Company Summary: Edible Garden AG Incorporated

Overview

• Business Model: Controlled Environment Agriculture (CEA) company specializing in sustainable, locally-grown organic herbs and produce.
• Tech & Techniques:
  • Combines traditional greenhouse farming with advanced technology.
  • Grows herbs using hydroponic systems (soil-free) and vertical farming.
  • Uses traditional greenhouses such as glass greenhouses and vertical greenhouses.
  • Implements "closed loop" water recycling systems to conserve resources and reduce contamination.
  • Leverages proprietary software called GreenThumb for plant tracking, supply chain management, demand forecasting, inventory control, and quality assurance.

Production & Facilities

• Operates primarily in Northeast, Midwest, and Mid-Atlantic U.S. via:
  • Flagship Facility: 5 acres (200,000 sq ft.) greenhouse in Belvidere, NJ, operational since 2015.
  • Edible Garden Heartland: 5-acre greenhouse in Grand Rapids, MI, acquired in August 2022, mainly growing herbs.
  • Uses over 480,000 sq ft. of capacity from contracted greenhouses.
• Focuses on year-round consistent quality, reducing variability of outdoor farming.
• Produces over 106 SKUs including:
  • Live herbs (e.g., basil, cilantro, mint, parsley, rosemary, oregano, thyme, etc.)
  • Cut herbs in clamshell packaging
  • Hydroponic basil
  • Nutrition and protein powders (Vitamin Whey, Kick Sports Nutrition)
  • Fermented hot sauces, chili oils, pickles, flavor enhancers
• Packaging innovations reduce plastics, extend shelf life, and minimize food waste.

Market & Customers

• Customers: Over 5,000 supermarkets and food distributors across the U.S.
  • Major retail partners include Walmart, Target, Meijer, Whole Foods, Hannaford, PriceSmart, ShopRite, D'Agostino's, H-Mart, and others.
  • Specific focus on regional and national chains.
• Major Customer Concentration:
  • In 2024, 82.0% of revenue from 4 customers; 44% from a single customer.
  • During 2024, 87.5% of gross receivables due from 5 customers; 45.6% from one customer.
• Supply Agreement:
  • Signed with Meijer (2024-2026) for herbs and potted herbs, with provisions for annual price renegotiation and fixture installation payments.

Financial Snapshot (2024)

• Revenue: Approximately $13.86 million (down 1.4% from 2023's $14.05 million).
  • Revenue decline due largely to strategic exit from low-margin lettuce and floral products.
  • Growth in core herb business offset declines in other categories like vitamins.
• Net Loss: Approximately $11.05 million (up from $10.19 million in 2023).
• Gross Profit: $2.31 million, representing 16.7% of sales (significant improvement from 2023's 5.9%).
• Operating Expenses: $11.59 million, driven by legal, audit, accounting fees, and severance expenses.
• Cash & Liquidity:
  • $3.53 million in cash at year-end 2024 (up from $510k in 2023).
  • Used $8.52 million in operating activities.
  • Total debt was $2.56 million (down from $4.45 million in 2023).
• Employees: 99 total (98 full-time).

Strategy & Growth

• Focus on expanding greenhouse capacity through organic growth and acquisitions.
• Leverages proprietary technology (GreenThumb) for operational efficiency, traceability, demand forecasting, and quality control.
• Growing product offerings include shelf-stable nutraceuticals, sauces, pickles, and flavor enhancers to diversify revenue.
• Aims to reduce environmental impact via resource recycling, LED lighting, and sustainable packaging.

Recent Key Developments

• Reverse stock split: 1-for-25 (March 2025).
• Listing Status: Faced delisting threat from Nasdaq but granted extension until March 31, 2025, contingent on milestones.
• Acquisition: Acquired Edible Garden Corp. from Unrivaled Brands, Inc. (former parent company) in October 2024.
• Partnerships & Financing:
  • Entered into multiple public offerings and at-the-market sales agreements.
  • Secured significant financing via debt (Cedar Agreements) and equity issuance.
  • Proposal to acquire Narayan Group (Slovenia-based producer) progressing, with advances made and a promissory note issued.

Key Focus

• Continue expanding controlled greenhouses in strategic locations.
• Diversify product line into shelf-stable consumer products.
• Maintain sustainability, traceability, and quality as core differentiators.
• Manage customer concentration risks by broadening sales base.
• Address ongoing liquidity challenges and work towards profitability.