Edible Garden AG Incorporated (“Edible Garden” or the
“Company”) (Nasdaq: EDBL), a leader in
controlled environment agriculture (CEA), locally grown, organic
and sustainable produce and products, today provided a business
update and reported financial results for the three months ended
June 30, 2024.
Mr. Jim Kras, Chief Executive Officer of Edible
Garden, commented, “We are pleased to announce another
exceptionally strong quarter, as illustrated by a 157% increase in
gross profit, fueled by impressive year-over-year growth of 61% in
cut herbs and 30% in vitamins & supplements for the second
quarter of 2024. Our shift away from the dependence on third-party
growers is driving our gross profit margin improvement. With
approximately 95% of our fresh product line now produced in our own
facilities, gross margin increased to a record 36.7% in the second
quarter of 2024, compared to 13.1% for the same period last year.
Additionally, we have reviewed our business operations and made a
strategic decision to shift away from less profitable business
segments, directing our focus and efforts toward more profitable,
higher-margin segments. We believe that this shift in strategic
focus, combined with the vertical integration of our operations,
positions us well to continue improving our results and achieving
our goals of positive cash flow and profitability.”
"In the second quarter, we expanded the
distribution of our Pulp line of USDA organic, fermented, and
sustainable gourmet sauces and chili-based products, with the
addition of UNFI Distributors, a top North American wholesaler of
health and specialty foods serving over 30,000 locations. Through
KeHE Distributors and UNFI Distributors, as well as our own
e-commerce platform, retailers across the continent now have access
to our 'Bland to Bold' Pulp products. Our growing roster of major
retailers now includes Target, Whole Foods, Meijer, Morton
Williams, Dierbergs Markets, Woodman’s and others. According to
Research and Markets, the global sauces and condiments product
category is expected to grow to $240.7 billion in 2028 from $172.79
billion in 2021, and the response from consumers to the Pulp line
has been overwhelmingly positive.”
"We also bolstered our distribution through our
partnership with Hemingways, which serves over 350 retailers across
the Northeast, including an innovative integrated rack program
designed to enhance herb displays at their retail locations. We
have further expanded our retail network to include Seasons Kosher
and Lincoln Market. Lastly, we are excited that our entire product
line, including Pulp, is now available at every Brooklyn Fare
location in New York City."
“In late April, we launched distribution of our
Garden Starters—potted herbs and basil bowls tailored for home
gardening—to Midwestern retailers. Originally launched in 2023 to
meet the increasing popularity of home gardening, these
eco-friendly cultivated herbs respond to the needs of the 35% of
American households that grow at least some of their own food,
providing them with diverse flavor options for their meals. Our
vertically integrated Edible Garden Heartland facility in Grand
Rapids, Michigan, now fully manages the production, packaging, and
distribution of these products. By placing them next to our cut
herbs and sustainably sourced produce in supermarkets, we aim to
offer maximum convenience to our customers.”
“During the second quarter, we implemented
several new proprietary innovations in packaging and shipping to
significantly extend the shelf life of our products, reducing
spoilage and driving cost savings for our retail partners. These
innovations, including our patented self-watering in-store display,
differentiate Edible Garden by minimizing waste and ensuring
retailers can showcase plants at their peak, aligning with our
Zero-Waste Inspired® mission. Furthermore, we launched a
comprehensive training program with Abilities of Northwest Jersey
Inc., building on our decade-long partnership that integrates
dedicated workers with disabilities, benefiting both Edible Garden
and these individuals. Our programs provide valuable skills and
professional development, enhancing employability and enriching our
workforce, while remaining committed to community involvement,
local investment, and leadership in ESG and sustainability
initiatives."
“The impressive results we achieved in the
second quarter and first half of 2024 reflect the tireless efforts
and years of hard work by the entire Edible Garden team and our
capacity to consistently perform at a high level resulting in high
fill rates and an outstanding reputation as a trusted supplier
within the industry. This growth also underscores the positive
impact that vertical integration has had on our operations.”
Financial results for the three months ended June 30,
2024
For the quarter ended June 30, 2024, revenue
totaled $4.3 million, compared to $4.2 million for the three months
ended June 30, 2023. The increase was primarily attributable to
growth in our core products.
Cost of goods sold totaled $2.7 million for the
three months ended June 30, 2024, compared to $3.7 million for the
three months ended June 30, 2023. The decrease was primarily driven
by the elimination of the use of large third-party growers that
previously made up a material portion of our cost of goods
sold.
Selling, general and administrative (“SG&A”)
expenses were $2.7 million for the three months ended June 30,
2024, compared to $2.4 million for the three months ended June 30,
2024. The increase was primarily driven by a one-time bonus charge
of $0.1 million and higher audit, accounting and legal fees.
Net loss was $1.9 million, or ($1.21) per share,
for the three months ended June 30, 2024, compared to a net loss of
$638 thousand, or ($4.83) per share, for the three months ended
June 30, 2023. The increase in net loss was primarily due to a
one-time, $1.2 million credit related to the submission of a claim
to the IRS for the employee retention credit (“ERC”) in the three
months ended June 30, 2023.
The complete financial results for the three
months ended June 30, 2024, are available in the Company’s
Quarterly Report on Form 10-Q, which will be filed with the
Securities and Exchange Commission and available at:
www.sec.gov.
Conference Call
Edible Garden will host a conference call today
at 8:00 A.M. Eastern Time to discuss the Company’s financial
results for the quarter ended June 30, 2024, as well as the
Company’s corporate progress and other developments.
The conference call will be available via
telephone by dialing toll-free +1 888-506-0062 for U.S. callers or
+1 973-528-0011 for international callers and entering access code
421315. A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2914/50971 or on the
investor relations section of the company’s website,
https://ediblegardenag.com/presentations/.
A webcast replay will be available on the
investor relations section of the Company’s website at
https://ediblegardenag.com/presentations/ through August 14, 2025.
A telephone replay of the call will be available approximately one
hour following the call, through Wednesday, August 28, 2024, and
can be accessed by dialing +1 877-481-4010 for U.S. callers or +1
919-882-2331 for international callers and entering access code
50971.
ABOUT EDIBLE GARDEN®Edible
Garden AG Incorporated is a leader in controlled environment
agriculture (CEA), locally grown, organic, and sustainable produce
and products backed by Zero-Waste Inspired® next generation
farming. Offered at over 5,000 stores in the US, Edible Garden is
disrupting the CEA and sustainability technology movement with its
safety-in-farming protocols, use of sustainable packaging, patented
GreenThumb software and self-watering in-store displays. The
Company currently operates its own state-of-the-art greenhouses and
processing facilities in Belvidere, New Jersey and Grand Rapids,
Michigan, and has a network of contract growers, all strategically
located near major markets in the U.S. Its proprietary GreenThumb
2.0 patented (US Nos.: US 11,158,006 B1, US 11,410,249 B2 and US
11,830, 088 B2) software optimizes growing in vertical and
traditional greenhouses while seeking to reduce
pollution-generating food miles. Its proprietary patented (U.S.
Patent No. D1,010,365) Self-watering display is designed to
increase plant shelf life and provide an enhanced in-store plant
display experience. Edible Garden is also a developer of
ingredients and proteins, providing an accessible line of plant and
whey protein powders under the Vitamin Way® and Vitamin Whey®
brands. In addition, the Company offers a line of sustainable food
flavoring products such as Pulp gourmet sauces and chili-based
products. For more information on Pulp products go to
https://www.pulpflavors.com/. For more information on Edible Garden
go to https://ediblegardenag.com/.
Forward-Looking Statements
This press release contains forward-looking
statements, including with respect to the Company’s ability to
improve its financial results, the Company’s growth strategies, the
Company’s ability to expand into new product lines, and its
performance as a public company. The words “aim,” “anticipate,”
“believe,” “design,” “expect,” “objective,” “plan,” “seek,” “will,”
and similar expressions are intended to identify forward-looking
statements. These forward-looking statements are subject to a
number of risks, uncertainties, and assumptions, including market
and other conditions and the Company’s ability to achieve its
growth objectives, and other factors set forth in the Company’s
filings with the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2023 and subsequent quarterly reports on Form 10-Q. Actual
results might differ materially from those explicit or implicit in
the forward-looking statements. The Company undertakes no
obligation to update any such forward-looking statements after the
date hereof to conform to actual results or changes in
expectations, except as required by law.
Investor Contacts:Crescendo
Communications, LLC212-671-1020EDBL@crescendo-ir.com
(tables follow)
EDIBLE GARDEN AG INCORPORATED |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(unaudited, in thousands, except shares) |
|
|
|
|
|
June 30, |
|
December 31, |
|
2024 |
|
2023 |
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
2,188 |
|
|
$ |
510 |
|
Accounts receivable, net |
|
3,080 |
|
|
|
1,249 |
|
Inventory |
|
891 |
|
|
|
678 |
|
Prepaid expenses and other current assets |
|
146 |
|
|
|
210 |
|
|
|
|
|
|
|
Total current assets |
|
6,305 |
|
|
|
2,647 |
|
|
|
|
|
|
|
Property, equipment and leasehold improvements, net |
|
3,499 |
|
|
|
3,893 |
|
Intangible assets, net |
|
45 |
|
|
|
47 |
|
Other assets |
|
34 |
|
|
|
69 |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
9,883 |
|
|
$ |
6,656 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) |
LIABILITIES: |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and other accrued expenses |
$ |
3,719 |
|
|
$ |
2,517 |
|
Short-term debt, net of discounts |
|
4,901 |
|
|
|
387 |
|
|
|
|
|
|
|
Total current liabilities |
|
8,620 |
|
|
|
2,904 |
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
Long-term debt, net of discounts |
|
752 |
|
|
|
4,040 |
|
Long-term lease liabilities |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Total long-term liabilities |
|
752 |
|
|
|
4,040 |
|
|
|
|
|
|
|
Total liabilities |
|
9,372 |
|
|
|
6,944 |
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY (DEFICIT): |
|
|
|
|
|
Common stock ($0.0001 par value, 100,000,000 shares authorized,
3,159,019 and 285,282 shares outstanding as of June 30, 2024 and
December 31, 2023, respectively (1)) |
|
1 |
|
|
|
1 |
|
Series A Convertible Preferred stock ($0.0001 par value, 10,000,000
shares authorized; nil shares outstanding as of June 30, 2024 and
December 31, 2023) |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
36,679 |
|
|
|
29,971 |
|
Accumulated deficit |
|
(36,169 |
) |
|
|
(30,260 |
) |
|
|
|
|
|
|
Total stockholders' equity (deficit) |
|
511 |
|
|
|
(288 |
) |
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) |
$ |
9,883 |
|
|
$ |
6,656 |
|
|
|
|
|
|
|
(1) Adjusted to reflect the stock splits as described in Note
1. |
|
|
|
|
|
|
|
|
|
|
|
EDIBLE GARDEN AG INCORPORATED |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(unaudited, in thousands, except share and per-share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
4,268 |
|
|
$ |
4,221 |
|
|
|
$ |
7,401 |
|
|
$ |
6,676 |
|
Cost of goods sold |
|
2,702 |
|
|
|
3,668 |
|
|
|
|
5,811 |
|
|
|
6,148 |
|
Gross profit |
|
1,566 |
|
|
|
553 |
|
|
|
|
1,590 |
|
|
|
528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
2,748 |
|
|
|
2,380 |
|
|
|
|
6,632 |
|
|
|
5,071 |
|
Loss from operations |
|
(1,182 |
) |
|
|
(1,827 |
) |
|
|
|
(5,042 |
) |
|
|
(4,543 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(419 |
) |
|
|
(44 |
) |
|
|
|
(536 |
) |
|
|
(277 |
) |
Gain (Loss) from extinguishment of debt |
|
(335 |
) |
|
|
- |
|
|
|
|
(335 |
) |
|
|
70 |
|
Employee retention credit |
|
- |
|
|
|
1,233 |
|
|
|
|
- |
|
|
|
1,233 |
|
Other income / (loss) |
|
4 |
|
|
|
- |
|
|
|
|
4 |
|
|
|
- |
|
Total other income (expenses) |
|
(750 |
) |
|
|
1,189 |
|
|
|
|
(867 |
) |
|
|
1,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
$ |
(1,932 |
) |
|
$ |
(638 |
) |
|
|
$ |
(5,909 |
) |
|
$ |
(3,517 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income / (Loss) per common share - basic and diluted (1) |
$ |
(1.21 |
) |
|
$ |
(4.83 |
) |
|
|
$ |
(5.21 |
) |
|
$ |
(35.60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Number of Common Shares Outstanding - Basic and
Diluted (1) |
|
1,590,188 |
|
|
|
132,074 |
|
|
|
|
1,133,921 |
|
|
|
98,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect the stock splits. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edible Garden (NASDAQ:EDBLW)
過去 株価チャート
から 8 2024 まで 9 2024
Edible Garden (NASDAQ:EDBLW)
過去 株価チャート
から 9 2023 まで 9 2024