Wed, May 15, 11:32 AM (72 days ago)
Edible Garden AG Inc. reported a net loss of $3.977 million for Q1 2024, a significant increase from the $2.879 million loss in Q1 2023. The company's revenue grew by 27.6% year-over-year to $3.132 million, driven by higher demand for cut and potted herbs, though this was offset by a decline in vitamin and supplement sales. Cost of goods sold rose to $3.109 million, maintaining a gross profit of $23,000 compared to a loss of $24,000 in the same period last year. However, selling, general, and administrative expenses surged by 44.3% to $3.884 million due to one-time severance costs and increased professional fees. Interest expenses decreased to $117,000 from $234,000, attributed to debt repayments. The company's cash flow from operations was negative, with a working capital deficit of $6.966 million as of March 31, 2024. Recent financing activities include a merchant cash advance agreement with Cedar Advance LLC and an equity distribution agreement with Maxim Group LLC, raising approximately $1.1 million. The company faces liquidity challenges and substantial doubt about its ability to continue as a going concern.