Edible Garden AG Inc (EDBL) 2022 Q4 法說會逐字稿

Greetings, and welcome to the Edible Garden Fourth Quarter and Year-End 2022 Business Update Call. (Operator Instructions) Please note this conference is being recorded.

您好，歡迎來到 Edible Garden 第四季度和 2022 年底業務更新電話會議。 （操作員說明）請注意正在錄製此會議。

I will now turn the conference over to your host, Mr. Ted Ayvas. You may begin.

我現在將會議轉交給主持人 Ted Ayvas 先生。你可以開始了。

Thanks, Ali. Good morning, and thank you for joining Edible Garden's Year-end 2022 Conference Call and Business Update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden; and Mike James, Chief Financial Officer of Edible Garden.

謝謝，阿里。早上好，感謝您參加 Edible Garden 的 2022 年年終電話會議和業務更新。今天與我們通話的是 Edible Garden 的首席執行官 Jim Kras； Edible Garden 首席財務官 Mike James。

Earlier this morning, the company announced its operating results for the year ended December 31, 2022. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company filed its annual report on Form 10-K with the United States Securities and Exchange Commission this morning, 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 and would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020.

今天上午早些時候，該公司公佈了截至 2022 年 12 月 31 日止年度的經營業績。新聞稿發佈在公司網站 www.ediblegardenag.com 上。此外，該公司今天上午向美國證券交易委員會提交了 10-K 表格的年度報告，該報告也可在公司網站以及美國證券交易委員會網站 www.sec.gov 上查閱。如果您在通話後有任何疑問並想了解有關公司的任何其他信息，請致電 (212) 671-1020 聯繫 Crescendo Communications。

Before Mr. Kras reviews the company's operating results for the year-end 2022 and provide 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 expect, project, plan, believe, may, will, would, should, could, mission, strategy, potential, seek, strive and the negative of such terms and other words and 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 condition, results of operation, 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 most recent annual filing on Form 10-K filed with the U.S. Securities and Exchange Commission. 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.

在 Kras 先生回顧公司 2022 年底的經營業績並提供業務更新之前，我們想提醒大家，本次電話會議可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的所有陳述，包括關於我們未來經營業績和財務狀況、戰略和計劃的陳述，以及我們對未來經營的預期，均為前瞻性陳述。預期、項目、計劃、相信、可能、將、會、應該、可能、使命、戰略、潛力、尋求、努力和這些術語的否定以及類似表達的其他詞語和術語旨在識別前瞻性聲明。這些前瞻性陳述主要基於公司目前對未來事件和趨勢的預期和預測，它認為這些事件和趨勢可能會影響其財務狀況、經營成果、戰略、短期和長期業務運營和目標以及財務需求。這些前瞻性陳述受若干風險、不確定性和假設的影響，如公司最近向美國證券交易委員會提交的 10-K 表格年度文件中所述。由於這些風險、不確定性和假設，本次電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能與前瞻性陳述中預期或暗示的結果存在重大不利差異。您不應依賴前瞻性陳述作為對未來事件的預測。儘管公司認為前瞻性陳述中反映的預期是合理的，但它不能保證未來的結果、活動水平、業績或成就。此外，公司或任何其他人均不對任何這些前瞻性陳述的準確性和完整性承擔責任。除非法律要求，否則公司不承擔更新任何這些前瞻性陳述的義務。這些警告性聲明以及本次電話會議中作出的其他聲明明確限定了所有屬於公司的前瞻性聲明。您應該評估公司在這些風險和不確定性的背景下所做的所有前瞻性陳述。

With that, I will now turn the call over to Jim Kras. Jim?

有了這個，我現在將把電話轉給 Jim Kras。吉姆？

Thank you, Ted. Good morning, and thank you to everyone for joining us today. On behalf of the Edible Garden team, I want to extend our sincere gratitude to our investors for their unwavering support and belief in our vision. With your continued support, we are confident that we will achieve our goals and pave the way for building shareholder value.

謝謝你，泰德。早上好，感謝大家今天加入我們。我謹代表 Edible Garden 團隊，向我們的投資者表示衷心感謝，感謝他們對我們願景的堅定支持和信任。在您的持續支持下，我們有信心實現我們的目標，並為創造股東價值鋪平道路。

We are pleased to report that Edible Garden achieved year-over-year top line revenue growth for the third quarter in a row since our IPO last year. This notable success is a result of our strategic capital management and unwavering focus on building a strong Edible Garden brand. Despite a challenging economic climate, we have remained resilient and continue to deliver exceptional customer service while keeping our pricing relatively stable even during a period of unprecedented rapid inflation. As a result, we believe we have gained a competitive advantage over many of our competitors who have struggled in this environment.

我們很高興地報告，自去年首次公開募股以來，Edible Garden 連續第三個季度實現收入同比增長。這一顯著成功是我們戰略性資本管理和堅定不移地致力於打造強大的 Edible Garden 品牌的結果。儘管經濟環境充滿挑戰，但即使在前所未有的快速通貨膨脹時期，我們仍保持彈性並繼續提供卓越的客戶服務，同時保持我們的定價相對穩定。因此，我們相信，與許多在這種環境中苦苦掙扎的競爭對手相比，我們已經獲得了競爭優勢。

In addition, we expect to see an increase in our margins once our Heartland Midwest facility is fully operational. With the continued dedication of the Edible Garden team, we believe that we will achieve positive cash flow later this year, marking a significant milestone in our journey as a public company.

此外，一旦我們的 Heartland Midwest 設施全面投入運營，我們預計我們的利潤率將會增加。在 Edible Garden 團隊的持續奉獻下，我們相信我們將在今年晚些時候實現正現金流，標誌著我們作為一家上市公司的旅程中的一個重要里程碑。

Our company's distribution network is expanding rapidly with the addition of new retail partners in the Northeast, Midwest, Mid-Atlantic and Southeastern regions of the country. In addition, we are introducing new product categories and what we expect to be higher-margin products to the Edible Garden brand to meet our customers' ever-evolving needs. Our commitment to sustainability through our Zero-Waste Inspired mission has resonated with environmentally conscious consumers and our distribution partners contributing to the strong demand for our products.

隨著在該國東北部、中西部、中大西洋和東南部地區增加新的零售合作夥伴，我們公司的分銷網絡正在迅速擴展。此外，我們正在為 Edible Garden 品牌引入新的產品類別和我們期望更高利潤的產品，以滿足客戶不斷變化的需求。我們通過我們的零廢物啟發使命對可持續發展的承諾引起了具有環保意識的消費者和我們的分銷合作夥伴的共鳴，這導致了對我們產品的強勁需求。

Among our achievements in the fourth quarter, we introduced complete salad kits to our product line. These greenhouse grown kits feature our popular sustainable, locally grown cut lettuce that come with all the ingredients necessary to make a complete salad. The first 3 kits in our lineup include a Caesar Salad Kit with baby romaine lettuce, a Crisp Ranch Kit with crispy green leaf lettuce and a Balsamic Vinaigrette kit with spring mix lettuce, with even more in development. The salad kits, which were created to align with current consumption trends and provide maximum convenience to consumers, were first made available at Meijer retail locations in the Midwest.

在我們第四季度的成就中，我們在產品線中推出了完整的沙拉套裝。這些溫室種植的套件以我們廣受歡迎的本地種植的可持續切碎生菜為特色，其中包含製作完整沙拉所需的所有成分。我們產品線中的前 3 種套餐包括凱撒沙拉套餐和小生菜、脆皮牧場套餐和香脆綠葉生菜，以及香醋套餐和春季混合生菜，還有更多正在開發中。這些沙拉套裝旨在順應當前的消費趨勢並為消費者提供最大的便利，首先在中西部的 Meijer 零售點發售。

We also acquired the Pulp line of all-natural non-GMO preservative-free and sustainable gourmet sauces and chili-based products. This marks the company's initial entree into the global sauces and condiments market, which is projected to grow from $172.8 billion in 2021 to $240.7 billion by 2028. According to research and markets, these fermented sauces, which elevate food flavors from bland to bold, were introduced at Natural Products Expo West 2023 earlier this month.

我們還收購了 Pulp 系列的純天然非轉基因、不含防腐劑的可持續美食醬料和辣椒產品。這標誌著該公司首次進入全球醬汁和調味品市場，該市場預計將從 2021 年的 1,728 億美元增長到 2028 年的 2,407 億美元。根據研究和市場，這些發酵醬料將食品口味從淡淡提升為濃郁，本月早些時候在 Natural Products Expo West 2023 上推出。

The Pulp product line will initially launch a Whole Foods Markets Mid-Atlantic and Southeastern retail locations starting this summer 2023. The refrigerated section of the supermarket where the sauces will be located is typically adjacent to the produce section, which will enable Edible Garden to leverage its growing brand recognition and to capitalize on the demand for healthier and sustainable options. Expanding into a new product category is a significant step forward for the Edible Garden brand as it positions us into what we believe will be higher-margin products with extended shelf life. The launch of Pulp products line at Whole Foods Markets Mid-Atlantic and Southeastern retail locations also provides us with a further expansion of our already robust distribution network.

從 2023 年夏天開始，Pulp 產品線最初將在 Whole Foods Markets 的大西洋中部和東南部零售點推出。醬料所在的超市冷藏區通常與農產品區相鄰，這將使 Edible Garden 能夠利用其不斷增長的品牌知名度，並利用對更健康和可持續選擇的需求。擴展到一個新的產品類別是 Edible Garden 品牌向前邁出的重要一步，因為它將我們定位於我們認為將是利潤更高、保質期更長的產品。在 Whole Foods Markets 大西洋中部和東南部零售點推出 Pulp 產品線也為我們提供了進一步擴展我們已經強大的分銷網絡。

Additionally, we added Morton Williams Supermarkets to our Northeast distribution network, which began carrying the Edible Garden product line in all of its locations in the New York metropolitan area. We also expanded our distribution with Gristedes and D'Agostino markets to sell an optimized assortment of Edible Garden products in 29 of their combined locations in Manhattan, Brooklyn and Westchester, New York. These retail locations are ideally located in densely populated urban areas that receive high volumes of foot traffic in the New York City metropolitan area. Moreover, this expansion enabled us to deepen our penetration and improve our product placement within these retail locations.

此外，我們將 Morton Williams Supermarkets 添加到我們的 Northeast 分銷網絡中，該網絡開始在紐約都會區的所有地點銷售 Edible Garden 產品線。我們還擴大了在 Gristedes 和 D'Agostino 市場的分銷，在紐約曼哈頓、布魯克林和威徹斯特的 29 個合併地點銷售經過優化的 Edible Garden 產品。這些零售地點理想地位於人口稠密的城市地區，這些地區在紐約市大都市區有大量的客流量。此外，這種擴張使我們能夠加深我們的滲透並改善我們在這些零售地點的產品佈局。

This past holiday season proved to be one of the most successful in the company's history as we surpassed industry averages with an order fulfillment rate or a fill rate across all of our retail and distribution partners. Notably, we exceeded a fill rate of 100% in one of the country's largest supercenter operators, strengthening our existing relationship with this key partner.

事實證明，過去的這個假期是公司歷史上最成功的假期之一，因為我們所有零售和分銷合作夥伴的訂單履行率或履行率都超過了行業平均水平。值得注意的是，我們在該國最大的超級中心運營商之一的填充率超過了 100%，加強了我們與這一重要合作夥伴的現有關係。

Despite significant supply chain challenges, Edible Garden was able to deliver outstanding service and execution to our customers, further demonstrating our commitment to excellence. By consistently exceeding our partner's expectations, we have established ourselves as a reliable and trusted supplier to sustainably grown produce. The company continues to be committed to leveraging the latest technology to advance our strategy of increasing yields and maximizing the nutritional value of locally grown produce.

儘管存在重大的供應鏈挑戰，Edible Garden 仍能夠為我們的客戶提供出色的服務和執行力，進一步證明了我們對卓越的承諾。通過不斷超越合作夥伴的期望，我們已經確立了自己作為可持續種植農產品的可靠和值得信賴的供應商的地位。該公司繼續致力於利用最新技術來推進我們提高產量和最大化當地種植農產品營養價值的戰略。

Edible Garden recently forged at a research partnership with the New Jersey Institute of Technology, the USDA and the EPA to investigate the effects of nanobubble technology in controlled environment agriculture settings. The primary goal of this EPA funded research is to validate the potential benefits of nanobubbles for indoor agriculture and explore their impact on plant health, water usage, nutrient utilization and energy efficiency.

Edible Garden 最近與新澤西理工學院、美國農業部和美國環保署建立了研究合作夥伴關係，以研究納米氣泡技術在受控環境農業環境中的影響。這項 EPA 資助的研究的主要目標是驗證納米氣泡對室內農業的潛在好處，並探索它們對植物健康、用水、養分利用和能源效率的影響。

This research is particularly exciting to us as it has the potential to revolutionize plant nutrition and provide more nutritious plants with longer shelf lives. In addition, the partnership is well aligned with Edible Garden's Zero-Waste Inspired missions which seeks to promote sustainable agricultural practices that reduce waste and conserve resources. If successful, the research project could have significant implications for Edible Garden's product line benefiting not just the company but also consumers who prioritize health and sustainable food options. Our commitment to sustainability and innovation makes this partnership a significant step forward in the quest for more efficient and sustainable agriculture practices.

這項研究對我們來說特別令人興奮，因為它有可能徹底改變植物營養並提供更具營養且保質期更長的植物。此外，該合作夥伴關係與 Edible Garden 的零廢物啟發使命非常一致，該使命旨在促進減少浪費和節約資源的可持續農業實踐。如果成功，該研究項目可能對 Edible Garden 的產品線產生重大影響，不僅使公司受益，而且使優先考慮健康和可持續食品選擇的消費者受益。我們對可持續性和創新的承諾使這種夥伴關係在尋求更高效和可持續的農業實踐方面向前邁出了重要一步。

Earlier this month, Edible Garden was recognized as one of the top agro food tech companies globally in this year's FoodTech 500 final rankings. Our Zero-Waste Inspired mission has been the driving force behind our success. Our team's hard work and dedication, along with the implementation of innovative technologies such as our patented GreenThumb software and patent pending self-watering displays have enabled us to improve yield, reduce waste and optimize costs. We take pride in being acknowledged as 1 of the most promising agro food tech companies worldwide, and strive to maintain this position by building on our achievements and continuing to lead the way in the industry.

本月早些時候，Edible Garden 在今年的 FoodTech 500 最終排名中被公認為全球頂級農業食品科技公司之一。我們以零廢物為靈感的使命一直是我們成功的推動力。我們團隊的辛勤工作和奉獻精神，以及我們的專利 GreenThumb 軟件和正在申請專利的自動澆水顯示器等創新技術的實施，使我們能夠提高產量、減少浪費並優化成本。我們為被公認為全球最有前途的農業食品科技公司之一而感到自豪，並通過鞏固我們的成就並繼續在行業中處於領先地位，努力保持這一地位。

I would like to now turn the call over to Mike James, Chief Financial Officer of Edible Garden, who will review the financial results for the 3-month and full year periods ending December 31, 2022. Mike?

我現在想把電話轉給 Edible Garden 的首席財務官邁克詹姆斯，他將審查截至 2022 年 12 月 31 日的三個月和全年的財務業績。邁克？

Thanks, Jim, and good morning. Looking at the fourth quarter financial results first, the company reported revenues of $3.1 million in the quarter, an increase of 10%, compared to $2.8 million for the fourth quarter of 2021. As Jim said earlier, this represents the third consecutive quarter of revenue growth since our IPO last year and represents growth from the existing customer base.

謝謝，吉姆，早上好。首先看第四季度的財務業績，該公司報告本季度的收入為 310 萬美元，增長 10%，而 2021 年第四季度為 280 萬美元。正如吉姆早些時候所說，這是連續第三個季度的收入自我們去年首次公開募股以來的增長，代表了現有客戶群的增長。

Cost of goods sold was $3 million for the 3 months ended December 31, 2022 compared to $2.8 million for the 2021 fourth quarter. The increase was due to higher packaging costs due to inflation, higher labor costs due to a tight labor market and increases in rates charged by contract farmers.

截至 2022 年 12 月 31 日止三個月的銷售成本為 300 萬美元，而 2021 年第四季度為 280 萬美元。增加的原因是通貨膨脹導致包裝成本增加，勞動力市場緊張導致勞動力成本增加以及合同農民收取的費用增加。

Selling, general and administrative expenses were $3.1 million for the 3 months ended December 31, 2022 compared to $1.7 million for the 3 months ended December 31, 2021. The increase was primarily driven by higher payroll and compensation expense, as well as other public company expenses that were not incurred in 2021.

截至 2022 年 12 月 31 日止三個月的銷售、一般和行政費用為 310 萬美元，而截至 2021 年 12 月 31 日止三個月為 170 萬美元。增加的主要原因是工資和補償費用增加，以及其他上市公司2021 年未發生的費用。

Net loss was $3 million or $9.31 per share for the 3 months ended December 31, 2022 compared to a net loss of $2.1 million or $12.76 per share for the 3 months ended December 31, 2021.

截至 2022 年 12 月 31 日的三個月淨虧損為 300 萬美元或每股 9.31 美元，而截至 2021 年 12 月 31 日的三個月淨虧損為 210 萬美元或每股 12.76 美元。

Turning to the results. For the year ended December 31, 2022, revenues totaled $11.6 million, an increase of 10% compared to $10.5 million for the year ended December 31, 2021. The increase represents the growth from the existing customer base. Cost of goods sold was $11.2 million for the year ended December 31, 2022 compared to $9.9 million for the year ended December 31, 2021. The increase was due to higher packaging costs due to inflation, higher labor costs due to a tight labor market and higher costs charged by contract farmers.

轉向結果。截至 2022 年 12 月 31 日止年度，收入總計 1160 萬美元，與截至 2021 年 12 月 31 日止年度的 1050 萬美元相比增長 10%。這一增長代表了現有客戶群的增長。截至 2022 年 12 月 31 日止年度的銷售成本為 1,120 萬美元，而截至 2021 年 12 月 31 日止年度為 990 萬美元。增加的原因是通貨膨脹導致包裝成本上升，勞動力市場緊張導致勞動力成本上升，以及合同農戶收取的費用更高。

Selling, general and administrative expenses were $9.4 million for the year ended December 31, 2022 compared to $5.6 million for the year ended December 31, 2021. The increase was primarily driven by higher payroll and compensation expense which included onetime expenses related to the completion of our IPO, as well as other public company expenses that were not incurred in 2021.

截至 2022 年 12 月 31 日止年度的銷售、一般和行政費用為 940 萬美元，而截至 2021 年 12 月 31 日止年度為 560 萬美元。增加的主要原因是工資和補償費用增加，其中包括與完成我們的 IPO，以及 2021 年未發生的其他上市公司費用。

Net loss was $12.5 million or $48.68 per share for the year ended December 31, 2022 compared to a net loss of $5.5 million or $39.28 per share for the year ended December 31, 2021. Per share amounts have been adjusted to reflect all stock splits.

截至 2022 年 12 月 31 日止年度的淨虧損為 1250 萬美元或每股 48.68 美元，而截至 2021 年 12 月 31 日止年度的淨虧損為 550 萬美元或每股 39.28 美元。每股金額已進行調整以反映所有股票拆分。

Before turning the call back over to the operator for questions, I would like to take a moment to discuss the successful offering we completed in February of 2023, which generated roughly $10.2 million in gross proceeds. The offering was important as it allowed us to secure the necessary funding to accelerate the expansion of our business. With this funding, we are confident in our ability to execute our business plan and achieve sustainable long-term growth.

在將電話轉回接線員提問之前，我想花點時間討論一下我們在 2023 年 2 月完成的成功發行，該發行產生了大約 1020 萬美元的總收益。此次發行很重要，因為它使我們能夠獲得必要的資金來加速我們的業務擴張。有了這筆資金，我們對執行業務計劃和實現可持續長期增長的能力充滿信心。

I would now like to open up the call for questions. Operator, can you please assist us with that?

我現在想打開問題電話。接線員，您能協助我們嗎？

(Operator Instructions) Our first question is coming from Anthony Vendetti with Maxim Group.

（操作員說明）我們的第一個問題來自 Maxim Group 的 Anthony Vendetti。

This is actually Jeremy on the line. So just a couple of questions from our end. I mean, first, could we talk maybe a little bit more about your distribution network? How many stores are you currently in, where in the U.S. is that, are those stores primarily located? And then what are your plans for 2023 to increase the distribution increase to your store count?

這實際上是 Jeremy 在線。所以我們只有幾個問題。我的意思是，首先，我們能否多談談你們的分銷網絡？您目前有多少家商店，在美國的哪個地方，這些商店主要位於哪裡？然後，您計劃在 2023 年增加門店數量的分銷增長是什麼？

Thank you, Jeremy. This is Jim Kras. Currently, we're north of 4,000 stores. We are looking -- we are primarily concentrated, call it, East of the Mississippi, Midwest, Northeast, and we're making inroads into the Southeast vis-a-vis Whole Foods. The plan is to continue to strengthen our distribution might in the Northeast, in the Midwest with adding store counts with major retailers, as well as more additional local smaller regional chains. We'll be looking to expand with some of the larger big boxes kind of outside of that region as we move forward, and you'll see some of that happen over the next few months.

謝謝你，傑里米。這是吉姆·克拉斯。目前，我們在 4,000 家商店以北。我們正在尋找——我們主要集中在密西西比河東部、中西部、東北部，我們正在進軍東南部，與 Whole Foods 相對。該計劃是繼續加強我們在東北部、中西部的分銷能力，增加主要零售商的門店數量，以及更多的本地小型區域連鎖店。隨著我們的前進，我們將尋求在該地區以外的一些更大的大盒子中進行擴展，您會在接下來的幾個月中看到其中的一些發生。

Okay. Great. And then just piggybacking off that, I know you mentioned that you have your Grand Rapids, Michigan greenhouse. You completed the first phase of that, and I think you had commenced the second phase. Where are you in the process of that?

好的。偉大的。然後順便說一下，我知道你提到過你在密歇根州的大急流城有溫室。你完成了第一階段，我想你已經開始了第二階段。你在那個過程中在哪裡？

We are in very, very good shape. We are in the final stages of bringing that online. And I would think that you would see that online in the next 30 days, if not (inaudible).

我們的狀態非常非常好。我們正處於將其上線的最後階段。我認為您會在接下來的 30 天內在網上看到它，如果沒有（聽不清）。

And does that include -- I know you mentioned that you put in a request to get a USDA organic certification. Is that something that you expect...

這是否包括——我知道你提到過你提出了獲得美國農業部有機認證的請求。這是你期待的嗎...

It's all completed, and we just -- our kind of our final go-ahead. We're in pretty good shape, we're in very good shape actually, and so that should all sort of dovetail nicely with a launch within the next 30 days.

一切都完成了，我們只是——我們的最後一次批准。我們的狀態非常好，實際上我們的狀態非常好，所以這應該與未來 30 天內的發布相吻合。

Okay. Great. And then just remind us, I think you said that you have about the capacity for that greenhouse is about $20 million in annualized revenue. And I know you mentioned a couple of times on the call in the financial section about how some of the contract growers were increasing the costs were -- is this going to allow you to sort of maybe offset or just replace some of those contract growers once this greenhouse is up and running at full capacity?

好的。偉大的。然後提醒我們，我想你說過那個溫室的年收入約為 2000 萬美元。我知道你在財務部分的電話會議上多次提到一些合同種植者是如何增加成本的——這是否會讓你有點抵消或只是更換一些合同種植者一次這個溫室已經滿負荷運轉了嗎？

It will let us offset. So some of our grower -- our contract growers will stay in place. They do a very nice job for us, we have agreements in place, and then some of this will allow us to bring on additional business at a much higher margin since margin for us will be much higher since we'll be fully vertically integrated.

它會讓我們抵消。所以我們的一些種植者——我們的合同種植者將留在原地。他們為我們做得很好，我們已經達成協議，然後其中一些將使我們能夠以更高的利潤率開展更多業務，因為我們將完全垂直整合，因此我們的利潤率會更高。

Okay. Great. And then in that capacity, is that something that you're going to have to know -- is that something that you could -- once it's online, you think you'll be able to have that ready to go right away with buyers or is that something you're going to have to add to your distribution increases? Hopefully throughout 2023, you'll be able to supply those new stores or new customers with output from this greenhouse.

好的。偉大的。然後以這種身份，是你必須知道的東西 - 是你可以知道的東西 - 一旦它在線，你認為你將能夠準備好立即與買家或這是您必須添加到您的分發增加中的東西嗎？希望在整個 2023 年，您將能夠為這些新商店或新客戶提供該溫室的產出。

It will -- there'll be somewhat of a ramp-up, but the thing will be in a very good position to take on some existing business as well as definitely integrating the new business, I think, very fluidly.

它將 - 會有一些提升，但事情將處於非常有利的位置來承擔一些現有業務以及肯定整合新業務，我認為，非常流暢。

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?

好的。好吧，太好了，這真的很有幫助。然後我想只是轉向 - 更多的產品。你在第四季度推出了新的沙拉包。現在已經快3個月了。您是否可以提供更多信息來說明收到的方式、您在該產品上看到的速度類型以及您的計劃——如果您正在與其他商店進行談判，您計劃將其擴展到其他商店？

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.

我們會看看，他們一直做得很好。它們是一個很好的附加組件，我們可能會考慮將其擴展到其他一些品種，並將其分發到其他帳戶中，可能從我們目前生產的中西部開始，然後可能會從西部到東部，因為那裡再次成為我們作為供應商的槓桿作用，我們的大客戶顯然包括中西部的 Meijer、東北部的 Wakefern/Shoprite，然後是 Hannaford。所以這些只是眾多中的 3 個，我們顯然正在做銷售電話，以繼續利用這些產品的產地和新鮮度，減少原油里程，並確保我們擁有最新鮮的產品，並繼續暢銷。

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?

好的。好的。偉大的。然後在管道中還有其他任何東西嗎？可能是您可以與我們分享的產品管道，或者更多 - 我們會在它出來時看到的東西？

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.

我們在這裡致力於不斷創新。這就是我們繼續與許多競爭對手區分開來的原因。這也增加了我們公司的多樣性。我們的品種範圍從我們種植的東西到成品。我們將繼續專注於以零廢棄為靈感，以合乎道德、可持續的方式來實現。並幫助推動創新，不僅來自我們正在種植的產品和我們如何提高產量，還包括一些新的成品，如紙漿和我們正在研究的其他一些替代蛋白質。我認為您會在接下來的 12 到 18 個月內看到大量非常棒的產品問世。而且它會更快，因為新產品是任何公司的命脈，尤其是像我們這樣的 CPG/CEA 公司。

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

我們的下一個問題來自 Paul Cooney 和 Joseph Gunnar & Company。

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

只是想知道隨著大急流城設施的開放，這是否會立即顯著增加收入？

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.

這將對利潤率和盈利能力產生直接影響，因為我們預計今年的現金流量為正。所以這將是其中的很大一部分。所以這將是雙重的。這將立即打擊底線，這在積極的方面是很好的，然後顯然它給了我們更多的能力來帶來更多我們已經準備好的業務。

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

您是否相信公司擁有的最新融資的當前資本將使您獲得利潤？

Yes, yes.

是的是的。

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?

好的。最後一個問題。至於您收購的業務中不易腐爛的部分，您認為這將在 23 年產生什麼樣的收入影響，您正在為此建模什麼？

Well, we're going to see that come online. I don't know how much I can speak to that on this call, but that, we've already got POs in-house from Whole Foods, which is exceptional. We're working with major big box retailers that to bring them online. One of the great things about Edible Garden is that we've got great authenticity being a grower, a greenhouse grower and a CEA company. We've got the wherewithal in our team and some of the recent people that we've brought onboard from, actually 1 person from 1 of the major retailers, to really have a mindset that's geared towards bringing these finished goods to market. Our expectation is the second half of the year as we push this stuff into retail and leveraging our distribution platform which is what I was trying to get at, we have entree into every major chain out there. We should be able to "light this up pretty quickly," and that's our goal. So we had an exceptional show at Natural Product Expo West, which is sort of the Super Bowl of new products for these type of products. And we are getting on the road. I'm leaving tonight and presenting the items to big partners, and we're excited about it. We're thrilled. So I think that's going to be a nice complement, excuse the pun, to our assortment and to our revenue line. We're excited.

好吧，我們將看到它上線。我不知道在這次電話會議上我能說多少，但是，我們已經從 Whole Foods 獲得內部採購訂單，這非常出色。我們正在與主要的大型零售商合作，將他們帶到網上。 Edible Garden 的一大優點是，作為種植者、溫室種植者和 CEA 公司，我們具有很高的真實性。我們的團隊和我們最近從 1 家主要零售商中聘請的一些人都擁有必要的資金，他們真正擁有一種適合將這些成品推向市場的心態。我們的期望是今年下半年，因為我們將這些東西推向零售並利用我們的分銷平台，這正是我試圖達到的目標，我們已經進入了那裡的每個主要連鎖店。我們應該能夠“很快點亮它”，這就是我們的目標。因此，我們在 Natural Product Expo West 舉辦了一場特別的展覽，這有點像這類產品的新產品超級碗。我們正在上路。我今晚要離開，將這些物品展示給大合作夥伴，我們對此感到很興奮。我們很興奮。所以我認為這將是一個很好的補充，請原諒雙關語，對我們的分類和我們的收入線。我們很興奮。

When you guys are done with -- when we get done and we're online with the Grand Rapids facility, is the plan then to maybe try it on another location like that, maybe more out West and start building a new facility to expand? Or are you going to be looking more to acquire existing grow houses?

當你們完成 - 當我們完成並且我們與大急流城設施聯機時，計劃是否可能在另一個類似的地方嘗試它，也許更多的西部並開始建立一個新的設施來擴展？還是您打算更多地購買現有的種植屋？

Well, I mean, look, I think that's a great question, and I'll tell you why. It's because, look, an M&A is going to be part of the strategy moving forward. But as of right now, one of the key differentiators about us is the position that we're in. The company doesn't have a considerable amount of debt on it. We have a plan, and being cash flow positive is right within striking distance. And the focus on -- with this management team right now is to get to cash flow positive and prove to everybody in this category that these businesses work because this is the future of how we're going to feed ourselves, our country, the world. And someone needs to get out and show that it can also be commercially viable. So to me, it's like let's get through the next quarter or 2, let's get to cash flow positive. And then we'll, in the back on be looking to identify. And I think more retrofits, Paul, to be frank. The team did a fabulous job out in Grand Rapids in a very short period of time of getting this thing ready for prime time from how well we performed on our inspections for organic and food safety. A lot of that is just leveraging the knowledge bank that we have with people who -- look, our team has been together for almost 10 years. And then obviously, that team was part of the IPO this past year. We've had a committed, knowledgeable workforce and management team that understand what the goal is. And we're in this thing to win it. And I think that for us, the first step is to make sure that we understand that we can make money and build shareholder value. Let's bring in, let's reuse, repurpose, reimagine some of these old greenhouses because it really plays into being Zero-Waste Inspired and doing more with less. And I think that, that serves us well. And it really worked out well in Grand Rapids and we're excited about that. So I think you're going to see us make some moves but I want to get through the next 90, 120 days and make sure we're leveraging from a position of strength, especially considering what's going on out in the economy in the market. So we're going to play it a little close to the vest. But in the background, we'll be looking to bring something in and really be very smart about how we grow this thing.

嗯，我的意思是，看，我認為這是一個很好的問題，我會告訴你為什麼。這是因為，看，併購將成為未來戰略的一部分。但就目前而言，我們的主要區別之一是我們所處的位置。公司沒有大量債務。我們有一個計劃，現金流為正就在咫尺之遙。現在的重點是——與這個管理團隊一起實現正現金流，並向這一類別的每個人證明這些業務是有效的，因為這是我們養活自己、我們的國家和世界的未來.並且需要有人站出來證明它在商業上也是可行的。所以對我來說，這就像讓我們度過下一個或第二個季度，讓現金流為正。然後我們將在後面尋求識別。坦率地說，我認為更多的改造，保羅。該團隊在很短的時間內就在大急流城完成了一項出色的工作，根據我們在有機和食品安全檢查方面的表現，為黃金時段做好了準備。其中很多只是利用我們與人們一起擁有的知識庫——看，我們的團隊已經在一起將近 10 年了。然後很明顯，該團隊是去年 IPO 的一部分。我們擁有一支敬業、知識淵博的員工隊伍和管理團隊，他們了解目標是什麼。我們在這件事上是為了贏得它。我認為對我們來說，第一步是確保我們明白我們可以賺錢並創造股東價值。讓我們引入，讓我們重新利用，重新利用，重新想像其中一些舊溫室，因為它真正發揮了零廢物的啟發，並以更少的資源做更多的事情。我認為，這對我們很有幫助。它在大急流城真的很成功，我們對此感到很興奮。所以我認為你會看到我們採取一些行動，但我想度過接下來的 90、120 天，並確保我們利用優勢地位，特別是考慮到市場經濟正在發生的事情.所以我們要稍微隱瞞一下。但在後台，我們將尋求引入一些東西，並且非常聰明地了解我們如何發展這個東西。

(Operator Instructions) Our next question is coming from Elon Friedman with VKC Fund.

（操作員說明）我們的下一個問題來自 VKC 基金的 Elon Friedman。

Congratulations on the revenue growth. You said in your remarks that you believe that the company will achieve positive cash flow later this year. Can you please elaborate on how you expect to get there?

祝賀收入增長。您在發言中表示，您相信公司將在今年晚些時候實現正現金流。您能否詳細說明您希望如何到達那裡？

We plan on bringing on our Grand Rapids facility, Edible Garden Heartland. That will be coming online in the next 30 days. With that is going to be a -- it will be a considerable factor based on how much business will be in there and how that impacts our margins. So that will be a key driver for this, as well as the addition of higher-margin, more shelf-stable products that allow us to go into our existing distribution network at a higher margin. So that should help clean things up for us a little bit as we're going to have kind of the right assortment with the right growing facility that we're vertically integrated on that will allow for that margin expansion, which will drive that cash flow piece for us.

我們計劃引進我們的大急流城設施 Edible Garden Heartland。它將在未來 30 天內上線。這將是一個 - 這將是一個相當大的因素，取決於那裡有多少業務以及這將如何影響我們的利潤。因此，這將是實現這一目標的關鍵驅動力，同時增加利潤率更高、貨架更穩定的產品，使我們能夠以更高的利潤率進入現有的分銷網絡。因此，這應該有助於為我們清理一些東西，因為我們將擁有合適的品種和我們垂直整合的合適的增長設施，這將允許利潤率擴張，這將推動現金流給我們的一塊。

One more question. Can you please provide us about the partnership with the New Jersey Institute of Technology, the USDA and EPA?

還有一個問題。您能否向我們介紹一下與新澤西理工學院、美國農業部和美國環保署的合作關係？

Yes, it's pretty cool. It's really around how the nanobubbles, which are essentially kind of what they say they are. They're small oxygenated bubbles that (inaudible), but will allow to stimulate plant growth. Obviously, plant growth, when you're growing plants and not only do you sell produce, which is a plant, or you take -- and you take those plants and turn them into some sort of ingredient, obviously, you want high yield. And if you can impact plant growth and what you can do it in a way that you better improve the conditions for plant growth and nanobubbles would do that, then obviously that impacts quality yield. And for us, obviously, we're doing more with less, and it's much more environmentally friendly than other types of ways to impact plant growth. So it is funded, I believe, by the EPA which is very cool for us. We are really a partner that's more of a test lab. And we are exchanging our knowledge as well as our facilities to allow them to do a lot of this testing and then we are able to benefit from it. So we're excited about being in partnership with the EPA and the FDA and the USDA, and of course, the New Jersey Institute of Technology because we are a New Jersey-based company. So excited about it, it's very promising and it's important that the company can offer these type of studies.

是的，這很酷。這真的是圍繞著納米氣泡的原理，納米氣泡本質上就像他們所說的那樣。它們是含氧的小氣泡（聽不清），但可以刺激植物生長。顯然，植物生長，當你種植植物時，你不僅要出售產品，這是一種植物，或者你拿走這些植物並將它們變成某種成分，顯然，你想要高產量。如果你能影響植物生長，你能以更好地改善植物生長條件的方式做到這一點，而納米氣泡就可以做到這一點，那麼顯然這會影響質量產量。顯然，對我們來說，我們正在事半功倍，而且它比影響植物生長的其他類型的方法更環保。所以我相信，它是由 EPA 資助的，這對我們來說非常酷。我們真的是一個更像是一個測試實驗室的合作夥伴。我們正在交流我們的知識和我們的設施，讓他們能夠做很多這樣的測試，然後我們就能從中受益。因此，我們很高興與 EPA、FDA 和 USDA 合作，當然還有新澤西理工學院，因為我們是一家總部位於新澤西的公司。對此非常興奮，它非常有前途，而且公司能夠提供此類研究非常重要。

Congratulations on the revenue once again.

再次祝賀收入。

Thank you. We have reached the end of our question-and-answer session. So I will now turn the call back over to management for closing remarks.

謝謝。我們的問答環節已經結束。因此，我現在將把電話轉回給管理層以作結束語。

Thank you again for joining us today. We are pleased with our progress in Edible Garden over the past year, and are excited about the opportunities that lie ahead. We will continue to execute our strategy, and look forward to updating you on our progress in the coming months.

再次感謝您今天加入我們。我們對過去一年在 Edible Garden 取得的進展感到高興，並對未來的機遇感到興奮。我們將繼續執行我們的戰略，並期待在未來幾個月向您通報我們的最新進展。

Thank you very much, and have a good day.

非常感謝，祝你有美好的一天。

Thank you. This does conclude today's conference, and you may disconnect your lines at this time. We thank you for your participation.

謝謝。今天的會議到此結束，此時您可以掛斷電話。我們感謝您的參與。