Edible Garden AG Incorporated

Good morning everyone and welcome to Edible Garden Incorporated 2026 Second Quarter Business Update Conference. At this time all participants are in a listen only mode. A question and answer session will follow the formal 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 call 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 Garden's 2026 Second Quarter Earnings Conference Call and Business Update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier today, the company announced its operating results for the three and six months ended June 30, 2026. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed 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. Kras reviews the company's operating results for the quarter ended June 30th, 2026 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... Thank you for joining us. 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, 2025. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statement. 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 on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. With that, I would now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden. Jim?

Thanks, Ted, and good morning, everyone. The second quarter was another period of solid progress for Edible Garden. Revenue grew 12.8% year-over-year to $3.6 million, while total sales increased by more than 31%. What was particularly encouraging was the breadth of that growth. Cut-off sales increased more than 42%, driven by continued growth with existing customers and newer programs with major retailers, including Kroger, Target, and Weiss. We saw growth across potted herbs, international vitamins, and condiments as well, while expanding our relationships with retailers including Target, Walmart, Wavefront ShopRite, and the Fresh Market. In addition, we extended a multi-year private label contract with a major Midwest retailer. More recently, we were awarded fresh-cut herb distribution through a key Target Midwest distribution center, further expanding that relationship and broadening distribution of our premium fresh-cut herb portfolio across the region. David Ross, Amanda Caton, Emily Morel In Metro New York, for example, we are traditioning more volume from direct store deliveries to retail distribution centers and regional logistics hubs. We believe this can reduce transportation and delivery-related costs, simplify the network, and create better operating leverage as we grow. At the same time, the retail relationships, distribution capabilities, and infrastructure we have built through our core business gives us a foundation that can be leveraged well beyond traditional produce. And that brings me to what we believe is the most significant long-term growth opportunity in front of Edible Garden, our farm-to-formula strategy, and the development of the ready-to-drink RTD manufacturing platform at Prairie Hills in Webster City, Iowa. We believe this has the potential to fundamentally change the scale and profile of our business over time, and we made significant progress during the second quarter. Most notably, we successfully completed prototype production at Tetra Pak's new product development center. This is much more than a product development exercise. It allowed us to run our proprietary clean label formulations under commercial processing conditions, generate production data, further optimize the products and advance our preparation for customer sales and commercial manufacturing. In parallel, we continued moving forward with the physical development of Prairie Hills, forward with Structura Architects and E2 Building Group, supporting the design, engineering, and construction process. Together, these milestones represent meaningful progress towards a scalable commercial manufacturing platform we envision. The reason why we are so focused on this opportunity is the potential scale. Perry Hills is being developed as a flexible, high-capacity platform for shelf-stable, clean-label nutritional beverages utilizing advanced Tetra Pak processing and packaging technologies. At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually, providing the potential to participate across sports nutrition, protein beverages, functional wellness, meal replacement, GLP-1 support, and other better-for-you categories. Importantly, the platform is being developed to drive our own brands as well as private label and co-manufacturing opportunities. Thank you for joining us. is that we are not starting from scratch. Our products are already available in more than 6,000 retail locations and growing. We've spent years developing relationships with national and regional retailers along with the food safety supply chain and commercialization and retail execution capabilities needed to serve them. Combining that existing commercial infrastructure with scalable domestic RTD manufacturing has the potential to significantly expand our addressable market David Ross, Mathew McConnell, Kostas Dafoulas, Amanda Caton, Emily Morel Thank you very much. Kostas Dafoulas