SOWG

• Completed lease amendments on Mockingbird and Rock Quarry facilities, resulting in over $5 million in annualized rent savings and reduced footprints.
• Implemented payroll efficiencies lowering monthly costs by approximately $40,000 while preserving quality and innovation.
• Launching two new SKUs with a national retailer in March 2026 with branded displays and additional top SKUs.
• Secured first private label partnership with a 100-store national retailer for caramel crunch SKU, starting shipments in 2026.
• International distribution partners expanding influencer and retailer marketing partnerships for 2026.

• Expect to return to profitability in 2026, leveraging increased capacity, broader retail reach, and new high-margin product categories.
• Launching two new SKUs with a national retailer in March 2026.
• Anticipate margin improvement beginning in mid-2026 due to actions taken, automation, SKU rationalization, and vertical integration.
• Private label expansion with caramel crunch and potential addition of yogurt melts.

In Q3 2025, revenue was $1.6 million compared to $36 million in the same period of 2024. Gross loss was $8.9 million versus a gross profit of $600,000 in 2024. Net loss was $10.9 million or negative 90¢ per diluted share compared to a net loss of $3.4 million or negative 33¢ per diluted share in the prior year period. Adjusted EBITDA in 2025 was negative $10.9 million compared to negative $1.9 million in 2024. Cash and cash equivalents ended the quarter at $387,300 compared to $3.7 million as of December 31, 2024.

Q: Please provide any more details on the financial commitments in hand.

A: $1 million from insiders Claudia Goldfarb and Ira, not formal yet but should be within the next week.

Q: What do you think your current cash burn is on a monthly basis?

A: It will decrease significantly after January when Rock Quarry is vacated; $1 million gives runway for private label and DAP strategies.

Q: Is the $1 million coming in as equity or debt?

A: Not formal yet, not specified as equity or debt.

Q: When do you think you need to do revenue to break even?

A: Depends on yield and throughput of caramel crunch SKU, more visibility starting March or April, currently at about $4.50 to $5.50 monthly expense range.

Q: How effective has the expanded sales effort been?

A: Sales team has done a great job, landing private label customer is a big deal, looking at private label yogurt melts and other adjacent category opportunities