Edible Garden AG Incorporated (NASDAQ:EDBL) Q4 2022 Earnings Call Transcript

Jeremy Pearlman: Okay. All right, great, that’s really helpful. And then I think just moving over to the — more of the products. You introduced in the fourth quarter the new salad kits. It’s been about 3 months now. Is there any more information you can give about how that’s been received, what type of velocity have you been seeing on this product and then what you plan — where you plan to see that expanding to other stores if you’re in talks with them?

James Kras: We’ll look, they’ve been doing well. They’re a nice add-on, and we will probably look to extend that into some other varieties as well as push that into distribution into other accounts probably starting out in the Midwest where we currently have production and then look to expand it probably from the West to the East as that’s where, once again, our leverage as a supplier with the large accounts ranging from, obviously, Meijer in the Midwest, Wakefern/Shoprite in the Northeast and then Hannaford. So those are just 3 of many, and we’re obviously doing sales calls to continue to leverage the locality of where those are produced and the freshness, the reduction in crude miles and make sure that we have the freshest product out there that continues to sell well.

Jeremy Pearlman: Okay. All right. Great. And then is there anything else in the pipeline, the product pipeline that might be you could share with us or that’s more — something that we’ll see as it comes out?

James Kras: We’re working on constant innovations here. That’s a lot of what continues to separate us from a lot of our competitors. It also adds to our diversity as a company. And our assortment ranges from things that we grow to finished goods. And we continue to focus on being Zero-Waste Inspired, doing it within an ethical, sustainable manner, ways. And to help that drive innovations, not only from what we’re growing and how we increase our yields, but also some of the new finished goods such as Pulp and some of the other alternate proteins that we’re working on. I think you’ll see a real nice host of product coming out over the next 12 to 18 months. And it will be even sooner as new products are the lifeblood of any company, especially CPG/CEA company like we are.

Operator: Our next question is coming from Paul Cooney with Joseph Gunnar & Company.

Paul Cooney: Just wondering with the opening of the Grand Rapids facility, should that be an immediate significant ramp-up in revenue?

James Kras: It will be an immediate impact on margin and profitability as we’re eyeing cash flow positive this year. So that’s going to be a big piece of it. So it will be twofold. It will be an immediate hit to the bottom line, which is great in a positive way, and then obviously it gives us more capabilities to bring in more business that we’ve got teed up.

Paul Cooney: And do you believe the current capital that the company has with the latest raise will get you there to the profit?

James Kras: Yes, yes.

Paul Cooney: All right. And last question. As far as the nonperishable part of your business that you acquired, what are you modeling for that as far as what type of revenue impact do you think that will have in ’23?