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].
Sow Good Inc.(SOWG) - 2024 Q2 - Quarterly Results