recover [34][35][37] - The company has successfully reduced debt, with interest expenses decreasing from $1.3 million to $100,000 year-over-year [38][39] Future Outlook - So Good is focused on rebuilding relationships with retailers and expanding its product offerings, including private label baby snacks and freeze dried meat products [27][29] - The company anticipates a resurgence in sales and market share recovery over the next two to three quarters [30][29] - Management is optimistic about returning to positive EBITDA within the next year, supported by existing infrastructure and capacity [42][38] Key Challenges - The company faced significant competitive pressure from larger brands, leading to a decline in market share and revenues [29][49] - The need to stabilize operations and manage overhead costs effectively remains a priority [34][35] Additional Insights - The company has entered the hardware space, indicating diversification in its product offerings [25] - So Good's freeze dried products have a long shelf life, reducing concerns about inventory obsolescence [45]

Company Overview - Sow Good Inc. is a U.S.-based manufacturer specializing in freeze dried candy and snacks, focusing on innovative and flavorful products [6] - The company utilizes proprietary freeze-drying technology and a specialized manufacturing facility to create a new category of confectionaries known as freeze dried candy [6] - Sow Good aims to provide good experiences for customers and growth for investors and employees through its core pillars: innovation, scalability, manufacturing excellence, meaningful employment opportunities, and food quality standards [6] Conference Participation - Sow Good is confirmed to present at the 2025 Annual Gateway Conference on September 4 at 9:00 a.m. Pacific Time [1][2] - The presentation will be webcast live and available for replay, and the company will also hold one-on-one meetings throughout the conference [2] Gateway Conference Details - The Gateway Conference is held at the Four Seasons Hotel in San Francisco and connects growth-stage companies with prospective investors, analysts, and partners [3] - Attendees will have access to presentations and one-on-one meetings with senior executives from over 75 private and public companies across various sectors including technology, cleantech, consumer, industrials, financial services, and healthcare [4]