2024 Q3 Form 10-Q Financial Statement

#000095017024097195 Filed on August 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2023 Q2
Revenue $3.554M $15.65M $1.315M
YoY Change -29.4% 1089.65% 437.0%
Cost Of Revenue $2.998M $6.641M $2.696M
YoY Change 10.34% 146.34% 1690.02%
Gross Profit $556.0K $9.007M -$1.380M
YoY Change -76.0% -752.47% -1563.3%
Gross Profit Margin 15.64% 57.56% -104.95%
Selling, General & Admin $3.804M $4.117M $1.086M
YoY Change 99.46% 279.28% -39.15%
% of Gross Profit 684.2% 45.71%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $216.2K $199.8K $79.20K
YoY Change 199.44% 152.26% 4.61%
% of Gross Profit 38.88% 2.22%
Operating Expenses $3.813M $4.122M $1.093M
YoY Change 92.62% 277.16% -40.98%
Operating Profit -$3.257M $4.885M -$2.473M
YoY Change -1064.57% -297.51% 40.75%
Interest Expense $599.7K $847.5K
YoY Change -29.24% 138.43%
% of Operating Profit 12.28%
Other Income/Expense, Net -$185.6K -$1.292M -$847.5K
YoY Change 4997.12% 52.45% 138.43%
Pretax Income -$3.442M $3.593M -$3.321M
YoY Change -1130.67% -208.2% 57.18%
Income Tax -$62.32K $257.9K $0.00
% Of Pretax Income 7.18%
Net Earnings -$3.380M $3.335M -$3.321M
YoY Change -1112.0% -200.43% 57.18%
Net Earnings / Revenue -95.1% 21.31% -252.47%
Basic Earnings Per Share -$0.33 $0.35 -$0.68
Diluted Earnings Per Share -$0.33 $0.29 -$0.68
COMMON SHARES
Basic Shares Outstanding 10.25M 10.14M 4.847M shares
Diluted Shares Outstanding 10.25M 11.39M 4.854M shares

Balance Sheet

Concept 2024 Q3 2024 Q2 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.37M $293.0K
YoY Change 4805.14% -89.37%
Cash & Equivalents $6.946M $14.37M $293.0K
Short-Term Investments
Other Short-Term Assets $1.320M $119.8K
YoY Change 1001.64% 9.0%
Inventory $19.43M $10.32M $919.0K
Prepaid Expenses $202.4K $170.1K $119.8K
Receivables $1.233M $6.197M $726.7K
Other Receivables $0.00 $0.00
Total Short-Term Assets $28.39M $32.21M $2.059M
YoY Change 383.25% 1464.71% -58.05%
LONG-TERM ASSETS
Property, Plant & Equipment $10.73M $8.704M $5.242M
YoY Change 77.18% 66.04% 15.41%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $1.358M $58.77K
YoY Change 2210.63% 144.88%
Other Assets
YoY Change
Total Long-Term Assets $29.28M $27.98M $6.527M
YoY Change 283.11% 328.67% -40.98%
TOTAL ASSETS
Total Short-Term Assets $28.39M $32.21M $2.059M
Total Long-Term Assets $29.28M $27.98M $6.527M
Total Assets $57.67M $60.19M $8.586M
YoY Change 326.63% 601.05% -46.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.301M $1.782M $376.3K
YoY Change 83.33% 373.48% -64.0%
Accrued Expenses $1.839M $1.379M $657.4K
YoY Change 548.28% 109.73% 149.69%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $832.8K $294.2K
YoY Change 183.06%
Total Short-Term Liabilities $8.690M $6.283M $1.384M
YoY Change 218.46% 354.01% 1.92%
LONG-TERM LIABILITIES
Long-Term Debt $2.107M $5.134M
YoY Change -58.96% 79.93%
Other Long-Term Liabilities $16.78M $1.273M
YoY Change 1218.84% -4.22%
Total Long-Term Liabilities $18.89M $6.407M
YoY Change 194.85% 53.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.690M $6.283M $1.384M
Total Long-Term Liabilities $18.89M $6.407M
Total Liabilities $24.85M $25.17M $7.791M
YoY Change 133.35% 223.13% 40.63%
SHAREHOLDERS EQUITY
Retained Earnings -$58.27M -$54.89M -$60.40M
YoY Change -2.99% -9.12% 27.92%
Common Stock $10.25K $10.25K $4.868K
YoY Change 107.3% 110.46% 0.56%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $32.82M $35.02M $794.8K
YoY Change
Total Liabilities & Shareholders Equity $57.67M $60.19M $8.586M
YoY Change 326.63% 601.05% -46.22%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2023 Q2
OPERATING ACTIVITIES
Net Income -$3.380M $3.335M -$3.321M
YoY Change -1112.0% -200.43% 57.18%
Depreciation, Depletion And Amortization $216.2K $199.8K $79.20K
YoY Change 199.44% 152.26% 4.61%
Cash From Operating Activities -$2.237M -$1.455M
YoY Change 53.74% 83.79%
INVESTING ACTIVITIES
Capital Expenditures $1.598M $150.3K
YoY Change 963.23% -107.64%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$1.598M -$150.3K
YoY Change 963.23% -92.36%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 11.39M 1.550M
YoY Change 635.01% -58.11%
NET CHANGE
Cash From Operating Activities -2.237M -1.455M
Cash From Investing Activities -1.598M -150.3K
Cash From Financing Activities 11.39M 1.550M
Net Change In Cash 7.558M -55.41K
YoY Change -13739.56% -105.88%
FREE CASH FLOW
Cash From Operating Activities -$2.237M -$1.455M
Capital Expenditures $1.598M $150.3K
Free Cash Flow -$3.835M -$1.605M
YoY Change 138.87% -236.64%

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StockholdersEquity
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CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
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AdjustmentsToAdditionalPaidInCapitalWarrantIssued
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us-gaap Net Income Loss
NetIncomeLoss
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CY2023Q2 us-gaap Stockholders Equity
StockholdersEquity
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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DepreciationDepletionAndAmortization
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us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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sowg Lease Rightofuse Asset And Liability Amortization
LeaseRightofuseAssetAndLiabilityAmortization
405383
sowg Lease Rightofuse Asset And Liability Amortization
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us-gaap Stock Option Plan Expense
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us-gaap Fair Value Adjustment Of Warrants
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us-gaap Gains Losses On Extinguishment Of Debt
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us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-17849
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IncreaseDecreaseInInventories
6783244
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
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IncreaseDecreaseInDepositOtherAssets
1011340
us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
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us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
928390
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
257918
us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
0
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
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us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
1054822
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-696502
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
0
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IncreaseDecreaseInAccountsReceivable
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us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
721135
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
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us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-17849
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
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us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
1011340
us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
34765
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
928390
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
257918
us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
0
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
-431049
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
265338
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
729860
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
7045
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-939534
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2421260
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
1863794
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
362180
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
364256
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
0
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2228050
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-362180
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
859024
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
15712976
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
0
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
0
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
2400000
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
0
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
400000
us-gaap Repayments Of Debt
RepaymentsOfDebt
956249
us-gaap Repayments Of Debt
RepaymentsOfDebt
0
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
15130582
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2800000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
11962998
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
16560
CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
2410037
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
276464
CY2024Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
14373035
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
293024
us-gaap Interest Paid Net
InterestPaidNet
770428
us-gaap Interest Paid Net
InterestPaidNet
25685
sowg Interest Received
InterestReceived
4130
sowg Interest Received
InterestReceived
0
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
265338
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
729860
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
7045
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-939534
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2421260
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
1863794
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
362180
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
364256
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
0
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2228050
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-362180
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
859024
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
15712976
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
373855
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
0
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
0
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
2400000
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
0
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
400000
us-gaap Repayments Of Debt
RepaymentsOfDebt
956249
us-gaap Repayments Of Debt
RepaymentsOfDebt
0
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
15130582
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2800000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
11962998
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
16560
CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
2410037
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
276464
CY2024Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
14373035
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
293024
us-gaap Interest Paid Net
InterestPaidNet
770428
us-gaap Interest Paid Net
InterestPaidNet
25685
sowg Interest Received
InterestReceived
4130
sowg Interest Received
InterestReceived
0
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0
sowg Non Cash Exercise Of Warrants
NonCashExerciseOfWarrants
5299113
sowg Non Cash Exercise Of Warrants
NonCashExerciseOfWarrants
0
sowg Noncash Investing And Financing Activities Repayment Of Interest
NoncashInvestingAndFinancingActivitiesRepaymentOfInterest
-98750
sowg Noncash Investing And Financing Activities Repayment Of Interest
NoncashInvestingAndFinancingActivitiesRepaymentOfInterest
0
sowg Noncash Investing And Financing Activities Repayments Of Borrowings
NoncashInvestingAndFinancingActivitiesRepaymentsOfBorrowings
-5200363
sowg Noncash Investing And Financing Activities Repayments Of Borrowings
NoncashInvestingAndFinancingActivitiesRepaymentsOfBorrowings
0
sowg Reclassification Of Construction In Progress To Property And Equipment
ReclassificationOfConstructionInProgressToPropertyAndEquipment
1651305
sowg Reclassification Of Construction In Progress To Property And Equipment
ReclassificationOfConstructionInProgressToPropertyAndEquipment
0
sowg Value Of Debt Discounts Attributable To Warrants
ValueOfDebtDiscountsAttributableToWarrants
0
sowg Value Of Debt Discounts Attributable To Warrants
ValueOfDebtDiscountsAttributableToWarrants
2322478
us-gaap Nature Of Operations
NatureOfOperations
<p style="font-size:10pt;margin-top:8pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Note 1 </span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">–</span><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> Organization and Nature of Business</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Effective January 21, 2021, we changed our name from Black Ridge Oil &amp; Gas, Inc. (business acquired with our October 1, 2020 acquisition of S-FDF, LLC) to Sow Good Inc. (“SOWG,” “Sow Good,” or the “Company”) to pursue the production of freeze dried fruits and vegetables, a business we later expanded to include freeze dried candy. At that time, our common stock began to be quoted on the OTCQB under the trading symbol “SOWG,” from the former trading symbol “ANFC.” Prior to April 2, 2012, Black Ridge Oil &amp; Gas was known as Ante5, Inc., a publicly traded company since July 1, 2010. From October 2010 through August 2019, Ante5, Inc. and Black Ridge Oil &amp; Gas, Inc. participated in the acquisition and development of oil and gas leases.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">On May 5, 2021, the Company announced the launch of our direct-to-consumer freeze dried consumer packaged goods (“CPG”) food brand, Sow Good. Sow Good launched its first line of non-GMO products including ready-to-make smoothies, gluten-free granola and snacks.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">After launching a freeze dried candy product line in the first quarter of 2023, the Company now has seventeen SKU offerings of candy, and five crunch ice cream SKU as of June 30, 2024, that are projected to continue being a major driver of growth. After launching our freeze dried candy product line we discontinued our smoothie, snack and granola products. During the second quarter of 2023, the Company completed the construction of our second and third freeze driers and to facilitate the increased production demands for our recently launched candy products. The significant and rising demand for our freeze dried candy products has led us to add a fourth freeze drier in the first quarter of 2024, our fifth freeze drier in the second quarter of 2024 and begin construction of our sixth freeze drier, which we expect to be completed in the third quarter of 2024.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Effective February 15, 2024, Sow Good Inc. reincorporated to the State of Delaware from the State of Nevada under the name Sow Good Inc. pursuant to a plan of conversion (the “Plan of Conversion”), dated </span><span style="font-size:10pt;font-family:Times New Roman;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">February 15, 2024</span></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> (the “Reincorporation”). The Reincorporation was effected by the Company filing (i) articles of conversion (the “Articles of Conversion”) with the Secretary of State of the State of Nevada, (ii) a certificate of conversion (the “Certificate of Conversion”) with the Secretary of State of the State of Delaware and (iii) a certificate of incorporation (the “Certificate of Incorporation”) with the Secretary of State of the State of Delaware. In connection with the Reincorporation the Company also adopted Amended and Restated Bylaws (the “Bylaws”).</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Upon effectiveness of the Reincorporation:</span></p><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">‎the affairs of the Company ceased to be governed by the Nevada Revised Statutes, as amended, the Company’s existing articles of incorporation and the Company’s existing bylaws, and the affairs of the Company became subject to the Delaware General Corporation Law, as amended, the Certificate of Incorporation and the Bylaws;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">the shares of Sow Good’s issued and outstanding common stock, with a par value $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">0.001</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> per share, converted into shares of the equivalent class of the Company’s Common Stock, each with a par value $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">0.001</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> per share, on a 1 share of common stock to 1 share of common stock basis;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">each director and officer of Sow Good will continue to hold his or her respective position with the Company;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">each employee benefit, stock option or other similar plan of Sow Good will continue to be an employee benefit, stock option or other similar plan of the Company; and</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">the Company will continue to file periodic reports and other documents with the SEC.</span></div></div>
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0
sowg Non Cash Exercise Of Warrants
NonCashExerciseOfWarrants
5299113
sowg Non Cash Exercise Of Warrants
NonCashExerciseOfWarrants
0
sowg Noncash Investing And Financing Activities Repayment Of Interest
NoncashInvestingAndFinancingActivitiesRepaymentOfInterest
-98750
sowg Noncash Investing And Financing Activities Repayment Of Interest
NoncashInvestingAndFinancingActivitiesRepaymentOfInterest
0
sowg Noncash Investing And Financing Activities Repayments Of Borrowings
NoncashInvestingAndFinancingActivitiesRepaymentsOfBorrowings
-5200363
sowg Noncash Investing And Financing Activities Repayments Of Borrowings
NoncashInvestingAndFinancingActivitiesRepaymentsOfBorrowings
0
sowg Reclassification Of Construction In Progress To Property And Equipment
ReclassificationOfConstructionInProgressToPropertyAndEquipment
1651305
sowg Value Of Debt Discounts Attributable To Warrants
ValueOfDebtDiscountsAttributableToWarrants
2322478
us-gaap Nature Of Operations
NatureOfOperations
<p style="font-size:10pt;margin-top:8pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Note 1 </span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">–</span><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> Organization and Nature of Business</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Effective January 21, 2021, we changed our name from Black Ridge Oil &amp; Gas, Inc. (business acquired with our October 1, 2020 acquisition of S-FDF, LLC) to Sow Good Inc. (“SOWG,” “Sow Good,” or the “Company”) to pursue the production of freeze dried fruits and vegetables, a business we later expanded to include freeze dried candy. At that time, our common stock began to be quoted on the OTCQB under the trading symbol “SOWG,” from the former trading symbol “ANFC.” Prior to April 2, 2012, Black Ridge Oil &amp; Gas was known as Ante5, Inc., a publicly traded company since July 1, 2010. From October 2010 through August 2019, Ante5, Inc. and Black Ridge Oil &amp; Gas, Inc. participated in the acquisition and development of oil and gas leases.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">On May 5, 2021, the Company announced the launch of our direct-to-consumer freeze dried consumer packaged goods (“CPG”) food brand, Sow Good. Sow Good launched its first line of non-GMO products including ready-to-make smoothies, gluten-free granola and snacks.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">After launching a freeze dried candy product line in the first quarter of 2023, the Company now has seventeen SKU offerings of candy, and five crunch ice cream SKU as of June 30, 2024, that are projected to continue being a major driver of growth. After launching our freeze dried candy product line we discontinued our smoothie, snack and granola products. During the second quarter of 2023, the Company completed the construction of our second and third freeze driers and to facilitate the increased production demands for our recently launched candy products. The significant and rising demand for our freeze dried candy products has led us to add a fourth freeze drier in the first quarter of 2024, our fifth freeze drier in the second quarter of 2024 and begin construction of our sixth freeze drier, which we expect to be completed in the third quarter of 2024.</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Effective February 15, 2024, Sow Good Inc. reincorporated to the State of Delaware from the State of Nevada under the name Sow Good Inc. pursuant to a plan of conversion (the “Plan of Conversion”), dated </span><span style="font-size:10pt;font-family:Times New Roman;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">February 15, 2024</span></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> (the “Reincorporation”). The Reincorporation was effected by the Company filing (i) articles of conversion (the “Articles of Conversion”) with the Secretary of State of the State of Nevada, (ii) a certificate of conversion (the “Certificate of Conversion”) with the Secretary of State of the State of Delaware and (iii) a certificate of incorporation (the “Certificate of Incorporation”) with the Secretary of State of the State of Delaware. In connection with the Reincorporation the Company also adopted Amended and Restated Bylaws (the “Bylaws”).</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Upon effectiveness of the Reincorporation:</span></p><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">‎the affairs of the Company ceased to be governed by the Nevada Revised Statutes, as amended, the Company’s existing articles of incorporation and the Company’s existing bylaws, and the affairs of the Company became subject to the Delaware General Corporation Law, as amended, the Certificate of Incorporation and the Bylaws;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">the shares of Sow Good’s issued and outstanding common stock, with a par value $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">0.001</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> per share, converted into shares of the equivalent class of the Company’s Common Stock, each with a par value $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">0.001</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> per share, on a 1 share of common stock to 1 share of common stock basis;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">each director and officer of Sow Good will continue to hold his or her respective position with the Company;</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">each employee benefit, stock option or other similar plan of Sow Good will continue to be an employee benefit, stock option or other similar plan of the Company; and</span></div></div><div class="item-list-element-wrapper" style="margin-left:6.667%;display:flex;margin-top:6pt;justify-content:flex-start;align-items:baseline;margin-bottom:0;min-width:4.537%;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:4.86108878960282%;display:inline-flex;justify-content:flex-start;">•</span><div style="width:100%;display:inline;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">the Company will continue to file periodic reports and other documents with the SEC.</span></div></div>
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<p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;text-decoration:underline;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Use of Estimates</span></p><p style="text-indent:6.667%;font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></p>
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CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
4894962
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
5004433
CY2024Q2 sowg Lessee Operating Lease Liability To Be Paid Year Four And After
LesseeOperatingLeaseLiabilityToBePaidYearFourAndAfter
8509236
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
24347212
CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
5862136
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
18485076
CY2024Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
20000000
CY2024Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2024Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0
CY2024Q2 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
50459
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
163854
CY2024Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
367302
CY2024Q2 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-696502
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-696502
sowg Class Of Warrants Or Rights Exercised In Period
ClassOfWarrantsOrRightsExercisedInPeriod
52500
CY2024Q2 sowg Percentage Of Number Of Shares Sold In The Offering By Roth
PercentageOfNumberOfSharesSoldInTheOfferingByRoth
0.10
CY2024Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
12
CY2024Q2 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
50459
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
163854
CY2024Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
367302
CY2024Q2 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-696502
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-696502
sowg Class Of Warrants Or Rights Exercised In Period
ClassOfWarrantsOrRightsExercisedInPeriod
52500
CY2024Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
4
CY2024Q2 sowg Percentage Of Number Of Shares Sold In The Offering By Roth
PercentageOfNumberOfSharesSoldInTheOfferingByRoth
0.10
CY2024Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
12
CY2024Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
190500
CY2024Q2 sowg Class Of Warrant Or Right Weighted Average Strike Price
ClassOfWarrantOrRightWeightedAverageStrikePrice
9.8

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