Edible Garden AG rporated(EDBL) - 2024 Q2 - Quarterly Results

Financial Performance - Edible Garden reported a 157% increase in gross profit, driven by a 61% growth in cut herbs and a 30% increase in vitamins & supplements for Q2 2024[2] - Revenue for the quarter ended June 30, 2024, totaled $4.3 million, compared to $4.2 million for the same period in 2023, primarily due to growth in core products[3] - Revenue for the three months ended June 30, 2024, was $4,268,000, a slight increase from $4,221,000 for the same period in 2023, representing a growth of 1.1%[13] - Gross profit for the three months ended June 30, 2024, was $1,566,000, compared to $553,000 for the same period in 2023, indicating a significant increase of 184.3%[13] - The cost of goods sold for the three months ended June 30, 2024, was $2,702,000, down from $3,668,000 in the same period last year, showing a decrease of 26.4%[13] Cost Management - Cost of goods sold decreased to $2.7 million in Q2 2024 from $3.7 million in Q2 2023, reflecting a decline in reliance on third-party growers[4] - Selling, general and administrative expenses were $2.7 million for Q2 2024, up from $2.4 million in Q2 2023, mainly due to a one-time bonus charge and higher fees[4] - Selling, general, and administrative expenses rose to $2,748,000 for the three months ended June 30, 2024, up from $2,380,000 in the same period last year, reflecting an increase of 15.5%[13] - Loss from operations for the three months ended June 30, 2024, was $(1,182,000), an improvement from $(1,827,000) for the same period in 2023, reflecting a reduction of 35.4%[13] Net Loss and Earnings - Net loss for Q2 2024 was $1.9 million, or ($1.21) per share, compared to a net loss of $638 thousand, or ($4.83) per share, in Q2 2023[4] - The net loss for the three months ended June 30, 2024, was $1,932,000, compared to a net loss of $638,000 for the same period in 2023, representing a deterioration of 202.5%[13] - Net income per common share for the three months ended June 30, 2024, was $(1.21), compared to $(4.83) for the same period in 2023[13] Strategic Initiatives - The company expanded its distribution network, including partnerships with UNFI Distributors and Hemingways, reaching over 30,000 retail locations[2] - New product launches included Garden Starters for home gardening, responding to the needs of 35% of American households that grow their own food[2] - Edible Garden implemented proprietary innovations in packaging and shipping to extend product shelf life and reduce spoilage[2] - The company is committed to community involvement and ESG initiatives through partnerships that enhance employability for individuals with disabilities[3] Other Financial Metrics - Gross margin improved to 36.7% in Q2 2024, up from 13.1% in Q2 2023, due to a strategic pivot away from third-party growers[1] - Total other income (expenses) for the three months ended June 30, 2024, was $(750,000), compared to $1,189,000 for the same period in 2023, indicating a decline of 163.0%[13] - Interest expense, net, for the three months ended June 30, 2024, was $(419,000), compared to $(44,000) for the same period in 2023, indicating an increase of 850.0%[13] - The weighted-average number of common shares outstanding for the three months ended June 30, 2024, was 1,590,188, significantly higher than 132,074 for the same period in 2023[13]