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Sow Good Inc. (SOWG-3.57%) has submitted its 10-K filing for the fiscal year ended December 31, 2024. The company is a U.S.-based freeze dried candy and snack manufacturer.
The filing reports revenues of $31,992,511 for the year, an increase from $16,070,924 in 2023. The company attributes the revenue growth to the full-year impact of its freeze dried candy product line and increased production capacity.
Cost of goods sold was $19,017,498, resulting in a gross profit of $12,975,013. The gross profit margin increased to 40.56% from 20.4% in the previous year.
Operating expenses totaled $14,531,303, with significant increases in salaries, benefits, and professional services. The increase in expenses is attributed to the company's growth and expansion efforts.
The company reported a net operating loss of $1,556,290, with a total net loss before tax of $3,578,637. Interest expense and a loss on early extinguishment of debt contributed to the overall net loss.
Sow Good Inc. ended the year with $3,723,440 in cash and cash equivalents and a working capital of $17,711,599. The company raised $16,668,024 through financing activities, including a public offering and private placements.
The company has outlined plans for continued growth, including expanding its product line and increasing its distribution network. Sow Good aims to leverage its manufacturing capabilities to introduce new products and enter new markets.
Sow Good's management acknowledges the challenges of competing with larger companies in the highly competitive freeze dried candy market. The company plans to focus on increasing brand awareness and expanding its customer base.
The filing also highlights the company's efforts in maintaining high food safety and quality standards, with its manufacturing facility being SQF-II certified.
Sow Good Inc. faces risks related to its limited operating history, competition, and reliance on a small number of suppliers. The company also notes potential challenges in managing future growth and maintaining 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. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.