Edible Garden AG rporated(EDBL)2023-03-25 14:07Financial Data and Key Metrics - Revenue for Q4 2022 was 2.8 million in Q4 2021 [21] - Full-year revenue for 2022 was 10.5 million in 2021 [24] - Cost of goods sold for Q4 2022 was 2.8 million in Q4 2021, driven by higher packaging and labor costs [22] - Net loss for Q4 2022 was 9.31 per share), compared to a net loss of 12.76 per share) in Q4 2021 [23] - Full-year net loss for 2022 was 48.68 per share), compared to a net loss of 39.28 per share) in 2021 [26] Business Line Data and Key Metrics - The company introduced complete salad kits in Q4 2022, which were well-received and are expected to expand to other regions [11][38] - Acquired the Pulp line of gourmet sauces and chili-based products, marking entry into the global sauces and condiments market, projected to grow from 240.7 billion by 2028 [12] - Pulp products will launch at Whole Foods Markets in Mid-Atlantic and Southeastern regions starting summer 2023 [13] Market Data and Key Metrics - Distribution network expanded to over 4,000 stores, primarily concentrated in the Northeast, Midwest, and Southeast [29] - Added Morton Williams Supermarkets to the Northeast distribution network and expanded with Gristedes and D'Agostino markets in New York [14] - Achieved a fill rate exceeding 100% with one of the country's largest supercenter operators during the holiday season [16] Company Strategy and Industry Competition - The company aims to achieve positive cash flow in 2023, driven by the operationalization of the Heartland Midwest facility and higher-margin products [9][49] - Focus on sustainability through the Zero-Waste Inspired mission, resonating with environmentally conscious consumers and distribution partners [10][19] - Research partnership with the New Jersey Institute of Technology, USDA, and EPA to explore nanobubble technology for sustainable agriculture [18][50] Management Commentary on Operating Environment and Future Outlook - Management highlighted resilience in a challenging economic climate, with stable pricing and exceptional customer service contributing to competitive advantage [8] - The company expects margin improvements once the Heartland Midwest facility is fully operational [9] - Management is optimistic about the potential of the Pulp product line and its impact on revenue in the second half of 2023 [43] Other Important Information - The company completed a $10.2 million offering in February 2023 to fund business expansion [27] - Recognized as one of the top agro food tech companies globally in the FoodTech 500 rankings [20] Q&A Session Summary Question: Distribution network and store count plans for 2023 [29] - Currently in over 4,000 stores, primarily in the Northeast, Midwest, and Southeast - Plans to expand distribution with major retailers and regional chains Question: Status of the Grand Rapids greenhouse and USDA organic certification [30][32] - Final stages of bringing the greenhouse online, expected within 30 days - USDA organic certification is completed and awaiting final approval Question: Impact of the Grand Rapids facility on contract growers and margins [33] - The facility will allow the company to offset higher costs from contract growers and improve margins through vertical integration Question: Reception of new salad kits and expansion plans [38] - Salad kits have been well-received, with plans to expand distribution to other regions and introduce new varieties Question: Product pipeline and innovation [39] - Constant innovation is a key differentiator, with new products like Pulp and alternate proteins in development Question: Revenue impact of the Grand Rapids facility and capital sufficiency [41][42] - Immediate impact on margins and profitability, with the goal of achieving cash flow positivity in 2023 - Current capital is sufficient to reach profitability Question: Revenue impact of the Pulp product line in 2023 [43] - Expected to contribute significantly in the second half of 2023, with POs already in place from Whole Foods Question: Future expansion plans post-Grand Rapids facility [44] - Focus on achieving cash flow positivity before considering further expansion, with a preference for retrofitting existing facilities Question: Path to positive cash flow in 2023 [49] - Driven by the operationalization of the Grand Rapids facility and higher-margin, shelf-stable products Question: Partnership with NJIT, USDA, and EPA [50] - Research on nanobubble technology to improve plant growth, yield, and sustainability, funded by the EPA