Edible Garden AG Incorporated

Good morning everyone and welcome to the Edible Garden AG Incorporated 2025 First Quarter Business Update Conference. At this time all participants are in a listen-only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host Ted Avas, Investor Relations at Crescendo Communications. Ted, the floor is yours.

Thanks, Jenny. Good morning and thank you for joining Edible Gardens' first quarter 2025 earnings conference call and business update. On the call with us today are Jim Kress, Chief Executive Officer of Edible Gardens, and Costas Tafoulis, Interim Chief Financial Officer of Edible Gardens. Earlier this morning, the company announced its operating results for the three months ended March 31st, 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company will file its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which will also be accessible on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before Mr. Kress reviews the company's operating results for the quarter ended March 31st, 2025, and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. The words aim, anticipate, believe, could, expect, may, plan, project, strategy, will, and the negative of such terms and other words in terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial conditions results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions, as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2024. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and inversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievement. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements, as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Mr. Jim Crash, Chief Executive Officer of Edible Garden. Jim?

Thanks, Ted. Good morning, and thank you to everyone for joining us today. We're pleased to report that Q1 2025 marked a strong start to the year, reflecting the continued momentum behind our strategic transformation. Our realignment towards higher margin, shelf-stable products such as KickSports Nutrition, Pickle Party, Squeezeables, Pulp, and Vitamin Whey is gaining traction, and the results are becoming increasingly visible across our business. We also made meaningful progress expanding our national retail presence. During the quarter, we launched or strengthened our relationships with several major retailers, including Walmart, Stop and Shop, Wakefront ShopRite, and Burkhart's Superfruits. These relationships are driving growth across both our fresh and non-perishable categories, while also leveraging our patented in-store merchandising solutions, such as our self-watering displays and reinforcing our omni-channel strategy. Total revenue declined $414,000 to $2.7 million in the first quarter. This decline was primarily attributed to our strategic decision to exit lower margin floral and lettuce categories. Cut herb sales rose 13% on a seasonal basis, highlighting sustained consumer demand for freshness and convenience. This deliberate shift in our product mix is already contributing to margin expansion and setting the stage for scalable, profitable growth. highlighting the traction in our non-perishable portfolio where revenue rose 15% year over year. Each of our non-perishable shelf-stable brands have contributed to this performance. Kick Sports Nutrition achieved a milestone with new brick and mortar replacement at a major Midwest big box retailer. The brand includes clean labeled whey, and plant-based protein powders with planned expansion into pre- and post-workout formulas and hydration products. These offerings support performance, recovery, and overall wellness for today's health-conscious consumers. Pickle Party. Created in partnership with Herman Pickle Company, it's the world's first functional pickle, fermented, refrigerated, and gut health focused. Featuring kosher and non-GMO ingredients, it's launching across all Burkott superfood stores and has secured pre-orders at Foodtown, Lincoln Market, ahead of summer season. Squeezables, our shelf-stable, stir-and-paste line has successfully completed its pilot and is moving into full-scale production. Pulp, our line of organic Fermented gourmet hot sauces and chili-based condiments continues to gain momentum in the premium condiments category and resonates with consumers seeking healthy, elevated alternatives to traditional sauces. Vitamin Whey and Vitamin Whey offer a growing portfolio of whey and plant-based protein powders designed to support recovery, overall wellness, and daily nutritional needs. The brand continues to combine advanced supplementation with consumer-friendly taste and value. Following a successfully established retail presence, we launched a dedicated e-commerce platform at vitaminway.com to broaden access and accelerate brand growth. Gross profit increased 283% year-over-year, nearly quadrupling from Q1 2024, while gross margin improved to 3.2% from 0.7%. This improvement reflects stronger cost control and improved SKU mix. One of the most transforming milestones of the year announced just yesterday was our $15.5 million acquisition from natural shrimp farms. Funded through a mix of preferred equity and institutional investment, this deal strengthens our balance sheet without increasing debt and further extends our vertically integrated model. The acquisition includes a fully operational aquaculture facility in Fort Dodge, Iowa, and two patented water treatment technologies. These patented innovations will be integrated into our greenhouse operations to enhance water efficiency and reduce environmental impact, complementing our ongoing nanobubble irrigation trials with, per se, New Jersey Institute of Technology, the EPA, and the USDA, which have already shown up to a 55% increase in yield and a 30% reduction in harvest cycle time. In addition, the Iowa facility offers valuable infrastructure for expanded R&D, warehousing, and potential nutraceutical development, supporting our goals around vertical integration, sustainability, and long-term innovation. Our commitment to sustainability remains central to our identity. Through initiatives like Walmart's Project Gigaton, we helped avoid nearly 11,800 metric tons of virgin plastic in 2024, conserved over 28,000 gallons of diesel, and diverted 103 tons of food through donation programs. We're proud to be recognized in the Food Tech 500 as a top 50 company and continue to lead the way in our controlled environment agriculture with real measurable impact. With a focused strategy, brand momentum, and an even stronger operational foundation, we believe Edible Garden is well-positioned to deliver long-term value for our customers, partners, and shareholders. I would now like to turn the call over to Costas Tafoulis, our interim CFO, who will review the financial results for the quarter ended March 31, 2025. Costas?