Sow Good Inc. (Nasdaq: SOWG) (“Sow Good” or “the Company”), a
trailblazer in the freeze-dried dried candy and treat industry, is
reporting financial and operating results for the third quarter
ended September 30, 2024.
“We are pleased to announce that our sixth freeze dryer is
operational and that we were able to resume shipments in October
following a third quarter pause due to quality concerns amid
extreme summer heat,” said Claudia Goldfarb, CEO of Sow Good.
“Unfortunately, some melted products reached shelves, impacting
short-term sales velocity. We are working closely with our retail
partners to remove these items and restore the growth we saw
earlier in the year. Moving forward, we are implementing
temperature-controlled distribution to prevent similar issues next
summer.
“As we look ahead, we’ve expanded our sales team to pursue the
opportunities we have in the over 100,000 U.S. stores that could
carry our treats but currently do not. According to IRI data, we
are only in about 10% of locations that traditionally carry candy,
giving us significant room for growth. While large CPG companies
are entering the freeze-dried candy space, leveraging their
significant market power and budgets to minimize competition, we
see this as a validation of the category that we helped establish
and a testament to our product’s strength. Although we anticipate
some short-term impact on certain customer relationships and sales,
we remain confident in our brand’s position.”
Third Quarter 2024
Highlights
- Revenue in the third quarter of 2024 was $3.6 million compared
to $5.0 million for the same period in 2023. The decrease was
largely due to the Company’s decision to delay the majority of
product shipments as the extreme heat during the period was
negatively impacting product quality. In addition, revenue was
affected by an increase in promotional activity and customer
allowances.
- Gross profit in the third quarter of 2024 was $0.6 million
compared to $1.3 million for the same period in 2023. Gross margin
was 16.0% in the third quarter of 2024 compared to 27.0% in the
prior year period. The decline in margin was primarily due to
higher costs of goods sold as a percentage of revenue due to higher
costs related to the company’s new facility and a lower production
yield.
- Operating expenses in the third quarter of 2024 were $3.8
million compared to $1.0 million for the same period in 2023,
primarily due to strategic investments in brand expansion and
infrastructure growth as well as higher salaries and benefits
expense. The Company allocated more resources toward trade shows
and branding and marketing efforts, aiming to strengthen its market
presence and support the expansion into new retail and distribution
channels. Occupancy costs also increased as the Company
transitioned to a 320,000-square-foot facility to accommodate
rising demand.
- Net loss in the third quarter of 2024 was $3.4 million, or
$(0.33) per diluted share, compared to net income of $0.3 million,
or $0.04 per diluted share, for the same period in 2023. The
decline reflects the lower level of gross profit generated during
the quarter and increased operating expenses during the 2024
period.
- Adjusted EBITDA (a non-GAAP financial measure defined and
reconciled herein) in the third quarter of 2024 was ($1.9) million
compared to $0.6 million for the same period in 2023. For a
reconciliation of Adjusted EBITDA to the nearest comparable GAAP
metric, net income, please see the tables below.
- Cash and cash equivalents were $6.9 million at September 30,
2024, compared to $2.4 million at December 31, 2023.
Year to Date 2024
Highlights
- Revenue for the nine months ending September 30, 2024,
increased significantly to $30.6 million compared to $6.5 million
in 2023. The substantial revenue growth underscores the
effectiveness of the Company’s retail distribution outlet expansion
strategy as well as price improvements.
- Gross profit for the nine months ending September 30, 2024,
increased significantly to $14.2 million compared to $(0.1) million
in 2023. Gross margin was 46.4% in the first nine months of 2024
compared to negative 2.0% in the prior year period. This was driven
by strong revenue growth combined with raw material cost
improvements.
- Operating expenses for the nine months ending September 30,
2024, increased to $11.6 million from $2.9 million in 2023 as the
Company scaled operations to support the strong revenue growth
referenced above.
Ira Goldfarb, Executive Chairman of Sow Good, added: “We remain
committed to our growth strategy, driven by our proprietary
technology and focus on quality. Our retail partner roster is
expanding with launches at World Market, Cracker Barrel, Kroger,
Albertsons, and Five Below, along with new prospects in
international markets, regional and convenience stores, and
non-traditional channels.”
Conference Call
Sow Good will conduct a conference call today at
10:00 A.M. Eastern time to discuss its results for the third
quarter ended September 30, 2024.
Date: Thursday, November 14, 2024Time: 10:00 a.m. Eastern
timeRegistration Link:
https://register.vevent.com/register/BI42dee1790eee4c30ae622dda21abc466
To access the call by phone, please register via the
registration link above and you will be provided with dial-in
instructions and details. If you have any difficulty connecting
with the conference call, please contact Gateway Group at
1-949-574-3860.
The conference call will be broadcast live and available for
replay here and on the Company’s website at www.sowginc.com.
About Sow Good Inc.
Sow Good Inc. is a trailblazing U.S.-based freeze dried candy
and snack manufacturer dedicated to providing consumers with
innovative and explosively flavorful freeze dried treats. Sow Good
has harnessed the power of our proprietary freeze-drying technology
and product-specialized manufacturing facility to transform
traditional candy into a novel and exciting everyday
confectionaries subcategory that we call freeze dried candy. Sow
Good is dedicated to building a company that creates good
experiences for our customers and growth for our investors and
employees through our core pillars: (i) innovation; (ii)
scalability; (iii) manufacturing excellence; (iv) meaningful
employment opportunities; and (v) food quality standards.
Non-GAAP Financial Measures
This press release contains “non-GAAP financial
measures” that are financial measures that either exclude or
include amounts that are not excluded or included in the most
directly comparable measures calculated and presented in accordance
with GAAP. Specifically, we make use of the non-GAAP financial
measure “Adjusted EBITDA.” Adjusted EBITDA has been presented in
this press release as a supplemental measure of financial
performance that is not required by, or presented in accordance
with, GAAP. Adjusted EBITDA is a supplemental measure of our
performance that is not required by or presented in accordance with
GAAP. We define Adjusted EBITDA as net income (loss) before
depreciation, interest expense, net and income tax benefit,
adjusted to eliminate loss on early extinguishment of debt and
stock-based compensation. The most directly comparable GAAP measure
is net income (loss). Adjusted EBITDA is not recognized terms under
GAAP and should not be considered as an alternative to net income
(loss) as a measure of financial performance or cash provided by
operating activities as a measure of liquidity, or any other
performance measure derived in accordance with GAAP. In addition,
in evaluating Adjusted EBITDA, you should be aware that in the
future, we may incur expenses similar to the adjustments in the
presentation of Adjusted EBITDA. The presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items.
Because not all companies use identical calculations, the
presentations of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies and can differ
significantly from company to company.
We present this non-GAAP measure because we
believe it assists investors and analysts in comparing our
operating performance across reporting periods on a consistent
basis by excluding items that we do not believe are indicative of
our core operating performance. Management believes Adjusted EBITDA
is useful to investors in highlighting trends in our operating
performance, while other measures can differ significantly
depending on long-term strategic decisions regarding capital
structure, the tax jurisdictions in which we operate, and capital
investments. Management uses Adjusted EBITDA to supplement GAAP
measures of performance in the evaluation of the effectiveness of
our business strategies, to make budgeting decisions, to establish
discretionary annual incentive compensation, and to compare our
performance against that of other peer companies using similar
measures. Management supplements GAAP results with non-GAAP
financial measures to provide a more complete understanding of the
factors and trends affecting the business than GAAP results alone
provide.
There are a number of limitations related to the use of Adjusted
EBITDA rather than net income (loss), which is the most directly
comparable financial measure calculated and presented in accordance
with GAAP. Some of these limitations are:
- Adjusted EBITDA excludes stock-based compensation expense as it
has recently been, and will continue to be for the foreseeable
future, a significant recurring non-cash expense for our
business;
- Adjusted EBITDA excludes depreciation and amortization expense
and, although this is a non-cash expense, the assets being
depreciated and amortized may have to be replaced in the
future;
- Adjusted EBITDA does not reflect the cash requirements
necessary to service interest on our debt which affects the cash
available to us;
- Adjusted EBITDA does not reflect the monies earned from our
investments since it does not reflect our core operations;
- Adjusted EBITDA does not reflect change in fair value of
financial instruments since it does not reflect our core operations
and is a non-cash expense;
- Adjusted EBITDA does not reflect income tax expense that
affects cash available to us; and
- the expenses and other items that we exclude in our
calculations of Adjusted EBITDA may differ from the expenses and
other items, if any, that other companies may exclude from Adjusted
EBITDA when they report their operating results.
In addition, other companies may use other measures to evaluate
their performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison.
Forward-Looking Statements
This press release contains forward-looking
statements. Statements other than statements of historical facts
contained in this press release may be forward-looking statements.
Statements regarding our future results of operations and financial
position, business strategy and plans and objectives of management
for future operations, including, among others, statements
regarding the offering, expected growth, and future capital
expenditures, are forward-looking statements. In some cases, you
can identify forward-looking statements by terms such as
“estimate,” “project,” “predict,” “believe,” “expect,”
“anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,”
“should,” “may” or other words and similar expressions that convey
the uncertainty of future events or outcomes. Forward-looking
statements contained in this press release include, but are not
limited to statements about: (a) our ability to compete
successfully in the highly competitive industry in which we
operate; (b) our ability to maintain and enhance our brand; (c) our
ability to successfully implement our growth strategies related to
launching new products; (d) the effectiveness and efficiency of our
marketing programs; (e) our ability to manage current operations
and to manage future growth effectively; (f) our future operating
performance; (g) our ability to attract new customers or retain
existing customers; (h) our ability to protect and maintain our
intellectual property; (i) the government regulations to which we
are subject; (j) our ability to maintain adequate liquidity to meet
our financial obligations; (k) failure to obtain sufficient sales
and distributions for our freeze dried product offerings; (l) the
potential for supply chain disruption and delay; (m) the potential
for transportation, labor, and raw material cost increases or
disruptions (including as a result of seasonal factors); and (n)
such other risks and uncertainties described more fully in
documents filed with or furnished to the Securities and Exchange
Commission, including the risk factors discussed in our Annual
Report on Form 10-K for the year ended December 31, 2023 and our
most recent Quarterly Reports on Form 10-Q. All information
provided in this release is as of the date hereof and we undertakes
no duty to update this information except as required by law.
Sow Good Investor Inquiries:Cody SlachGateway
Group, Inc.1-949-574-3860SOWG@gateway-grp.com
Sow Good Media Inquiries:Sow
Good, Inc.1-214-623-6055pr@sowginc.com
SOW GOOD INC.CONDENSED BALANCE
SHEETS |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,946,387 |
|
|
$ |
2,410,037 |
|
Accounts receivable, net |
|
|
1,232,958 |
|
|
|
2,578,259 |
|
Inventory |
|
|
19,434,041 |
|
|
|
4,123,246 |
|
Prepaid inventory |
|
|
572,098 |
|
|
|
563,131 |
|
Prepaid expenses |
|
|
202,430 |
|
|
|
563,164 |
|
Total current assets |
|
|
28,387,914 |
|
|
|
10,237,837 |
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
Construction in progress |
|
|
2,848,191 |
|
|
|
1,522,465 |
|
Property and equipment |
|
|
9,430,983 |
|
|
|
6,287,422 |
|
Less accumulated depreciation |
|
|
(1,550,550 |
) |
|
|
(967,602 |
) |
Total property and equipment, net |
|
|
10,728,624 |
|
|
|
6,842,285 |
|
|
|
|
|
|
|
|
Security deposit |
|
|
1,357,956 |
|
|
|
346,616 |
|
Right-of-use asset |
|
|
17,193,154 |
|
|
|
4,061,820 |
|
Total assets |
|
$ |
57,667,648 |
|
|
$ |
21,488,558 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,301,098 |
|
|
$ |
853,535 |
|
Accrued interest |
|
|
398,617 |
|
|
|
860,693 |
|
Accrued expenses |
|
|
1,839,323 |
|
|
|
648,947 |
|
Income tax payable - current |
|
|
65,603 |
|
|
|
- |
|
Current portion of operating lease liabilities |
|
|
2,140,084 |
|
|
|
550,941 |
|
Current maturities of notes payable, related parties, net of
$447,236 and $431,854 of debt discounts at September 30, 2024 and
December 31, 2023, respectively |
|
|
2,731,901 |
|
|
|
2,543,146 |
|
Current maturities of notes payable, net of $26,116 and $86,062 of
debt discounts as of September 30, 2024 and December 31, 2023,
respectively |
|
|
213,134 |
|
|
|
313,938 |
|
Total current liabilities |
|
|
8,689,760 |
|
|
|
5,771,200 |
|
|
|
|
|
|
|
|
Operating lease
liabilities |
|
|
16,005,280 |
|
|
|
3,671,729 |
|
Notes payable, related
parties, net of $0 and $1,448,858 of debt discounts as of September
30, 2024 and December 31, 2023, respectively |
|
|
- |
|
|
|
4,171,142 |
|
Notes payable, net of $0 and
$135,962 of debt discounts as of September 30, 2024 and December
31, 2023, respectively |
|
|
150,000 |
|
|
|
594,038 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
24,845,040 |
|
|
|
14,208,109 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no
shares issued and outstanding |
|
|
- |
|
|
- |
|
Common stock, $0.001 par value, 500,000,000 shares authorized,
10,245,388 and 6,029,371 shares issued and outstanding as of
September 30, 2024 and December 31, 2023 |
|
|
10,245 |
|
|
|
6,029 |
|
Additional paid-in capital |
|
|
91,086,537 |
|
|
|
66,014,415 |
|
Accumulated deficit |
|
|
(58,274,174 |
) |
|
|
(58,739,995 |
) |
Total stockholders' equity |
|
|
32,822,608 |
|
|
|
7,280,449 |
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
57,667,648 |
|
|
$ |
21,488,558 |
|
SOW GOOD INC.CONDENSED STATEMENTS OF
OPERATIONS |
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues |
|
$ |
3,554,157 |
|
|
$ |
5,034,203 |
|
|
$ |
30,608,526 |
|
|
$ |
6,548,479 |
|
Cost of goods sold |
|
|
2,998,171 |
|
|
|
3,698,962 |
|
|
|
16,415,970 |
|
|
|
6,679,224 |
|
Gross profit |
|
|
555,986 |
|
|
|
1,335,241 |
|
|
|
14,192,556 |
|
|
|
(130,745 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
1,875,908 |
|
|
|
618,907 |
|
|
|
6,350,038 |
|
|
|
1,450,103 |
|
Professional services |
|
|
320,289 |
|
|
|
294,720 |
|
|
|
1,382,393 |
|
|
|
404,256 |
|
Other general and administrative expenses |
|
|
1,607,844 |
|
|
|
74,728 |
|
|
|
3,879,350 |
|
|
|
959,218 |
|
Total general and administrative expenses |
|
|
3,804,041 |
|
|
|
988,355 |
|
|
|
11,611,781 |
|
|
|
2,813,577 |
|
Depreciation and amortization |
|
|
8,583 |
|
|
|
9,261 |
|
|
|
23,060 |
|
|
|
94,638 |
|
Total operating expenses |
|
|
3,812,624 |
|
|
|
997,616 |
|
|
|
11,634,841 |
|
|
|
2,908,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(loss) |
|
|
(3,256,638 |
) |
|
|
337,625 |
|
|
|
2,557,715 |
|
|
|
(3,038,960 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
39,509 |
|
|
|
- |
|
|
|
43,639 |
|
|
|
- |
|
Interest expense |
|
|
(225,095 |
) |
|
|
(3,641 |
) |
|
|
(1,243,428 |
) |
|
|
(1,349,486 |
) |
Loss on early extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
(696,502 |
) |
|
|
- |
|
Total other income (expense) |
|
|
(185,586 |
) |
|
|
(3,641 |
) |
|
|
(1,896,291 |
) |
|
|
(1,349,486 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
tax |
|
|
(3,442,224 |
) |
|
|
333,984 |
|
|
|
661,424 |
|
|
|
(4,388,446 |
) |
Benefit (provision) for income
tax |
|
|
62,315 |
|
|
|
- |
|
|
|
(195,603 |
) |
|
|
- |
|
Net income (loss) |
|
$ |
(3,379,909 |
) |
|
$ |
333,984 |
|
|
$ |
465,821 |
|
|
$ |
(4,388,446 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic |
|
|
10,245,388 |
|
|
|
5,123,735 |
|
|
|
8,651,223 |
|
|
|
4,942,182 |
|
Net income (loss) per common
share - basic |
|
$ |
(0.33 |
) |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted |
|
|
10,245,388 |
|
|
|
8,066,577 |
|
|
|
9,613,553 |
|
|
|
4,942,182 |
|
Net income (loss) per common
share - diluted |
|
$ |
(0.33 |
) |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
(0.89 |
) |
SOW GOOD INC.STATEMENTS OF CHANGES IN
STOCKHOLDERS' EQUITY |
|
|
|
For the Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
Balance, June 30, 2024 |
|
|
10,245,388 |
|
|
|
10,245 |
|
|
|
89,899,666 |
|
|
|
(54,894,265 |
) |
|
|
35,015,646 |
|
Common stock issued in public
offering, net of offering costs |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
- |
|
Common stock issued in private
placement offering |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
- |
|
Common stock issued to
directors for services |
|
– |
|
|
– |
|
|
– |
|
|
|
- |
|
|
|
- |
|
Proceeds from exercise of
stock options and warrants |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
- |
|
Common stock options granted
to directors and advisors for services |
|
– |
|
|
– |
|
|
|
29,284 |
|
|
– |
|
|
|
29,284 |
|
Common stock options granted
to officers and employees for services |
|
– |
|
|
– |
|
|
|
1,157,587 |
|
|
– |
|
|
|
1,157,587 |
|
Net loss for the three months
ended September 30, 2024 |
|
– |
|
|
– |
|
|
– |
|
|
|
(3,379,909 |
) |
|
|
(3,379,909 |
) |
Balance, September 30, 2024 |
|
|
10,245,388 |
|
|
$ |
10,245 |
|
|
$ |
91,086,537 |
|
|
$ |
(58,274,174 |
) |
|
$ |
32,822,608 |
|
|
|
For the Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
Balance, June 30, 2023 |
|
|
4,868,083 |
|
|
$ |
4,868 |
|
|
$ |
59,117,367 |
|
|
$ |
(60,401,992 |
) |
|
$ |
(1,279,757 |
) |
Common stock issued in private
placement offering |
|
|
735,000 |
|
|
|
74 |
|
|
|
3,674,926 |
|
|
– |
|
|
|
3,675,000 |
|
Common stock issued to
directors for services |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
- |
|
Common stock options granted
to directors and advisors for services |
|
– |
|
|
– |
|
|
|
29,296 |
|
|
– |
|
|
|
29,296 |
|
Common stock options granted
to officers and employees for services |
|
– |
|
|
– |
|
|
|
111,463 |
|
|
– |
|
|
|
111,463 |
|
Net income for the three
months ended September 30, 2023 |
|
– |
|
|
– |
|
|
– |
|
|
|
333,984 |
|
|
|
333,984 |
|
Balance, September 30, 2023 |
|
|
5,603,083 |
|
|
$ |
4,942 |
|
|
$ |
62,933,052 |
|
|
$ |
(60,068,008 |
) |
|
$ |
2,869,986 |
|
|
|
For the Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
Balance, December 31, 2023 |
|
|
6,029,371 |
|
|
$ |
6,029 |
|
|
$ |
66,014,415 |
|
|
$ |
(58,739,995 |
) |
|
$ |
7,280,449 |
|
Common stock issued in public
offering, net of offering costs |
|
|
1,380,000 |
|
|
|
1,380 |
|
|
|
11,973,596 |
|
|
– |
|
|
|
11,974,976 |
|
Common stock issued in private
placement offering |
|
|
515,597 |
|
|
|
516 |
|
|
|
3,737,484 |
|
|
– |
|
|
|
3,738,000 |
|
Common stock issued to
directors for services |
|
|
31,211 |
|
|
|
32 |
|
|
|
295,616 |
|
|
– |
|
|
|
295,648 |
|
Proceeds from exercise of
stock options and warrants |
|
|
2,289,209 |
|
|
|
2,288 |
|
|
|
5,670,680 |
|
|
– |
|
|
|
5,672,968 |
|
Common stock options granted
to directors and advisors for services |
|
– |
|
|
– |
|
|
|
86,892 |
|
|
– |
|
|
|
86,892 |
|
Common stock options granted
to officers and employees for services |
|
– |
|
|
– |
|
|
|
3,307,854 |
|
|
– |
|
|
|
3,307,854 |
|
Net income for the nine months
ended September 30, 2024 |
|
– |
|
|
– |
|
|
– |
|
|
|
465,821 |
|
|
|
465,821 |
|
Balance, September 30, 2024 |
|
|
10,245,388 |
|
|
$ |
10,245 |
|
|
$ |
91,086,537 |
|
|
$ |
(58,274,174 |
) |
|
$ |
32,822,608 |
|
|
|
For the Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
Balance, December 31, 2022 |
|
|
4,847,384 |
|
|
$ |
4,847 |
|
|
$ |
58,485,602 |
|
|
$ |
(55,679,562 |
) |
|
$ |
2,810,887 |
|
Common stock issued in private
placement offering |
|
|
735,000 |
|
|
|
74 |
|
|
|
3,674,926 |
|
|
– |
|
|
|
3,675,000 |
|
Common stock issued to
directors for services |
|
|
20,699 |
|
|
|
21 |
|
|
|
125,208 |
|
|
– |
|
|
|
125,229 |
|
Common stock warrants granted
to related party note holders pursuant to debt financing |
|
– |
|
|
– |
|
|
|
197,198 |
|
|
– |
|
|
|
197,198 |
|
Common stock warrants granted
to note holders pursuant to debt financing |
|
– |
|
|
– |
|
|
|
50,682 |
|
|
– |
|
|
|
50,682 |
|
Common stock options granted
to directors and advisors for services |
|
– |
|
|
– |
|
|
|
91,990 |
|
|
– |
|
|
|
91,990 |
|
Common stock options granted
to officers and employees for services |
|
– |
|
|
– |
|
|
|
307,446 |
|
|
– |
|
|
|
307,446 |
|
Net loss for the three months
ended September 30, 2023 |
|
– |
|
|
– |
|
|
– |
|
|
|
(4,388,446 |
) |
|
|
(4,388,446 |
) |
Balance, September 30, 2023 |
|
|
5,603,083 |
|
|
$ |
4,942 |
|
|
$ |
62,933,052 |
|
|
$ |
(60,068,008 |
) |
|
$ |
2,869,986 |
|
SOW GOOD INC.CONDENSED STATEMENTS OF CASH
FLOWS |
|
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income (loss) |
|
$ |
465,821 |
|
|
$ |
(4,388,446 |
) |
Adjustments to reconcile net income (loss) to net cash used in
operating activities: |
|
|
|
|
|
|
Bad debts expense |
|
|
176,032 |
|
|
|
- |
|
Depreciation and amortization |
|
|
582,948 |
|
|
|
306,092 |
|
Non-cash amortization of right-of-use asset and liability |
|
|
791,360 |
|
|
|
15,245 |
|
Impairment of obsolete inventory |
|
|
- |
|
|
|
2,075,080 |
|
Common stock issued to directors for services |
|
|
295,648 |
|
|
|
125,229 |
|
Amortization of stock options |
|
|
3,394,746 |
|
|
|
399,436 |
|
Amortization of stock warrants issued as a debt discount |
|
|
932,883 |
|
|
|
900,228 |
|
Loss on early extinguishment of debt |
|
|
696,502 |
|
|
|
- |
|
Decrease (increase) in current assets: |
|
|
|
|
|
|
Accounts receivable |
|
|
1,169,269 |
|
|
|
(1,197,608 |
) |
Prepaid expenses |
|
|
360,734 |
|
|
|
(10,760 |
) |
Inventory |
|
|
(15,319,762 |
) |
|
|
(2,342,871 |
) |
Security deposits |
|
|
(1,011,340 |
) |
|
|
(12,309 |
) |
Increase (decrease) in current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
447,563 |
|
|
|
257,091 |
|
Income tax payable |
|
|
65,603 |
|
|
|
- |
|
Accrued interest |
|
|
(363,326 |
) |
|
|
419,807 |
|
Accrued expenses |
|
|
1,190,375 |
|
|
|
125,270 |
|
Net cash
provided by used in operating activities |
|
|
(6,124,944 |
) |
|
|
(3,328,516 |
) |
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(3,143,561 |
) |
|
|
(1,326,276 |
) |
Cash paid for construction in progress |
|
|
(1,325,726 |
) |
|
|
- |
|
Net cash
used in investing activities |
|
|
(4,469,287 |
) |
|
|
(1,326,276 |
) |
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from common stock offerings, net of offering costs of
$859,024 |
|
|
15,712,976 |
|
|
|
3,675,000 |
|
Proceeds from the exercise of warrants and options |
|
|
373,855 |
|
|
|
- |
|
Proceeds received from notes payable, related parties |
|
|
- |
|
|
|
2,400,000 |
|
Proceeds received from notes payable |
|
|
- |
|
|
|
400,000 |
|
Repayments of borrowings |
|
|
(956,250 |
) |
|
|
- |
|
Net cash
provided by financing activities |
|
|
15,130,581 |
|
|
|
6,475,000 |
|
|
|
|
|
|
|
|
NET
CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
4,536,350 |
|
|
|
1,820,208 |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
2,410,037 |
|
|
|
276,464 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
6,946,387 |
|
|
$ |
2,096,672 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
Interest paid |
|
$ |
667,293 |
|
|
$ |
27,878 |
|
Interest received |
|
$ |
43,639 |
|
|
|
- |
|
Income taxes paid |
|
$ |
130,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
NON-CASH
INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
Non-cash exercise of warrants |
|
$ |
5,299,113 |
|
|
|
- |
|
Repayment of interest |
|
$ |
(98,750 |
) |
|
|
- |
|
Repayments of borrowings |
|
$ |
(5,200,363 |
) |
|
|
- |
|
Reclassification of construction in progress to property and
equipment |
|
$ |
2,864,649 |
|
|
$ |
1,766,110 |
|
Value of debt discounts attributable to warrants |
|
$ |
- |
|
|
$ |
247,880 |
|
SOW GOOD INC.RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(3,379,909 |
) |
|
$ |
333,984 |
|
|
$ |
465,821 |
|
|
$ |
(4,388,446 |
) |
Depreciation and
amortization |
|
|
216,164 |
|
|
|
150,676 |
|
|
|
582,948 |
|
|
|
306,092 |
|
Interest expense, net |
|
|
185,586 |
|
|
|
3,641 |
|
|
|
1,199,789 |
|
|
|
1,349,486 |
|
Provision for income tax |
|
|
(62,315 |
) |
|
|
- |
|
|
|
195,603 |
|
|
|
- |
|
EBITDA |
|
|
(3,040,474 |
) |
|
|
488,301 |
|
|
|
2,444,161 |
|
|
|
(2,732,868 |
) |
Share-based payments |
|
|
1,186,871 |
|
|
|
140,759 |
|
|
|
3,690,394 |
|
|
|
524,665 |
|
Loss on early extinguishment
of debt |
|
|
- |
|
|
|
- |
|
|
|
696,502 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
(1,853,603 |
) |
|
$ |
629,060 |
|
|
$ |
6,831,057 |
|
|
$ |
(2,208,203 |
) |
Sow Good (NASDAQ:SOWG)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Sow Good (NASDAQ:SOWG)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024