EDBLW

• The third quarter marked progress towards a CEA-informed CPG model with 9% y-o-y revenue growth. - Driven by nonperishable product expansion, branded portfolio strength, retail footprint expansion, and operational realignment post-shrimp asset acquisition. - CPG products include clean label and functional offerings, extending the brand beyond fresh produce. - Retail footprint expanded with USDA organic fresh herb line launch at Kroger, branded herbs at The Fresh Market, and international expansion with PriceSmart and Amazon. - CPG brands like Kick Sports Nutrition, Pickle Party, Pulp, and Vitamin Whey showcased growth through retail placements and regional expansion. - Produce business remains a trusted provider of sustainably grown herbs and leafy greens, with organic program at Kroger gaining traction. - Focus on innovation, sustainability, and operational efficiency, pursuing new categories like nutraceuticals and sustainable proteins.

• Believes in continued growth into the fourth quarter and beyond. - Focus on disciplined execution, expanding retail partnerships, and advancing product innovation. - Anticipates capturing share in the growing clean label CPG market. - Refinancing of debt expected to reduce interest expense and provide flexibility for strategic initiatives.

Revenue for the quarter increased 9% to $2.8 million compared to $2.6 million in 2024. Growth was driven by the shelf-stable product portfolio, including brands like Kick Sports Nutrition, Vitamin Whey, Pulp, and Pickle Party. The core herb portfolio saw strength with hydro basil up 54% year over year in Q3 and wheatgrass up 59% year over year. Gross profit totaled approximately $300,000 compared to $700,000 in the prior year quarter, impacted by higher labor, freight, and raw material costs.

Forward-looking statements are subject to risks, uncertainties, and assumptions as described in the company's SEC filings, including those related to financial condition, results of operations, strategy, and future business operations. Actual results may differ materially from forward-looking statements.

Q: Just in terms of the natural shrimp facility that you acquired, can you talk about the build-out of that? How you intend to utilize that initially, and then over the next six to twelve months? And then what specific product lines will be going in there?

A: The facility is 6.2 acres near Des Moines, undergoing gap analysis with a third party. Near-term plans include R&D for next-generation products (nutraceuticals/food). Has relationships with major retailers, and private label opportunities with big-box retailers are significant.

Q: So just to follow up, it sounds like the big grocery stores in particular are where the largest opportunity is. Would you say that's also the largest opportunity moving into '26?

A: Yes, big grocery chains like ShopRite, Kroger, Fresh Market are key opportunities in 2026. Core business excels in produce, and branded products, private label, and potential for other branded products with higher margins are driving growth.

Q: On the margin side, so you know, sometimes private label is tougher to get a larger margin on, but if they're asking for the natural products, the ones with less additives, that's right in your wheelhouse, are you able to push back and say, look. We can do that for you. But those are higher-priced products. You know? And then maybe talk about the margin related to that as well as your Kick Sports Nutrition program, you know, the protein. How's that doing, and what do you see the outlook for that in '26?

A: On private label, there's an opportunity for fair margin with volume and long-term contracts. Private label relationships provide security and visibility. Kick Sports Nutrition is gaining traction, and 2026 will see continued growth with retailers, private label, and potential for more products in the facility offering upside.