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 months
ended March 31, 2023.
Mr. Jim Kras, Chief Executive Officer of Edible
Garden, stated, “The Company's revenue for the quarter experienced
a slight decline compared to the first quarter of 2022 due to
several large orders that shifted into the second quarter, as well
as a deliberate strategy to concentrate our efforts and reallocate
resources towards more profitable customer and partner
relationships. This strategy is working, as we reported improved
gross profit for the first quarter of 2023 over the same period
last year. Moreover, with the launch of Edible Garden Heartland in
April 2023, we will be less dependent on third-party contract
growers and will have much greater internal capacity to support
demand, which should result in a significant improvement in
profitability through the vertical integration of our Midwest
business.”
“In addition, Edible Garden is diversifying our
product lineup to feature what we foresee as higher-margin, growth
products in new product categories, such as our recently acquired
Pulp® line of all-natural, Non-GMO, preservative-free, sustainable
gourmet sauces and chili-based products. These products will be
available in Whole Foods Market's Mid-Atlantic and Southeastern
retail sites beginning in the summer of 2023 and are expected to be
higher-margin products. These products, with an extended shelf
life, are typically located in the supermarket's refrigerated
section, adjacent to the produce department, which allows us to
benefit from Edible Garden's growing brand awareness in this new
product category.”
“At the same time, we have enhanced our
distribution network since the beginning of 2023, incorporating
several new retail partners and strengthening existing
partnerships. In addition to adding Whole Foods Market, Morton
Williams Supermarkets joined our broad distribution network in the
Northeast, and they now carry Edible Garden's produce and products
across all their stores in the New York Metropolitan area.
Furthermore, we have deepened our market reach with Gristedes and
D'Agostino supermarkets, significantly expanding our product
offerings across their various locations in Manhattan, Brooklyn,
and Westchester.”
“In April, on the heels of our previously
announced research collaboration with the New Jersey Institute of
Technology, the USDA, and the EPA, to investigate nanobubble
technology in a CEA setting, we embarked on a funded research
project with Auburn University's Department of Horticulture,
focusing on food safety concerns, and fresh produce contamination,
such as listeria. Participating in cutting-edge research projects,
such as these, enables us to learn from experts and share our own
expertise, ultimately enhancing the safety and quality of our
produce for consumers. We believe that our Zero-Waste Inspired®
mission, and unwavering dedication to sustainable, hydroponic
farming and food safety practices continue to appeal to
environmentally aware consumers and retail distribution partners,
driving increased demand for our products.”
“We are confident that the various initiatives
undertaken by the Company since early 2023 are beginning to
manifest in our financial performance. We achieved record revenue
in April and now project revenue growth in excess of 20% in 2023.We
believe this growth validates that our strategy is working, and
expect to turn cash flow positive on a quarterly basis prior to the
end of the year. During a period when many businesses are feeling
the pressure of escalating inflation and various other struggles,
Edible Garden continues to outperform its competitors, as
demonstrated by our order fulfillment rates across all retailers
and distribution partners, which are consistently higher than
industry averages. Achieving such performance levels, despite the
unparalleled supply chain challenges the industry is encountering,
illustrates Edible Garden's commitment to providing exceptional
service and execution to its customers. By continually exceeding
partner expectations, we believe retailers recognize Edible Garden
as a reliable, trustworthy source of sustainably grown produce, and
are looking for opportunities to initiate, or strengthen,
distribution relationships with the Company.”
Financial results for the three months
ended March 31, 2023
For the quarter ended March 31, 2023, revenue
totaled $2.5 million, compared to $2.7 million for the three months
ended March 31, 2022.
Cost of goods sold was $2.5 million for the
three months ended March 31, 2023, compared to $2.8 million for the
three months ended March 31, 2022. The decrease was primarily due
to the decrease in revenue.
Selling, general and administrative expenses
were $2.7 million for the three months ended March 31, 2023,
compared to $2.0 million for the three months ended March 31, 2022.
The increase was primarily driven by the costs incurred as it
relates to the ramping up and operation of Edible Garden Heartland,
higher payroll and compensation expense, as well as other public
company expenses that were not incurred in 2022, partially offset
by a decrease in outside consulting services needed to prepare the
Company for the initial public offering.
Net loss was $2.9 million, or ($2.21) per share,
for the three months ended March 31, 2023, compared to a net loss
of $2.6 million, or ($15.40) per share, for the three months ended
March 31, 2022.
As of March 31, 2023, the Company had cash and
cash equivalents of $3.9 million, which the Company believes
provides it sufficient liquidity to execute on its business plan
and achieve profitability.
The complete financial results for the quarter
ended March 31, 2023, are available in the Company’s Form 10-Q,
which has been filed with the Securities and Exchange Commission
and is 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 March 31, 2023, 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:
948346. A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2914/48315 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/. A telephone replay of
the call will be available approximately one hour following the
call, through Monday, May 29, 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: 48315.
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 Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks, uncertainties and
assumptions that are difficult to predict including with respect to
the Company’s growth strategies, the Company’s financial
performance, the Company’s expansion into new distribution
networks, the Company’s dependence on growers, and performance as a
public company. The words “believe,” “expect,” “foresee,”
“objective,” “project,” “seek,” “should,” “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, the Company’s ability to achieve its growth
objectives, and other factors set forth in the Company’s filings
with the Securities and Exchange Act Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2022. Actual results might differ materially from those
explicit or implicit in the forward-looking statements. You should
not rely upon forward-looking statements as predictions of future
events. 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 INCORPORATEDCONDENSED
CONSOLIDATED BALANCE SHEETS(in thousands, except
shares) |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
Current
assets: |
|
|
|
|
|
|
Cash |
|
$ |
3,948 |
|
|
$ |
110 |
|
Accounts receivable, net |
|
|
890 |
|
|
|
1,105 |
|
Inventory |
|
|
1,022 |
|
|
|
586 |
|
Prepaid expenses and other current assets |
|
|
159 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
6,019 |
|
|
|
1,863 |
|
|
|
|
|
|
|
|
|
|
Property, equipment and leasehold improvements, net |
|
|
5,069 |
|
|
|
4,891 |
|
Intangible assets, net |
|
|
49 |
|
|
|
50 |
|
Other
assets |
|
|
139 |
|
|
|
161 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
11,276 |
|
|
$ |
6,965 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
LIABILITIES: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other accrued expenses |
|
$ |
2,275 |
|
|
$ |
2,787 |
|
Short-term debt |
|
|
373 |
|
|
|
2,042 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
2,648 |
|
|
|
4,829 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Long-term debt, net of discounts |
|
|
4,324 |
|
|
|
4,282 |
|
Long-term lease liabilities |
|
|
9 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
4,333 |
|
|
|
4,316 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
6,981 |
|
|
|
9,145 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIT): |
|
|
|
|
|
|
|
|
Common stock ($0.0001 par value, 6,666,667 shares authorized,
1,989,645 and 362,716 shares outstanding as of March 31, 2023 and
December 31, 2022, respectively) |
|
|
- |
|
|
|
- |
|
Series A Convertible Preferred stock ($0.0001 par value, 10,000,000
shares authorized; nil shares outstanding as of March 31, 2023 and
December 31, 2022) |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
27,246 |
|
|
|
17,892 |
|
Accumulated deficit |
|
|
(22,951 |
) |
|
|
(20,072 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity (deficit) |
|
|
4,295 |
|
|
|
(2,180 |
) |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
11,276 |
|
|
$ |
6,965 |
|
EDIBLE GARDEN AG
INCORPORATED UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands, except
share and per-share information) |
|
Three Months Ended March 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,455 |
|
|
$ |
2,737 |
|
|
Cost of
goods sold |
|
|
2,479 |
|
|
|
2,832 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
(24 |
) |
|
|
(95 |
) |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
2,691 |
|
|
|
2,008 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations |
|
|
(2,715 |
) |
|
|
(2,103 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other
expenses |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(234 |
) |
|
|
(503 |
) |
|
Gain from extinguishment of debt |
|
|
70 |
|
|
|
- |
|
|
Total other expenses |
|
|
(164 |
) |
|
|
(503 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,879 |
) |
|
$ |
(2,606 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
Income / (Loss) per common share - basic and diluted |
|
$ |
(2.21 |
) |
|
$ |
(15.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Number of Common Shares Outstanding – Basic and
Diluted |
|
|
1,302,933 |
|
|
|
169,238 |
|
|
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