EDBLWHIGH SIGNALFINANCIAL10-K

EDBLW shows severe financial deterioration with operating losses worsening 70% to -$15.8M despite a 73% increase in total assets, indicating potential capital inefficiency and operational scaling challenges.

The dramatic expansion in losses coupled with declining current assets and worsening cash burn suggests the company is struggling to achieve operational efficiency despite significant asset investments. The 34% increase in SG&A expenses outpacing any revenue improvements indicates poor cost management during a growth phase, which is particularly concerning for investors in this controlled environment agriculture company.

Comparing 2026-03-31 vs 2025-04-01View on EDGAR →
FINANCIAL ANALYSIS

The company experienced a contradictory financial pattern with total assets surging 73% to $20.6M while current assets declined 21% to $5.8M, suggesting heavy investment in fixed assets. However, this asset expansion coincided with severely deteriorating operations, as operating losses ballooned 70% to -$15.8M and operating cash flow worsened 38% to -$11.8M, indicating the company is burning through capital rapidly without achieving proportional operational improvements. The reduction in total debt by 33% provides some balance sheet relief, but cannot offset the concerning trend of escalating losses amid significant capital deployment.

FINANCIAL STATEMENT CHANGES
Total Assets
Balance Sheet
+72.9%
$11.9M→$20.6M

Asset base grew 72.9% — expansion through organic growth, acquisitions, or capital deployment.

Operating Income
P&L
-70.4%
-$9.3M→-$15.8M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Income
P&L
-56.8%
-$11.1M→-$17.3M

Net income declined 56.8% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
-38.6%
-$8.5M→-$11.8M

Operating cash flow fell 38.6% — earnings quality concerns; investigate working capital changes and non-cash items.

SG&A Expense
P&L
+34.6%
$11.6M→$15.6M

SG&A up 34.6% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Total Debt
Balance Sheet
-33.3%
$2.5M→$1.7M

Debt reduced 33.3% — deleveraging strengthens balance sheet and reduces financial risk.

Current Assets
Balance Sheet
-21.5%
$7.4M→$5.8M

Current assets declined 21.5% — monitor working capital adequacy and short-term liquidity.

Inventory
Balance Sheet
+20.5%
$1.5M→$1.9M

Inventory built 20.5% — monitor whether demand supports this build or if write-downs may follow.

Current Liabilities
Balance Sheet
+14.1%
$6.2M→$7.1M

Current liabilities rose 14.1% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-04-01
ADDED
As of March 23, 2026, the registrant had 913,756 shares of Common Stock, $0.0001 par value per share, outstanding.
Business Overview Edible Garden is a controlled environment agriculture ("CEA") farming company.
We operate glass, hydroponic, and vertical greenhouse structures that enable us to grow organic herbs consistently year-round while using less land, less energy, and less water than conventional agriculture.
Our facilities utilize "closed loop" irrigation systems that recollect and reuse drain water including water recycled through reverse osmosis reducing overall water consumption and helping conserve natural resources.
Our operations are supported by GreenThumb , our proprietary patented greenhouse management and demand-planning software (U.S.
GreenThumb tracks plants through all stages of production and distribution, supporting quality control, traceability, fill-rate management, and logistics optimization, including maximizing truckload efficiency to reduce greenhouse gas emissions.
We believe GreenThumb is a meaningful competitive differentiator and an important component of our Zero-Waste Inspired model.
As of December 31, 2025, we offer more than 140 stock keeping units ("SKUs") spanning two principal product segments: (i) fresh produce, including cut herbs, hydroponic basil, potted herbs, and wheatgrass; and (ii) shelf-stable and refrigerated consumer packaged goods, including sports nutrition and nutraceuticals (Kick.
and Vitamin Whey /Vitamin Way ), fermented gourmet sauces and chili-based products (Pulp ), and functional fermented pickles and sauerkraut (Pickle Party ).
We also supply products under private label arrangements to major retail customers.
REMOVED
As of March 14, 2025, the registrant had 1,436,734 shares of Common Stock, $0.0001 par value per share, outstanding.
Business Overview Edible Garden is a controlled environment agriculture ( CEA ) farming company.
We use the controlled environment of traditional greenhouse structures, such as glass greenhouses, together with hydroponic and vertical greenhouses to sustainably grow organic herbs.
Our controlled greenhouse facilities allow us to grow consistent quality herbs year-round, first by eliminating some of the variability of outdoor farming with our CEA techniques, and second by leveraging our proprietary software, GreenThumb.
In addition to using hydroponic and vertical greenhouse systems, we use a closed loop system in our greenhouses.
Generally, in a closed loop system, drain water is recollected and reused for irrigation.
In our closed loop system, we also cycle water back into the system that has been collected through reverse osmosis.
When compared to conventional agriculture, our closed looped systems and hydroponic methods use less land, less energy and less water (than legacy farms), thus conserving some of the planet s limited natural resources.
We have also developed patented software called GreenThumb that assists in tracking plants through our supply chain.
Utilizing our GreenThumb software to track the status of our plants as they grow and move throughout the greenhouse allows us to add a layer of quality control due to the frequent monitoring of the growing process, leading to improved traceability.
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