Edible Garden AG Incorporated reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated revenue of $2.584 million, a decrease from $3.289 million in the same period of 2023. This decline was primarily attributed to a strategic shift away from lower-margin products, which resulted in a $597 thousand revenue decrease, and delays in shipments of nutraceutical products due to a hurricane, impacting revenue by $215 thousand. However, revenue from cut herbs increased by 10%, contributing an additional $98 thousand. Gross profit for the quarter improved significantly to $699 thousand, compared to just $12 thousand in Q3 2023.

Despite the revenue decline, the loss from operations decreased to $(1.490) million from $(2.375) million year-over-year, reflecting a 37.3% improvement. The net loss for the quarter was $(2.063) million, down from $(2.431) million in the prior year, indicating a 15.1% reduction in losses.

For the nine months ended September 30, 2024, total revenue was $9.985 million, slightly up from $9.965 million in 2023. The increase was driven by a 55% rise in cut herbs and a 5% increase in potted herbs, offset by a $1 million decrease from low-margin products and hurricane-related delays. Gross profit for the nine-month period rose to $2.289 million from $540 thousand in 2023. However, the net loss increased to $(7.972) million from $(5.948) million, primarily due to higher selling, general, and administrative (SG&A) expenses, which rose to $8.823 million from $7.458 million, largely due to a one-time severance charge for the former CFO.

On the balance sheet, total assets increased to $8.863 million as of September 30, 2024, from $6.656 million at the end of 2023, with current assets rising significantly to $5.394 million. Total liabilities decreased to $5.604 million, down from $6.944 million, with long-term debt reduced to $649 thousand from $4.040 million. Total stockholders' equity improved to $3.259 million from a deficit of $288 thousand.

Strategically, the company completed a public offering in September 2024, raising approximately $4.797 million, which was used to pay off debt and reduce accounts payable. Additionally, Edible Garden AG acquired Edible Garden Corp. for $1.00 on October 1, 2024, and assumed a lease for a greenhouse facility in New Jersey. The company continues to face substantial doubt regarding its ability to continue as a going concern, as it has not generated sufficient cash from operations to fund ongoing activities.