Core Viewpoint - Sow Good Inc. is set to hold a conference call on March 21, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1]. Company Overview - Sow Good Inc. is a U.S.-based manufacturer specializing in freeze dried candy and snacks, focusing on innovative and flavorful products [4]. - The company utilizes proprietary freeze-drying technology and a specialized manufacturing facility to create a new category of confectionaries known as freeze dried candy [4]. - Sow Good aims to foster growth for customers, 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 take place at 12:00 p.m. Eastern time on March 21, 2025, with registration required for phone access [2]. - The call will be broadcast live and available for replay on the company's website [3].

Core Viewpoint - Sow Good Inc. is set to announce its financial results for Q4 and the full year of 2024 on March 21, 2025, during a conference call [1] Group 1: Conference Call Details - The conference call will take place on March 21, 2025, at 12:00 p.m. Eastern time [2] - Registration is required to access the call, 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] Group 2: Company Overview - Sow Good Inc. is a U.S.-based manufacturer specializing in freeze dried candy and snacks, focusing on innovative and flavorful products [4] - The Company utilizes proprietary freeze-drying technology and a specialized manufacturing facility to create a new category of confectionaries known as freeze dried candy [4] - Sow Good is committed to innovation, scalability, manufacturing excellence, meaningful employment opportunities, and high food quality standards [4]

Financial Data and Key Metrics Changes - For the first nine months ending September 30, 2024, the company achieved $30.6 million in revenue, a substantial increase from $6.5 million in the same period last year, indicating strong growth in the company's financial performance [6] - Revenue in the third quarter of 2024 was $3.6 million compared to $5 million in the prior year period, primarily due to delayed product shipments caused by extreme heat [11] - Gross profit in Q3 2024 was $0.6 million, down from $1.3 million in Q3 2023, with gross margin decreasing to 16% from 27% [12] - Net loss in Q3 2024 was $3.4 million, or $0.33 per diluted share, compared to net income of $0.3 million, or $0.04 per diluted share, for the same period in 2023 [13] - Adjusted EBITDA in Q3 2024 was negative $1.9 million compared to $0.6 million for the same period in 2023 [13] - Cash and cash equivalents at the end of Q3 2024 were $6.9 million, up from $2.4 million as of December 31, 2023, primarily due to a public offering [14] Business Line Data and Key Metrics Changes - The company experienced a decline in sales velocity due to melted products reaching retail shelves, particularly affecting specific SKUs like crunchy worms and sweet worms, which saw a 30% decline from Q2 to Q3 [24] - Despite challenges, other products like sweet bites and sour spheres continued to perform well, indicating a mixed performance across different product lines [24] Market Data and Key Metrics Changes - The entry of large CPG companies into the freeze-dried candy market highlights the growing consumer demand for this category, reinforcing the company's position as a formidable player [9] - The company is focusing on expanding its market share from the current approximate 10% penetration and is actively pursuing shelf space with new retail partners [16] Company Strategy and Development Direction - The company is committed to implementing temperature-controlled distribution to prevent future product quality issues and is focused on long-term growth despite short-term challenges [9][15] - The company plans to launch targeted promotions to drive sales momentum and is enhancing its product offerings with new SKUs [15] - The strategy includes expanding into private label opportunities and increasing production capacity to support growth [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unique challenges faced in Q3 due to extreme heat affecting product quality but remains optimistic about the long-term potential of the freeze-dried candy category [7][10] - The company is focused on operational resilience and flexibility, optimizing operating expenses while continuing to innovate and expand its product range [19] Other Important Information - The company is on the cusp of final regulatory approval for its 2025 launch in Europe and the Middle East, positioning it to enter these markets ahead of competitors [17] - The company is also targeting growth within U.S. ethnic markets, launching products that cater to this demographic [18] Q&A Session Summary Question: Impact of melted products on sales velocity - Management indicated that the impact was primarily seen with three customers: Five Below, Cracker Barrel, and HEB, and acknowledged that they should have taken back affected products [23] Question: Dynamics with other customers like 7/11 and Target - Management stated they are aggressively pursuing shelf space and have received positive feedback from key accounts, indicating a collaborative relationship despite competitive pressures [28] Question: Production plans and inventory management - Management confirmed they are pausing production on certain items while continuing to produce new SKUs, emphasizing the long shelf life of their products [30] Question: Gross margin variability and fixed cost leverage - Management acknowledged variability in gross margins due to production yield variances and indicated that labor costs would decrease with reduced production [32] Question: Retail inventory levels and category performance - Management noted that reorders are strong for products not affected by heat and that the freeze-dried candy category is entering a steady state [34][36] Question: Private labeling opportunities - Management is focused on private label opportunities to fully utilize production capacity but is cautious about co-manufacturing for other brands to protect their own brand identity [38]

分组1 - Sow Good Inc. reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.17, and a significant decline from earnings of $0.04 per share a year ago, resulting in an earnings surprise of -94.12% [1] - The company posted revenues of $3.55 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 40.77%, and down from $5.03 million in the same quarter last year [2] - Sow Good shares have underperformed the market, losing about 2.4% since the beginning of the year, while the S&P 500 gained 25.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $17.8 million, and for the current fiscal year, it is $0.52 on revenues of $50.8 million [7] - The Zacks Industry Rank indicates that the Consumer Products - Discretionary sector is currently in the bottom 20% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Business Operations and Growth - As of September 30, 2024, Sow Good has launched 21 SKUs in its freeze dried candy line and 3 SKUs in its Crunch Cream line, with sales primarily through wholesale and retail channels, accounting for less than 2% of sales from e-commerce[158] - The company has built a 20,945 square foot freeze drying facility in Irving, Texas, and plans to operationalize six additional freeze driers in a new 324,000 square foot facility in Dallas, Texas within the next nine months[159] - Sow Good's products are available in over 6,000 retail outlets across the U.S., including major retailers like Target and Five Below, with plans to increase shelf presence and SKU portfolio[162] - The freeze dried candy market is expected to experience exponential growth due to increasing consumer preferences for novel candy products, with approximately 61% of shoppers seeking new products[168] - The company has entered into co-manufacturing arrangements in China and Colombia to meet strong customer demand while ensuring production quality and safety standards[159] Financial Performance - Revenues for the three months ended September 30, 2024, were $3.6 million, a decrease of $1.5 million or 29% compared to $5.0 million for the same period in 2023, primarily due to delayed shipments caused by extreme heat[182] - Cost of goods sold for the three months ended September 30, 2024, was $3.0 million, a decrease of $700.8 thousand or 19% from $3.7 million in 2023, attributed to lower revenue and higher costs related to a new facility[183] - Gross profit for the three months ended September 30, 2024, was $556.0 thousand, down $779.3 thousand or 58% from $1.3 million in 2023, resulting in a gross profit margin of 16% compared to 27% in the prior year[184][185] - Total operating expenses for the three months ended September 30, 2024, were $3.8 million, an increase of $2.8 million or 282% from $997.6 thousand in 2023, driven by significant increases in salaries and benefits[186][192] - Net operating loss for the three months ended September 30, 2024, was $(3.3) million, a decrease of $3.6 million or 1,065% compared to a net operating income of $337.6 thousand in 2023[192] - Revenues for the nine months ended September 30, 2024, were $30.6 million, an increase of $24.1 million or 367% compared to $6.5 million in 2023, due to a pivot to freeze dried candy and increased capacity[195] - Cost of goods sold for the nine months ended September 30, 2024, was $16.4 million, an increase of $9.7 million or 146% from $6.7 million in 2023, with a gross profit margin of 46% compared to (2)% in the prior year[196] - Total general and administrative expenses for the nine months ended September 30, 2024, were $11.6 million, an increase of $8.8 million or 313% from $2.8 million in 2023, driven by higher salaries, professional services, and other administrative costs[194] - Net income before tax provision for the nine months ended September 30, 2024, was $661.4 thousand, a turnaround of $5.0 million compared to a net loss of $(4.4) million in 2023[194] - Pretax net income for the nine months ended September 30, 2024 was $661.4 thousand, a positive change of $5.0 million compared to a pretax net loss of $4.4 million during the same period in 2023[202] Cash Flow and Liquidity - Working capital increased to $19.7 million as of September 30, 2024, compared to $4.5 million as of December 31, 2023, primarily due to increases in cash, accounts receivable, and inventory[205] - Cash and cash equivalents were $6.9 million as of September 30, 2024, up from $2.4 million at December 31, 2023[205] - Net cash used in operating activities was $6.1 million for the nine months ended September 30, 2024, compared to $3.3 million for the same period in 2023[215] - Net cash used in investing activities was $4.5 million for the nine months ended September 30, 2024, an increase of $3.2 million from $1.3 million in 2023, primarily for additional freezers[216] - Net cash provided by financing activities was $15.1 million for the nine months ended September 30, 2024, compared to $6.5 million in 2023, including $12.0 million from a public offering[217] - The company priced a public offering of 1,200,000 shares at $10.00 per share, netting approximately $12.0 million in proceeds[206] - The company plans to satisfy cash requirements for the next twelve months through cash on hand and additional financing as needed[205] Tax and Regulatory - Sow Good recognizes a federal income tax benefit of $62.3 thousand for the three-month period ended September 30, 2024, compared to $0 for the same period in 2023[178] - The company recognized federal income tax of $195,603 for the nine months ended September 30, 2024, compared to $0 in 2023[203] Operational Challenges - Seasonal fluctuations, particularly during summer months, have impacted shipments and revenue, with the company actively working to address these challenges[173] - Sow Good aims to optimize its liquidity position while scaling production, which requires significant working capital for inventory and capital expenditures for additional freeze driers[170] Lease and Facility Agreements - The company entered into a lease for approximately 324,000 rentable square feet with initial rent payments starting at $122,175 per month, increasing to $297,289.14 by the end of the lease term[220] - The Company entered into a lease agreement for approximately 51,264 rentable square feet in Dallas, TX, starting November 1, 2023, with base rent payments beginning at approximately $42.5 thousand per month in the first year, increasing to approximately $51.7 thousand per month in the last year of the Initial Term[222] - The lease agreement has an Initial Term of approximately five years and two months, with an option to extend for an additional five years at a fair market rent rate[222] Risk Management - The Company does not expect significant effects from commodity price risk outside of inherent inflationary risks[226] - The Company is not exposed to floating rates of interest and does not anticipate entering into transactions that would expose it to direct interest rate risk[226] - As of September 30, 2024, the Company did not hold a material amount of cash in foreign jurisdictions but anticipates increased foreign operations may expose it to greater currency fluctuation risk[227]

Financial Performance - Revenue for Q3 2024 was $3.6 million, down from $5.0 million in Q3 2023, primarily due to delayed shipments caused by extreme heat affecting product quality [4]. - Gross profit for Q3 2024 was $0.6 million, with a gross margin of 16.0%, compared to $1.3 million and 27.0% in Q3 2023, reflecting higher costs of goods sold [5]. - Net loss for Q3 2024 was $3.4 million, or $(0.33) per diluted share, compared to net income of $0.3 million, or $0.04 per diluted share, in Q3 2023 [7]. - Adjusted EBITDA for Q3 2024 was ($1.9) million, down from $0.6 million in Q3 2023, indicating a decline in operational performance [8]. - Year-to-date revenue for 2024 reached $30.6 million, significantly up from $6.5 million in 2023, highlighting effective retail distribution expansion [9]. - Year-to-date gross profit increased to $14.2 million with a gross margin of 46.4%, compared to a loss of $(0.1) million and negative 2.0% margin in 2023 [10]. - Net income for the nine months ended September 30, 2024, was $465,821, compared to a net loss of $4,388,446 for the same period in 2023 [31]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $6,831,057, compared to a loss of $2,208,203 for the same period in 2023 [32]. Operating Expenses - Operating expenses increased to $3.8 million in Q3 2024 from $1.0 million in Q3 2023, driven by strategic investments in brand expansion and infrastructure [6]. - Operating expenses for the nine months ending September 30, 2024, rose to $11.6 million from $2.9 million in 2023, reflecting scaling operations to support revenue growth [11]. - The company reported a depreciation and amortization expense of $582,948 for the nine months ended September 30, 2024, compared to $306,092 for the same period in 2023 [32]. Cash and Equity - Total stockholders' equity increased to $32,822,608 as of September 30, 2024, up from $2,869,986 a year earlier [30]. - Cash and cash equivalents at the end of the period were $6,946,387, an increase from $2,096,672 at the end of the previous year [31]. - The company reported a net cash used in operating activities of $6,124,944 for the nine months ended September 30, 2024, compared to $3,328,516 for the same period in 2023 [31]. - Proceeds from common stock offerings, net of offering costs, were $15,712,976 for the nine months ended September 30, 2024 [31]. - The company issued 1,380,000 shares in a public offering, netting $11,974,976 after offering costs [29]. Inventory and Receivables - The company experienced an increase in accounts receivable by $1,169,269, while inventory decreased by $15,319,762 during the operating activities [31]. Strategic Initiatives - The company is expanding its sales team to target over 100,000 U.S. stores that currently do not carry its products, indicating significant growth potential [3]. - The company is implementing temperature-controlled distribution to prevent product quality issues in the future, aiming to restore sales growth [2]. Stock Options - Common stock options granted to directors and advisors for services amounted to $86,892, while options granted to officers and employees totaled $3,307,854 [29].

Revenue Growth - Revenues increased from $1.3 million for the three months ended June 30, 2023, to approximately $15.6 million for the three months ended June 30, 2024, reflecting significant growth [163]. - Revenues for the three months ended June 30, 2024, were $15.6 million, a significant increase of $14.3 million or 1,090% compared to $1.3 million in the same period of 2023 [188]. - For the six months ended June 30, 2024, revenues reached $27.1 million, an increase of $25.5 million or 1,687% compared to $1.5 million in the same period of 2023 [200]. Production Capacity and Facilities - A new 324,000 square foot production facility in Dallas, Texas, is expected to significantly increase production capacity and meet rising demand for freeze dried treats [174]. - The company has built five bespoke freeze driers and is fabricating a sixth, with plans for six additional driers in the new Dallas facility [162]. - The company entered into a lease for approximately 324,000 rentable square feet in Dallas, Texas, for a term of approximately 62 months, starting at $122,175 per month and increasing to $297,289.14 per month by the end of the lease [226]. Financial Performance - Gross profit for the three months ended June 30, 2024, was $9.0 million, an increase of $10.6 million or 670% compared to a gross loss of $1.6 million in 2023, resulting in a gross profit margin of 58% [190]. - Net income for the three months ended June 30, 2024, was $3.6 million, compared to a net loss of $3.3 million in 2023, reflecting an increase in earnings of $6.9 million or 208% [196]. - Net income for the six months ended June 30, 2024 was $4.1 million, a positive change of $8.8 million compared to a net loss of $4.7 million for the same period in 2023 [207]. Cost and Expenses - Cost of goods sold for the same period was $6.6 million, up $3.7 million or 129% from $2.9 million in 2023, primarily due to increased sales volumes [189]. - Salaries and benefits for the six months ended June 30, 2024, were $4.5 million, an increase of $3.6 million or 438% compared to $831.2 thousand in 2023 [202]. - Professional services expenses for the six months ended June 30, 2024, were $1.1 million, an increase of $952.6 thousand or 870% compared to $109.5 thousand in 2023 [203]. - Other general and administrative expenses for the six months ended June 30, 2024, were $2.3 million, an increase of $1.4 million or 157% compared to $884.5 thousand in 2023 [204]. - Interest expense for the six months ended June 30, 2024, was $1.0 million, a decrease of $327.5 thousand or 24% compared to $1.3 million in 2023 [206]. Working Capital and Cash Flow - Working capital increased to $26.0 million as of June 30, 2024, up from $4.5 million as of December 31, 2023, primarily due to increases in cash, accounts receivable, and inventory [209]. - Cash and cash equivalents reached $14.4 million as of June 30, 2024, compared to $2.4 million at December 31, 2023 [209]. - Net cash provided by financing activities was $15.1 million for the six months ended June 30, 2024, an increase of $12.4 million from $2.8 million in the same period of 2023 [222]. - Net cash used in operating activities was $939,534 for the six months ended June 30, 2024, a decrease from $2.4 million used in the same period of 2023 [220]. - Net cash used in investing activities was $2.2 million for the six months ended June 30, 2024, compared to $362.2 thousand for the same period in 2023 [221]. Market and Product Development - The non-chocolate confections market grew 13.8% in sales in 2022, exceeding $10 billion, and is forecasted to grow at a CAGR of 5.8% from 2023 to 2030 [164]. - The company aims to expand its product line to increase growth opportunities and reduce product-specific risks through SKU diversification [178]. - The company has 17 SKUs in the Sow Good Candy line and 5 SKUs in the Sow Good Crunch Cream line, with products available in over 5,850 retail outlets as of June 30, 2024 [161]. Tax and Regulatory Matters - Federal income tax recognized for the three-month periods ended June 30, 2024, and 2023 was $257,918 and $0, respectively [185]. - The company maintains a full valuation allowance related to its net deferred tax assets due to its historical net loss position [207]. Risk Management - The Company does not expect significant effects from commodity price risk outside of inherent inflationary risks [230]. - The Company is not exposed to floating rates of interest and does not anticipate entering into transactions that would expose it to direct interest rate risk [231]. - As of June 30, 2024, the Company did not hold a material amount of cash in foreign jurisdictions but anticipates increased exposure to currency fluctuation risk as foreign operations grow [232].

Financial Performance - Q2 2024 revenue increased 37% sequentially to $15.6 million, compared to $1.3 million in Q2 2023, driven by the pivot to freeze-dried candy and expanded production capacity [4]. - Gross profit for Q2 2024 was $9.0 million, with a gross margin of 57.6%, up from $(1.6) million and 40.6% in Q2 2023 and Q1 2024 respectively [5]. - Net income in Q2 2024 was $3.3 million, or $0.29 per diluted share, compared to a net loss of $(3.3) million, or $(0.68) per diluted share, in Q2 2023 [7]. - Adjusted EBITDA improved to $6.2 million in Q2 2024, compared to $(2.1) million in Q2 2023 [8]. - Revenues for the three months ended June 30, 2024, reached $15,648,046, a significant increase from $1,315,346 in the same period of 2023, representing a growth of approximately 1,087% [24]. - Gross profit for the three months ended June 30, 2024, was $9,007,129, compared to a gross loss of $(1,580,913) in the same period of 2023, indicating a turnaround in profitability [24]. - Net income for the three months ended June 30, 2024, was $3,335,142, a significant recovery from a net loss of $(3,320,900) in the same period of 2023 [25]. - The company reported a net operating income of $4,885,096 for the three months ended June 30, 2024, compared to a net operating loss of $(2,473,391) in the same period of 2023 [25]. - Net income for the six months ended June 30, 2024, was $3,845,730, compared to a net loss of $4,722,430 for the same period in 2023, representing a significant turnaround [30]. - The company reported an EBITDA of $5,484,635 for the six months ended June 30, 2024, compared to a negative EBITDA of $(3,221,169) for the same period in 2023, reflecting improved operational performance [32]. - Adjusted EBITDA for the six months ended June 30, 2024, was $8,684,660, compared to a negative adjusted EBITDA of $(2,837,263) for the same period in 2023, indicating enhanced profitability [32]. Cash and Equity Position - Cash and cash equivalents increased to $14.4 million as of June 30, 2024, up from $2.4 million at December 31, 2023, following a public offering that generated $12.8 million in net proceeds [9]. - Total stockholders' equity increased to $35,015,646 as of June 30, 2024, up from $7,280,449 as of December 31, 2023, reflecting a substantial improvement in the company's financial position [23]. - Total stockholders' equity increased to $35,015,646 as of June 30, 2024, up from $794,841 as of June 30, 2023, indicating strong financial growth [29]. - Cash and cash equivalents at the end of the period were $14,373,035, a substantial increase from $293,024 at the end of June 2023 [31]. - The company raised $15,712,976 from common stock offerings, net of offering costs, during the six months ended June 30, 2024 [31]. - The total additional paid-in capital increased to $89,899,666 as of June 30, 2024, from $58,485,602 as of December 31, 2022, reflecting ongoing investment and capital raising efforts [29]. Operational Developments - The company is expanding in-house production capacity to meet growing demand and is diversifying distribution partnerships to enhance market reach [2]. - A new 324,000 square foot production and distribution facility is expected to significantly boost production capabilities once operational [2]. - The company aims to revolutionize the candy category with innovative products, enhancing its competitive advantage by controlling the manufacturing process [3]. - The company expresses confidence that 2024 will be a transformative year for creating significant shareholder value [4]. Liabilities and Expenses - Operating expenses rose to $4.1 million in Q2 2024, compared to $0.9 million in Q2 2023, primarily due to increased compensation and professional services [6]. - Total current liabilities as of June 30, 2024, amounted to $6,283,399, an increase from $5,771,200 as of December 31, 2023 [22]. - The total liabilities as of June 30, 2024, were $25,174,478, compared to $14,208,109 as of December 31, 2023, indicating an increase in the company's obligations [22]. - The company incurred interest expense of $(599,664) for the three months ended June 30, 2024, down from $(847,509) in the same period of 2023, suggesting improved cost management [25]. - The accumulated deficit decreased to $(54,894,265) as of June 30, 2024, from $(58,739,995) as of December 31, 2023, indicating progress in reducing losses over time [23]. - The company reported a net cash used in operating activities of $(939,534) for the six months ended June 30, 2024, an improvement from $(2,421,260) in the same period of 2023 [30]. - The company experienced a decrease in accounts receivable by $3,639,538 during the six months ended June 30, 2024, compared to a decrease of $721,135 in the same period of 2023 [30]. - The company incurred a loss on early extinguishment of debt amounting to $696,502 during the six months ended June 30, 2024 [32].

Revenue and Growth - Q1 2024 revenue increased 20% sequentially to $11.4 million, compared to approximately $198.9K in Q1 2023, driven by the pivot to freeze dried candy and expanded production capacity[2][4] - Total revenues for the three months ended March 31, 2024, were $11,406,320, compared to $198,930 for the same period in 2023, representing a significant increase[29] - The company anticipates continued growth in production infrastructure and retail presence, aiming to maintain leadership in the freeze dried candy category[13] Profitability - Gross profit for Q1 2024 was $4.6 million, with a gross margin of 40.6%, down from 57.8% in the prior-year period due to higher labor and production costs[5] - Gross profit for the three months ended March 31, 2024, was $4,629,438, compared to $114,927 for the same period in 2023, indicating a substantial improvement[29] - Net income for Q1 2024 was approximately $510.6K, a significant improvement from a net loss of $(1.4) million in Q1 2023[7] - Net income for the three months ended March 31, 2024, was $510,588, a turnaround from a net loss of $1,401,530 in the same period of 2023[31] - Adjusted EBITDA for Q1 2024 improved to $2.45 million, compared to approximately $171.3K in Q1 2023[7] - Adjusted EBITDA for Q1 2024 reached $2,451,668, compared to $171,295 in Q1 2023, indicating strong operational performance[35] Expenses and Costs - Operating expenses in Q1 2024 were $3.7 million, up from $1.0 million in Q1 2023, primarily due to increased compensation and professional services expenses[6] - General and administrative expenses for the three months ended March 31, 2024, were $3,690,643, compared to $941,903 for the same period in 2023, reflecting increased operational costs[30] - Stock-based compensation expense for Q1 2024 was $1,371,735, up from $999,257 in Q1 2023, indicating increased employee compensation costs[35] Production and Capacity - Production capacity reached 4.5 million units in Q1 2024, exceeding the initial projection of 4.25 million units, with a target of up to 30 million units for the full year[3] - The company plans to add five new SKUs and expand its retail presence to nearly 2,000 Target stores and 300 Big Lots stores this summer[4] Cash Flow and Financial Position - Cash and cash equivalents increased to $6.8 million at March 31, 2024, up from $2.4 million at December 31, 2023, following a $3.7 million equity private placement[8] - Total assets increased to $27,903,372 as of March 31, 2024, up from $21,488,558 as of December 31, 2023[28] - Total liabilities rose to $15,002,569 as of March 31, 2024, compared to $14,208,109 as of December 31, 2023[27] - Total stockholders' equity increased to $12,900,803 as of March 31, 2024, from $7,280,449 as of December 31, 2023[28] - Net cash provided by operating activities was $1,297,651, a turnaround from net cash used of $966,117 in the previous year[34] - Total cash and cash equivalents at the end of the period increased to $6,815,355, up from $348,441 at the end of Q1 2023[34] - Proceeds from the issuance of common stock amounted to $3,737,999, contributing to the positive cash flow from financing activities[34] Market Activity - The company successfully uplisted to Nasdaq on May 2, 2024, and completed a public offering raising approximately $13.8 million in gross proceeds[12][11] Inventory and Accounts Payable - Inventory decreased significantly by $1,256,833, reflecting improved inventory management[34] - The company reported a significant increase in accounts payable by $40,476, contrasting with a decrease of $163,065 in the previous year[34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each classTrading Symbol(s) Name of each exchange on which registered Common stock, par value $0.001 per share SOWG NASDAQ 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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to __ ...