2023 Q3 Form 10-Q Financial Statement

#000168316823005637 Filed on August 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2
Revenue $5.034M $1.315M
YoY Change 5637.57% 437.0%
Cost Of Revenue $2.717M $2.696M
YoY Change 4067.89% 1690.02%
Gross Profit $2.317M -$1.380M
YoY Change 10176.54% -1563.3%
Gross Profit Margin 46.02% -104.95%
Selling, General & Admin $1.907M $1.086M
YoY Change 52.19% -39.15%
% of Gross Profit 82.31%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $72.19K $79.20K
YoY Change -4.04% 4.61%
% of Gross Profit 3.12%
Operating Expenses $1.979M $1.093M
YoY Change 49.7% -40.98%
Operating Profit $337.6K -$2.473M
YoY Change -125.98% 40.75%
Interest Expense $3.641K $847.5K
YoY Change -99.05% 138.43%
% of Operating Profit 1.08%
Other Income/Expense, Net -$3.641K -$847.5K
YoY Change -98.95% 138.43%
Pretax Income $334.0K -$3.321M
YoY Change -120.27% 57.18%
Income Tax $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings $334.0K -$3.321M
YoY Change -120.27% 57.18%
Net Earnings / Revenue 6.63% -252.47%
Basic Earnings Per Share $0.07 -$0.68
Diluted Earnings Per Share $0.04 -$0.68
COMMON SHARES
Basic Shares Outstanding 4.868M shares 4.847M shares
Diluted Shares Outstanding 8.067M 4.854M shares

Balance Sheet

Concept 2023 Q3 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.097M $293.0K
YoY Change 52.51% -89.37%
Cash & Equivalents $2.097M $293.0K
Short-Term Investments
Other Short-Term Assets $148.5K $119.8K
YoY Change 25.39% 9.0%
Inventory $2.241M $919.0K
Prepaid Expenses $148.5K $119.8K
Receivables $1.389M $726.7K
Other Receivables $0.00 $0.00
Total Short-Term Assets $5.874M $2.059M
YoY Change 62.29% -58.05%
LONG-TERM ASSETS
Property, Plant & Equipment $6.055M $5.242M
YoY Change 27.21% 15.41%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $36.31K $58.77K
YoY Change 51.29% 144.88%
Other Assets
YoY Change
Total Long-Term Assets $7.643M $6.527M
YoY Change -32.13% -40.98%
TOTAL ASSETS
Total Short-Term Assets $5.874M $2.059M
Total Long-Term Assets $7.643M $6.527M
Total Assets $13.52M $8.586M
YoY Change -9.16% -46.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $709.7K $376.3K
YoY Change 45.48% -64.0%
Accrued Expenses $283.7K $657.4K
YoY Change 39.99% 149.69%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $923.1K $294.2K
YoY Change
Total Short-Term Liabilities $2.729M $1.384M
YoY Change 268.07% 1.92%
LONG-TERM LIABILITIES
Long-Term Debt $6.425M $5.134M
YoY Change 82.3% 79.93%
Other Long-Term Liabilities $1.493M $1.273M
YoY Change 13.5% -4.22%
Total Long-Term Liabilities $7.918M $6.407M
YoY Change 63.6% 53.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.729M $1.384M
Total Long-Term Liabilities $7.918M $6.407M
Total Liabilities $10.65M $7.791M
YoY Change 90.76% 40.63%
SHAREHOLDERS EQUITY
Retained Earnings -$60.07M -$60.40M
YoY Change 22.93% 27.92%
Common Stock $4.942K $4.868K
YoY Change 1.96% 0.56%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.870M $794.8K
YoY Change
Total Liabilities & Shareholders Equity $13.52M $8.586M
YoY Change -9.16% -46.22%

Cashflow Statement

Concept 2023 Q3 2023 Q2
OPERATING ACTIVITIES
Net Income $334.0K -$3.321M
YoY Change -120.27% 57.18%
Depreciation, Depletion And Amortization $72.19K $79.20K
YoY Change -4.04% 4.61%
Cash From Operating Activities -$908.5K -$1.455M
YoY Change -51.54% 83.79%
INVESTING ACTIVITIES
Capital Expenditures $966.3K $150.3K
YoY Change -401.03% -107.64%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change -100.0%
Cash From Investing Activities -$966.3K -$150.3K
YoY Change 275.93% -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 3.675M 1.550M
YoY Change 390.0% -58.11%
NET CHANGE
Cash From Operating Activities -908.5K -1.455M
Cash From Investing Activities -966.3K -150.3K
Cash From Financing Activities 3.675M 1.550M
Net Change In Cash 1.800M -55.41K
YoY Change -230.29% -105.88%
FREE CASH FLOW
Cash From Operating Activities -$908.5K -$1.455M
Capital Expenditures $966.3K $150.3K
Free Cash Flow -$1.875M -$1.605M
YoY Change 20.67% -236.64%

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CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
10820408 usd
us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
2249684 usd
SOWG Adjustments To Additional Paid In Capital Warrant Issued1
AdjustmentsToAdditionalPaidInCapitalWarrantIssued1
444330 usd
us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
24998 usd
SOWG Common Stock Issued To Advisory Board For Services
CommonStockIssuedToAdvisoryBoardForServices
30000 usd
SOWG Common Stock Options Granted To Officers And Directors For Services
CommonStockOptionsGrantedToOfficersAndDirectorsForServices
417742 usd
SOWG Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value Employees And Advisors
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValueEmployeesAndAdvisors
102891 usd
us-gaap Net Income Loss
NetIncomeLoss
-3664851 usd
CY2022Q2 us-gaap Stockholders Equity
StockholdersEquity
10425202 usd
us-gaap Net Income Loss
NetIncomeLoss
-4722430 usd
us-gaap Net Income Loss
NetIncomeLoss
-3664851 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
185485 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
155416 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
148655 usd
SOWG Common Stock Awarded To Advisors For Services
CommonStockAwardedToAdvisorsForServices
125229 usd
SOWG Common Stock Awarded To Advisors For Services
CommonStockAwardedToAdvisorsForServices
24998 usd
SOWG Common Stock Awarded To Advisors And Consultants For Services
CommonStockAwardedToAdvisorsAndConsultantsForServices
0 usd
SOWG Common Stock Awarded To Advisors And Consultants For Services
CommonStockAwardedToAdvisorsAndConsultantsForServices
30000 usd
us-gaap Stock Option Plan Expense
StockOptionPlanExpense
258677 usd
us-gaap Stock Option Plan Expense
StockOptionPlanExpense
520633 usd
SOWG Amortization Of Stock Warrants Issued As Debt Discount
AmortizationOfStockWarrantsIssuedAsDebtDiscount
1054822 usd
SOWG Amortization Of Stock Warrants Issued As Debt Discount
AmortizationOfStockWarrantsIssuedAsDebtDiscount
321798 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
721135 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
181699 usd
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-17849 usd
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
28884 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-1053910 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
394062 usd
us-gaap Increase Decrease In Security Deposits
IncreaseDecreaseInSecurityDeposits
-34765 usd
us-gaap Increase Decrease In Security Deposits
IncreaseDecreaseInSecurityDeposits
-14000 usd
SOWG Increase Decrease In Rightof Use Asset
IncreaseDecreaseInRightofUseAsset
-34817 usd
SOWG Increase Decrease In Rightof Use Asset
IncreaseDecreaseInRightofUseAsset
-33457 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-76257 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
766089 usd
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
272383 usd
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
185545 usd
SOWG Increase Decrease In Lease Liabilities
IncreaseDecreaseInLeaseLiabilities
-25261 usd
SOWG Increase Decrease In Lease Liabilities
IncreaseDecreaseInLeaseLiabilities
-22040 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2421260 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2274361 usd
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
362180 usd
us-gaap Payments To Acquire Other Property Plant And Equipment
PaymentsToAcquireOtherPropertyPlantAndEquipment
124384 usd
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
-0 usd
us-gaap Payments For Construction In Process
PaymentsForConstructionInProcess
1884720 usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
-0 usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
5929 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-362180 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2015033 usd
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
2400000 usd
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
3120000 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
400000 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
580000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2800000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
3700000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
16560 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-589394 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
276464 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
3345928 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
293024 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
2756534 usd
us-gaap Interest Paid Net
InterestPaidNet
25685 usd
us-gaap Interest Paid Net
InterestPaidNet
43606 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0 usd
SOWG Value Of Debt Discounts Attributable To Warrants
ValueOfDebtDiscountsAttributableToWarrants
2322478 usd
SOWG Value Of Debt Discounts Attributable To Warrants
ValueOfDebtDiscountsAttributableToWarrants
2694014 usd
us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_804_eus-gaap--NatureOfOperations_zI8vSBHQkfa9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 – <span id="xdx_825_zcJMxjUJsjZ1">Organization and Nature of Business</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective January 21, 2021, we changed our name from Black Ridge Oil &amp; Gas, Inc. to Sow Good Inc. (“SOWG,” “Sow Good,” or the “Company”) to pursue the freeze dried fruits and vegetables business as acquired with our October 1, 2020 acquisition of S-FDF, LLC. Our common stock is traded on the OTCQB under the trading symbol “SOWG”. <span style="background-color: white">At that time, o</span>ur common stock started to be quoted on the OTCQB under the trading symbol “SOWG”, from the former trading symbol “ANFC”. Prior to April 2, 2012, the Company name was Ante5, Inc., which became an independent company in April 2010. We became a publicly traded company when our shares began trading on July 1, 2010. From October 2010 through August 2019, we had been engaged in the business of acquiring oil and gas leases and participating in the drilling of wells in the Bakken and Three Forks trends in North Dakota and Montana and/or managing similar assets for third parties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On October 1, 2020, the Company completed its acquisition of S-FDF, LLC pursuant to an Asset Purchase Agreement. In connection with the closing of the Asset Purchase Agreement, the Company acquired approximately $2.2 million in cash and certain assets and agreements related to the Seller’s freeze-dried fruits and vegetables business for human consumption and entered into certain employment and registration rights agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On February 5, 2021, the Company raised over $<span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pp0p0_dm_c20210204__20210205__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zWHnCNJBUg6h" title="Proceed from sales of stock">2.5 million</span> of capital from the sale of <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210204__20210205__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zERUc8SdcUG6" title="Number of shares issued, shares">631,250</span> newly issued shares at a share price of $<span id="xdx_906_eus-gaap--SharePrice_c20210205__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" title="Share price">4.00</span> in a private placement. The proceeds were used to find capital expenditures and working capital investment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">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 with its first line of non-GMO products including 6 ready-to-make smoothies and 9 snacks.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On July 7, 2021, the Company raised over $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pp0p0_dm_c20210706__20210707__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zRPnbdNoHy3g" title="Proceed from sales of stock">3 million</span> of capital from the sale of <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210706__20210707__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" title="Number of shares issued, shares">714,701</span> newly issued shares at a share price of $<span id="xdx_900_eus-gaap--SharePrice_c20210707__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" title="Share price">4.25</span> in a private placement. Investors in the private placement included Sow Good’s Chief Executive Officer, Executive Chairman, and Chief Financial Officer, in addition to other Sow Good board members and a small group of accredited investors. The proceeds were used to invest in inventory ahead of pursuing larger business-to-business relationships, as well as funding incremental capital expenditures and general operating expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On July 23, 2021, we launched six new gluten-free granola products under the Sow Good brand. Sow Good’s granola products are made with health-conscious ingredients such as freeze-dried fruit, almonds, hemp hearts, and coconut oil.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On December 31, 2021, we sold an aggregate $<span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfDebt_pp0p0_c20211230__20211231__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_z9yGBbG2AtGd" title="Issuance of debt">2,075,000</span> of promissory notes and warrants to purchase an aggregate <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20211231__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_znp6px3TmOP4" title="Warrants issued">311,250</span> shares of common stock to related parties, representing <span id="xdx_904_ecustom--WarrantPurchased_c20211230__20211231__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zrmvop97DvQd" title="Warrant purchased">15,000</span> warrant shares per $<span id="xdx_901_eus-gaap--NotesPayable_c20211231__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pp0p0" title="Notes payable">100,000</span> of promissory notes. The warrants are exercisable at a price of $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_c20211231__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pdd" title="Warrant exercisable price">2.21</span> per share over a ten-year term. The proceeds were used for working capital investment and to ramp up our freeze-dried consumer packaged goods business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="background-color: white">On April 8, 2022, we sold an aggregate $<span id="xdx_90B_eus-gaap--ProceedsFromIssuanceOfDebt_pp0p0_c20220407__20220408__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zmLJedLlnIG6" title="Issuance of debt">3,700,000</span> </span>of promissory notes and warrants to purchase an aggregate <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_c20220408__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pdd" title="Warrants issued">925,000</span> shares of common stock, including $<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220407__20220408__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pp0p0" title="Number of shares issued">3,120,000</span> and warrants to purchase an aggregate <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220407__20220408__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pdd" title="Number of shares issued, shares">780,000</span> shares of common stock, to related parties<span style="background-color: white">. </span>The warrants are exercisable at a price of $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_c20220408__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pdd" title="Warrant exercisable price">2.35</span> per share over a ten-year term. These proceeds were used for working capital investment and to ramp up our freeze dried consumer packaged goods business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On August 23, 2022, we closed on an offering to sell up to $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfDebt_c20220822__20220823__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pp0p0" title="Issuance of debt">2,500,000</span> of promissory notes and warrants to purchase an aggregate <span id="xdx_90C_ecustom--WarrantsIssuedShares_c20220822__20220823__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zxe2Kvt82Tpk" title="Warrants issued">625,000</span> shares of the Company’s common stock, exercisable over a ten-year period at a price of $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_c20220823__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pdd" title="Warrant exercisable price">2.60</span> per share, representing 25,000 warrant shares per $100,000 of Notes purchased. The notes mature on <span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20220822__20220823__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zHwQuS1nUlM1" title="Maturity date">August 23, 2025</span>. Interest on the notes accrue at a rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20220823__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zKSuKiEgDSWk" title="Interest rate">8</span>% per annum, payable on January 1, 2025. Loans may be advanced to the Company from time to time from August 23, 2022 to the Maturity Date. On various dates from September 29, 2022 through March 7, 2023, the Company received aggregate proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfDebt_c20220929__20230307__srt--CounterpartyNameAxis__custom--TwoDirectorsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_pp0p0" title="Issuance of debt">2,250,000</span> from two of the Company’s Directors on the sale of these notes and warrants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In the first quarter of 2023, the Company launched a freeze-dried candy product line with a 9-SKU offering that is projected to continue being a major driver of growth. And, in the second quarter of 2023, we completed the construction of our second and third freeze driers to facilitate the increased production demands for our recently launched candy products. Furthermore, the significant and rising demand for our freeze-dried candy products has led us to begin construction of our fourth and fifth freeze drier, which we expect to be completed in the first quarter of 2024.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 0; text-align: justify"><span style="background-color: white">On April 25, 2023 and May 11, 2023, Sow Good raised an aggregate $<span id="xdx_90C_ecustom--ProceedFromIssuanceOfDebt_pp0p0_dm_c20230424__20230425__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zBExM9Ajw081" title="Issuance of debt"><span id="xdx_905_ecustom--ProceedFromIssuanceOfDebt_pp0p0_dm_c20230510__20230511__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesAndWarrantsMember_zIz2SZR7Awz1" title="Issuance of debt">1.3 million</span></span> from the sale of Promissory Notes and Warrants, including $900,000 received from related parties, resulting in approximately $293,000 of cash on hand as of June 30, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p>
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84E_eus-gaap--UseOfEstimates_zpgltxvdnPEk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline"><span id="xdx_86D_zRgIxvZJ9qr7">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with generally accepted accounting principles 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2023Q2 us-gaap Cash Uninsured Amount
CashUninsuredAmount
45420 usd
us-gaap Depreciation
Depreciation
155416 usd
us-gaap Depreciation
Depreciation
148655 usd
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
71785 usd
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
15736 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
83631 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
132919 usd
CY2023Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
1328637 usd
CY2023Q2 SOWG Notes Payable Related Parties Current And Noncurrent1
NotesPayableRelatedPartiesCurrentAndNoncurrent1
8595000 usd
CY2023Q2 us-gaap Inventory Finished Goods
InventoryFinishedGoods
252753 usd
CY2022Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
384241 usd
CY2023Q2 SOWG Inventory Packaging Materials
InventoryPackagingMaterials
83441 usd
CY2022Q4 SOWG Inventory Packaging Materials
InventoryPackagingMaterials
416663 usd
CY2023Q2 us-gaap Inventory Work In Process
InventoryWorkInProcess
0 usd
CY2022Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
864460 usd
CY2023Q2 us-gaap Inventory Raw Materials
InventoryRawMaterials
582775 usd
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
307515 usd
CY2023Q2 us-gaap Inventory Net
InventoryNet
918969 usd
CY2022Q4 us-gaap Inventory Net
InventoryNet
1972879 usd
us-gaap Inventory Write Down
InventoryWriteDown
1919686 usd
CY2022Q4 SOWG Notes Payable Related Parties Current And Noncurrent1
NotesPayableRelatedPartiesCurrentAndNoncurrent1
6195000 usd
CY2023Q2 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
3727295 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
2692757 usd
CY2023Q2 SOWG Notes Payable Related Parties Current And Noncurrent Net
NotesPayableRelatedPartiesCurrentAndNoncurrentNet
4867705 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
185485 usd
us-gaap Share Based Compensation
ShareBasedCompensation
383906 usd
us-gaap Share Based Compensation
ShareBasedCompensation
575631 usd
SOWG Expense Related To Shares Of Common Stock Issued
ExpenseRelatedToSharesOfCommonStockIssued
125229 usd
SOWG Expense Related To Shares Of Common Stock Issued
ExpenseRelatedToSharesOfCommonStockIssued
54998 usd
SOWG Amortization Of Warrants
AmortizationOfWarrants
1054822 usd
SOWG Amortization Of Warrants
AmortizationOfWarrants
321798 usd
CY2022Q4 SOWG Notes Payable Related Parties Current And Noncurrent Net
NotesPayableRelatedPartiesCurrentAndNoncurrentNet
3502243 usd
CY2023Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-60401992 usd
CY2023Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
293024 usd
CY2023Q2 SOWG Prepaid Software Licenses
PrepaidSoftwareLicenses
60961 usd
CY2022Q4 SOWG Prepaid Software Licenses
PrepaidSoftwareLicenses
36424 usd
CY2023Q2 us-gaap Prepaid Insurance
PrepaidInsurance
14284 usd
CY2022Q4 us-gaap Prepaid Insurance
PrepaidInsurance
16746 usd
CY2023Q2 SOWG Trade Show Advances
TradeShowAdvances
25728 usd
CY2022Q4 SOWG Trade Show Advances
TradeShowAdvances
18707 usd
CY2023Q2 us-gaap Prepaid Rent
PrepaidRent
13340 usd
CY2022Q4 us-gaap Prepaid Rent
PrepaidRent
27043 usd
CY2023Q2 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
5530 usd
CY2022Q4 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
38772 usd
CY2023Q2 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
119843 usd
CY2022Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
137692 usd
CY2023Q2 SOWG Notes Payable Related Parties Classified Current1
NotesPayableRelatedPartiesClassifiedCurrent1
200703 usd
CY2023Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
5905432 usd
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
5543252 usd
CY2023Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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663673 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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508257 usd
CY2023Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
5241759 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
5034995 usd
CY2023Q2 SOWG Capitalized Costs Machinery
CapitalizedCostsMachinery
2705524 usd
CY2023Q2 SOWG Capitalized Costs Leasehold Improvements
CapitalizedCostsLeaseholdImprovements
135596 usd
us-gaap Depreciation
Depreciation
155416 usd
us-gaap Depreciation
Depreciation
148655 usd
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
71785 usd
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
15736 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
83631 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
132919 usd
SOWG Lease Expiration Date
LeaseExpirationDate
2025-08-31
SOWG Monthly Lease Payment
MonthlyLeasePayment
10036 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
34817 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
33457 usd
us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
38624 usd
us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
39984 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
73441 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
73441 usd
CY2022Q4 SOWG Notes Payable Related Parties Classified Current1
NotesPayableRelatedPartiesClassifiedCurrent1
0 usd
CY2023Q2 SOWG Notes Payable Related Parties Noncurrent1
NotesPayableRelatedPartiesNoncurrent1
4667002 usd
CY2022Q4 SOWG Notes Payable Related Parties Noncurrent1
NotesPayableRelatedPartiesNoncurrent1
3502243 usd
us-gaap Interest Expense Other
InterestExpenseOther
270721 usd
us-gaap Interest Expense Other
InterestExpenseOther
126530 usd
CY2023Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1226708 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1261525 usd
CY2023Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
56011 usd
CY2022Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
52543 usd
CY2023Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1272626 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1301355 usd
CY2023Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
1328637 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
1353898 usd
CY2023Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P12Y9M18D
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P13Y3M18D
CY2023Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0575 pure
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0575 pure
us-gaap Operating Lease Payments Use
OperatingLeasePaymentsUse
25261 usd
us-gaap Operating Lease Payments Use
OperatingLeasePaymentsUse
22040 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
64843 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
132917 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
136905 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
141012 usd
CY2023Q2 SOWG Lessee Operating Lease Liability Payments Due After Year Four
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour
1412988 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1888665 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
560028 usd
CY2023Q2 us-gaap Notes And Loans Payable
NotesAndLoansPayable
1130000 usd
CY2022Q4 us-gaap Notes And Loans Payable
NotesAndLoansPayable
730000 usd
CY2023Q2 SOWG Debt Instrument Unamortized Discount Current And Noncurrent
DebtInstrumentUnamortizedDiscountCurrentAndNoncurrent
569203 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount Current
DebtInstrumentUnamortizedDiscountCurrent
336085 usd
CY2023Q2 us-gaap Notes Payable
NotesPayable
560797 usd
CY2022Q4 us-gaap Notes Payable
NotesPayable
393915 usd
CY2023Q2 us-gaap Notes Payable Current
NotesPayableCurrent
93502 usd
CY2022Q4 us-gaap Notes Payable Current
NotesPayableCurrent
0 usd
CY2023Q2 us-gaap Long Term Notes Payable
LongTermNotesPayable
467295 usd
CY2022Q4 us-gaap Long Term Notes Payable
LongTermNotesPayable
393915 usd
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
818483 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
20302 usd
us-gaap Interest Expense Debt
InterestExpenseDebt
10917 usd
CY2023Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
20000000 shares
CY2023Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2023Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
500000000 shares
CY2023Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2023Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
4868083 shares
CY2023Q2 us-gaap Excess Stock Shares Issued
ExcessStockSharesIssued
20699 shares
CY2023Q2 SOWG Fair Value Of Common Stock
FairValueOfCommonStock
125229 usd
CY2023Q2 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
9384000 usd
CY2023Q2 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
0 usd
CY2023Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
9384000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0 usd
us-gaap Lease Expiration Date1
LeaseExpirationDate1
2025-09-15
us-gaap Operating Lease Expense
OperatingLeaseExpense
10036 usd

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