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Sow Good Inc. (SOWG-5.13%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $3,554,157 from $5,034,203 in the same quarter the previous year. This decrease is attributed to the company's decision to delay shipments due to extreme heat affecting product quality.
Cost of goods sold for the quarter was $2,998,171, compared to $3,698,962 in the same quarter of the previous year. The decrease is primarily related to the decline in revenue, partially offset by higher costs associated with the company's new facility.
The company reported a gross profit of $555,986 for the quarter, compared to $1,335,241 in the previous year, with the decline attributed to decreased revenues.
Salaries and benefits expenses increased to $1,875,908 from $618,907, primarily due to higher stock-based compensation expenses.
Net loss for the quarter was $3,379,909, compared to a net income of $333,984 in the previous year. The transition to a net loss was primarily due to decreased gross profit and increased operating expenses.
Cash used in operating activities was $6,124,944 for the nine months ended September 30, 2024, compared to $3,328,516 in the same period the previous year.
Sow Good had a working capital of $19,698,154 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including promissory notes and warrants issued in connection with debt financing.
Sow Good continues to focus on expanding its freeze dried candy product line and increasing its distribution network.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sow Good Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.