Sow Good Inc. · NASDAQ:SOWG
Sow Good — Investor Presentation (May 2024)
21 slides from Sow Good's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Disclaimers
Disclaimers Sow Good Inc. (the “Company”) has filed a registration statement (File No. 333-277042), including a preliminary prospectus, with the Securities and Exchange Commission (“SEC”) in connection with the offering to which this presentation (the “Presentation”) relates. Sales of the securities
Slide 3: Management Team
Management Team Ira Goldfarb Claudia Goldfarb Brendon Fischer Co-Founder & Chairman Co-Founder & CEO Interim CFO • 30+ years of retail, manufacturing and freeze • Significant expertise in food safety, supply • 20+ years of finance and investment drying experience chain and product innovation analysi
Slide 4: What is Freeze Dried Candy?
What is Freeze Dried Candy? Freeze drying removes moisture from the product, adding a crunch perfect for snackability and concentrating the flavor while extending the shelf-life by years 1• Hyper Crunchy Before After • Crunchy, not chewy. Expands, doubling or tripling in size, creating the perfectly
Slide 5: Company Overview
Company Overview Sow Good is a freeze dried candy and snack manufacturer providing customers with innovative freeze dried treats Overview Key Statistics Leading pioneer in an emerging freeze dried candy market with a March 2023 16.1M Candy Launch Date 2023 Revenue retail-ready product assortment,
Slide 6: Why We Are Unique
Why We Are Unique Freeze Drying Expertise Food Safety & Quality Branding & Packaging • Early adopter of freeze dried candy • Product integrity, health and • Distinctive, colorful and professional with custom in-house freeze driers compliance with rigorous safety packaging with clear window and propr
Slide 7: Broad Product Mix
Broad Product Mix Sow Good offers a diverse portfolio of sweet treats across multiple form factors of candy and ice cream Select Freeze Dried Candy Select Freeze Dried Ice Cream PAGE 7
Slide 8: Financial Performance
Financial Performance Revenue Adjusted EBITDA1 ( in millions) ( in millions) 11.4 2.5 2.3 9.5 0.6 5.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 1.3 0.2 ( 2.1) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Adj. Gross EBITDA Margin 61.5% (104.4)% 46.0% 40.1% 40.6% (161.9)% 12.5% 23.9% 21.6% Margin Source: Publicly av
Slide 9: Production Capacity
Production Capacity Owned Manufacturing Production Capacity (Units in millions) IRVING, TX • ~21,000 sq. ft warehouse and manufacturing facility, with 5 active freeze Total 2024 Production Capacity of 30 Million Units driers, 1 currently being installed and 5 more on order • Custom built freeze drie
Slide 10: Manufacturing & Distribution Facilities
Manufacturing & Distribution Facilities Owned Manufacturing Co-Manufacturers Production Floor Packaging & Distribution Co-Manufacturing Irving, TX Dallas, TX China Freeze Driers Co-Manufacturing Irving, TX Colombia PAGE 10
Slide 11: Distribution in Early Stages
Distribution in Early Stages Product demand consistently outpaces available supply while distribution channels continue to increase scale Select Customers with Multiple SKUs Launched in the last 3 months PAGE 11
Slide 12: Case Study Overview
Case Study Overview Reasons for Success • Met at tradeshow in January 2023 • Strong Branding • Commitment to Quality • Distinctive Packaging • Ability to Execute • Five Below worked with other freeze dried candy suppliers at the time who did not (i) meet demand and (ii) have our brand • Broad SKU as
Slide 13: Growing Market Opportunity
Growing Market Opportunity The North American sugar confectionery industry is expected to grow 6% annually North America Sugar Confectionery Sales1 Freeze Dried Candy ( in billions) Rapidly growing demand from large retailers 22.5 23.1 23.6 and distributors 21.0 21.8 19.9 17.6 14.9 Competitors consi
Slide 14: Financial Overview
Financial Overview Co ee
Slide 15: Summary Income Statement
Summary Income Statement 1Q 2024 1Q 2023 3/31/24 3/31/23 Net Revenue 11,406,320 198,930 % Growth 5,633.8% Cost of Goods Sold 6,776,882 84,003 Gross Profit 4,629,438 114,927 % Gross Margin 40.6% 57.8% Salaries and Benefits 2,350,557 511,588 Professional Services 467,826 46,206 Other Operating Expense
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 2Q 2023 3Q 2023 4Q 2023 1Q 2024 LTM 6/30/23 9/30/23 12/31/23 3/31/24 3/31/24 Net income/(loss) (3,320,900) 333,984 1,328,013 510,588 (1,148,315) Depreciaton & Amortization (gross) 79,199 150,676 153,252 166,995 550,122 Interest Expense 847,509 3,641 490,263 418,669 1,7
Slide 17: Balance Sheet
Balance Sheet 1Q 2024 4Q 2023 1Q 2024 4Q 2023 3/31/24 12/31/23 3/31/24 12/31/23 Assets Liabilities & Equity Cash 6,815,355 2,410,037 Current Laibilities 2,933,694 2,363,175 Accounts Receivable, net 2,934,925 2,578,259 ST Notes Payable, Net 2,972,097 2,857,084 Inventory 5,138,229 4,123,246 Operating
Slide 18: Cash Flow Statement
Cash Flow Statement 1Q 2024 1Q 2023 3/31/24 3/31/23 Net Income/(Loss) 510,588 (1,401,530) Depreciation and Amortization 166,995 76,218 Stock Compensation Expense 1,371,766 126,836 Working Capital (1,564,653) (204,940) Other Capital 812,954 437,299 Cash Flow from Operations 1,297,650 (966,117) Capita
Slide 19: Company Highlights
Company Highlights Proprietary freeze drying machinery, production & packaging infrastructure Diverse grocery, convenience store and mass distribution SQF-II certified production facility Rapidly expanding production capacity to meet unmet customer demand Positioned at the forefront of emerging free
Slide 20: Key Market Statistics
Key Market Statistics Share Price (as of 5/24/2024) $17.00 Share Price Performance 52 Week High $22.00 52 Week Low $1.06 Average Daily Volume (30 day) 60,778 Common Shares Outstanding1 7.97 million Market Capitalization (as of 5/24/24) $135.5 million Cash (as of 3/31/24) $6.82 million Debt (as of 3/
Slide 21: The Possibilities Are Endless.
THE POSSIBILITIES ARE ENDLESS.