Edible Garden AG Incorporated (“Edible Garden” or the
“Company”) (Nasdaq: EDBL, EDBLW), 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 month
and full year periods ended December 31, 2022.
Mr. Jim Kras, Chief Executive Officer of Edible
Garden, commented, “We are pleased to report that for the third
consecutive quarter, since last year’s IPO, we achieved
year-over-year growth in top-line revenue. We believe we have
prudently deployed our capital, which has resulted in continued
momentum and growth of the Edible Garden brand.”
“During a point in time when many businesses are
struggling, we continue to expand our market penetration, perform
consistently, and have kept our pricing relatively stable during a
period of rapid inflation. Moreover, we expect to see an increase
in margins once our Heartland Midwest facility is fully
operational. Based on our current trajectory, we believe Edible
Garden will turn cash flow positive later this year.”
“The Company continues to build out our
nationwide distribution network by adding retail partners across
the Northeast, Midwest, Mid-Atlantic, and Southeastern regions of
the country. Additionally, we are diversifying our product
offerings to include what we expect will be higher-margin products
and new product categories. Furthermore, Edible Garden's Zero-Waste
Inspired® mission continues to resonate well with environmentally
conscious consumers, as well as our retail distribution partners,
resulting in a growing demand for our products.”
“Our achievements in the fourth quarter included
the introduction of three new salad kits featuring locally grown,
sustainable, cut lettuce, along with all the ingredients required
to make a complete salad. Additionally, we acquired the Pulp® line
of all-natural, Non-GMO, preservative-free, sustainable gourmet
sauces and chili-based products, which will be available at Whole
Foods Market's Mid-Atlantic and Southeastern retail locations in
the summer of 2023. These fermented sauces are located in the
refrigerated section of the supermarket, typically adjacent to the
produce section, allowing us to leverage Edible Garden’s growing
brand recognition within this new category of products. This is an
important step forward for the Edible Garden brand, allowing us to
offer what we believe will be higher-margin products, with an
extended shelf life. It also provides us with the opportunity for a
further expansion of our distribution network with the addition of
Whole Foods Market. Moreover, we added Morton Williams Supermarkets
to our robust distribution network in the Northeast, which has
begun carrying Edible Garden’s produce and products in all of their
locations in the New York Metropolitan area. In addition, we
deepened our penetration with Gristedes and D’Agostino
supermarkets, and significantly expanded our product placement
within their combined locations in Manhattan, Brooklyn, and
Westchester.”
"Importantly, we are committed to leveraging the
latest technologies to advance our strategy of increasing yields
and maximizing the nutritional value of locally grown produce. The
Company recently entered into a research partnership with the New
Jersey Institute of Technology, the USDA, and the EPA, studying the
impacts of nanobubble technology in a CEA environment. This
EPA-funded partnership has the potential to revolutionize the
industry, providing more nutritious plants with longer shelf lives,
which could greatly benefit Edible Garden's entire product
line.”
Financial results for the three months
ended December 31, 2022
For the fourth quarter ended December 31, 2022,
revenue totaled $3.1 million, an increase of 9.9%, compared to $2.8
million for the three months ended December 31, 2021. The increase
was driven by increased demand from the existing customer base.
Cost of goods sold was $3.0 million for the
three months ended December 31, 2022, compared to $2.8 million for
the three months ended December 31, 2021. The increase was the
result of higher packaging costs due to inflation, higher labor
costs due to the tight labor market, and increases in rates charged
by contract farmers.
Selling, general and administrative expenses
were $3.1 million for the three months ended December 31, 2022,
compared to $1.7 million for the three months ended December 31,
2021. The increase was primarily driven by higher payroll and
compensation expense, as well as other public company expenses that
were not incurred in 2021.
Net loss was $3.0 million, or ($9.13) per share,
for the three months ended December 31, 2022, compared to a net
loss of $2.0 million, or ($12.76) per share, for the three months
ended December 31, 2021.
Financial results for the year ended
December 31, 2022
For the year ended December 31, 2022, revenue
totaled $11.6 million, an increase of 9.9%, compared to $10.5
million for the year ended December 31, 2021. The increase was
driven by higher demand from the existing customer base.
Cost of goods sold was $11.2 million for the
year ended December 31, 2022, compared to $9.9 million for the year
ended December 31, 2021. The increase was the result of higher
packaging costs due to inflation, higher labor costs due to the
tight labor market, and higher costs charged by contract
farmers.
Selling, general and administrative expenses
were $9.4 million for the year ended December 31, 2022, compared to
$5.6 million for the year ended December 31, 2021. The increase was
primarily driven by higher payroll and compensation expense, which
included one-time expenses related to the completion of the
Company’s IPO, as well as other public company expenses that were
not incurred in 2021.
Net loss was $12.5 million, or ($48.68) per
share, for the year ended December 31, 2022, compared to a net loss
of $5.5 million, or ($39.28) per share, for the year ended December
31, 2021. Per share amounts have been adjusted to reflect all stock
splits.
The complete financial results for the year
ended December 31, 2022, are available in the Company’s Annual
Report on Form 10-K, 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 11:00 A.M. Eastern Time to discuss the Company’s financial
results for the fourth quarter and year ended December 31, 2022, as
well as the Company’s corporate progress and other
developments.
The conference call will be available via
telephone by dialing toll-free 888-506-0062 for U.S. callers or +1
973-528-0011 for international callers and using entry code:
396260. A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2914/47876 or on the
investor relations section of the Company’s website at
https://ediblegardenag.com/presentations.
A webcast replay will also be available on the
Company’s Investors section of the website at
https://ediblegardenag.com/presentations through March 22, 2024. A
telephone replay of the call will be available approximately one
hour following the call, through Wednesday, April 5, 2023, and can
be accessed by dialing 877-481-4010 for U.S. callers or +1
919-882-2331 for international callers and entering conference ID:
47876.
ABOUT EDIBLE GARDEN®
Edible Garden AG Incorporated is a leader in
locally grown organic leafy greens and herbs backed by Zero-Waste
Inspired® next-generation farming. Offered at over 4,000 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 software optimizes
growing in vertical and traditional greenhouses while seeking to
reduce pollution-generating food miles. 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 Edible Garden go to
https://ediblegardenag.com/.
Forward-Looking StatementsThis
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 integrate
acquisitions, including by expanding into new product lines, and
its performance as a public company. The words “believe,” “could,”
“expect,” “objective,” “opportunity,” “potential,” “project,”
“seek,” “strategy,” “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. 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
INCORPORATEDCONSOLIDATED BALANCE SHEETS
(in thousands, except shares)
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
110 |
|
|
$ |
31 |
|
Accounts receivable, net |
|
|
1,105 |
|
|
|
767 |
|
Inventory, net |
|
|
586 |
|
|
|
360 |
|
Prepaid expenses and other
current assets |
|
|
62 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
1,863 |
|
|
|
1,191 |
|
|
|
|
|
|
|
|
|
|
Property, equipment and leasehold
improvements, net |
|
|
4,891 |
|
|
|
2,573 |
|
Intangible assets, net |
|
|
50 |
|
|
|
- |
|
Other assets |
|
|
161 |
|
|
|
226 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
6,965 |
|
|
$ |
3,990 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
LIABILITIES: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other accrued expenses |
|
$ |
2,787 |
|
|
$ |
2,880 |
|
Short-term debt |
|
|
2,042 |
|
|
|
4,209 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
4,829 |
|
|
|
7,089 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Long-term debt, net of discounts |
|
|
4,282 |
|
|
|
3,882 |
|
Long-term lease liabilities |
|
|
34 |
|
|
|
126 |
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
4,316 |
|
|
|
4,008 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
9,145 |
|
|
|
11,097 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’
DEFICIT: |
|
|
|
|
|
|
|
|
Common stock ($0.0001 par value, 6,666,667 shares authorized;
356,587 and 166,667 shares outstanding as of December 31, 2022 and
2021, respectively (1)) |
|
|
1 |
|
|
|
1 |
|
Series A Convertible Preferred stock ($0.0001 par value, 10,000,000
shares authorized; nil shares outstanding as of December 31, 2022
and 2021, respectively) |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
17,891 |
|
|
|
511 |
|
Accumulated deficit |
|
|
(20,072 |
) |
|
|
(7,619 |
) |
|
|
|
|
|
|
|
|
|
Total stockholders’ deficit |
|
|
(2,180 |
) |
|
|
(7,107 |
) |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ DEFICIT |
|
$ |
6,965 |
|
|
$ |
3,990 |
|
EDIBLE GARDEN AG
INCORPORATEDCONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except share and
per-share information)
|
|
Years EndedDecember 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
11,552 |
|
|
$ |
10,507 |
|
Cost of goods sold |
|
|
11,188 |
|
|
|
9,859 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
364 |
|
|
|
648 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
9,368 |
|
|
|
5,611 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(9,004 |
) |
|
|
(4,963 |
) |
|
|
|
|
|
|
|
|
|
Other income / (expense) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(2,033 |
) |
|
|
(617 |
) |
Gain (Loss) from extinguishment of debt |
|
|
(826 |
) |
|
|
42 |
|
Other income / (loss) |
|
|
(590 |
) |
|
|
- |
|
Total other income / (expense) |
|
|
(3,449 |
) |
|
|
(575 |
) |
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(12,453 |
) |
|
$ |
(5,538 |
) |
|
|
|
|
|
|
|
|
|
Net Income / (Loss) per common
share - basic and diluted |
|
$ |
(48.68 |
) |
|
$ |
(39.28 |
) |
|
|
|
|
|
|
|
|
|
Weighted-Average Number of Common
Shares Outstanding – Basic and Diluted |
|
|
255,776 |
|
|
|
141,005 |
|
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