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Sow Good Reports Fourth Quarter 2024 Results
SOWGSow Good Inc.(SOWG) Newsfilter·2025-03-21 12:00

Core Insights - Sow Good Inc. reported significant challenges in 2024, including product integrity issues and increased competition, leading to a notable decline in fourth-quarter revenue and gross profit [2][3][7] - The company is focusing on innovation and expanding its product portfolio, including new categories like jerky and yogurt melts, to drive future growth [4][11] - Despite a challenging fourth quarter, Sow Good's annual revenue for 2024 increased significantly compared to 2023, reflecting the growing market for freeze-dried candy [7][13] Financial Performance - Fourth-quarter revenue for 2024 was 1.4million,adecreasefrom1.4 million, a decrease from 9.5 million in the same quarter of 2023, primarily due to competitive pressures and quality concerns [7] - Gross profit for the fourth quarter was a loss of 1.2million,withagrossmarginof(88)1.2 million, with a gross margin of (88)%, compared to a profit of 3.4 million and a margin of 36% in the prior year [7] - For the full year 2024, revenue increased to 32.0millionfrom32.0 million from 16.1 million in 2023, with gross profit rising to 13.0millionandagrossmarginof4113.0 million and a gross margin of 41% [7][13] Operating Expenses - Operating expenses in the fourth quarter of 2024 were 2.9 million, up from 1.6millioninthesameperiodin2023,drivenbyincreasedsharecompensationandothergrowth−relatedexpenses[7]−FortheyearendedDecember31,2024,totaloperatingexpenseswere1.6 million in the same period in 2023, driven by increased share compensation and other growth-related expenses [7] - For the year ended December 31, 2024, total operating expenses were 14.5 million compared to 4.5millionin2023,reflectingthecompany′srapidgrowth[13]NetLossandAdjustedEBITDA−Thenetlossforthefourthquarterof2024was4.5 million in 2023, reflecting the company's rapid growth [13] Net Loss and Adjusted EBITDA - The net loss for the fourth quarter of 2024 was 4.2 million, or (0.40)perdilutedshare,comparedtonetincomeof(0.40) per diluted share, compared to net income of 1.3 million, or 0.26perdilutedshare,inthesamequarterof2023[7][23]−AdjustedEBITDAforthefourthquarterwas0.26 per diluted share, in the same quarter of 2023 [7][23] - Adjusted EBITDA for the fourth quarter was (2.8) million, a decline from income of 2.3millioninthepreviousyear[7][31]−Forthefullyear,thenetlosswas2.3 million in the previous year [7][31] - For the full year, the net loss was 3.7 million, or (0.40)perdilutedshare,comparedtoanetlossof(0.40) per diluted share, compared to a net loss of 3.1 million, or (0.59)perdilutedshare,in2023[13][23]CashPosition−Cashandcashequivalentsattheendof2024were(0.59) per diluted share, in 2023 [13][23] Cash Position - Cash and cash equivalents at the end of 2024 were 3.7 million, an increase from 2.4millionattheendof2023[13]−Thecompanyreportedanetcashusedinoperatingactivitiesof2.4 million at the end of 2023 [13] - The company reported a net cash used in operating activities of (9.4) million for the year ended December 31, 2024 [29]