Sow Good Inc., a U.S.-based manufacturer of freeze-dried candy and snacks, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which has transitioned from its previous identity as Black Ridge Oil & Gas, Inc., has seen substantial growth in revenue and assets compared to the previous fiscal period.

For the three months ended September 30, 2024, Sow Good generated revenues of $3.6 million, a decrease of 29% from $5.0 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues surged to $30.6 million, up 367% from $6.5 million in the prior year. This growth is attributed to the successful launch of its freeze-dried candy product line, which began commercialization in Q1 2023. Despite the quarterly decline, the overall nine-month performance reflects a strong recovery from previous losses.

Gross profit for the three months ended September 30, 2024, was $556,000, down 58% from $1.3 million in the same quarter of 2023. Conversely, for the nine-month period, gross profit reached $14.2 million, a significant improvement from a loss of $130,000 in the same period last year. The gross profit margin for the nine months was 46%, compared to a negative margin in the previous year.

The company reported a net loss of $3.4 million for the three months ended September 30, 2024, compared to a net income of $334,000 in the same period of 2023. However, for the nine months, Sow Good achieved a net income of $466,000, a notable turnaround from a loss of $4.4 million in the prior year.

Sow Good's current assets increased to $28.4 million as of September 30, 2024, up from $10.2 million at the end of 2023. This growth was driven by a rise in cash and cash equivalents to $6.9 million and a significant increase in inventory, which reached $19.4 million. Total liabilities also rose to $24.8 million, up from $14.2 million at the end of 2023, primarily due to increased operational costs and financing activities.

Strategically, the company has expanded its production capacity by adding multiple freeze dryers and has plans for further expansion with a new facility in Dallas. Additionally, Sow Good has engaged in several capital-raising activities, including a public offering that netted approximately $12 million in May 2024 and private placements totaling over $3.7 million earlier in the year.

Despite these advancements, the company faces challenges, including increased operating expenses, which rose significantly due to higher salaries and stock-based compensation. The competitive landscape in the freeze-dried candy market remains intense, with ongoing efforts needed to enhance brand awareness and secure distribution channels.