Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal law enforcement operations on January 07, 2026 in Minneapolis, Minnesota. According to federal officials, the agent, "fearing for his life" killed a woman during a confrontation in south Minneapolis.A Minnesota law enforcement agency said Thursday that it was being blocked by the FBI from evidence related to the fatal shooting of Renee Nicole Good by U.S. Immigration and Customs Enforcement agent on a res ...

IRVING, Texas, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Sow Good Inc. (NASDAQ: SOWG) (“Sow Good” or the “Company”), a leading freeze-dried food and candy manufacturer, today announced the completion of a series of strategic transactions designed to strengthen its liquidity position, transition the business to a more asset-light operating model, and provide flexibility as the Company continues operating its candy business while evaluating growth opportunities and broader strategic alternatives. $6.0 Million Private ...

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]