Sow Good Inc. (Nasdaq: SOWG) (“Sow Good” or “the Company”), a
trailblazer in the freeze dried candy and treat industry, is
reporting financial and operating results for the first quarter
ended March 31, 2024.
“We carried our momentum into the first quarter
of 2024 and continued to address strong consumer demand for freeze
dried candy,” said Claudia Goldfarb, CEO of Sow Good. “Our first
quarter revenue of $11.4 million represents a 20% sequential
increase relative to the fourth quarter of 2023 and a significant
year-over-year expansion. During the quarter, we made meaningful
strides in building both our production capacity and our robust
pipeline of retail launches. Having just pivoted to producing
freeze dried candy in the first quarter of last year, we are proud
of how far we have already come in pioneering this novel product
category.
“From a production perspective, we continued to
build out our internal and external capacity to support our growth.
In-house, our fifth freeze drier is now installed and operational,
and we remain on track to activate our sixth freeze drier by the
third quarter of this year. We have also supported the ongoing ramp
of our co-manufacturing partnerships in China and Colombia. With
our progress on each of these fronts, we reached a production
capacity of 4.5 million units during the first quarter, surpassing
our initial projection of 4.25 million units. As we steadily grow
our capacity over the coming quarters, we remain confident in
reaching a total capacity of up to 30 million units for the full
year, and we are seeking further opportunities to expand our
capacity. Most recently, we have placed deposits on three
additional freeze driers that are expected to become operational in
the next nine months.
“To focus on expanding our production resources,
we strategically paused new customer onboarding in the third
quarter of 2023. Given our production capacity has grown as
projected, we resumed our new customer launches and have
significantly increased our store and SKU count with current
partners. Reflecting our consistent outperformance across our
retail base, we anticipate adding five new SKUs and Sow Good
displays at 300 Big Lots stores and increasing our Target footprint
to nearly 2,000 stores this summer. Our anticipated forthcoming
summer retail launches include Kroger, Dollar General, 7-Eleven,
The Fresh Market, and Ross, and we continue to make progress on
building our pipeline and our current store and SKU counts.”
First Quarter 2024 Highlights vs. Same
Year-Ago Quarter
- Revenue in the first quarter of 2024 increased significantly to
$11.4 million compared to approximately $198.9K for the same period
in 2023. The increase was driven to the Company’s pivot to selling
freeze dried candy in the prior year period, as well as the growing
market for freeze dried candy. The increase also reflects the
benefits of the Company’s expanded production capacity.
- Gross profit in the first quarter of 2024 increased
significantly to $4.6 million compared to approximately $114.9K for
the same period in 2023. Gross margin was 40.6% compared to 57.8%
in the prior-year period. Relative to the prior-year period, gross
margin in the first quarter of 2024 reflects higher labor and
production costs associated with the Company’s increased scale. In
order to meet growing demand, the Company expects to continue
investing in its operations to increase production capacity, which
is expected to constrain quarterly gross margins in the near
term.
- Operating expenses in the first quarter of 2024 were $3.7
million compared to $1.0 million for the same period in 2023. The
increase was primarily driven by higher compensation and
professional services expenses as we scaled up the business and
invested in system and process improvements in anticipation of
being listed on Nasdaq.
- Net income in the first quarter of 2024 was approximately
$510.6K compared to a net loss of $(1.4) million for the same
period in 2023. The improvement reflects the higher level of gross
profit generated during the quarter.
- Adjusted EBITDA (a non-GAAP financial measure defined and
reconciled herein) in the first quarter of 2024 improved to $2.45
million compared to approximately $171.3k for the same period in
2023.
- Cash and cash equivalents were $6.8 million at March 31, 2024,
compared to $2.4 million at December 31, 2023. The Company
received $3.7 million in proceeds from the equity private placement
completed in March of 2024.
For a reconciliation of Adjusted EBITDA to the
nearest comparable GAAP metric, Net income, please see the tables
below.
Subsequent Events
Balance Sheet and Liquidity
On April 15, 2024, the Company issued approximately 2.2 million
shares of its common stock in connection with the exercise of
warrants that were issued between December 2021 and May 2023 (the
“Warrants”), with exercise prices varying from $2.21 to $2.60 (the
“Warrant Exercise”). With authorization from the Company's Board of
Directors, each of the Holders was provided an opportunity to, and
agreed to, amend certain of these Holder’s Notes (the “Notes
Amendment”) to allow for the partial prepayment of principal in an
aggregate amount equal to the exercise price of the Holder’s
Warrants. In addition to the Notes Amendment, certain of the
Holders elected use a portion of the accrued but unpaid interest
under the Holder’s Notes to pay the exercise price of the Warrants.
As a result of the Warrant Exercise—and excluding the impact of
deferred debt costs—the Company’s debt was reduced by $5.2 million,
accrued interest payable was reduced by $98,750.00, and common
equity was increased by nearly $5.3 million.
In May 2024, the Company closed an underwritten
public offering of common stock. Including the full exercise of the
underwriters’ overallotment option, the offering yielded
approximately $13.8 million in gross proceeds before offering
expenses and underwriting discounts and commissions.
Nasdaq Uplisting
Goldfarb concluded: “Subsequent to the first quarter, we
successfully uplisted our stock to the Nasdaq Capital Market, with
our shares trading on the exchange as of May 2, 2024. Trading on
Nasdaq marks a key corporate milestone for Sow Good, as we believe
it enables us to increase our institutional investor base and
market visibility, as well as further improve our liquidity and
long-term shareholder value. Along with the uplisting, we also
recently completed an underwritten public offering of common stock,
raising $13.8 million in gross proceeds with the full exercise of
the underwriters’ overallotment option. We would like to thank our
new and current shareholders for their support, and we expect to
use this additional capital to support our ongoing production
expansion and broader growth initiatives.
“As we progress further into 2024, we expect to continue growing
and optimizing our production infrastructure, expanding our B2B
customer base and retail presence, and advancing our product
innovation. Through executing on each of these objectives, we aim
to grow and maintain our leadership in the freeze dried candy and
treats category.”
Conference Call
Sow Good will conduct a conference call today at
10:00 A.M. Eastern time to discuss its results for the first
quarter ended March 31, 2024.
Date: Wednesday, May 15, 2024Time: 10:00 a.m. Eastern
timeRegistration Link:
https://register.vevent.com/register/BI7a0e5e0068cb4e8fbef9f1e4833c0930
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 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 prospectus 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 non-cash
intangible asset impairment, goodwill impairment, inventory
write-down 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; 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. 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 Slach or
Jackie KeshnerGateway 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 |
|
|
March 31, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,815,355 |
|
|
$ |
2,410,037 |
|
Accounts receivable, net |
|
|
2,934,925 |
|
|
|
2,578,259 |
|
Inventory |
|
|
5,138,229 |
|
|
|
4,123,246 |
|
Prepaid inventory |
|
|
804,981 |
|
|
|
563,131 |
|
Prepaid expenses |
|
|
512,155 |
|
|
|
563,164 |
|
Total current assets |
|
|
16,205,645 |
|
|
|
10,237,837 |
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
Construction in progress |
|
|
1,242,627 |
|
|
|
1,522,465 |
|
Property and equipment |
|
|
7,197,592 |
|
|
|
6,287,422 |
|
Less accumulated depreciation |
|
|
(1,134,597 |
) |
|
|
(967,602 |
) |
Total property and equipment, net |
|
|
7,305,622 |
|
|
|
6,842,285 |
|
|
|
|
|
|
|
|
Security deposit |
|
|
357,954 |
|
|
|
346,616 |
|
Right-of-use asset |
|
|
3,999,151 |
|
|
|
4,061,820 |
|
Other assets |
|
|
35,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,903,372 |
|
|
$ |
21,488,558 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
894,011 |
|
|
$ |
853,535 |
|
Accrued interest |
|
|
1,006,937 |
|
|
|
860,693 |
|
Accrued expenses |
|
|
1,032,746 |
|
|
|
648,947 |
|
Current portion of operating lease liabilities |
|
|
638,630 |
|
|
|
550,941 |
|
Current maturities of notes payable, related parties, net of
$345,424 and $431,854 of debt discounts at March 31, 2024 and
December 31, 2023, respectively |
|
|
2,629,576 |
|
|
|
2,543,146 |
|
Current maturities of notes payable, net of $57,479 and $86,062 of
debt discounts as of March 31, 2024 and December 31, 2023,
respectively |
|
|
342,521 |
|
|
|
313,938 |
|
Total current liabilities |
|
|
6,544,421 |
|
|
|
5,771,200 |
|
|
|
|
|
|
|
|
Operating lease
liabilities |
|
|
3,537,749 |
|
|
|
3,671,729 |
|
Notes payable, related
parties, net of $1,305,962 and $1,448,858 of debt discounts as of
March 31, 2024 and December 31, 2023, respectively |
|
|
4,314,038 |
|
|
|
4,171,142 |
|
Notes payable, net of $123,639
and $135,962 of debt discounts as of March 31, 2024 and December
31, 2023, respectively |
|
|
606,361 |
|
|
|
594,038 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
15,002,569 |
|
|
|
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,
6,575,562 and 6,029,371 shares issued and outstanding as of March
31, 2024 and December 31, 2023 |
|
|
6,576 |
|
|
|
6,029 |
|
Additional paid-in capital |
|
|
71,123,634 |
|
|
|
66,014,415 |
|
Accumulated deficit |
|
|
(58,229,407 |
) |
|
|
(58,739,995 |
) |
Total stockholders' equity |
|
|
12,900,803 |
|
|
|
7,280,449 |
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
27,903,372 |
|
|
$ |
21,488,558 |
|
SOW GOOD INC.CONDENSED STATEMENTS OF
OPERATIONS |
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
Revenues |
|
$ |
11,406,320 |
|
|
$ |
198,930 |
|
Cost of goods sold |
|
|
6,776,882 |
|
|
|
84,003 |
|
Gross profit |
|
|
4,629,438 |
|
|
|
114,927 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
General and administrative expenses: |
|
|
|
|
|
|
Salaries and benefits |
|
|
2,350,557 |
|
|
|
511,588 |
|
Professional services |
|
|
467,826 |
|
|
|
46,206 |
|
Other general and administrative expenses |
|
|
872,260 |
|
|
|
384,109 |
|
Total general and administrative expenses |
|
|
3,690,643 |
|
|
|
941,903 |
|
Depreciation and
amortization |
|
|
9,538 |
|
|
|
76,218 |
|
Total operating expenses |
|
|
3,700,181 |
|
|
|
1,018,121 |
|
|
|
|
|
|
|
|
Net operating income
(loss) |
|
|
929,257 |
|
|
|
(903,194 |
) |
|
|
|
|
|
|
|
Other expense: |
|
|
|
|
|
|
Interest expense |
|
|
(418,669 |
) |
|
|
(498,336 |
) |
Total other expense |
|
|
(418,669 |
) |
|
|
(498,336 |
) |
|
|
|
|
|
|
|
Income (loss) before income
tax |
|
|
510,588 |
|
|
|
(1,401,530 |
) |
Provision (benefit) for income
tax |
|
|
- |
|
|
|
- |
|
Net income (loss) |
|
$ |
510,588 |
|
|
$ |
(1,401,530 |
) |
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic |
|
|
6,071,769 |
|
|
|
4,847,384 |
|
Net income (loss) per common
share - basic |
|
$ |
0.08 |
|
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted |
|
|
7,972,645 |
|
|
|
4,847,384 |
|
Net income (loss) per common
share - diluted |
|
$ |
0.06 |
|
|
$ |
(0.29 |
) |
SOW GOOD INC.STATEMENTS OF CHANGES IN
STOCKHOLDERS' EQUITY |
|
|
|
For the Three Months Ended March 31, 2024 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
Common |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Stock |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Payable |
|
|
Deficit |
|
|
Equity |
|
Balance, December 31, 2023 |
|
|
6,029,371 |
|
|
$ |
6,029 |
|
|
$ |
66,014,415 |
|
|
$ |
- |
|
|
$ |
(58,739,995 |
) |
|
$ |
7,280,449 |
|
Common stock issued in private
placement offering |
|
|
515,597 |
|
|
|
516 |
|
|
|
3,737,484 |
|
|
|
- |
|
|
|
- |
|
|
|
3,738,000 |
|
Common stock issued to
directors for services |
|
|
30,594 |
|
|
|
31 |
|
|
|
286,140 |
|
|
|
- |
|
|
|
- |
|
|
|
286,171 |
|
Common stock options granted
to officers and directors for services |
|
|
- |
|
|
|
- |
|
|
|
1,043,272 |
|
|
|
- |
|
|
|
- |
|
|
|
1,043,272 |
|
Common stock options granted
to employees and advisors for services |
|
|
- |
|
|
|
- |
|
|
|
42,323 |
|
|
|
- |
|
|
|
- |
|
|
|
42,323 |
|
Net income for the three
months ended March 31, 2024 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
510,588 |
|
|
|
510,588 |
|
Balance, March 31, 2024 |
|
|
6,575,562 |
|
|
$ |
6,576 |
|
|
$ |
71,123,634 |
|
|
$ |
- |
|
|
$ |
(58,229,407 |
) |
|
$ |
12,900,803 |
|
|
|
For the Three Months Ended March 31, 2023 |
|
|
|
|
|
|
|
|
|
Additional |
|
|
Common |
|
|
|
|
|
Total |
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Stock |
|
|
Accumulated |
|
|
Stockholders' |
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Payable |
|
|
Deficit |
|
|
Equity |
|
Balance, December 31, 2022 |
|
|
4,847,384 |
|
|
$ |
4,847 |
|
|
$ |
58,485,602 |
|
|
$ |
- |
|
|
$ |
(55,679,562 |
) |
|
$ |
2,810,887 |
|
Common stock warrants granted
to related parties pursuant to debt financing |
|
|
- |
|
|
|
- |
|
|
|
872,421 |
|
|
|
- |
|
|
|
- |
|
|
|
872,421 |
|
Common stock options granted
to officers and directors for services |
|
|
- |
|
|
|
- |
|
|
|
111,733 |
|
|
|
- |
|
|
|
- |
|
|
|
111,733 |
|
Common stock options granted
to employees and advisors for services |
|
|
- |
|
|
|
- |
|
|
|
15,103 |
|
|
|
- |
|
|
|
- |
|
|
|
15,103 |
|
Net loss for the three months
ended March 31, 2023 |
|
|
- |
|
|
|
- |
|
|
– |
|
|
|
- |
|
|
|
(1,401,530 |
) |
|
|
(1,401,530 |
) |
Balance, March 31, 2023 |
|
|
4,847,384 |
|
|
$ |
4,847 |
|
|
$ |
59,484,859 |
|
|
$ |
- |
|
|
$ |
(57,081,092 |
) |
|
$ |
2,408,614 |
|
SOW GOOD INC.CONDENSED STATEMENTS OF CASH
FLOWS |
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
Net loss |
|
$ |
510,588 |
|
|
$ |
(1,401,530 |
) |
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
|
|
Bad debts expense |
|
|
8,370 |
|
|
|
8,997 |
|
Depreciation and amortization |
|
|
166,995 |
|
|
|
76,218 |
|
Non-cash amortization of right-of-use asset and liability |
|
|
16,378 |
|
|
|
4,778 |
|
Common stock issued to directors for services |
|
|
286,171 |
|
|
|
- |
|
Amortization of stock options |
|
|
1,085,595 |
|
|
|
126,836 |
|
Amortization of stock warrants issued as a debt discount |
|
|
270,232 |
|
|
|
370,678 |
|
Decrease (increase) in current assets: |
|
|
|
|
|
|
Accounts receivable |
|
|
(365,036 |
) |
|
|
168,071 |
|
Prepaid expenses |
|
|
51,009 |
|
|
|
56,664 |
|
Inventory |
|
|
(1,256,833 |
) |
|
|
(209,946 |
) |
Security deposits |
|
|
(11,338 |
) |
|
|
- |
|
Other assets |
|
|
(35,000 |
) |
|
|
- |
|
Increase (decrease) in current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
40,476 |
|
|
|
(163,065 |
) |
Accrued interest |
|
|
146,244 |
|
|
|
104,166 |
|
Accrued expenses |
|
|
383,800 |
|
|
|
(107,984 |
) |
Net cash provided by (used in)
operating activities |
|
|
1,297,651 |
|
|
|
(966,117 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(142,467 |
) |
|
|
- |
|
Cash paid for construction in progress |
|
|
(487,865 |
) |
|
|
(211,906 |
) |
Net cash used in investing
activities |
|
|
(630,332 |
) |
|
|
(211,906 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
Proceeds from the issuance of common stock |
|
|
3,737,999 |
|
|
|
- |
|
Proceeds received from notes payable, related parties |
|
|
- |
|
|
|
1,250,000 |
|
Net cash provided by financing
activities |
|
|
3,737,999 |
|
|
|
1,250,000 |
|
|
|
|
|
|
|
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
|
|
4,405,318 |
|
|
|
71,977 |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
2,410,037 |
|
|
|
276,464 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
6,815,355 |
|
|
$ |
348,441 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
Interest paid |
|
$ |
2,193 |
|
|
$ |
23,492 |
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING
ACTIVITIES: |
|
|
|
|
|
|
Reclassification of construction in progress to property and
equipment |
|
$ |
767,703 |
|
|
$ |
- |
|
Value of debt discounts attributable to warrants |
|
$ |
- |
|
|
$ |
872,421 |
|
SOW GOOD INC.RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA |
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
510,588 |
|
|
$ |
(1,401,530 |
) |
Depreciation and
amortization |
|
|
150,676 |
|
|
|
75,232 |
|
Interest expense |
|
|
418,669 |
|
|
|
498,336 |
|
EBITDA |
|
|
1,079,933 |
|
|
|
(827,962 |
) |
Stock-based compensation
expense |
|
|
1,371,735 |
|
|
|
999,257 |
|
Adjusted EBITDA |
|
$ |
2,451,668 |
|
|
$ |
171,295 |
|
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