Financial Data and Key Metrics Changes - The second quarter sales increased by 28% to $12.1 million compared to $9.4 million in the prior year period, driven by increased production and sales from the Georgia facility and new facilities in Texas and Washington [14] - Adjusted gross margin percentage improved to approximately 30%, up from 29% in the prior year period, marking the highest quarterly adjusted gross margin in recent quarters [15] - Adjusted EBITDA loss improved to $6.5 million compared to a loss of $8.3 million in the prior year period and $8.8 million in the first quarter [15][16] Business Line Data and Key Metrics Changes - The Texas facility is now operating at full harvestable capacity, allowing for increased revenue generation from both cut and living full head products [37] - Cost reduction initiatives have resulted in approximately $7 million in annualized savings across operating expenses and cost of goods sold, with an additional $2.5 million to $3 million expected in the second half of the year [10][16] Market Data and Key Metrics Changes - The company is experiencing strong momentum in customer discussions, with several significant opportunities progressing that could drive capacity utilization improvements in the Washington and Texas facilities [13] - Retail partners are increasingly recognizing the value proposition of the company's technology, leading to a growing demand for CEA products in the market [13] Company Strategy and Development Direction - The company aims to build a streamlined organization with a focus on sustainable profitability, leveraging its Stack and Flow technology to capture opportunities in sustainable food production [5][6] - The addition of a new Chief Commercial Officer is expected to enhance strategic relationships with existing customers and expand retail presence [12][28] Management's Comments on Operating Environment and Future Outlook - Management expects revenue run rates to ramp up later in 2025, with modest sequential growth anticipated in the third quarter, accelerating into the fourth quarter [19] - Positive adjusted EBITDA is projected to be achieved in early 2026 as the company scales alongside retail deployment schedules [20][21] Other Important Information - The company ended the quarter with cash and cash equivalents of $13.2 million, following a $10 million debt reduction and a $1 million financing through a convertible note [18] - The company is in the planning phases for a Midwest facility, alongside expansions of existing facilities in Georgia, Washington, and Texas [30][31] Q&A Session Summary Question: Can you help us understand how gross margin expands throughout the year? - Management indicated that several factors impact margin, including tower upgrades, pricing, product mix, and cost reductions [25] Question: What are the goals for the new Chief Commercial Officer? - The focus will be on expanding strategic relationships with customers and enhancing the existing commercial team's efforts [28] Question: Is the Midwest facility still in the two-year horizon? - Management confirmed that the Midwest facility is still in planning phases, along with expansions of existing facilities [30] Question: What gives confidence in retailer engagement despite delays in EBITDA targets? - Management highlighted that the Texas facility is largely sold out and that engagement with retailers is at an all-time high, which supports confidence in future growth [41]

As filed with the Securities and Exchange Commission on September 17, 2024. Registration No. 333-281957 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Pre-Effective Amendment No. 1 FORM S-1/A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 EDIBLE GARDEN AG INCORPORATED (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary standard industrial classification code number) Delaware 100 85-0558704 (I.R.S. em ...