Edible Garden AG Incorporated

Good morning everyone and welcome to the Edible Garden Incorporated 2025 second quarter business update conference call. 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 this 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 Avath of Crescendo Communications. Ted, the floor is yours.

Thanks, Jenny. Good morning, and thank you for joining Edible Garden's second quarter 2025 earnings conference call and business update. On the call with us today are Jim Kress, Chief Executive Officer of Edible Garden, and Costas Tafoulis, Interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operating results for the three-month end of June 30, 2025. The press release is posted on the company's website, www.ediblegarden.com. I'm sorry, 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 be available 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. Crash reviews the company's operating results for the quarter end of June 30 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 positions, 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, in other words, and terms of similar expression 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 condition, 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 adversely 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 achievements. 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 in 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 Jim Kress, Chief Executive Officer of Edible Garden. Jim?

Thanks, Ted. Good morning. Thank you to everyone for joining us today. The results that we reported this morning show that our strategy is working and that the disciplined decisions that we've made are delivering real impact. We've been intentional about focusing on higher margin, innovation-driven categories that align with where we see the market heading. rather than trying to be everything to everyone. A year ago, we announced a strategic decision to exit two underperforming low-margin categories, lettuce and floral. While at the time it was a difficult decision, we've since freed up resources to invest in areas where we can lead, like CEA-informed Better For You shelf-stable products that meet the growing demand for healthy and sustainable options. These choices are not just about improving margins, they're about building a portfolio that's more resilient, more adaptable, and better positioned to serve consumers over the long term. We believe this strategy has right-sized our product portfolio, expanded capacity for our core portfolio, and over time will not only drive profitability, but also strengthen our role as a trusted provider of wellness-focused solutions to consumers around the world. These results give us a solid foundation as we look ahead, and I'm excited to walk you through the highlights of the quarter. Private label products sold through major big box retailers delivered a standout second quarter performance, climbing 19.1 percent year-over-year. This growth was driven by expanded retail programs and strong sell-through of our sustainably grown, CEA-produced herb products that continue to resonate with consumers seeking freshness, quality, and sustainability. These results underscore the strength of our retail partnerships and our ability to capture share in higher margin, demand-driven categories. That momentum extended into our core produce category, with hydroponic basil leading the way, growing 7.1% quarter over quarter, followed by potted herbs up 6.4% and wheatgrass up 4.1%. These results highlight the enduring appeal and consistency of our core offerings, supported by our controlled environment agriculture model, which delivers reliable quality, yield, and sustainability advantages, while exceeding major retailer fill rate expectations, consistently delivering at 98% or better. In the second quarter, we made significant progress on our strategic priorities, innovation, brand expansion, and operational sustainability. Furthermore, we've clearly defined our better-for-you market strategy. This is made up of three key pillars of existing fresh produce and fresh condiments, farm-to-formula supplementation, and performance beverages. Our fresh produce segment posted unit growth, supported by new product introductions and ongoing consumer loyalty. A notable highlight was the launch of Kik Sports Nutrition Line on Amazon, which expanded our digital marketing reach, introducing the brand to a broader and stickier customer base and strengthening our direct-to-consumer engagement. Early results from these efforts drove an increase in e-commerce sales, demonstrating both the scalability of our product portfolio online and the growing strength of our digital sales. We also advanced brand expansion initiatives with continued retail growth of Pickle Party, which is gaining strong consumer traction and celebrated the debut of the industry's first USDA organic hydroponic basil, further reinforcing our leadership in sustainable agriculture. Together with robust gains in our non-perishable lines, these achievements are diversifying our revenue streams, enhancing long-term portfolio resilience, and positioning Edelberg Garden to capitalize on emerging opportunities. Internationally, revenue grew 66.5% as we secured new distribution partnerships and expanded retail placements in key global markets, providing a broader platform for sustained growth and global brand visibility. Demand for better-for-you CPG products continues to rise, creating a powerful tailwind for our business. Globally, the functional food and beverage market is projected to expand from $400 billion to $610 billion by 2030, according to Virtue Market Research. In the U.S., sales of natural, organic, and functional products are expected to reach $386 billion by 2028, growing at roughly 5% annually per the Nutrition Business Journal. With a differentiated Brand portfolio built around innovation, sustainability, and wellness. We believe Edible Garden is well-positioned to capture share in these large and fast-growing categories and benefit from these long-term trends. As these consumer preferences increasingly influence the fresh category, our produce business is equally poised to deliver exactly what today's shoppers are seeking, fresh, sustainably grown, and high-quality products that align with their health and lifestyle goals. On the operational side, we took a significant step forward with the acquisition of Natural Shrimp Aquaculture in Iowa, now operating as Edible Garden Prairie Hills. This site expands our R&D capabilities in aquaponics, supports year-round climate control production, and brings with it a portfolio of patented water treatment technologies that recycle water, improve yields, and reduce environmental impact. These patents are now part of our IP portfolio, giving us exclusive rights to advanced aquaculture methods we can not only use at Prairie Hills, but potentially across our entire growing network. strengthening both our competitive position and our sustainability profile. Its central Midwest location also gives us a real advantage in distribution, allowing us to get products to retailers faster, lowering our transportation costs, and delivering fresher products to customers. And with plenty of room to grow, Prairie Hills provides the capacity and flexibility to scale production and roll out new product lines, making it a key driver of innovation, efficiency, and long-term growth. The second quarter, proved that our strategy is working. And we're just getting started. We're delivering growth in categories that matter most, expanding into high-margin opportunities, and strengthening our leadership in sustainable, innovation-driven food production. The acquisition of Prairie Hills adds powerful new capabilities in aquaponics, R&D, and distribution that position us to scale faster, operate more efficiently, and bring even more differentiated products to market. With strong market tailwinds, a growing portfolio of brands consumers love, and the infrastructure to support our ambitions, we're entering the next phase of our growth story with confidence, momentum, and a clear path to creating long-lasting value for our shareholders. With that, I'll turn the call over to Costas Tafoulis, our interim CFO, who will interview the financial results for the quarter-ended June 30, 2025. Costas?