Edible Garden AG Inc
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
EDBL$0.70+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001477932-26-003238
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001477932-26-005081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 90 current paragraphs.
49 unchanged; 18 reworded; 22 added; 6 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Reverse Stock Split
Current report
Nasdaq Compliance
Current report
On May 27, 2026, we received a letter from the Listing Qualifications Department (the “Staff”) of Nasdaq indicating that, based upon the closing bid price of our common stock for at least 30 consecutive business days, we no longer met Nasdaq Listing Rule 5550(a)(2), which requires listed companies to maintain a minimum bid price of at least $1 per share (the “Bid Price Rule”). Under Nasdaq Listing Rule 5810(c)(3)(A)(iv), because we had effected a reverse stock split over the prior one-year period or have effected one or more reverse stock splits in the last two years with a cumulative ratio greater than 250 shares to 1, we were not eligible for any compliance period to regain compliance with the Bid Price Rule. On June 3, 2026, we timely submitted a request for a hearing before a Nasdaq Hearings Panel (the “Panel”), which was scheduled for July 9, 2026. On July 27, 2026, we received written notification from Nasdaq that the Panel granted us an extension until August 15, 2026 to regain compliance with Bid Price Rule. We believe we have regained compliance with the Bid Price Rule as of July 27, 2026.
Current report
Streeterville Transactions
Current report
Meijer Agreement
Current report
On July 28, 2026, we entered into a purchase agreement with Meijer Distribution, Inc. (the “Buyer”) pursuant to which we will supply Buyer-branded products to the Buyer (the “2027 Agreement”) beginning in January 2027. The Agreement replaces the agreements between us and the Buyer scheduled to expire December 31, 2026. Under the 2027 Agreement, we will sell hydroponic, potted, and fresh cut herbs to the Buyer according to per-unit prices set in advance under the 2027 Agreement by us and the Buyer. The Buyer’s purchases will be in quantities and according to delivery schedules requested by the Buyer. Under the 2027 Agreement, we and the Buyer will renegotiate the prices for each unit annually. Once set, the pricing terms will remain fixed for the remainder of the year, subject to price adjustments as a result of duties, tariffs or other governmental actions that are supported by our documentation and approved by the Buyer. The 2027 Agreement will become effective January 1, 2027 and will expire on December 31, 2028. The Buyer may terminate the 2027 Agreement (i) without cause upon 60 days’ prior notice, (ii) for cause upon 30 days’ prior written notice of disagreement regarding tariff-related price increases, and (iii) immediately if we do not provide the Buyer with products that meet the Buyer’s quality standards. Either party may terminate the 2027 Agreement for cause after a 15-day cure period for resolving a breach of the 2027 Agreement.
Current report
Equity Distribution Agreement
Current report
On August 11, 2026, the Company entered into an Equity Distribution Agreement (the “2026 EDA”) with Maxim as sales agent, pursuant to which the Company may, from time to time, issue and sell shares of its common stock through Maxim in an at-the-market offering for an aggregate offering price of up to $7,195,548. Under the terms of the 2026 EDA, Maxim may sell the shares at market prices by any method that is deemed to be an “at-the-market offering” as defined in Rule 415 under the Securities Act. The offering of shares of our common stock pursuant to the 2026 EDA will terminate upon the earliest of (i) August 11, 2027, (ii) the sale of all Shares provided for in the prospectus supplement related to this offering, and (iii) the termination of the EDA by written notice of the Company or Maxim.
Current report
Operating expenses were $6.7 million for the three months ended June 30, 2026, compared to $6.7 million for the three months ended June 30, 2025. Operating expenses decreased $12 thousand, or 0.2%, primarily due to a $859 thousand (21.5%) decrease in selling, general and administrative expenses, reflecting non-recurring professional fees incurred in the prior-year period in connection with certain corporate transactions, partially offset by a $443 thousand (17.6%) increase in cost of goods sold, driven by increased sales and a portfolio shift to cut herbs, which is primarily sourced from third party growers at higher cost, and a $420 thousand (179.5%) increase in depreciation and amortization, reflecting a larger depreciable asset base related to assets acquired from Natural Shrimp in May 2025.
Current report
Loss from operations was $3.2 million for the three months ended June 30, 2026, compared to $3.6 million for the three months ended June 30, 2025. The decrease in the loss from operations was driven by an increase in revenue and a decrease in operating expenses, primarily lower selling, general and administrative expenses, partially offset by higher cost of goods sold and depreciation expense
Current report
Interest expense was $163 thousand for the three months ended June 30, 2026, compared to $389 thousand for the three months ended June 30, 2025. Interest expense decreased $226 thousand, or 58.1%, even as total debt outstanding increased, as higher-cost short-term debt was repaid and replaced with lower-cost Streeterville financing at rates of 5.0% to 8.0% per annum.
Current report
COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Current report
Revenue
Current report
Revenue was $6.9 million for the six months ended June 30, 2026, compared to $5.9 million for the six months ended June 30, 2025. The increase in revenue of $1.0 million, or 17.5%, is primarily attributable to continued growth in our cut herb portfolio across our retail client base, which grew $1.1 million, or 49.3%, and increased to approximately 45% of gross sales from approximately 35% in the prior-year period.
Current report
Operating Expenses
Current report
Loss from operations
Current report
Interest expense
Current report
Interest expense was $313 thousand for the six months ended June 30, 2026, compared to $829 thousand for the six months ended June 30, 2025. Interest expense decreased $516 thousand, or 62.2%, even as total debt outstanding increased, as higher-cost short-term debt was repaid and replaced with lower-cost Streeterville financing at rates of 5.0% to 8.0% per annum.
Current report
Net loss
Current report
For the six months ended June 30, 2026, we incurred a net loss of $6.9 million. During the six months ended June 30, 2026, we had operating cash flows of $0.9 million, after excluding $10.0 million of restricted cash securing the Streeterville B Note.
Current report
On June 12, 2026, the Company entered into a Notes Purchase Agreement with Streeterville pursuant to which it issued (i) a Promissory Note A-1 with an original principal amount of $2.17 million and (ii) a Secured Promissory Note B with an original principal amount of $10.0 million. The notes mature eighteen months from issuance. The A-1 Note bears interest at 8% per annum, while the B Note bears interest at 5% per annum.
Current report
Subsequent to June 30, 2026, the Company entered into the 2026 EDA, providing access to up to $7.2 million of additional capital through an at-the-market offering under its effective shelf registration statement. See Note 14, “Subsequent Events,” for further discussion.
Removed paragraphs (6)
Previous report
During the three months ended March 31, 2026, we entered into a two-year distribution agreement with Busch’s Fresh Food Market and achieved chainwide distribution of its USDA Organic herbs at all The Fresh Market locations. On April 21, 2026, we were awarded new distribution with Target to supply a substantial portion of its fresh-cut herbs, with shipments expected to commence in May 2026.
Previous report
In March 2026, we selected Tetra Pak® as its packaging and processing technology partner for its planned RTD beverage facility in Webster City, Iowa. On April 17, 2026, we secured a $2.7 million incentive package from the Iowa Economic Development Authority under the Business Incentives for Growth program to support the redevelopment of the our approximately 400,000 square-foot Webster City facility into a production plant for shelf-stable RTD nutritional beverages.
Previous report
Income Taxes
Previous report
The provision for income taxes is determined in accordance with ASC 740, “Income Taxes.” We file a consolidated United States federal income tax return. We provide for income taxes based on enacted tax law and statutory tax rates at which items of income and expense are expected to be settled in our income tax return. Certain items of revenue and expense are reported for Federal income tax purposes in different periods than for financial reporting purposes, thereby resulting in deferred income taxes. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We incurred net operating losses for financial-reporting and tax-reporting purposes. At March 31, 2026 and December 31, 2025, such net operating losses were offset entirely by a valuation allowance.
Previous report
We recognize uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50.0% likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. We classify income tax related interest and penalties as interest expense and selling, general and administrative expense, respectively, on the consolidated statements of operations.
Previous report
Interest expense was $150 thousand for the three months ended March 31, 2026, compared to $440 thousand for the three months ended March 31, 2025. Lower interest expense was driven by lower overall outstanding debt balances at lower interest rates.
Reworded paragraphs (18)
Previous wording
We are a controlled environment agriculture ("CEA") farming company. We use traditional agricultural growing techniques together with technology to grow fresh, organic food sustainably and safely while improving traceability. We operate glass, hydroponic, and vertical greenhouse structures that enable us to grow organic herbs consistently year-round while using less land, less energy, and less water than conventional agriculture. In our hydroponic greenhouse, we grow plants without soil. Instead of planting one row of plants in the ground, by using a vertical growing system, we can grow many towers of plants in the same area by planting up instead of planting across. Growing these products sustainably means that we avoid depleting natural resources in order to maintain an ecological balance, such as by renewing, reusing and recycling materials in order to lower the overall one-time use of materials.
Current wording
We are a controlled environment agriculture ("CEA") farming company. We use traditional agricultural growing techniques together with technology to grow fresh, organic food sustainably and safely while improving traceability. We operate glass, hydroponic, and vertical greenhouse structures that enable us to grow organic herbs consistently year-round while using less land, less energy, and less water than conventional agriculture. In our hydroponic greenhouse, we grow plants without soil. Instead of planting one row of plants in the ground, by using a vertical growing system, we can grow many towers of plants in the same area by planting up instead of planting across. Growing these products sustainably means that we avoid depleting natural resources in order to maintain an ecological balance, such as by renewing, reusing and recycling materials in order to lower the overall one-time use of materials. Our facilities utilize "closed loop" irrigation systems that recollect and reuse drain water—including water recycled through reverse osmosis—reducing overall water consumption and helping conserve natural resources. Our advanced systems are also designed to help mitigate contamination from harmful pathogens, including salmonella, e-coli and others.
Previous wording
On January 29, 2026, we filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a 1-for-10 reverse stock split of its common stock (the “Reverse Stock Split”), effective as of 12:01 a.m. Eastern Time on February 3, 2026. As a result of the Reverse Stock Split, every 10 shares of our outstanding common stock were combined into one share of common stock. No fractional shares were issued in connection with the Reverse Stock Split; any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share. Proportionate adjustments were made to the per share exercise price and the number of shares issuable upon the exercise of outstanding warrants and to all then-outstanding awards under our equity incentive plan. The Reverse Stock Split did not change the par value of the common stock or the total number of authorized shares. All share and per share amounts in these condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the Reverse Stock Split, unless otherwise noted.
Current wording
On July 8, 2026, we filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a 1-for-45 reverse stock split of its common stock (the “Reverse Stock Split”), effective as of 12:01 a.m. Eastern Time on July 13, 2026. As a result of the Reverse Stock Split, every 45 shares of our outstanding common stock were combined into one share of common stock. No fractional shares were issued in connection with the Reverse Stock Split; any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share. Proportionate adjustments were made to the per share exercise price and the number of shares issuable upon the exercise of outstanding warrants and to all then-outstanding awards under our equity incentive plan. The Reverse Stock Split did not change the par value of the common stock or the total number of authorized shares. All share and per share amounts in these condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the Reverse Stock Split, unless otherwise noted.
Previous wording
The Reverse Stock Split was implemented, in part, to help maintain compliance with Nasdaq’s continued listing requirements. We were subject to a Panel Monitor, as defined by Nasdaq Listing Rule 5815(d)(4)(A), through April 8, 2026.
Current wording
The Reverse Stock Split was implemented, in part, to help regain compliance with Nasdaq’s continued listing requirements.
Previous wording
During the three months ended March 31, 2026, we entered into exchange agreements (the “Exchange Agreements”) with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”) pursuant to which we agreed to exchange an aggregate of 1,910 shares of our Series B Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), for a total of 940,860 shares of our common stock, par value $0.0001 per share (“Exchange Shares”). The Preferred Stock had an aggregate stated value of $1.9 million. The number of Exchange Shares issued under the Exchange Agreements was determined by dividing the Stated Value by the Nasdaq Minimum Price of our common stock as reported on the Nasdaq Capital Market on the day immediately preceding the date the Exchange Agreements were entered into. The issuance of the Exchange Shares pursuant to the Exchange Agreements were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were conducted pursuant to the exemption provided in Section 3(a)(9) under the Securities Act.
Current wording
During the six months ended June 30, 2026, we entered into exchange agreements (the “Exchange Agreements”) with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”) pursuant to which we agreed to exchange an aggregate of 9,781 shares of our Series B Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), for a total of 511,768 shares of our common stock, par value $0.0001 per share (“Exchange Shares”). The Preferred Stock had an aggregate stated value of $9.7 million. The number of Exchange Shares issued under the Exchange Agreements was determined by dividing the Stated Value by the Nasdaq Minimum Price of our common stock as reported on the Nasdaq Capital Market on the day immediately preceding the date the Exchange Agreements were entered into or a value attributed to the Exchange Shares as determined by the Company and Streeterville. The issuance of the Exchange Shares pursuant to the Exchange Agreements were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were conducted pursuant to the exemption provided in Section 3(a)(9) under the Securities Act.
Previous wording
Subsequent to March 31, 2026, we entered into additional Exchange Agreements with Streeterville pursuant to which we agreed to exchange an aggregate of 4,620 shares of the Preferred Stock with an aggregate Stated Value of $4.6 million for a total of approximately 6,966,627 Exchange Shares on the same terms described above.
Current wording
Subsequent to June 30, 2026, we entered into additional Exchange Agreements with Streeterville pursuant to which we agreed to exchange an aggregate of 4,460 shares of the Preferred Stock with an aggregate Stated Value of $4.5 million for a total of approximately 1,394,553 shares of common stock.
Previous wording
Revenue was $3.3 million for the three months ended March 31, 2026, compared to $2.7 million for the three months ended March 31, 2025. The increase in revenue of $623 thousand, or 22.9%, is primarily attributable to continued growth in our cut herb portfolio across our retail client base, which grew $550 thousand, or 46%.
Current wording
Revenue was $3.6 million for the three months ended June 30, 2026, compared to $3.1 million for the three months ended June 30, 2025. The increase in revenue of $404 thousand, or 12.8%, is primarily attributable to continued growth in our cut herb portfolio across our retail client base, which grew $532 thousand, or 50.5%, and increased to approximately 42% of gross sales from approximately 30% in the prior-year period.
Previous wording
Net loss was $3.7 million for the three months ended March 31, 2026, compared to a net loss of $3.3 million for the three months ended March 31, 2025. The reasons for the decrease in net loss are explained above.
Current wording
Net loss was $3.3 million for the three months ended June 30, 2026, compared to a net loss of $4.0 million for the three months ended June 30, 2025. The reasons for the decrease in net loss are explained above.
Previous wording
Operating expenses were $10.0 million for the three months ended March 31, 2026, compared to $5.6 million for the three months ended March 31, 2025. The increase of $4.4 million or 77.5% was primarily due to increase in cost of goods sold and depreciation expense and amortization. Increase in cost of goods sold was primarily driven by increased sales and a portfolio shift to cut herbs, which is primarily sourced from third party growers at higher cost. Depreciation expense increase of $2.5 million was primarily due to accelerated depreciation of certain fixed assets as a result of the Company’s pivot to RTD clean nutrition manufacturing.
Current wording
Operating expenses were $16.7 million for the six months ended June 30, 2026, compared to $12.4 million for the six months ended June 30, 2025, an increase of $4.4 million, or 35.2%, primarily due to a $2.2 million (42.8%) increase in cost of goods sold, driven by increased sales and a portfolio shift to cut herbs, which is primarily sourced from third party growers at higher cost, and a $2.9 million (600.8%) increase in depreciation and amortization from accelerated depreciation of certain fixed assets related to the Company's pivot to RTD clean nutrition manufacturing. These increases were partially offset by a $721 thousand (10.7%) decrease in selling, general and administrative expenses, primarily due to a $667 thousand decrease in legal fees, a $473 thousand decrease in audit and accounting fees, and a $262 thousand decrease in bad debt expense, reflecting non-recurring professional fees incurred in the prior-year period in connection with certain corporate transactions, partially offset by higher salaries and wages and rent expense.
Previous wording
Loss from operations were $6.7 million for the three months ended March 31, 2026, compared to $2.9 million for the three months ended March 31, 2025. The increase in the loss from operations was driven by higher overall expenses across cost of goods sold and depreciation expense, partially offset by an increase in revenue.
Current wording
Loss from operations was $9.9 million for the six months ended June 30, 2026, compared to $6.5 million for the six months ended June 30, 2025.The increase in the loss from operations was driven by higher overall expenses across cost of goods sold and depreciation expense, partially offset by an increase in revenue.
Previous wording
Income tax benefit was $3.4 million for the three months ended March 31, 2026. We transferred state tax benefit to a third-party buyer in exchange for a cash consideration and recorded a gain driven primarily due to valuation allowance release.
Current wording
Income tax benefit was $3.4 million for the six months ended June 30, 2026. We transferred state tax benefit to a third-party buyer in exchange for a cash consideration and recorded a gain driven primarily due to valuation allowance release.
Previous wording
We have incurred significant losses since our inception. We recognized net losses of approximately $3.7 million during the three months ended March 31, 2026 and $17.3 million during the year ended December 31, 2025. We expect our capital expenses and operational expenses to increase in the future due to expected increased sales and marketing expenses, operational costs, and general and administrative costs. Therefore, we believe our operating losses will continue or even increase at least through the near term.
Current wording
We have incurred significant losses since our inception. We recognized net losses of approximately $6.9 million during the six months ended June 30, 2026 and $17.3 million during the year ended December 31, 2025. We expect our capital expenses and operational expenses to increase in the future due to expected increased sales and marketing expenses, operational costs, and general and administrative costs. Therefore, we believe our operating losses will continue or even increase at least through the near term.
Previous wording
The risks and uncertainties surrounding our ability to continue our business with limited capital resources raises substantial doubt as to our ability to continue as a going concern for twelve months from the issuance of these financial statements. To date, we have financed our operations with the proceeds from debt financings, public and private securities offerings, and operations, among other sources. If we are unable to raise additional capital, we believe that our existing cash will fund operations into the third quarter of 2026 and will not be sufficient to fund our operations through the next twelve months beyond the date of the issuance of our consolidated financial statements. Our operations have consumed substantial amounts of cash since inception. The net cash provided by (used in) operating activities was $251 thousand and ($3.3) million during the three months ended March 31, 2026 and 2025, respectively. Our financial statements have been prepared on a “going concern” basis. However, substantial doubt exists regarding our ability to continue as a going concern for the next twelve months. Our consolidated financial statements do not include any adjustments that might result if we are unable to continue as a going concern. If we are unable to continue as a going concern, holders of our securities might lose their entire investment. These factors, among others, may make it difficult to raise any additional capital and may cause us to be unable to continue to operate our business.
Current wording
The risks and uncertainties surrounding our ability to continue our business with limited capital resources raises substantial doubt as to our ability to continue as a going concern for twelve months from the issuance of these financial statements. To date, we have financed our operations with the proceeds from debt financings, public and private securities offerings, and operations, among other sources. If we are unable to raise additional capital, we believe that our existing cash will fund operations into the third quarter of 2026 and will not be sufficient to fund our operations through the next twelve months beyond the date of the issuance of our consolidated financial statements. Our operations have consumed substantial amounts of cash since inception. The net cash provided by operating activities was $0.9 million and the net cash used in operating activities was $6.8 million during the six months ended June 30, 2026 and 2025, respectively. Our financial statements have been prepared on a “going concern” basis. However, substantial doubt exists regarding our ability to continue as a going concern for the next twelve months. Our consolidated financial statements do not include any adjustments that might result if we are unable to continue as a going concern. If we are unable to continue as a going concern, holders of our securities might lose their entire investment. These factors, among others, may make it difficult to raise any additional capital and may cause us to be unable to continue to operate our business.
Previous wording
There is no assurance that we will ever be profitable or that debt or equity financing will be available to us in the amounts, on terms, and at times deemed acceptable to us, if at all. The issuance of additional equity or equity-linked securities by us would result in significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business as planned and as a result may be required to scale back or cease operations, which could cause our stockholders to lose some or all of their investment in us. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern.
Current wording
There is no assurance that we will ever be profitable or that debt or equity financing will be available to us in the amounts, on terms, and at times deemed acceptable to us, if at all. The issuance of additional equity or equity-linked securities by us would result in significant dilution of the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business as planned and as a result may be required to scale back or cease operations, which could cause our stockholders to lose some or all of their investment in us. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern.
Previous wording
As of March 31, 2026 and December 31, 2025, we had $2.0 million and $1.1 million in cash and cash equivalents available, respectively. During the three months ended March 31, 2026, cash provided by operating activities was $251 thousand. As of March 31, 2026 and December 31, 2025, we had $2.7 million and $1.9 million of total debt outstanding, respectively.
Current wording
As of June 30, 2026 and December 31, 2025, we had $0.7 million and $1.1 million in cash and cash equivalents available, respectively. During the six months ended June 30, 2026, cash provided by operating activities was $0.9 million. As of June 30, 2026 and December 31, 2025, we had $14.2 million and $1.9 million of total gross debt outstanding, respectively. As of June 30, 2026, we had cash available for operations of $0.7 million, after excluding $10.0 million of restricted cash securing the Streeterville B Note. Subsequent to June 30, 2026, the Company also entered into the 2026 EDA, providing access to up to $7.2 million of additional capital through an at-the-market offering, which management believes provides an additional source of liquidity. See Note 14, “Subsequent Events,” for further discussion.
Previous wording
In January 2026, we completed the sale of its net operating losses under the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program and received gross proceeds of approximately $3.1 million.
Current wording
In January 2026, we completed the sale of certain New Jersey state net operating loss carryforwards under the New Jersey Economic Development Authority's Technology Business Tax Certificate Transfer Program, which had resulted in a deferred tax asset of approximately $3.4 million, in exchange for gross proceeds of approximately $3.1 million, resulting in net cash proceeds of approximately $3.0 million after transaction-related costs of approximately $0.1 million.
Previous wording
During the three months ended March 31, 2026, cash provided by operating activities was $251 thousand. During the three months ended March 31, 2025, cash used for operating activities was $3.3 million. For the period ended March 31, 2026, the net loss of $3.7 million was offset by accelerated depreciation of certain fixed assets related to Company’s pivot to RTD manufacturing of $2.7 million, amortization of operating lease right of use assets related to Natural Shrimp totaling $304 thousand, and working capital decrease of $827 thousand. For the period ended March 31, 2025, the net loss of $3.3 million was offset by depreciation and amortization expense, as well as amortization of debt discount totaling $678 thousand, working capital increase of $686 thousand.
Current wording
During the six months ended June 30, 2026, cash provided by operating activities was $0.9 million. During the six months ended June 30, 2025, cash used for operating activities was $6.8 million. For the six months ended June 30, 2026, the net loss of $7.0 million was offset by depreciation and amortization of $3.4 million, amortization of operating lease right-of-use assets of $608 thousand, amortization of debt discount of $178 thousand, and a net working capital source of $3.6 million.
Previous wording
During the three months ended March 31, 2026 and 2025, cash used in investing activities was $104 thousand and $68 thousand, respectively. The increase is related to the cash flow impact from higher capital expenditures related to the Natural Shrimp asset purchase.
Current wording
During the six months ended June 30, 2026 and 2025, cash used in investing activities was $3.4 million and $122 thousand, respectively. The increase is related to the cash flow impact from higher capital expenditures related to the Natural Shrimp asset purchase.
Previous wording
During the three months ended March 31, 2026 and 2025, cash provided by financing activities was $691 thousand and $279 thousand, respectively. The increase is driven by $1.5 million related to the Streeterville Note, offset by $798 thousand of debt repayments and $11 thousand of lease payments.
Current wording
During the six months ended June 30, 2026 and 2025, cash provided by financing activities was $12.0 million and $6.2 million, respectively. The increase is driven by $13.5 million of proceeds from debt; $1.5 million from the Streeterville Note (March 2026) and $12.0 million from the Streeterville Notes A-1 and B (June 2026). The increase was offset by $1.5 million of debt repayments and $22 thousand of lease payments.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net loss was $6.9 million for the six months ended June 30, 2026, compared to a net loss of $7.4 million for the six months ended June 30, 2025. The reasons for the decrease in net loss are explained above.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our facilities utilize "closed loop" irrigation systems that recollect and reuse drain water—including water recycled through reverse osmosis—reducing overall water consumption and helping conserve natural resources. Our advanced systems are also designed to help mitigate contamination from harmful pathogens, including salmonella, e-coli and others.
Previous report — wording carried elsewhere
In January 2026, we completed the sale of our net operating losses under the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program and received gross proceeds of approximately $3.4 million.