Edible Garden AG rporated(US:EDBL)2025-11-14 13:30Financial Performance - Revenue for the three months ended September 30, 2025, was $2.8 million, a 9% increase from $2.6 million in the same period of 2024, attributed to strong performance in shelf-stable product lines [169]. - Cost of goods sold increased to $2.5 million in Q3 2025 from $1.9 million in Q3 2024, leading to a gross profit decrease from $699,000 to $273,000 [168]. - Selling, general and administrative expenses rose significantly to $3.8 million in Q3 2025, compared to $2.2 million in Q3 2024 [168]. - The net loss for the three months ended September 30, 2025, was $4.0 million, compared to a net loss of $2.1 million in the same period of 2024 [168]. - Revenue decreased by $1.3 million, or 13%, to $8.7 million for the nine months ended September 30, 2025, compared to $10.0 million for the same period in 2024, primarily due to the strategic exit from the floral and lettuce categories [176]. - SG&A expenses for the nine months ended September 30, 2025, were $11.1 million, an increase of $2.3 million, or 26%, compared to $8.8 million for the same period in 2024 [178]. - Loss from operations for the nine months ended September 30, 2025, was $10.1 million, compared to $6.5 million for the same period in 2024 [179]. - Net loss for the nine months ended September 30, 2025, was $11.4 million, compared to a net loss of $8.0 million for the same period in 2024 [181]. Cash Flow and Financing - As of September 30, 2025, the company had $0.8 million in cash and cash equivalents, down from $3.5 million as of December 31, 2024 [186]. - The company raised $3.3 million via a warrant inducement and $3.0 million from the sale of preferred stock during the nine months ended September 30, 2025 [186]. - Cash used for operating activities increased to $9.1 million in the nine months ended September 30, 2025, compared to $6.8 million in the same period of 2024, primarily due to an increase in net loss and a reduction in accounts payable [196]. - Cash used in investing activities rose to $0.5 million for the nine months ended September 30, 2025, up from $0.2 million in 2024, attributed to lower normal course of business purchases [197]. - Cash provided by financing activities decreased to $7.0 million in the nine months ended September 30, 2025, from $8.6 million in 2024, due to debt repayment and the absence of public stock offerings in 2025 [198]. - The company raised $3.0 million from the sale of preferred stock in 2025, contributing to higher cash flows from its equity distribution agreement [198]. Operational Initiatives - The company has developed patented software, GreenThumb, to enhance traceability and quality control in its supply chain [151]. - The company utilizes a closed-loop system in its greenhouses, which recycles water and reduces resource consumption compared to conventional farming methods [150]. - The company is focusing on expanding its brand "Edible Garden" to develop new consumer products, including sauces and flavor enhancers [154]. - The company has implemented a web-based greenhouse management system that integrates real-time sales data and inventory management [157]. - The company is committed to sustainability, utilizing LED lights and recycling water to minimize its carbon footprint compared to traditional farming [153]. Cost Analysis - Cost of goods sold increased by $0.7 million, or 37%, to $2.5 million for the three months ended September 30, 2025, compared to $1.9 million for the same period in 2024 [170]. - Selling, general and administrative expenses (SG&A) rose by $1.6 million, or 73%, to $3.8 million for the three months ended September 30, 2025, compared to $2.2 million for the same period in 2024 [171]. - Loss from operations increased to $3.6 million for the three months ended September 30, 2025, compared to a loss of $1.5 million for the same period in 2024 [172].