10-Q

请在以下复选框中打勾，指示注册人：(1)在前12个月(或注册人被要求提交这些报告的更短期间内)已经提交了1934年证券交易法第13或15(d)条规定需要提交的所有报告；以及(2)在过去的90天内一直受到了此类文件提交要求的限制。是☒ 不是 ☐

请在以下复选框中打勾，指示注册人是否已经电子提交了根据Regulation S-T规则405条(本章节的§232.405条)需要提交的所有互动数据文件在过去的12个月内(或注册人被要求提交这些文件的更短期间内)。是☒ 不是 ☐

勾选以下选框，指示申报人是大型加速评估提交人、加速评估提交人、非加速评估提交人、小型报告公司或新兴成长型公司。关于“大型加速评估提交人”、“加速评估提交人”、“小型报告公司”和“新兴成长型公司”的定义，请参见《交易所法规》第12亿.2条。

如果是新兴成长型公司，在选中复选标记的同时，如果公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则，则表明该公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则。☐

请在以下空格内打勾，表示注册人是不是外壳公司（按交易所法则120亿.2条定义）。是 ☐ 否 ☒

请在检查标记处打勾，表示注册公司在根据受法院确认的计划下分配证券后，是否已提交所有文件和报告，根据证券交易法第12、13或15（d）条要求提交所有文件和报告。是 ☒ 没有 ☐

我们包括以下讨论，以一般性地告知现有和潜在的安防-半导体持有人一些可能影响我们公司的风险和不确定性，并利用适用的联邦证券法所提供的对未来声明的“安全港”保护。

不时，我们的管理层或代表我们行事的人员可能会发表前瞻性声明，以告知现有和潜在的安防-半导体持有人有关我们公司的信息。本报告中与我们财务状况、业务策略、管理层未来运营计划和目标以及行业板块条件有关的所有除历史事实陈述的声明均为前瞻性声明。在本报告中使用的前瞻性声明通常伴随着诸如“估计”、“项目”、“预测”、“相信”、“期望”、“预期”、“目标”、“计划”、“打算”、“寻求”、“目标”、“将”、“应该”、“可能”或其他字词及类似表达，这些词表达了未来事件或结果的不确定性。对实际或潜在未来销售、市场规模、合作、趋势或运营结果进行假设的项目也构成此类前瞻性声明。

前瞻性声明涉及固有风险和不确定性，以及重要因素（其中许多是我们无法控制的），这些因素可能导致实际结果与前瞻性声明中所述结果存在重大差异，包括以下内容：

此外，"我们相信"的声明及其他类似声明反映了我们对相关主题的信念和观点。我们已经基于截至本报告日期的当前预期和对未来事件的假设来制定这些前瞻性声明和信念声明。虽然我们的管理层认为这些预期和假设是合理的，但它们本质上受到重大业务、经济、竞争、监管和其他风险和不确定性的影响，其中大多数是难以预测的，而且其中许多超出了我们的控制。因此，实际实现的结果可能与这些声明中预期的结果存在重大差异。前瞻性声明仅在发布之日有效。你应仔细考虑“第1A项：风险因素”及本报告其他部分中的声明，这些部分描述了可能导致我们的实际结果与前瞻性声明中所述结果不同的因素。

请您在阅读本报告时，不要过分依赖这些前瞻性声明，这些声明仅代表本报告日期。我们不承担更新任何前瞻性声明以反映本报告日期后可能发生的任何事件或情况的义务，除非适用法律或法规要求。我们建议读者仔细审阅我们向美国证券交易委员会（“SEC”）提交的报告中所披露的各项信息，以尝试告知利益相关方可能影响我们业务、财务状况、经营结果和现金流状况的风险和因素。如果其中一个或多个风险或不确定因素成为现实，或者基础假设被证明不正确，我们的实际结果可能与预期或投影的结果大不相同。

环保母基负债

本公司之前是石油和天然气行业资产的直接拥有者。石油和天然气行业由于其本质，面临环境风险和清理费用。目前，管理层并不知道有任何重大损失是由于环境事故或事件造成的，这些损失对公司将产生实质性影响。

现金及现金等价物

现金等价物包括到期不超过三个月的货币市场账户。现金等价物按成本加 accrued 利息列示，接近市场价值。

现金超出FDIC保险额度

本公司将其现金存放在银行存入资金账户中，这些账户在某些时候可能超过联邦保险限额。账户由联邦存款保险公司（"FDIC"）和证券投资者保护公司（"SIPC"）担保，金额最高为$250,000 和$500,000，分别根据当前法规。本公司持有的现金超过 FDIC 和 SIPC 保险限额 $2,586,671 于2024年9月30日公司在2023年12月31日的现金超过了FDIC和SIPC保险限额$1,837,840 公司在此类账户中没有经历任何损失。

应收账款

应收账款按其预计可收回金额计入。交易应收账款根据与客户的过去信用记录及其当前财务状况定期评估可收回性。公司有不良账户准备金为 $149,809 截至2024年9月30日和没有截至2023年12月31日的疑账准备。

公司根据历史损失信息估计其准备金。公司认为，历史损失信息是判断报告日期持有的应收账款预期信用损失的合理基础，因为报告日期的应收账款组成与用于开发历史信用损失百分比的一致。然而，公司将继续监控并调整历史损失率，以反映当前条件和预测变化的影响。

存货

存货按平均成本或净可实现价值的较低者计价。公司几乎所有存货的成本均通过先进先出（"FIFO"）法确定。

资产和设备

物业和设备按成本或估计净可回收金额的较低者列示。物业、厂房和设备的成本按直线法折旧，基于资产的估计使用寿命或租赁期限中的较短者，依据以下预期寿命进行。


软件		3年，或协议的有效期
网站(年)		3
办公设备(年)		5
家具及固定装置(年)		5
机械和设备（年）		7 - 10
租赁改良		L租期或使用寿命

在建工程的成本主要与尚未投入使用的冷冻设备和设备的成本相关，不会在在建工程上记录折旧费用，直到相关资产完成并投入使用。

维修和保养支出在发生时计入运营费用。重大改善和更换，延长资产的使用寿命，将被资本化并在资产剩余的估计使用寿命内折旧。当资产被退役或出售时，成本及相关的累计折旧和摊销将被消除，任何由此产生的收益或损失将在运营中反映。

房地产和设备的折旧为 $216,164 和 $150,676截至2024年和2023年9月30日的三个月，折旧为 $207,580 和 $141,415 分别分配给营业成本。房地产和设备的折旧为 $582,948 和 $306,092截至2024年和2023年9月30日的九个月，折旧为 $559,888 和 $211,454 分别分配给营业成本。

收入确认

本公司按照ASC 606认可营业收入—— Revenue from Contracts with Customers （“ASC 606”）。根据ASC 606，本公司根据一个五步模型确认销售其冷冻干燥食品的营业收入，在该模型中，本公司评估承诺的商品或服务的转移，并在客户获得承诺的商品或服务的控制权时确认营业收入，金额反映本公司预计有权获得的作为交换的对价。为了判断本公司确定在ASC 606范围内的安排的营业收入确认，本公司执行以下五个步骤：（1）识别与客户的合同；（2）识别合同中的履约义务；（3）判断交易价格；（4）将交易价格分配到合同中的履约义务；（5）当（或在）实体满足履约义务时确认营业收入。本公司已选择作为实际上的便利，将运输和处理费用视为履行成本，而非单独的履约义务。对于截至2024年和2023年9月30日的九个月，运输和处理费用为 $626,819 和 $203,456，分别计入营业成本。营业收入在适用的折扣、退货和津贴的情况下报告为净额。这些准备金的确定方法依赖于客户定价和促销做法。本公司在相关营业收入记录的同一期间内，记录估计的产品退货和定价调整对营业收入的减少。这些估计基于行业的历史数据、历史销售退货（如有）、信用凭证数据分析及当时已知的其他因素。

客户集中度

截至2024年9月30日的三个月，我们的主要四客户分别占我们 19.7%, 14.8%, 10.2，以及 10.0% 的营业收入。 2023年9月30日截至三个月的主要两客户占应收账款的%。这些客户都是经销商。截至2023年9月30日， 46.1和 19.6% 的营业收入。我们的主要五客户占 61.8% 和 86.5% 的营业收入，截至 2024 年和 2023 年 9 月 30 日的三个月内。

截至2024年9月30日的九个月，我们的主要三个客户占据了 32.5%, 20.9%和 16.1%的营业收入，分别为。对于截至2023年9月30日的九个月，我们的主要 three customers accounted for 42.4%, 15.1% and 11.0% of our revenues, respectively. Our top five customers accounted for 76% and 80% of our revenues during the 2024年和2023年截至9月30日的九个月，分别。

下面是公司未解限制股的情况总结：

截至2024年9月30日的三个月，我们的主要三家供应商占我们从供应商处采购金额的 87截至三个月 2023年9月30日我们的主要三个供应商占 68% 的采购来自供应商。

截至2024年9月30日的九个月内，我们的主要三个供应商占我们的采购比例为 76%。截至2023年9月30日的九个月我们前十大三供应商占我们的采购比例为 %。公司认为这些供应商是我们冻干糖果生产的重要供应商。 69

每股基本及稀释盈利（亏损）

基本每股净利润（亏损）是通过将净利润（亏损）除以在外流通的普通股加权平均股数来计算的。稀释每股净利润（亏损）是通过将调整后的净利润（亏损）按“如转换”的基础除以在外流通的普通股加权平均股数加上潜在稀释证券来计算的。在潜在稀释证券对稀释每股净亏损会产生反稀释效果且未被纳入计算的期间。

股份补偿

公司根据ASC 718的规定对发放给员工的权益工具进行核算 - 股票补偿（“ASC 718”）以及根据ASC 2018-07 – 薪酬 - 股票补偿（“ASC 2018-07”）。所有交易中以发行权益工具作为购买商品或服务的对价的，均按收到的对价的公允价值或所发行的权益工具的公允价值进行核算，以较可靠可测量的为准。权益工具发行公允价值的计量日期为对方履约完成的日期或达到对方因较大不履约惩罚而获得权益工具的履约承诺的日期，以较早者为准。

与提供服务相关的股票薪酬由普通股的发行组成， $295,648 和 $125,229 期间分别为截至2024年和2023年9月30日的九个月。

与期权授予摊销相关的股票薪酬为$1,186,871 和$140,759 for the three months ended 2024年和2023年9月30日，期权授予摊销相关的股票薪酬为 $3,394,746 和 $399,436 期间 2024年和2023年截至9月30日的九个月，分别为。基于服务的期权的公允价值是使用Black-Scholes期权定价模型和有效期来确定的 2.3 至 7.3 根据权重平均归属期和期权授予的既定期限，或者根据期权估值模型计算的结果，年限为5至7年美国国债的折现率。公司使用蒙特卡洛模拟来评估其基于业绩和市场的股票期权。期权在隐含服务期限或归属期内摊销。

所得税

公司根据资产和负债的财务报告与税基之间的差异，使用施行的税率和法律确认递延税资产和负债，这些税率和法律预计在差异预计被恢复时生效。公司为递延税资产提供估值备抵，因为其认为实现这些资产的可能性不大于50%。

不确定的税务立场：

根据ASC 740 – 所得税（“ASC 740”），公司仅在税务立场更可能不是凡事以技术优势承受税务机关的审查时，才能确认不确定税务立场的税收收益。这些标准规定了税务立场在财务报表中确认和计量的确认阈值和计量属性。这些标准还提供了关于去确认、分类、利息和罚款、期间会计、披露和过渡的指导。

各种税务机关可以定期审计公司的所得税申报。这些审计包括有关公司税务申报立场的问题，包括扣除的时间和金额以及将收入分配到各个税务辖区。在评估与这些不同税务申报立场相关的风险时，包括州和地方税务，公司为可能的风险记录了准备金。在某个特定事项被审计并完全解决之前，可能会经过数年。公司尚未接受任何税务机关的审查。

公司税务立场的评估依赖于管理层的判断，以估计与公司各种申报立场相关的风险。

最近的会计声明

在2023年11月，FASB发布了ASU 2023-07，分部报告（主题280）：可报告分部披露的改进，要求公共实体在年度和中期基础上披露重大分部费用和其他分部项目，并在中期期间提供关于可报告分部的利润或损失及其资产的所有披露，这些披露目前在年度申报中是必需的。具有单一可报告分部的公共实体需要提供新的披露以及根据ASC 280要求的所有披露。本指南在2023年12月15日后开始的财政年度及在2024年12月15日后开始的财政年度的中期有效，采用追溯基础。公司作为单一分部运营，随其业务扩展将评估额外的分部披露要求。

在2023年12月，FASB发布了ASU 2023-09，所得税（主题740）：所得税披露的改进，旨在提高所得税披露的透明度和决策有效性，特别是在税率调节表和有关支付的所得税的披露中。 ASU的修订在2024年12月15日之后开始的年度期间生效，采用前瞻性原则。允许提前采用。公司目前正在评估采用此ASU对其基本报表和相关披露的影响。

截至2024年9月30日的九个月内，没有其他新的会计公告发布或生效。这些公告对公司的基本报表没有或预计不会产生重大影响。

《营收确认，与客户的合同》注释3 – 相关方

普通股票以现金出售

2024年3月28日公司通过3,738,000 的出售 515,597 新发行的普通股，以每股7.25 的价格在一项根据《1933年证券法》第4(a)(2)条款的豁免注册要求的定向增发中筹集资金。股票出售包含以下相关方的购买：


	股份		金额
伊拉和克劳迪娅·戈德法布，分别是执行董事长和首席执行官	17,242	$	125,000
莱尔·A·伯曼可撤销信托，董事	68,966		500,000
Bradley Berman，董事	30,000		217,500
爱德华·申斯基	13,794		100,000
Brendon Fischer	8,000		58,000
塞萨尔·J·古铁雷斯	10,345		75,000
亚历山德里亚·古铁雷斯	3,449		25,000
艾娃·古铁雷斯	3,449		25,000
布雷特·戈德法布	3,449		25,000
	158,694	$	1,150,500

2023年11月20日，公司与多位合格投资者签署了股票购买协议，向买方出售并发行总计 426,288 股公司普通股，价格为$6.50 每股，收到的总收益为$2,770,872. 股票销售包括以下相关方的购买：


	股份		金额
伊拉和克劳迪亚·戈德法布，分别担任执行主席和首席执行官	23,077	$	150,000
Bradley Berman，董事	10,000		65,000
乔·穆勒，董事	5,000		32,500
亚历山德里亚·古铁雷斯	4,615		29,998
塞萨尔·J·古铁雷斯信托	3,977		25,851
	46,669	$	303,348

2023年8月25日，公司与多位认证投资者签署了一份股票购买协议，向购买方销售并发行该协议下的总计 735,000 公司普通股的价格为$5.00 每股的销售总收入为$3,675,000. 股票销售包括以下关联方的购买：


	股份		金额
Ira和Claudia Goldfarb，分别担任执行主席和首席执行官	100,000	$	500,000
Ira Goldfarb不可撤销信托	40,000		200,000
Lyle A. Berman可撤销信托，董事	40,000		200,000
Bradley Berman，董事	10,000		50,000
亚历山德里亚·古铁雷斯	5,000		25,000
	195,000	$	975,000

向高管和董事发行的普通股作为服务

2024年2月9日，公司向五名非员工董事和三名顾问董事发行了合计 23,534 的普通股，以便提供年度服务。根据授予日期公司普通股的收盘价，普通股的总公平价值为$519,280。这些股份在发行时已计入费用。

2024年1月11日，公司向五名非员工董事发行了合计 7,060 的普通股，以便提供年度服务。普通股的总公平价值为$56,480基于授予日期公司普通股的收盘价。在发行时，这些股份被费用化。

在2023年6月1日，公司向五名非员工董事发行了合计 20,699 股普通股作为他们提供的年度服务。普通股的总公允价值为$125,230基于授予日期公司普通股的收盘价。在发行时，这些股份被费用化。

向高管和董事授予普通股期权

2023年12月15日，根据艾拉·戈德法布和克劳迪娅·戈德法布各自的A&R雇佣协议以及2020年股权激励计划的规定，戈德法布先生被授予了股票期权，使他有权购买高达 500,000 股普通股，戈德法布夫人被授予的股票期权，使她有权购买 450,000 股普通股，行使价为每股9.75 。这些股份将在授予之日起的一段五年期内均匀授予。在发生控制权变更（如其各自的A&R雇佣协议中定义）的情况下，初始期权授予中授予的所有股份将立即获得

。此外，2023年12月15日，根据他们各自的A&R雇佣协议，戈德法布先生被授予了额外的股票期权，使他有权购买高达 500,000 普通股份的股份，并授予Goldfarb夫人额外的 450,000 期权，以每股$的行权价格购买普通股40.00。股票将在公司股价在纳斯达克或纽约证券交易所中交易时收盘价格高于每股$40.00 ，该股价持续连续交易日。在公司控股股权变更的情况下（根据A＆R就业协议定义），所有在额外期权授予中授予的股份将立即除了优先股持有人的先前权利外，普通股持有人有权在公司董事会决定的时间和金额内获得来自法律财产的分红。每持有一股A类普通股的股东享有一票投票权，每持有一股B类普通股的股东享有20票投票权。在支付给优先股权持有人全部优先支付或作为备用款项后，如果存在剩余财产，则按照每个持有人普通股份数的比例进行分配。公司的所有普通股都没有优先购股权或被赎回。除以下情况外，公司的普通股无法转换成任何其他股票：按照以下规定将B类普通股转换为A类普通股。完整。

于2023年11月13日，公司任命Keith Terreri为首席财务官，并授予购买 27,000 股普通股的期权，行权价格为$6.19 每股。2024年3月2日，Terreri先生提交了辞职信，辞职生效日期为2024年3月4日。 None Terreri辞职时，他的期权全部生效，根据Terreri雇佣协议的规定，所有板块 27,000 的期权被取消。

2022年7月22日，根据公司2020年股票激励计划，Creed先生获得了购买的期权，每股 24,151 股，行使价格为每股$，发行于2023年6月26日（条款(i)至(iii)合称为“现有优先投资期权”），根据约定，持有人同意用现金行使他们的现有优先投资期权，以购买3.90 。这些期权将于2023年7月22日以 20％生效， 20% 直到完全获得所有权。

根据公司的2020年股权计划，在2022年4月11日，穆勒先生被授予购买 24,151 公司普通股的期权，行权价为$3.10 每年4月11日将授予 20%，并 20% 直到完全获得所有权。

债务融资和相关认股权证授予

2023年5月11日，公司获得了金额为$的收益100,000 代表Bradley Berman Irrevocable Trust的董事Bradley Berman从出售票据和权证中获得纳斯达克。这笔贷款按照一项出售高达$的发售计划进行1,500,000 票据和权证的总数额为, 用于购买该公司的普通股，行使期权为 375,000 在期间以每$购买的票据共计股份的价格行使。这些权证于2024年4月15日行使。十年每购买100,000美元票据的权证股份。2.50 的 25,000 每100000美元票据的权证股份。票据于到期。 2024年5月11日票据利息以每年％的利率累积，每年6月30日和12月31日以现金支付。 8票据利息以每年％的利率累积，每年6月30日和12月31日以现金支付。

2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。1,500,000 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。 375,000 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。2.50 每股，代表 25,000 每10万美元的票据购买一个认股权证。该认股权证于2024年4月15日行使。票据于2024年4月25日到期。票据利息以每年 8的利率计息，半年支付现金利息，支付日期分别为6月30日和12月31日。2023年4月25日，公司从公司的执行主席Goldfarb先生和由公司CEO的兄弟实际控制的Cesar J.Gutierrez Living Trust分别处置这些票据和认股权证所得款项为750,000 和$50,000 。

自2023年4月11日，根据私人配售债务发行，向一名董事发行了可购买 62,500 股普通股的认股权证，该发行是为了获得总额为250,000 的票据和购买总额为 62,50068.4%所有权。25,000 每10万美元的本票可换取warrants份额。这些warrants完全授予，并可在一段时间内行使 10 年价格为$每股2.60 这些warrants于2024年4月15日行使。

2022年12月21日，公司完成了一项私募，并与相关方同时签订了一份债券和认股权购买协议，出售了总价值为百万美元的债券和warrants以购买总计股的普通股，代表每10万美元的本票股份。这些warrants可按每股$的价格行使。2.075 311,250 15,000 10万美元的本票可换取warrants份额。这些warrants的行使价格为$每股。2.21 每股十年期权。这些权证于2024年4月15日行使。

在2022年8月23日，我们完成了一项定向增发，融资金额最高为$2,500,000 票据和权证的总数额为, 用于购买该公司的普通股，行使期权为 625,000 在期间以每$购买的票据共计股份的价格行使。这些权证于2024年4月15日行使。 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。每购买100,000美元票据的权证股份。2.60 每股，代表 25,000 每购买$100,000的票据可获得warrants股份。这些票据将在2025年8月23日到期。票据的利息按%合年率计算，支付日期为2025年1月1日。 8贷款可能会在2023年8月23日至到期日之间不时地向公司提供。2022年12月21日和2022年9月29日，公司共收到了$250,000 和$750,000 来自公司两位董事关于出售这些票据和warrants的信息。根据这些借款发行的warrants于2024年4月15日被行使。

在2022年4月8日，公司完成了一次定向增发，并同时签署了一份票据和warrants购买协议，出售总额为$3,700,000 的本票和warrants，以购买合计 925,000 25,000 每$100,000的本票可获得的warrants分享。票据的应计利息自2022年9月30日起按半年度支付，年利率为 6%，但在2022年8月23日，票据进行了修订，以更新利息支付的条款，使其在到期日或2025年1月1日之前支付，而不是按半年度支付。票据的本金金额于2025年4月8日到期并应支付。warrants可立即行使，有效期为 10 年价格为$每股2.35 每股。公司通过出售证券获得的收入为$3,700,000公司可以在到期之前赎回未到期的warrants，赎回价格为$0.01 每股，前提是普通股的成交量加权平均售价每股等于或超过$9.00 每股，需连续三十（30）个交易日的成交量加权平均售价在赎回通知寄出前的第三个工作日结束时达到或超过$2,173,750假设完全行使，进一步从warrant股票的行使中获得的收入计算为$3,700,000 此次发行与购买协议的执行同时关闭。总计$3,120,000 $的票据中，总共售出了$ 780,000 $的warrants。这些warrants于2024年4月15日被行使。

租赁

公司在德克萨斯州欧文租赁一个 20,945 平方英尺的设施，完全由Ira Goldfarb拥有的实体负责出租。租约期至2025年9月15日，并有两个五年期权可以延长，目前的月租金为$11,296，租金每年大约 3% 的增加。

于2024年9月30日截至2023年12月31日，运营租赁负债中包括$1,257,743 和$1,301,354 与此租赁相关的。对于 2024年和2023年截至9月30日的九个月公司在每个期间计入费用$110,161 并现金支付$99,030 和$96,146，分别为。对于截至三个月 2024年9月30日和2023年9月30日公司在每个期间的费用为$36,720 并支付现金$33,229 和$32,261，分别。

自由财务工具的定义，并符合永久股本待遇。按照发行日期确定的公允市值记录为股本的认股权证，在那之后不会重新计量。我们使用Black-Scholes估值模型来估计发行日期授予的认股权证的公平价值。公允价值的初始计量考虑未来现金流的现值，以发行日期的当前市场利率折现，以及流动性时间。公司在发行时将认股权证的价值分配给无认股权证的应付票据的相对公允价值和认股权证本身。认股权证的分配部分被视为债务折让，并按票据期限摊销。债务折让的摊销被确认为利息费用。当应付票据以折让金额发行时，其中发行量的大部分是与相关方之间发生的，票据和折让的估值涉及重大评估和使用不可观测的输入，将其分类为公允价值层次的第3级，需要进行非经常性的公允价值测量。除加入、解决或折让摊销外，应付票据的公允价值的变动，减去折让后不会影响净利润或现金流量。

下表总结了资产负债表上以非经常性基础计量的金融工具的公允价值评估，截至 2024年9月30日和2023年12月31日：


	2024年9月30日				2023年12月31日
	账面价值		估计公允价值		携带价值		预估公正价值
负债
应付票据，相关方，净债务折扣后	$	2,731,901	$	3,041,132	$	6,714,288	$	7,008,684
应付票据，净债务折扣后		363,134		228,716		907,976		953,847
总负债	$	3,095,035	$	3,269,848	$	7,622,264	$	7,962,531

注意事项 5 – 存货

存货

截至 2024年9月30日，公司的存货包括原材料、材料费用、人工费用和制造业-半导体间接费用，分类如下：


	9月30日,		12月31日，
	2024		2023
成品	$	7,298,127	$	222,051
包装材料		1,370,836		815,883
在途库存		712,307		571,970
进行中的工作		8,147,885		691,290
原材料		1,904,886		1,822,052
19,782	$	19,434,041	$	4,123,246

预付库存

公司已报告总共 $572,098 和 $563,131 截至2024年9月30日和2023年12月31日，预付库存分别为。预付库存主要包括向供应商的存款和预付款，用于购买预计在下一财务期间内收到和使用的原材料和成品，这些原材料和成品在资产负债表日尚未发货。

公司按成本核算预付库存，其中包括使库存物品运抵当前位置和状态所需的所有费用。一旦发货，这些金额将从预付库存重新分类为资产负债表上相应的库存科目。

注6 – 预付费用

预付费用包括以下内容 2024年9月30日和2023年12月31日：


	9月30日,		12月31日，
	2024		2023
预付专业费用	$	-	$	382,524
预付软件许可		68,237		35,252
预付保险费用		73,274		48,305
交易展会和营销服务		60,919		29,964
预付租金		-		67,119
预付款	$	202,430	$	563,164

注意事项 7 – 财产和设备

的财产和设备包括以下内容 2024 年 9 月 30 日和 2023 年 12 月 31 日：


	九月三十日			十二月 31,
	2024			2023
机械	$	7,712,953		$	4,714,626
租赁权益改善		1,454,767			1,409,767
软件		70,000			70,000
网站		71,589			71,589
办公设备		121,674			21,440
施工进行中		2,848,191			1,522,465
		12,279,174			7,809,887
减去：累计折旧和摊销		(1,550,550	)		(967,602	)
财产和设备总额，净额	$	10,728,624		$	6,842,285

在建工程包括在德克萨斯州建造制造设施以及建造我们的冷冻干燥机所产生的成本。这些成本将在完工后分别作为租赁地产改善和机械资本化。

在截至2024年9月30日和2023年9月30日的三个月中，不动产和设备的折旧分别为 $216,164 和 $150,676，其中和 $207,580 和 $141,415 已分配给销售商品的成本，因此净折旧费用为 $8,583 和 $9,261 包含在运营费用中。在结束的九个月中 2024 年 9 月 30 日和 2023 年 9 月 30 日，财产和设备的折旧分别为 $582,948 和 $306,092，其中 $559,888 和 $211,454 已分配给销售商品的成本，因此净折旧费用为 $23,060 和 $94,638 包含在运营费用中。

递增的借款利率基于在开始日期确定租赁付款的现值时获得的信息。租约开始时的增量借款利率为 5.75%.

2024年5月22日，公司与特拉华州有限责任公司USCIF Pinnacle Building b LLC签订了工业租约（“租约”）。根据租赁条款，公司将租赁大约 324,000 位于德克萨斯州达拉斯罗克采石场路4024号的出租人可向出租方出租的平方英尺，租期约为 62 月，公司打算将其用作工业和制造空间。租赁期限于 2024 年 5 月 22 日开始。租约规定分期支付租金，起价为 $122,175 每月，最多增加 $297,289 在租约到期前每月支付，外加税款、保险和公共区域维护费用。该公司已提供一笔金额为美元的押金1,000,000 与租赁有关。在公司与出租人书面延期后，可以续订租约，续订期限最长为 60 月。租约开始时的增量借款利率为 10.84%.

2024年1月19日，Sow Good Inc. 与在墨西哥墨西哥城注册的公司Papsa Merx S. de R.S. de C.V. 签订了转租协议。根据转租协议的条款，公司将在Av转租约141平方米的可出租平方米。Roble 660，Valle del Campestre，66265 新莱昂州圣佩德罗加尔萨加西亚市，66269，为期约十七个月，公司打算将其用作办公空间。租赁协议的期限于 2024 年 2 月 1 日开始。转租协议规定按固定价格支付租金 $5,250 每月美元加上期限内相应的增值税。公司还负责场所的运营费用，包括维护费、电力和互联网服务。公司必须提供金额为美元的担保押金5,250 与转租协议相关的美元。转租协议没有续订期。租约开始时的增量借款利率为 10.68%.

2023年10月26日，该公司与马里兰州的一家公司Prologis, Inc. 签订了租赁协议，该公司打算将其用作生产空间。该公司租赁了大约 51,264 德克萨斯州达拉斯的平方英尺，初始任期约为五年零两个月。租约于 2023 年 11 月 1 日开始。基本租金起价约为 $42,500 第一年每月一次，每年增加，最高约为 $51,700 初始学期最后一年的每月一次。公司还负责场所的运营费用, 起价为 $7,835 每月，每年增长为 4.3%。作为租赁押金，公司必须向房东提供金额为美元的信用证300,000。租约可以延长五年，由公司选择，其利率以延期时确定的公平市场租金率为基础。租约开始时的增量借款利率为 9.38%.

2023 年 7 月 1 日，该公司签订了位于德克萨斯州欧文的额外仓库空间的租约，金额约为 9,000 一英尺以下 37-月租约，费率为 $8,456 每月，大约有 4租赁付款的年度增长百分比。设施租赁包含要求支付适用于租赁场所的财产税、公用事业、保险、维护和其他占用费用的条款。由于公司的租赁不提供隐性贴现率，因此公司根据开始之日可用的信息使用增量借款利率来确定租赁付款的现值。租约开始时的增量借款利率为 8%.

租赁费用的组成部分如下：


	在截至的九个月中
	九月三十日
	2024		2023
使用权租赁成本：
使用权资产的摊销	$	1,423,179	$	79,213

与租赁相关的补充资产负债表信息如下：


	9月30日,			12月31日，
	2024			2023
营业租赁：
营业租赁资产	$	17,193,154		$	4,061,820

当前运营租赁负债部分	$	2,140,084		$	550,941
非流动经营租赁负债		16,005,280			3,671,729
总经营租赁负债	$	18,145,364		$	4,222,670

加权平均剩余租赁期限：
经营租赁（年）		4.9			5.9
加权平均贴现率：
经营租赁		10.25	%		8.20	%

与经营租赁相关的补充现金流和其他信息如下：


	截至九个月的结束
	9月30日，
	2024		2023
支付与租赁负债计量相关的现金：
运营租赁使用的经营现金流	$	1,553,753	$	128,840

截至现在，未来在经营租赁下到期的最低租赁付款为 2024年9月30日如下：


财年结束日期	最低租赁
2024年12月31日，	承诺
（剩余三个月）	$	814,661
2025		4,314,293
2026		4,894,504
2027		5,004,433
2028年及以后		8,515,670
总计	$	23,543,561
减免贴现影响		(5,398,197	)
承租债务确认	$	18,145,364

注9– 应付账款，相关方

应付账款，相关方在以下日期的金额为截至2024年9月30日和2023年12月31日，分别为：


	6月30日		12月31日，
	2024		2023

2023年5月11日，公司收到了$100,000根据来自公司的董事之一Bradley Berman代表Bradley Berman不可撤销信托作为贷款人的票据和认股权证购买协议。该票据的利率为 8%的年利率，按现金支付，每年在6月30日和12月31日半年度支付，并对任何部分利息积累期间进行相应的比例调整。票据持有人还获得了购买的warrants 25,000 普通股的股份，行使价格为$2.50 每股的 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期限。warrants在2024年4月15日被行使，所得款项用于部分偿还票据。无担保票据于 2024年5月11日.	$	-	$	100,000

2023年4月25日到期50,000公司根据与Cesar J. Gutierrez Living Trust签订的票据和warrants购买协议，收到了$，该信托由公司首席执行官的兄弟实际控制，作为贷方。票据的利率为 8%每年支付，现金支付，半年支付一次，分别在6月30日和12月31日，附带		-		50,000


合适的对任何部分利息计息期进行按比例调整。票据持有人还获得了购买的认股权证 12,500普通股的股份，可以在 $2.50 每股的价格有效期 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。。认股权证于2024年4月15日被执行，所得款项用于部分偿还该票据。该无担保票据于 2024年4月25日.

2023年4月25日，公司收到了 $750,000根据由公司董事长Mr. Goldfarb作为贷方的信托下签署的票据和权证购买协议，该票据的利息为 8% 每年，以现金方式在6月30日和12月31日半年度支付，并对任何部分利息的累积期进行适当的按比例调整。票据持有人还获得了购买 187,500股份的权证，行权价为$2.50每股，期限为十年的时间。权证于2024年4月15日被行使，所得款项用于部分偿还票据。无担保票据于 2024年4月25日到期。.	-	750,000

2023年4月11日，公司收到$250,000根据莱尔·A·伯曼可撤销信托的票据和认股权证购买协议，由公司的董事之一作为贷款人实际控制。无担保票据到期日为 2025年8月23日。该票据按8%每年，支付日期为2025年1月1日。票据持有人还获得了购买 62,500普通股的认股权证，行权价格为$2.60每股，行权期为十年期内，认股权证已被行使 2024年4月15日.	250,000	250,000

2023年3月7日，公司收到了$250,000根据由公司董事之一实际控制的Lyle A. Berman可撤销信托的票据和认股权证购买协议，作为借款方。无担保票据的到期日为 2025年8月23日。该票据的利率为 8% 每年，利息在2025年1月1日支付。票据持有人还获得了以$ 62,500每股的价格购买2.60普通股的认股权证，可在十年期限。权证于 2024年4月15日.	250,000	250,000

在2023年3月2日，公司收到了$250,000根据由公司董事长戈德法布先生作为贷款人持有的信托的票据和权证购买协议。无担保票据到期日为 2025年8月23日。票据的年利率为 8%，利息于2025年1月1日支付。持票人还获得了购买权证 62,500普通股的分享，行使价格为 $2.60每股分享超过十年期限。此 warrants 已于 2024年4月15日行使.	250,000	250,000

在2023年2月1日，公司根据由公司董事长Mr. Goldfarb作为贷方所持有的信托的票据和 warrant 购买协议收到了 $500,000作为无担保票据在 2025年8月23日到期. 该票据的年利率为 8%，于2025年1月1日支付。票据持有人还收到了购买 125,000的普通股权证，行使价格为$2.60每股，在十年期限内。权证于 2024年4月15日被行使.	500,000	500,000

2023年1月5日，公司收到了$250,000根据Lyle A. Berman可撤销信托的票据和认股权证购买协议，该信托由公司的一位董事以出借人的身份实际控制。该无担保票据到期日为 2025年8月23日。该票据的年利率为 8%，于2025年1月1日支付利息。票据持有人还收到了认股权证，以购买 62,500普通股，行使价格为$2.60每股，行使期限为十年。该认股权证已被行使于 April 15, 2024.	250,000	250,000

On December 31, 2022, the Company received $250,000 pursuant to a note and warrant purchase agreement from the Lyle A. Berman Revocable Trust, as beneficially controlled by one of the Company’s Directors, as lender. The unsecured note matures on August 23, 2025. The note bears interest at 8% per annum, payable on January 1, 2025. The noteholder also received warrants to purchase 62,500 shares of common stock, exercisable at $2.60 per share over a 十年期限。认股权证于 2024年4月15日.	250,000	250,000

在2022年9月29日，公司收到了$500,000 根据公司董事长Mr. Goldfarb作为贷方持有的信托的票据和认股权证购买协议。无担保票据到期日为 2025年8月23日。票据年利率为 8%，于2025年1月1日支付。票据持有人还获得了认股权证以购买 125,000普通股的分享，行使价为 $2.60每份分享的十年条款。权证于 2024年4月15日 .	500,000	500,000

在2022年9月29日，公司根据一份债券和权证购买协议收到了 $250,000 来自由公司董事之一控制的莱尔·A·伯曼可撤销信托，作为贷款人。无担保票据到期日为 2025年8月23日. 该票据的利息为 8% 每年，支付于2025年1月1日。票据持有人还收到用于购买 62,500的普通股分享权，行权价格为$2.60每分享，期限为十年的条款。该权利于 2024年4月15日被行使。.	250,000	250,000


2022年4月8日，公司收到了$2,000,000根据一份备忘录和权证购买协议，公司董事长Goldfarb先生名下的信托作为贷方支付了。无担保票据的年利率为 6%，每年复利计算，半年现金支付一次，分别是6月30日年和12月31日日。票据持有人还获得了购买 500,000股票的权证，行使价为$2.35每股 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期。这些认股权证在 2024年4月15日日行使，部分认股权证行使所得款项用于偿还该票据。		-		2,000,000

2022年4月8日，公司收到$100,000根据与公司主席兼首席执行官Goldfarb夫妇作为贷款人签订的票据和认股权购买协议。无担保票据按 6%计息，按半年复利，按半年现金支付年并且截至12月31日日。债券持有人还获得了购买warrants的权利，每股价格为 25,000美元，每股的2.35期内。这些warrants在 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。时行使。 2024年4月15日并且所得款项用于偿还该票据。		-		100,000

2022年4月8日，公司收到$100,000根据与Ira Goldfarb拥有的实体IG Union Bower LLC达成的票据和认股权购买协议，该公司主席作为贷款人。无担保票据的年利率为 6%，半年复利，每年6月30日和12月31日以现金方式支付。年和12月31日。日债券持有人还收到购买权证，可以购买 25,000股份，行权价为$2.35每股，在 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期内行使这些权证。这些权证于 2024年4月15日行使，所得款项用于偿还债务。		-		100,000

2022年4月8日，公司收到了$920,000 pursuant to a note and warrant purchase agreement from the Lyle A. Berman Revocable Trust, as beneficially controlled by one of the Company’s Directors, as lender. The unsecured note bears interest at 6% per annum, compounded semi-annually, and was payable in cash semi-annually on June 30年 and December 31日. The noteholder also received warrants to purchase 230,000 shares of common stock, exercisable at $2.35 per share over a 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。这些认股权证已于该交易条款下行使 2024年4月15日，所得款项用于偿还该票据。		-		920,000

2021年12月31日，公司收到$1,500,000，根据一份与公司主席兼CEO戈德法布夫人先生的票据和认股权购买协议，作为出借人。该无抵押票据年利率为 8%，每年复利计息，应于6月30日半年现金支付。年截止日期为12月31日日。票据到期日为 2024年12月31日。债券持有人还收到了购买warrants，用于购买 225,000股份，行使价格为$2.21每股的 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。条款。这些权证已在 2024年4月15日，所得款项被用于部分偿还该票据。		629,000		1,500,000

2021年12月31日，公司收到$500,000，根据注和权证购买协议，来自莱尔·伯曼（Lyle A. Berman）可撤销信托，由公司一位董事受益控制，作为借方。该无担保票据按 8%的年利率，每半年复利，应分别于6月30日年和12月31日以现金支付。日持票人还获得了购买权证，可购买 75,000股票，每股行使价为$2.21每股，持续期限为 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期间行使了这些权证，所得款项用于偿还票据。 2024年4月15日并用于偿还该票据。		-		500,000

2021年12月31日，公司收到了$25,000根据一项备忘录和认股权购买协议，公司的前首席财务官Bradley k. Burke作为借款人向公司支付。无担保票据以每年 8％的利率计算，每半年复利，应于6月30日和12月31日以现金形式支付。票据于年到期日。 2024年12月31日持票人还获得了购买权证来购买 3,750股普通股的权证，行使价格为 $2.21每股，在一段 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期内行使。这些权证于 2024年4月15日行使，所得款项被用于部分偿还该票据。		16,712		25,000

2021年12月31日，公司收到了 50,000根据由公司首席执行官的兄弟控制的塞萨·古铁雷斯生活信托以受益人身份拥有的票据和认购协议。无抵押票据的年利率为 8%，按半年复利，应于6月30日年和12月31日支付现金。该票据于日到期。票据持有人还获得了购买权证 2024年12月31日 7,500普通股股票的份额，行权价为$2.21每股 2023年4月25日，我们就最多＄的定向增发进行了交易，用于购买可转让票据和出售权，可购买到总计＄股份的公司普通股，在10年内以＄的价格行使。期限内。这些认股权证在 2024年4月15日日行使，所得款项用于部分偿还债务。		33,425		50,000

相关方应付款项总计		3,179,137		8,595,000
扣除未摊销债务折让：		447,236		1,880,712
应付票据		2,731,901		6,714,288
减少流动性		2,731,901		2,543,146
应付票据，关联方，减去当前到期的部分	$	-	$	4,171,142

注意事项 10 – 应付票据

应付票据包括以下内容截至2024年9月30日和2023年12月31日，分别为：


	九月30日,		2024年12月31日，
	2024		2023

2023年4月25日，公司收到了 $400,000根据一位认可投资者作为放款人的票据和认购权购买协议，票据利率为人形机器人-轴承 8% 每年，以现金方式在6月30日和12月31日半年度支付，并对任何部分利息的累积期进行适当的按比例调整。票据持有人还获得了购买 100,000普通股的股份，可以在 $2.50 每股的价格有效期十-年期权证。这些期权证在被行使之后 2024年4月15日，款项用于部分偿还该票据。该票据剩余部分于到期日到期。 2024年4月25日到期。.	$	-	$	400,000

2022年4月8日，公司收到了$80,000根据一位合格投资者作为贷方的一份票据和认股权购买协议，该无担保票据的利息为 6%，每年复利计算，半年现金支付一次，分别是6月30日th和12月31日st。于2022年8月23日，该票据被修改以更新利息支付条款，以在到期日或2025年1月1日之间支付，而不是半年支付一次，该票据最终到期于 2025年4月8日。债券持有人还收到了购买warrants，用于购买 20,000普通股的股份，可以在 $2.35 每股的价格有效期十-年期权证。这些权证在被行使。 2024年4月15日，所得款项用于部分偿还该票据。		33,000		80,000

2022年4月8日，公司收到了$500,000根据来自一位合格投资者的票据和认股权购买协议，作为贷方。未担保票据的利息为 6%，每年复利计算，半年现金支付一次，分别是6月30日th和12月31日st。2022年8月23日，已修改票据条款，更新利息支付条款，支付日期为到期日或2025年1月1日中较早的日期，而不是半年支付一次。票据到期日为 2025年4月8日。债券持有人还收到了购买warrants，用于购买 125,000普通股的股份，可以在 $2.35 每股的价格有效期十-年期权证。这些权证在日期进行了行使 2024年4月15日，所得款项用于部分偿还该票据。		206,250		500,000

2020年6月16日，公司与美国小企业管理局（“SBA”）签署了贷款授权和贷款协议，作为出借人，根据SBA的经济灾害贷款（“EIDL”）援助计划，旨在应对新冠肺炎大流行对公司业务的影响（“EIDL贷款协议”），涵盖了$150,000美元的为SBA发行的/承诺的票据（“EIDL票据”）（连同EIDL贷款协议一起，称为“EIDL贷款”），利率为 3.75每年百分比。公司与进入EIDL贷款有关，公司还签署了一份安防-半导体协议，日期为2020年6月16日，SBA与公司之间的EIDL安全协议('EIDL Safety Agreement')，根据该协议，EIDL贷款以公司所有资产为担保。根据EIDL票据，公司需要支付本金和利息每月$731，自2022年6月16日开始，每月支付，如延长。所有剩余本金和应计利息须于2050年6月16日到期支付。EIDL票据可随时无罚息地偿还。		150,000		150,000
所有应付票据总额		389,250		1,130,000
扣除未摊销债务折让：		26,116		222,024
应付票据		363,134		907,976
减少流动性		213,134		313,938
应付票据,减去当前到期日	$	150,000	$	594,038

公司确认了与应付票据、关联方以及其他应付票据有关的利息费用，截至2024年和2023年九个月，如下： 2024年和2023年截至9月30日的九个月，具体如下：


	截至三个月结束					截至九个月的时间
	九月30日,					9月30日，
	2024		2023			2024		2023
应付票据的利息，关联方	$	64,105	$	140,014		$	285,459	$	405,131
应付票据的债务折扣摊销，关联方		142,735		(137,006	)		736,974		776,993
应付票据的利息		5,812		16,647			25,086		42,553
债务折让的按摊销是应付票据		12,443		(17,589	)		195,909		123,234
利息 - 其他		-		1,575			-		1,575
利息支出总额	$	225,095	$	3,641		$	1,243,428	$	1,349,486

注意事项 11 – 股东’ 股权

优先股

该公司有 20,000,000 美元的授权股份0.001 面值优先股。没有迄今为止已发行股票。

认股权证行使交易

2024 年 4 月 15 日，公司发行了 2,186,250 与行使2021年12月至2023年5月期间发行的认股权证相关的普通股（“认股权证”），行使价从美元不等2.21 到 $2.60 （“认股权证行使”）。在认股权证行使之前或与认股权证行使相关的任何认股权证均未经过修订。根据2021年12月至2023年5月期间发行的多批期票（统称 “票据”），每位认股权证行使持有人（统称 “持有人”）都收到了与公司负债有关的认股权证。认股权证一开始就被归类为永久股权。由于认股权证中的赎回功能允许公司以美元兑换认股权证0.001 如果连续三十个交易日的每日成交量加权平均每股价格高于美元，则每份认股权证9.00，鉴于公司普通股交易价格最近上涨，该公司收到了各持有人表示有意行使认股权证的意向。经公司董事会授权，每位持有人都有机会修改部分此类持有人票据（“票据修正案”），允许按等于该持有人认股权证行使价的总金额预付部分本金，并同意修改该持有人认股权证的行使价。除票据修正案外，某些当选的持有人使用此类持有人票据的应计但未付利息的一部分来支付认股权证的行使价。某些票据是由于认股权证行使而全额偿还的，因此无需根据《票据修正案》（认股权证行使，无论是通过部分或全部偿还本金，还是选择使用票据下的一部分应计但未付的利息，以及《票据修正案》，即 “认股权证行使交易”）进行修改。由于认股权证行使交易，不包括递延债务成本的影响，该公司的债务减少了美元5,200,362，应计应付利息减少了美元98,750，普通股上涨了美元5,299,112 而且该公司总共发行了 2,186,250 普通股。

部分票据总额为 $3,620,000 已全额偿还，相关的债务折扣为美元696,502 已全部列为清偿债务的损失截至 2024 年 9 月 30 日的九个月。受票据修正案约束的票据已部分偿还, 这笔款项总额为 $1,580,363，以及相关债务折扣的应纳税部分，总额为美元215,773 作为摊销利息包含在截至 2024 年 9 月 30 日的九个月。剩余的债务折扣将在票据的剩余期限内继续作为利息摊销。《票据修正案》仅允许部分预付本金，没有更改票据的任何其他条款，而且这些票据的修改使票据剩余期限内的预期现金流的现值基本保持不变。

以现金出售的普通股

2024 年 5 月 2 日，公司对其注册承销的公开发行进行了定价 1,200,000 公司普通股股票，面值美元0.001 价格为 $10.00 每股。此外，公司向承销商授予了30天的总配股权，最多可购买 180,000 额外的普通股并向承销商发行认股权证以供购买 120,000 普通股。2024年5月1日，公司获准在纳斯达克资本市场证券交易所（“纳斯达克”）上市其普通股。纳斯达克的交易于 2024 年 5 月 2 日开始。2024年5月9日，承销商在全面行使总配股权后购买了所有额外股份。包括额外股份的收益，公开募股的收益约为 $11,974,976 扣除发行费用和承保折扣和佣金。

和其附属公司（如2020计划中定义）。2020计划和批准的增加使我们能够继续通过公司及其附属公司的员工、官员、董事、非雇员董事和顾问持股政策，作为激励，为我们的股东创造长期价值。

2024股票激励计划

自2024年2月15日起，董事会采纳了2024计划（“2024计划”），根据该计划，共有 3,000,000 公司普通股份中有一部分已被留用以发行激励期权、非合格期权、限制股奖、股本单位奖、 SARs、其他股权奖励、绩效为基础的股权奖励（统称为“股权奖励”）和以现金为基础的奖励（股权奖励和以现金为基础的奖励统称为“奖励”）。仅可向我们的员工，包括官员，以及母公司或子公司的员工授予ISOs。所有其他奖励可以授予我们的员工，官员，非雇员董事，顾问，以及我们子公司和附属公司的员工和顾问。

未行使的期权

购买总数为 2,626,382 普通股的期权截至分别在2024年9月30日以加权平均行使价格看涨 $19.91已行权未行权期权的加权平均期限 8.7 至2024年9月30日为止的\s年。

公司确认了与普通股期权相关的补偿费用，该费用正在按照期权的暗含服务期限或役权期间摊销截至2024年9月30日和2023年所结束的三个月和九个月，公司确认了如下与普通股期权相关的补偿费用:


	截至三个月结束				截至九个月的结束
	9月30日，				九月三十日，
	2024		2023		2024		2023
董事	$	29,284	$	25,695	$	86,892	$	91,990
官员		1,039,169		80,520		3,083,827		238,932
员工		118,418		34,334		224,027		68,304
总摊销期权费用	$	1,186,871	$	140,759	$	3,394,746	$	399,436

这些期权的未摊销余额为 $12,457,803 截至2024年9月30日，预计将确认这些奖励的加权平均期间约为 2.5 与此同时，新的出口订单连续第三个月下降，全球制造需求放缓。就业水平连续第二个月下降。

期权已授予

在2024年9月30日结束的九个月内，有23名员工被授予购买公司普通股的期权，总计 117,061 份公司普通股，具有加权平均行权价格$13.62，可在期限为 10年的期间行使。这些期权将于第三个周年日解锁 60%，并在之后的每个周年日解锁 20%，直至全部解锁。根据黑-肖尔斯定价模型，基于一个波动率为 94 至 95和平均看涨期权公平价值$12.14。1,421,542。期权的费用正在分配到权益期间。

期权取消或放弃

大约 46,000 期权，带有加权平均行使价$5.43 每股$的期权由前雇员放弃。财务报表中的货币翻译调整

过期的期权

2024年9月30日结束的九个月内到期期权包括 333 期权价格为$195.00 ，价格为$ 14,491 ，价格为$5.41 的期权。

已行权的期权

共有11位锚定投资者（定义见下文）在首次公开发行中以发行价每单位美元购买单位。根据这些单位，锚定投资者没有获得任何股东或其他权利，除了向公司的其他公共股东提供的权利。50,459 在2024年9月30日结束的九个月内行使了期权. 否在这个在2024年9月30日结束的九个月内，来自期权行使的收入金额为$163,854.

第14条注释 - 每股收益

截至2024年9月30日和2023年9月30日的基本和稀释每分享收益：截至三个和九个月的基本和稀释每分享收益：


	截至三个月					九个月结束
	9月30日，					9月30日，
	2024			2023		2024		2023
净利润归属于普通股股东	$	(3,379,909	)	$	333,984	$	465,821	$	(4,388,446	)

基本加权平均股数		10,245,388			5,123,735		8,651,223		4,942,182

基本每股收益（损失）	$	(0.33	)	$	0.07	$	0.05	$	(0.89	)

稀释加权平均股数		10,245,388			8,066,577		9,613,553		4,942,182

每股摊薄收益（亏损）	$	(0.33	)	$	0.04	$	0.05	$	(0.89	)

下表包括截至每个相关期末的期权和warrants相关信息，分别为三个月和截至2024年9月30日和2023年9月30日的九个月. 对于公司发生净亏损的期间，这些金额不包括在加权平均稀释股份中，因为它们的影响会是反稀释的。对于截至2024年9月30日的三个月和九个月，公司大约有 1,019,000 行使价格高于平均水平的期权

相应时期的每股收益已被排除在加权平均股数之外，因为将其纳入计算会在国库法下产生防稀释效果。


	截至三个月				九个月结束
	9月30日，				9月30日，
	2024		2023		2024		2023
加权平均期权		1,607,913		650,436		1,607,580		615,662
加权平均期权价格	$	8.00	$	4.64	$	8.00	$	4.64

加权平均warrants		190,500		2,291,250		974,839		2,084,994
warrants的加权平均价格	$	9.80	$	2.50	$	3.01	$	2.50

普通股的平均价格	$	15.74	$	5.52	$	13.84	$	4.56

项目2. 管理层的讨论与分析财务状况和经营结果。财务状况和经营结果的分析。

有关财务状况和经营业绩的讨论和分析应与我们的历史财务基本报表及报告其他地方出现的相关附注一起阅读。讨论中的某些陈述包含基于当前预期涉及风险和不确定性的前瞻性声明，如计划、目标、期望和意图。由于多种因素的结果，实际结果和事件发生时间可能与这些前瞻性声明中预期的有实质差异。

Sow Good是一家引领潮流的美国冷冻糖果和零食制造商，致力于为消费者提供创新和爆炸性口味的冷冻零食。Sow Good已经利用我们独有的冷冻干燥技术和产品专业化制造设施，将传统糖果转变为一种新颖和令人兴奋的日常糖果亚类，我们称之为冷冻糖果。我们从2023年第一季度开始商业化我们的冷冻糖果产品，截至2024年9月30日，我们在Sow Good糖果系列中有21种库存量单位（SKU），在Sow Good Crunch Cream系列中有3种SKU。截至2024年9月30日，我们的糖果销售额主要集中在批发和零售渠道，电子商务销售额占比不到2%。截至2024年9月30日，我们的产品在美国的6000多家实体零售店上架销售。自从我们的美味零食于2023年3月首次亮相以来，对我们吸引人的美味零食的迅速需求增长凸显了消费者对我们新颖和爆炸性味道零食的兴奋，可以“在更少的咬一口中满足你的甜蜜牙齿”。

我们在德克萨斯州的欧文市定制建造了一个20,945平方英尺的冻干设施，并在中国和哥伦比亚进入了更多的共同制造安排。冻干通过在极低的气压、接近外太空的环境中，施加少量热量，去除产品在冷冻状态下高达99%的水分，使用大型真空腔体，使水分以音速从产品中被移除。该去水过程可能需要长达24小时，浓缩了产品的味道，创造出一种“超干、超脆、超美味”的可食用零食。我们致力于提供最美味、最脆的零食的承诺扩展到了产品包装过程中，员工们专注于在严格管理的低湿度条件下，通过我们的精确包装流程手工包装零食，以保护我们的零食不再接触水分。

我们已经建造了六台专为我们的产品量身定制的冻干设备，采用专有技术，每年可冻干多达2400万单位的冻干糖果，从而在德克萨斯州欧文打造了一家真正的尖端设施。我们已在六台额外的冻干设备上支付了定金，计划在接下来九个月内使其在我们位于德克萨斯州达拉斯的新323,000平方英尺设施内投入运营。此外，由于客户需求强劲，我们已与第三方制造商达成共同制造安排，其冻干设施符合我们严格的生产、卫生和过敏原控制要求，以及我们的食品质量和安全标准。目前，由第三方制造的所有产品均运往我们在德克萨斯州的设施进行包装。

Sow Good由Claudia和Ira Goldfarb共同创办，拥有超过十年的制造业-半导体专业知识，专注于爱文思控股的冷冻干燥科技。凭借在宠物、婴儿和糖果产品方面的经验，他们在将小众趋势转变为日常消费品方面拥有良好的业绩记录。利用他们的专有科技，Sow Good旨在颠覆传统类别，提供创新的高质量产品，强调长保质期和自然保存。除了产品创新，他们还致力于创造就业机会和积极的社区影响，使Sow Good成为行业板块中的前瞻性力量。

我们认为糖果类别停滞不前，重复性强，需要振兴，以重新吸引和激发消费对创新方式满足甜食需求的兴趣。我们看到市场机会存在于两个类别的交集：快速发展的冷冻干燥糖果和非巧克力糖果。根据NCA的数据，2022年非巧克力糖果市场的销售增长了13.8%，超过了100亿，根据Grand View Research的预测，预计从2023年到2030年的年均复合增长率为5.8%。我们相信新兴的冷冻干燥糖果市场由于消费对新颖和独特糖果产品的偏好日益增强，有望实现指数级增长。根据NCA的数据，大约61%的购物者偶尔或经常寻找他们从未购买过的产品。

我们的产品已在全国各地的零售商处推出，从便利店和杂货商店到大型零售商，如five below、Target、Misfits Market/Imperfect Foods、TJX Canada、必乐透、Hy-Vee、Cracker Barrel、Circle K、7/11、HEB Kroger和Albertsons。此外，我们通过Redstone Foods、Cb Distributors和Nassau Distributors等分销商卖出我们的大部分产品。我们相信，增加我们的货架存在、SKU组合和与现有客户的商店数量将有巨大的增长机会。对于这些客户中的许多，我们最初仅推出了有限数量的SKU，但这些SKU的销售业绩纷纷超出最初的销售预测。随着我们扩大生产，我们将能够增加产品的供应。

为了满足当前位置的客户需求并扩大到更多商店，同时也丰富我们的SKU产品组合。加强我们的分销和销售团队将是Sow Good的一个关键增长动力，让我们的更多产品在消费者选择购物的地方可用，无论是零售店、便利店还是直接在线上。为了进一步支持与现有客户的零售推出并增强我们的品牌知名度，我们还推出了具有独特设计和产品亮点的产品展示，以提升我们在现有商店的可见度，并向新消费者介绍冷冻干燥零食的优点。我们相信这一策略将吸引新消费者的关注，进一步教育和吸引现有消费者，最终提高我们的零售商的销售额。

我们高度差异化的全渠道分销策略有三个关键元件：零售商、电子商务和分销商。总体而言，这种全渠道策略为我们提供了多样化的消费者和客户合作伙伴，带来了比仅在杂货商店销售的产品更大的可寻址市场机会，并为我们在自己的网站上与客户建立直接关系提供了机会， www.thisissowgood.com 以及我们的社交媒体页面。

我们相信，业务的增长和未来的成功依赖于许多因素。虽然下面描述的因素和趋势为我们提供了重要机遇，但它们也带来了我们必须成功应对的重要挑战，以使我们能够维持业务的增长并改善我们的运营结果。这些因素和趋势在我们业务中导致了所呈现期间收入的波动，并预计将是我们在可预见的未来运营结果和流动性状况的关键驱动因素。

我们在一个充满激烈竞争的行业板块中运营，与拥有更大财力和其他资源的竞争对手相抗衡。我们注意到一些竞争对手利用其市场影响力和营销支出，限制我们当前和未来客户购买我们的产品或减少我们的货架空间。我们能否保住现有客户，或在其货架上扩大我们的产品种类，继续通过吸引新客户扩大销售，将取决于我们竞争对手利用其市场影响力和财力限制我们接触消费者和与这些更大竞争对手竞争的能力。

我们目前正在通过多种实体零售和传统批发分销渠道扩大客户群。我们的产品已在全国各地的零售商中推出，从便利店和杂货商店到大型零售商，如five below、Target、Misfits Market/Imperfect Foods、TJX Canada、必乐透、Hy-Vee、Cracker Barrel、Circle k、7/11、HEb、Kroger和Albertsons。此外，我们通过Redstone、Cb Distributors和Nassau Distributors等分销商卖出大量产品。我们继续增加货架存在感、SKU组合和现有客户的店铺数量。此外，考虑到冷冻干燥糖果领域仍处于起步阶段以及潜在零售商和批发商客户的数量，我们也相信在零售和批发渠道，国内外客户获取方面存在显著的增长机会。这些渠道的客户获取依赖于我们的市场进入职能以及我们满足需要大量产品的客户需求的能力。

我们在食品行业板块的冻干糖果和非巧克力糖果领域竞争。根据NCA的数据，非巧克力糖果市场在2022年的销售额增长了13.8%，超过了100亿，并且根据Grand View Research的预测，预计从2023年到2030年复合年增长率为5.8%。我们相信，随着消费者对新颖和独特糖果产品偏好的增加，新兴的冻干糖果市场正准备迎来指数级增长。根据NCA的数据，大约61%的消费者偶尔或经常寻找他们从未购买过的产品。虽然我们相信我们的产品旨在为寻找创新零食的消费者提供替代品，但我们也认为，由于我们对开发适合广泛消费者口味的产品线所采取的不妥协态度，我们的糖果产品具有广泛的吸引力。我们相信，吸引寻求新颖、酥脆和高度风味体验的强大且不断增长的消费群体的能力将使我们能够增加与零售客户的分销点，从而增加我们的收入，这将帮助我们扩大规模并提高我们产品销售的毛利率。

我们的主要关注点是提高生产能力和客户基础，这需要大量的营运资金用于库存和供应链管理、资本支出以增加冷冻干燥机、在美国以外的扩展以及额外的销售和市场营销支出。我们有效管理流动性状况的能力，同时增加生产能力和市场营销努力，将影响我们的现金流和资本化，包括通过未来的股票发行或债务安排对额外营运资金的需求。

我们的目标是随着时间的推移大幅扩展我们的产品线，以增加增长机会并通过SKU多样化减少产品特定风险，包括将多种产品进行冷冻干燥处理，超越我们的冷冻干燥零食。我们的增长速度将在一定程度上受新产品推出的频率和规模的影响。我们相信任何新产品的商业化将要求我们在产品设计和商业化团队内聘请更多员工，从而增加我们的营销费用，以及我们行政费用内的研发成本。

我们预计我们将使用的原材料的供应和价格将受到多种因素的影响，例如天气、季节波动、需求、生产国的政治和经济。这些因素使我们面临产品供应的短缺或中断，从而可能对我们的营业收入和利润产生不利影响。此外，我们可能面临一些糖果采购能力的限制，影响我们冻干糖果产品的生产。

由于我们正处于增长的早期阶段，难以准确判断季节性对我们业务的需求影响。虽然由于我们的增长，目前难以评估任何需求季节性的证据，但我们预计某些节日周期，如万圣节、圣诞节、复活节和情人节，会导致营业收入在特定年份内波动。此外，我们已意识到外部数据显示，消费者在夏季的糖果购买行为有减少的总体趋势，原因包括在温暖的天气下，健康意识的提高。在运营方面，从七月到十月的最近热浪给运输我们的冻干零食带来了挑战。这些条件导致运输减少，库存水平上升，营业收入下降。此外，有些通过外部分销渠道运输的糖果在极端夏季高温中融化，影响了其保质表现。我们正积极努力从货架上撤除受影响的产品并及时替换，以支持产品销售恢复。在短期内，这些措施将影响我们的市场声誉、销售率和运营结果，因为我们在应对这些意外挑战。我们确实预计随着气温的季节性降低，会恢复到正常的流通节奏，使我们的零食能够无损运输。因此，我们预计在夏季，零食的年度临时发货量会下降，这与更大糖果行业的趋势一致。

我们目前没有任何产品获得销售批准，也没有产生任何营业收入。未来，我们可能会从我们与药物候选品有关的合作伙伴或许可协议、以及任何获得批准的产品的产品销售中产生营业收入，而我们不希望在未来至少数年内（即便有可能）获得批准。我们生成产品收入的能力将取决于成功开发和最终商业化AV-101以及我们可能追求的任何其他药物候选品。如果我们未能及时完成AV-101的开发或获得监管批准，我们未来营业收入和经营业绩以及财务状况将受到严重不利影响。

我们通过销售冻干零食获得收入。当订单发货给客户时，公司确认收入。

我们的营业成本主要包括设施费用、物料成本以及生产冷冻干燥零食的劳动力。

我们的营业费用包括一般和管理费用，其中包括工资和福利支出、专业服务支出和其他一般和管理费用、无形资产减值损失和商誉减值损失。

利息支出主要包括未偿债务的现金利息支出及在发行warrants时因债务产生的债务折扣的摊销。

公司分别于2024年和2023年截至9月30日的三个月期间确认了6.23万美元和0美元的联邦所得税收益。公司分别于2024年和2023年截至9月30日的九个月期间确认了19.56万美元和0美元的联邦所得税。

我们的首席运营决策者，即我们的首席执行官和执行主席，会对财务信息进行整体审查，以便分配资源和评估财务表现，同时进行战略运营决策和管理组织。对于截至2024年和2023年9月30日的三个月期间，我们已确定我们有一个运营部门和一个可报告部门。

下表总结了截至2024年9月30日和2023年9月30日三个月的营运报告中的部分项目：

2024年9月30日结束的三个月和2023年9月30日结束的三个月的比较

截至2024年9月30日的三个月内，冻干糖果的销售额为360万元，而截至2023年9月30日的三个月销售额为500万元，减少了150万元，降幅为（29%），主要是由于公司决定推迟大部分发货给客户，因为该期间的极端高温对糖果发货的质量产生了负面影响。此外，营业收入还受到促销活动和客户优惠增加的影响。

截至2024年9月30日的营业成本为300万美元，而2023年9月30日的三个月的营业成本为370万美元，降低了70.08万美元，或(19%)。营业成本的减少主要与营业收入下降有关，部分抵消了与公司新设施相关的较高成本和较低的生产产量。

截至2024年9月30日的三个月，毛利润为55.6万美元，相较于截至2023年9月30日的三个月毛利润130万美元，减少77.93万美元，下降幅度为58%。毛利润的减少主要是由于收入降低了150万美元，但部分被营业成本降低了70.08万美元所抵消。

我们截至2024年9月30日的三个月内，毛利润率为16%，而2023年9月30日的三个月结束时为27%。我们的毛利润率主要由于销售额中营业成本较高而下降。

2024年9月30日结束的三个月，薪酬和福利为190万美元，而2023年9月30日结束的三个月为61.89万美元，增加了130万美元，增幅为203%。薪酬和福利中包括2024年9月30日结束的三个月的股票补偿费用为120万美元，而2023年9月30日结束的三个月为11.15万美元，增加了100万美元。股票补偿费用包括公司员工和高管的期权费用。薪酬和福利的增加主要是由于于2023年12月15日发放的绩效股股份的摊销。

与2024年9月30日结束的三个月相比，与2023年9月30日结束的三个月相比，与专业服务相关的一般行政费用为32.03万美元，而去年同期为29.47万美元，增加了2.56万美元，增幅为9%。这一增长主要是因为随着公司业务规模的扩大以及在系统和流程改进方面的投资，专业服务费用增加了。

截至2024年9月30日的三个月内，其他一般管理费用为160万美元，而截至2023年9月30日的三个月内为7.47万美元，增加了150万美元，增幅为2052%。与去年同期相比，其他一般管理费用的增加主要是由于公司新厂房相关的非分配库存的设施成本增加了74.16万美元，因客户破产而导致的坏账费用增加了32.54万美元，与去年同期的坏账回收相比，以及市场营销和广告成本增加了26.52万美元。

截至2024年和2023年9月30日的三个月内，物业和设备的折旧分别为21.62万元和15.07万元，其中分配给营业成本的折旧分别为20.76万元和14.14万元，导致的净折旧费用分别为0.86万元和0.93万元。

截至2024年9月30日的三个月内，其他费用主要包括来自应付票据的利息费用以及作为债务折扣发行的warrants的摊销，金额为22.51万。在截至2023年9月30日的期间内，应付票据的利息费用为净信用0.36万，因在截至2023年9月30日的三个月期间对摊销利息进行了调整。

截至2024年9月30日的三个月的税前净亏损为340万元，相比之下，截至2023年9月30日的三个月税前净利润为33.4万元，收益下降了380万元，降幅为1,131%。从税前净利润转变为税前净亏损的主要原因是毛利润下降了77.93万元，降幅为58%，以及营业费用增加了280万元，增幅为282%。

公司对我们的净递延税款资产保持完整的评估准备，主要是由于我们的历史净损失。截至2024年和2023年9月30日结束的月份，公司分别确认了税额为6.23万美元的联邦所得税收益和0美元的提备。

下表总结了截至2024年9月30日和2023年9月30日的九个月期间的运营报表中选定项目：

截至2024年9月30日的九个月，冷冻糖果的销售额为3060万美元，而2023年9月30日的九个月为650万美元，增长2410万美元，增幅为367%。收入在比较期间由于转向冷冻糖果、新冷冻设备的安装增加产能以及新增零售客户而增加。

截至2024年9月30日的九个月营业成本为1640万，同比增长670万，增加970万，增长146%。在当前期间，我们的毛利润率为46%，而在对比期间则为(2)%。

截至2024年9月30日的九个月工资及福利为640万美元，而截至2023年9月30日的九个月为150万美元，增加了490万美元，即338%。工资和福利包括股票薪酬。

2024年9月30日及2023年的九个月支出为330万美元，而 2023年9月30日结束的九个月为30.74万美元，增加了300万美元，增长了939%，主要是由于于2023年12月15日授予的绩效股份的摊销。其他方面，薪金和福利的增加包括85万美元的现金奖金以及比较期间373.9万美元的工资和薪金税的增加，这是由于销售增长所致。

专业服务在2024年9月30日结束的九个月中达到140万美元，而在2023年9月30日结束的九个月中为40.43万美元，增长了97.81万美元，增幅为242%。主要增长是由于与我们的承销公开发行和纳斯达克上市有关的法律费用增加了89.6万美元，以及与公司增长相关的26.3万美元，部分抵消了其他专业服务成本减少的18万美元。

截至2024年9月30日的九个月其他一般和行政费用为390万美元，而截至2023年9月30日的九个月费用为100万美元，增加了290万美元，增长了304%。这一增长主要归因于因公司增长而导致的设施和营销成本增加。

固定资产折旧分别为58.29万和30.61万，其中分别分配给营业成本的是55.99万和21.15万，导致截至2024年9月30日和2023年的九个月净折旧费用分别为2.31万和9.46万。

截至2024年9月30日的九个月内，其他费用为190万元，包括120万元的应付票据利息费用和69.65万元的债务提前偿还损失。在截至2023年9月30日的比较九个月内，其他费用为130万元，包括应付票据的利息费用。由于在截至2024年9月30日的九个月内全额和部分偿还应付票据，利息费用减少了10万元，即(8%)，这导致了债务提前偿还损失，并减少了利息计算的本金。

2024年9月30日结束的前九个月的税前净利润为66.14万美元，相比于2023年9月30日结束的前九个月的440万美元的税前净亏损，出现了500万美元的正向变化。净利润的增加主要是由于收入增加以及毛利率提高。

公司对我们净递延税资产保持了全面的估值备抵，主要是由于我们历史上的净亏损状态。截止2024年和2023年9月30日的各九个月期间，公司分别确认了联邦所得税 $195,603 和 $0。

下表总结了截至2024年9月30日和2023年12月31日我们的总流动资产、负债和营运资金。

截至2024年9月30日，我们的营运资本为1970万美元，较2023年12月31日的450万美元有所增加。增加的营运资本主要归因于现金增加450万美元，应收账款增加130万美元，存货增加1530万美元，部分抵消了我们租赁负债流动部分增加160万美元以及应计费用增加120万美元。截至2024年9月30日，我们的现金及现金等价物余额为690万美元，较2023年12月31日的240万美元有所增加。我们预计将继续发生与我们的冷冻糖果业务的发展和运营相关的重大资本支出。我们扩大生产和分销能力以及进一步提高品牌价值的能力在很大程度上依赖于我们在拨付额外资本方面的成功。为满足未来十二个月的现金需求，我们计划通过手头现金和根据需要以股权或债务形式的额外融资。

2024年5月2日，我们以每股10.00美元的价格对1,200,000股普通股进行了一项已注册的包销公开发行。5月9日，包销商行使过剩认购选择权，购买了额外的180,000股普通股。连同根据过剩认购选择权出售的额外股份的销售，该发行募集了约1200万美元的收入，在扣除包销折让和发行费用之后。

在2023年5月11日，公司从董事Bradley Berman处收到100,000美元的款项，该款项是代表Bradley Berman不可撤销信托从出售票据和warrants中获得的，该出售是为了出售最多1,500,000美元的本票和warrants，以购买合计375,000股公司的普通股，行使期为十年，每股价格为2.50美元，代表每购买100,000美元票据可获得25,000股warrant。2024年4月15日，因warrant行使交易的相关规定，本票的总本金金额减少至37,500美元。至2024年4月15日，相关未摊销的债务折扣的比例金额为9,991美元，已归入2024年9月30日结束的三个月和九个月的摊销利息中。

2023年4月25日，我们完成了定向增发，发行总额为150万美元的本票和权证，用于购买公司普通股共计37.5万股，行权期为十年，行权价为每股2.50美元，每10万美元购买的本票可获得2.5万份权证。本票到期日为2024年4月25日。本票利息按年利率8%计息，分别在每年6月30日和12月31日现金支付。2023年4月25日，公司收到了公司主席Goldfarb先生和由公司CEO的兄弟实控的Cesar J.Gutierrez Living Trust分别销售这些本票和权证的75万美元和5万美元的回报。权证的公允价值被列为债务折扣，并在贷款期内分期摊销。2024年4月15日，在权证行使交易中，本票的总本金金额减少至91.875万美元。根据2024年4月15日的比例，未摊销债务折扣40,416美元被作为截至2024年9月30日三个月和九个月的摊销利息。

2023年4月11日，依据定向增发债务发行向一名董事发行了62,500股普通股的购买权，所获得的总收益为250,000美元，以本票和购买62,500股普通股的warrants的形式支付，每100,000美元本票对应25,000股warrant。该warrants已完全取得权益，且在10年内可按每股2.60美元的价格行使。公司可以在warrants到期之前以每股0.01美元的价格赎回未到期的warrants，前提是普通股的成交量加权平均售价在赎回通知寄出前的三（30）个交易日内等于或超过每股9.00美元。该warrants的公允价值被分配作为债务折扣，并在贷款期间内摊销。

2022年12月31日，公司完成了定向增发，并与相关方签订了票据和认股权购买协议，出售了总计207.5万美元的票据和认股权，以购买总计31.125万股普通股，每10万美元的票据对应15,000股认股权股份。认股权的行权价格为每股2.21美元，期限为十年。2024年4月15日，与认股权行使交易相关，票据的总本金金额减少为679,138美元。截至2024年4月15日，未摊销债务折让的相关比例金额为92,729美元，以及已全额偿还的票据相关的51,372美元未摊销债务折让分别计入利息费用和提前偿还债务损失，分别为截至2024年9月30日止三个月和九个月。

2022年8月23日，公司完成了最多250万美元的定向增发，包括承诺票据和购买公司普通股的warrants，总计625,000股，行使期限为十年，行使价格为每股2.60美元，代表每购买100,000美元票据可获得25,000股warrant。票据将在2025年8月23日到期。票据的利息按每年8%的利率累积，支付时间为2025年1月1日。从2023年8月23日到到期日，可以不时向公司提供贷款。2022年12月21日和2022年9月29日，公司共收到25万美元的收益。

并从公司两位董事那里获得了75万美元，用于这些票据和warrants的销售。warrants的公允价值被分配为债务折扣，并在贷款的期限内摊销。

在2022年4月8日，公司完成了一笔定向增发，同时签订了一份票据和warrants购买协议，以出售总额370万美元的本票和warrants，购买总计925,000股普通股，每100,000美元的本票对应25,000股warrant股份。本票的应计利息自2022年9月30日起按年利率6%每半年支付，但在2022年8月23日，票据被修订以更新利息支付条款，该利息在到期日或2025年1月1日之前支付，而不是每半年支付一次。票据的本金金额在2025年4月8日到期并全部偿还。warrants可立即行使，有效期为10年，每股价格为2.35美元。出售证券为公司带来的收益为370万美元。公司可以在warrants到期之前以每股0.01美元的价格赎回未行使的warrants，前提是普通股每股的成交量加权平均销售价格在赎回通知邮寄前的30个连续交易日内等于或超过9.00美元。如果完全行使的话，从行使warrant股份中为公司带来的进一步收益约为220万美元。该发行与购买协议的签署同时闭合。在总计370万美元的票据中，共有3,120,000美元的票据被卖给了高管或董事，并伴随有780,000个warrants。2024年4月15日，关于warrant行使交易，其中大部分与相关方有关，本票的总本金金额减少至239,250美元。截至2024年4月15日相关的未摊销的债务折扣72,638美元已计入2024年9月30日结束的三个月和九个月的利息费用，而与完全偿还的票据相关的645,130美元的未摊销债务折扣已计入2024年9月30日结束的三个月和九个月的债务终止损失中。

下表总结了截至2024年和2023年9月30日的九个月内我们的现金流。

截至2024年9月30日的九个月内，经营活动中使用的现金为610万美元，而截至2023年9月30日的九个月中使用的现金为330万美元。经营活动中使用现金的增加主要是由于库存增加。

截至2024年9月30日的九个月投资活动现金净流出为450万美元，而截至2023年9月30日的九个月为130万美元，增加了320万美元。在2024年9月30日的九个月中，用于投资活动的现金主要用于额外冷冻库。而在截至2023年9月30日的九个月中，用于投资活动的现金用于建设冷冻库和改善我们的办公空间。

2024年9月30日止，融资活动提供的净现金分别为1510万美元和2023万美元。2024年9月30日止，融资活动提供的净现金包括：公开发行138万股，每股价格为10.00美元，于2024年5月9日完成，净收益为1200万美元；以每股7.25美元的价格于2024年3月28日向合格投资者和相关方发行了515,597股股份，净收益为370万美元。2024年9月30日止，来自权证和期权行权的收益总计570万美元，用于偿还到期日为2024年9月30日的约620万美元应付票据。2023年9月30日止，融资活动提供的净现金包括来自公司高管、董事以及其他非关联方共280万美元的债务融资，以及发行73.5万股普通股的现金收益370万美元。

The Company is a party to a real property lease for its 20,945 square foot facility at 1440 N. Union Bower Rd., Irving, TX 75061, under which an entity owned entirely by Ira Goldfarb is the landlord. The lease term is through September 15, 2025, with two

five-year options to extend, at a monthly lease term of $10.0 thousand, with approximately a 3% annual escalation of lease payments commencing September 15, 2021.

On May 22, 2024, the Company entered into an industrial lease (the “Lease”) with USCIF Pinnacle Building B LLC, a Delaware limited liability company. Pursuant to the terms of the Lease, the Company will lease approximately 324,000 rentable square feet from the Lessor at 4024 Rock Quarry Road, Dallas, Texas for a term of approximately 62 months, which the Company intends to use as industrial and manufacturing space. The term of the Lease commenced on May 22, 2024. The Lease provides for graduated rent payments starting at $122,175 per month, and increasing up to $297,289.14 per month by the end of the Lease, plus taxes, insurance and common area maintenance costs. The Company is required to provide a security deposit in the amount of $1,000,000 in connection with the Lease. The Lease may be renewed upon the extension in writing between the Company and the Lessor for a period of up to 60 months.

On January 19, 2024, the Company entered into a sublease agreement (the “Sublease Agreement”) with Papsa Merx S. de R.S. de C.V., a corporation registered in Mexico City, Mexico (the “Sublessor”). Pursuant to the terms of the Sublease Agreement, the Company will sublease approximately 141 rentable square meters at Av. Roble 660, Valle del Campestre, 66265 San Pedro Garza García Municipality, Nuevo León, 66269 (the “Premises”) for a term of approximately seventeen months (the “Term”), which the Company intends to use as office space. The Term of the Lease Agreement will commence on February 1, 2024 (the “Sublease Commencement Date”). The Sublease Agreement provides for rent payments at fixed price of $5.25 thousand per month plus the corresponding Value Added Tax (“VAT”) for the duration of the Term. The Company is also responsible for operating expenses of the Premises, which includes a maintenance fee, electricity and internet services. The Company is required to provide a deposit of guarantee in the amount of $5.25 thousand in connection with the Sublease Agreement. The Sublease Agreement does not have a renewal period.

On October 26, 2023, the Company entered into a lease agreement (the “2023 Lease Agreement”) with Prologis, Inc., a Maryland corporation (the “Landlord”). Pursuant to the terms of the 2023 Lease Agreement, beginning on November 1, 2023 the Company leases approximately 51,264 rentable square feet at Stemmons 10, 308 Mockingbird Lane, Dallas, TX 75247 for a term of approximately five years and two months (the “Initial Term”), which the Company intends to use as warehousing and distribution space. The 2023 Lease Agreement provides for base rent payments starting at approximately $42.5 thousand per month (taking into consideration an initial phase-in of the base rent obligation) in the first year of the Initial Term, and increase each year, up to approximately $51.7 thousand per month during the last year of the Initial Term. The 2023 Lease Agreement may be extended for a period of five years, at the option of the Company, at a rate to be based on a fair market rent rate determined at the time of the extension.

Our management’s discussion and analysis of financial conditions and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. The preparation of these financial statements required us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses. On an ongoing basis, we evaluate these estimates and judgments. We base our estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances. These estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and experiences may differ materially from these estimates.

Our critical accounting policies are more fully described in Note 2 of the footnotes to our financial statements appearing elsewhere in this Form 10-Q, and Note 2 of the footnotes to the financial statements provided in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We do not expect any significant effects from commodity price risk outside of inherent inflationary risks.

We are not a party to agreements that subject us to floating rates of interest and do not anticipate entering into any transactions that would expose us to any direct interest rate risk.

We did not hold a material amount of cash in foreign jurisdictions as of September 30, 2024. However, we anticipate that as our foreign operations grow, we may hold more cash in foreign jurisdictions, particularly Mexico, Colombia and China, and possibly expose ourselves to greater currency fluctuation risk than we currently experience.

We maintain disclosure controls and procedures that are designed to ensure the information we are required to disclose in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based on their evaluations as of September 30, 2024, our Chief Executive Officer, Claudia Goldfarb, and our Interim Chief Financial Officer, Brendon Fischer concluded that our disclosure controls and procedures are effective to accomplish their objectives and to ensure the information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Interim Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in the Company’s internal control over financial reporting during the nine months ended September 30, 2024 that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

From time to time in the ordinary course of business, we are a party to various types of legal proceedings. We do not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows.

The risk factors described below are a summary of the principal risk factors associated with an investment in the Company. These are not the only risks we face. You should carefully consider these risk factors, together with the risk factors set forth in Item 1A of our Annual Report on Form 10-K and the other reports and documents filed by us with the SEC.

We have a limited operating history in our current form and have incurred significant operating losses. As a result of continuing investments to expand our business, we may not achieve or sustain profitability.

Sow Good was formed and commenced commercial sales of our products in 2021, and in 2023 we started producing and commercializing our freeze dried candy treats, including our Sow Good freeze dried candy line and our Crunch Cream line. On October 1, 2020, we completed our acquisition of S-FDF, LLC (the “Seller”), a Texas limited liability company, pursuant to an Asset Purchase Agreement, between the Company and the Seller, dated June 9, 2020, as subsequently amended effective October 1, 2020 (the “Asset Purchase Agreement”). The assets we purchased under the Asset Purchase Agreement were of a development stage business without any major customers or history of operations upon which to forecast future business trends. As a result, we have a limited operating history and limited experience manufacturing and selling our products, establishing relationships with consumers, customers, suppliers, vendors and distributors and building our brand reputation. These and other factors combine to make it more difficult for us to accurately forecast our future operating results, which in turn makes it more difficult for us to prepare accurate budgets and implement strategic plans. We expect that this uncertainty will continue to exist in our business for the foreseeable future. If we do not address these risks and uncertainties successfully, our operating results could differ materially from our estimates and forecasts, and from the expectations of investors or analysts, which could harm our business and result in a decline in the trading price of our common stock.

As a developing company, we will need to adopt and implement a plan to increase awareness of our products, secure distribution channels, and foster and strengthen our supply, manufacturing and distribution relationships. It is likely our strategic priorities will need to evolve over time and our business would be materially and adversely affected if we do not properly adapt our

strategies to our changing needs and changes in the market. As our operations develop and grow, we expect to experience significant increases in our working capital requirements. Even if we obtain additional capital and achieve profitability, given the competitive and evolving nature of the industry in which we operate, we may be unable to sustain or increase profitability and our failure to do so would adversely affect the Company’s business, including our ability to raise additional funds.

In the years ended December 31, 2023 and 2022, we incurred net losses of approximately $3.1 million and $12.1 million, respectively. In the three months ended September 30, 2024, we incurred net losses of approximately $3.4 million, as compared to a net income of $334.0 thousand in the three months ended September 30, 2023. We anticipate our operating expenses and capital expenditures will increase in the foreseeable future as we seek to expand our retail distribution, invest in our approach to build brand awareness, leverage our product development capabilities, and invest in production capacity and automation. As a result of our continuing investments to expand our business in these and other areas, we expect our expenses to increase, and we may not achieve or maintain profitability in the foreseeable future. Even if we are successful in broadening our consumer base, and increasing revenues from new and existing customers, we may not be able to generate additional revenues in amounts that are sufficient to cover our expenses. We may incur significant losses for a number of reasons, including as a result of the other risks and uncertainties described elsewhere in this filing. We cannot assure you that we will continue to achieve profitability in the future or that we will sustain profitability over any particular period of time.

We may need additional funding in order to fund our existing commercial operations, commercialize new products and grow our business.

To date, we have financed our operations through public offerings and private placements of our equity, equity-linked and debt securities. We have devoted substantially all our financial resources and efforts to developing our products, workforce, and manufacturing capabilities. Our long-term growth and success are dependent upon our ability ultimately to expand our manufacturing capacity and generate cash from operating activities. There is no assurance that we will be able to generate sufficient cash from operations or access the capital we need to grow our business. Our inability to obtain additional capital could have a material adverse effect on our ability to fully implement our business plan as described herein and grow our business, to a greater extent than we can with our existing financial resources.

If our available cash balances, net proceeds from anticipated offerings/or anticipated cash flow from operations are insufficient to satisfy our liquidity requirements because of lower demand for our products or due to other risks described herein, we may seek to sell common stock or other securities, enter into an additional credit facility or seek another form of third-party funding, including debt financing. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing stockholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements.

We may consider raising additional capital in the future to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons, including to:

Our present and future funding requirements will depend on many factors, including:

The various ways we could raise additional capital carry potential risks. If we raise funds by issuing equity securities, dilution to our stockholders could result. Any equity securities issued also could provide for rights, preferences, or privileges senior to those of holders of shares of our common stock. If we raise funds by issuing debt securities, those debt securities would have rights, preferences, and privileges senior to those of holders of shares of our common stock. The terms of any debt securities issued or borrowings made pursuant to a credit agreement could impose significant restrictions on our operations. If we raise additional funds through collaborations and licensing arrangements, we might be required to relinquish significant rights or grant licenses on terms that are not favorable to us.

Our rapid growth may not be indicative of our future growth, and our limited operating history may make it difficult to assess our future viability.

Our revenues grew from approximately $88.4 thousand for the year ended December 31, 2021 to approximately $428.1 thousand for the year ended December 31, 2022 and approximately $16.1 million for the year ended December 31, 2023. Our revenues for the nine months ended September 30, 2024 and 2023 were $30.6 million and $6.5 million, respectively. We expect that, in the future, as our revenue increases to higher levels, our revenue growth rate will decline. We also believe that growth of our revenue depends on several factors, including our ability to:

We may not successfully accomplish any of these objectives. In addition, we may face increased competition from current or new competitors that may reduce our market share and thereby limit our growth. Since the initial commercialization of our freeze dried candy treats in March 2023, we have not yet demonstrated the ability to sustain rapid growth over a long period of time or achieve profitability at scale. Consequently, any predictions you make about our future success or viability may not be as accurate as they could be if we had a longer operating history or had previously achieved profitability.

We may be unable to manage our future growth effectively, which could make it difficult to execute our business strategy.

Our strategy envisions the expansion of our business. If we fail to effectively manage our growth, our financial results could be adversely affected. Our rapid growth has placed and may continue to place significant demands on our organizational, administrative and operational infrastructure, including manufacturing operations, quality control, shipping, technical support and customer service, sales force management and general and financial administration. We must continue to refine and expand our

business capabilities, including in sales, marketing, product development, information technology, equipment, facilities and personnel, as well as our systems and processes and our access to financing sources. We will also need to improve our operational, financial and management controls as well as our reporting systems and procedures. As we grow, we must continue to hire, train, supervise and manage new employees.

If we are unable to manage our growth effectively, we may be unable to execute our business plan, which could have a material adverse effect on our business and our results of operations. Managing our planned growth effectively will require us to:

The expansion of our products and customer base may result in increases in our overhead and selling expenses. Any increase in expenditures in anticipation of future sales that do not materialize would adversely affect our profitability. In addition, if we are unable to effectively manage the growth of our business, the quality of our products may suffer and we may be unable to address competitive challenges, which would adversely affect our overall business, operations and financial condition.

We have previously identified material weaknesses and significant deficiencies in our internal control over financial reporting for our financial year ended December 31, 2022. If we experience additional material weaknesses in the future, we may not be able to accurately or timely report our financial condition or results of operations and investors may lose confidence in our financial reports and the market price of our common stock could be adversely affected.

We carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Interim Chief Financial Officer, of the effectiveness of our internal controls over financial reporting as of December 31, 2022. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in “Internal Control — Integrated Framework (2013).” Based on this assessment, management believed that, as of December 31, 2022, our internal control over financial reporting was ineffective based on those criteria. As a small company with limited resources that is mainly focused on the development and sales of our freeze dried treats, the Company did not employ a sufficient number of staff in its finance department to possess an optimal segregation of duties or to provide optimal levels of oversight. This resulted in certain audit adjustments and management believed that there may be a possibility for a material misstatement to occur in future periods while it employed the current number of personnel in its finance department.

To address and fully remediate this material weakness, management performed additional analyses and other procedures to ensure that the financial statements for the year ended December 31, 2022 fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented. Additionally, our remediation efforts for this material weakness included the hiring of additional staff members in our accounting and finance departments in 2023. As of December 31, 2023, management considered this material weakness fully remediated.

As a public company, we are required to comply with the requirements of the Sarbanes-Oxley Act, including, among other things, maintaining effective disclosure controls and procedures and internal control over financial reporting. We continue to develop and refine our disclosure controls and other procedures that are designed to ensure that the information we are required to disclose in

the reports that we file with the SEC is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers.

We must continue to improve our internal control over financial reporting. Once we are no longer considered to be a smaller reporting company, our management will then be required to make a formal assessment of the effectiveness of our internal control over financial reporting pursuant to Sarbanes-Oxley Act Section 404(a), and we may in the future be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. To achieve compliance with these requirements within the prescribed time period, we will be engaging in a process to document and evaluate our internal control over financial reporting, which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside consultants and adopt a detailed work plan to assess and document the adequacy of our internal control over financial reporting, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for internal control over financial reporting. There is a risk that we will not be able to conclude, within the prescribed time period or at all, that our internal control over financial reporting is effective as required by Section 404 of the Sarbanes-Oxley Act.

We cannot assure you that there are not, and will not be material weaknesses in our internal control over financial reporting in the future. Any failure to maintain effective internal control over financial reporting could severely inhibit our ability to accurately report our financial condition or operating results. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our common stock could decline, and we could be subject to sanctions or investigations by the stock exchange on which our securities are listed, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain these and other effective control systems required of public companies, could also restrict our future access to the capital markets.

The retail food and non-chocolate confectionary and freeze dried candy segments are highly competitive. If new entrants with greater resources continue to take market share, or our competitors are more successful or offer better value to consumers, our business could decline.

We operate in a very competitive environment that is characterized by competition from a number of other retailers in the market in which we operate. We compete with large national and regional food retail companies, some of which have greater financial and operational resources than us, and with smaller local retailers, some of which may have lower administrative costs than us. We have become aware of certain significantly larger competitors using their market clout and marketing spend to limit our current and future customers from purchasing our products or reducing our shelf space. Our ability to keep our current customers, or grow our SKU portfolio on their shelves, and continue to expand our sales with new customers will depend on our competitors’ ability to leverage their market clout and financial resources to limit our access to consumers and our ability to compete with these larger competitors. In addition, we may be at a competitive disadvantage relative to large national and regional competitors whose operations are more geographically diversified than ours. Any changes in our competitors’ merchandising and operational strategies could negatively affect our sales and profitability. In particular, if competitors seek to gain or retain market share by reducing prices, we would likely be forced to reduce our prices on similar product offerings in order to remain competitive, which may result in a decrease in our market share, revenues and profitability and may require a change in our operating strategies.

Increased competition could hurt our business. The freeze dried candy is fragmented and in its early stages of development, but it is becoming increasingly competitive. New competitors may enter the freeze dried candy market on which we are focused. The competitors may offer an equivalent or superior product to that of the Company. We expect the number of companies offering products and services in our market segment to continue to increase.

If we are unable to compete effectively in our markets, our business could decline disproportionately to our competitors, and our results of operations and financial condition could be adversely affected. We can provide no assurance that we will be able to continue to compete successfully in any of our markets. Our inability to continue to compete successfully in any of our markets could have a material adverse effect on our business, prospects, liquidity, financial condition, and results of operations.

Failure to maintain sufficient internal production capacity, source appropriate external production capacity, or to enter into third-party agreements on terms that are beneficial for us may result in our inability to meet customer demand and/or may increase our operating costs and capital expenditures.

We intend to rely on internal production capacity and third-party co-manufacturers to fulfill our growing production needs and meet demand for our treats. We have plans to continue to expand our own production facilities, including the production of our own candy for freeze drying, but in the short-term may need to increase our reliance on third parties to provide production and supply certain services for a number of our products. A failure by us or our co-manufacturers to comply with food safety, environmental, or other laws and regulations, or to produce products of the quality and taste-profile we expect, or with efficiency and at costs we expect, may also disrupt our supply of products. In addition, we may experience increased distribution and warehousing costs due to capacity constraints resulting from our growth and the need for refrigerated shipping solutions. If we need to enter into additional co-manufacturing or distribution agreements in the future, we can provide no assurance that we would be able to find acceptable third-party providers or enter into agreements on satisfactory terms or at all. In addition, we will likely need to expand our internal capacity, which could increase our operating costs and could require significant capital expenditures. If we cannot maintain sufficient and satisfactory production, warehousing and distribution capacity, either internally or through third party agreements, we may be unable to meet customer demand and/or our manufacturing, distribution and warehousing costs may increase, which could negatively affect our business.

Loss of one or more of our co-manufacturers or our failure to timely identify and establish relationships with new co-manufacturers could harm our business and impede our growth.

We have historically relied, and will likely in the future, rely on international co-manufacturers to provide us with a portion of our production capacity. The terms of these co-manufacturing agreements vary, and some of these arrangements are short-term or based on purchase orders. Volumes produced under each of these agreements can fluctuate significantly based upon the product’s life cycle, product promotions, alternative production capacity, and other factors, none of which are under our direct control. Any of the co-manufacturers with whom we do not have a written contract could seek to alter or terminate its relationship with us at any time, leaving us with periods during which we have limited or no ability to manufacture our products. If we need to replace a co-manufacturer, there can be no assurance that additional capacity will be available when required on acceptable terms, or at all.

An interruption in, or the loss of operations at, one or more of our co-manufacturing facilities, which may be caused by work stoppages, labor shortages, strikes or other labor unrest, production disruptions, product quality issues, local economic and political conditions, restrictive governmental actions, border closures, disease outbreaks or pandemics (such as COVID-19), the outbreak of hostilities, acts of war, terrorism, fire, earthquakes, severe weather, flooding or other natural disasters at one or more of these facilities, could delay, postpone or reduce production of some of our products, which could have a material adverse effect on our business, results of operations and financial condition until such time as such interruption is resolved or an alternate source of production is secured.

We believe there are a limited number of competent, high-quality co-manufacturers in the industry that meet our strict quality and control standards, and as we seek to continue to obtain additional or alternative co-manufacturing arrangements in the future, there can be no assurance that we would be able to do so on satisfactory terms, in a timely manner, or at all. Additionally, as we expand our operations internationally, we will need to further develop relationships with co-manufacturers overseas to meet sales demand, and there can be no assurance that we will be able to successfully do so. Therefore, the loss of one or more co-manufacturers, any disruption or delay at a co-manufacturer or any failure to identify and engage co-manufacturers for new products, product extensions and expanded operations could delay, postpone or reduce production of our products, which could have a material adverse effect on our business, results of operations and financial condition.

We rely on a small number of suppliers to provide our raw materials for certain of our treats, and our supply chain may be interrupted and prevent us from obtaining the necessary materials we need to operate.

We rely on suppliers and vendors to meet our high-quality standards and supply products in a timely and efficient manner. There is, however, no assurance that quality ingredients will continue to be available to meet our specific and growing needs. This may be due to, among other reasons, problems with our suppliers’ and vendors’ businesses, finances, labor relations, ability to export or import materials, product quality issues, costs, production, insurance and reputation, as well as disease outbreaks or pandemics such as the COVID-19 pandemic, acts of war, terrorism, natural disasters, fires, earthquakes, flooding or other catastrophic occurrences. If for any reason our suppliers or vendors became unable or unwilling to continue to provide services to us, this would likely lead to an interruption in our ability to import our products until we found another source that could provide these services. Failure to find a suitable replacement, even on a temporary basis, would have a material adverse effect on our ability to meet our current production targets, make it difficult to grow and would have an adverse effect on our results of operations.

During the year ended December 31, 2023, three key suppliers, Redstone Foods, Albanese and Jiangsu Shengifan Foodstuff accounted for approximately 61% of our total raw material and packaging purchases. For the nine months ended September 30, 2024 and 2023, our top three suppliers accounted for 76% and 69%, respectively, of our purchases from vendors. Additionally, we do not have any contractual obligations for the continued supply of raw material and packaging from these key suppliers. As a result

of this concentration in our supply chain, our business and operations would be negatively affected if any of our key suppliers were to experience significant disruption affecting the price, quality, availability or timely delivery of their products. While we have not had supply chain disruptions to date, and believe that we can quickly find additional sources for our raw material and packaging, in the event that our supply from our current suppliers is interrupted, our operations may be interrupted in the interim resulting in lost revenue, added costs such as, without limitation, shipping costs, and distribution delays that could harm our business and customer relationships until we are able to identify one or more alternative suppliers.

The challenges of competing with other non-chocolate confectionary businesses may result in reductions in our revenue and operating margins.

The retail food industry is very competitive, and particularly so in the non-chocolate confectionary segment. We compete with many companies on the basis of taste, quality and price of product offered, and customer service. Our success depends, in part, upon the popularity of our products and our ability to develop new items that appeal to a broad range of consumers. Shifts in consumer preferences away from products like ours, our inability to develop new items that appeal to a broad range of consumers, or changes in our offerings that eliminate products popular with some consumers could harm our business. In addition, aggressive pricing by our competitors or the entrance of new competitors into our markets could reduce our revenue and operating margins by forcing us to reduce our prices on similar product offerings in order to remain competitive. We have become aware of at least one large multinational competitors using its market clout and marketing spend to limit our current and future customers from purchasing our products or reducing our shelf space. We also compete with other employers in our markets for workers and may become subject to higher labor costs as a result of such competition. Recently there has been a significant increase in labor costs.

We have been able to compete successfully by differentiating ourselves from our competitors by providing an expanding selection of freeze dried treats, competitive pricing and convenience. If changes in consumer preferences decrease the competitive advantage attributable to these factors, or if we fail to otherwise positively differentiate our product offering or customer experience from our competitors, our business, financial condition, and results of operations could be materially and adversely affected.

Many of our current competitors have, and potential competitors may have, longer operating histories, greater brand recognition, larger fulfillment infrastructures, greater technical capabilities, significantly greater financial, marketing, and other resources and larger customer bases than we do. These factors allow our competitors to derive greater revenues and profits from their existing customer bases, push us off of shelves as a result of exclusivity arrangements or threats related to marketing spend reductions, acquire customers at lower costs or respond more quickly than we can to new or emerging technologies and changes in consumer preferences or habits. These competitors may engage in more extensive research and development efforts, undertake more far-reaching marketing campaigns, and adopt more aggressive pricing policies (including but not limited to predatory pricing policies and the provision of substantial discounts), which may allow them to build larger customer bases, limit our customer base, or generate revenues from those customer bases more effectively than we are able to execute upon. There can be no assurance that we will be able to successfully compete against these competitors.

We expect competition in the non-chocolate confectionary and freeze dried candy segments generally to continue to increase. We believe that our ability to compete successfully in this market depends upon many factors both within and beyond our control, including:

Given the rapid changes affecting the global, national, and regional economies generally and the food and beverage industry, we may not be able to create and maintain a competitive advantage in the marketplace. Our success will depend on our ability to respond to, among other things, changes in consumer preferences, laws and regulations, market conditions, and competitive pressures. Any failure by us to anticipate or respond adequately to such changes could have a material adverse effect on our financial condition, operating results, liquidity, cash flow and our operational performance.

If we fail to compete successfully in this market, our business, financial condition, and results of operations would be materially and adversely affected.

Consumer preferences for our products, or for freeze dried candy generally could change rapidly, and, if we are unable to respond quickly to new trends, our business may be adversely affected.

Our business is currently focused on the development, manufacture, marketing, and sale of freeze dried treats. Consumer preferences, and therefore demand for our products, could change rapidly as a result of a number of factors, including consumer demand for specific nutritional content, dietary habits, or restrictions, including perceptions regarding food quality, concerns regarding the health effects of certain ingredients or macronutrient ratios, shifts in preferences for product attributes, laws and regulations governing product claims, brand reputation and loyalty, and product pricing. Further, freeze dried candy as a market entrant is in its nascent stage and may not see wide-spread acceptance. A significant shift in consumer demand away from our products, or towards competitive products, could limit our product sales, reduce our market share, and negatively impact our brand reputation, any of which could adversely affect our business, operating results, and financial condition.

As is typical in a rapidly evolving industry, the development process and demand and market acceptance for recently introduced products are subject to a high level of uncertainty and risk. Because the market for our products is new and evolving, it is difficult to predict with any certainty the size of this market and its growth rate, if any, and costs of manufacturing as a product is developed. We cannot guarantee that we will be successful in developing new or existing products or manufacturing new products, that our products will perform as expected, or that a market for our products will develop or that demand for our products will be sustainable. If we fail to develop or manufacture new products, or the market for new products fails to develop, develops more slowly than expected or becomes saturated with competitors, our business, financial condition and operating results would be materially adversely affected.

If we fail to grow the value and enhance the visibility of our brand, our business could suffer.

While we believe we have a strong brand reputation, a key component of our growth strategy involves growing the value and enhancing the visibility of our “Sow Good” brand. Our ability to maintain, position and enhance our brand will depend on a number of factors, including the market acceptance of our current and future product offerings, the nutritional content of our products, food quality and safety, quality assurance, our advertising and marketing efforts, and our ability to build relationships with customers and consumers. Any negative publicity, regardless of its accuracy, could materially adversely affect our business. Brand value is often based on perceptions of subjective qualities, and any incident that erodes the loyalty of our customers, suppliers, or consumers, could significantly reduce the value of our brand and harm our business.

Any damage to our reputation or brand image could adversely affect our business or financial results.

Maintaining a good reputation is critical to our business. Our reputation or brand image could be adversely impacted by, among other things, issues with the quality of our products, any failure to maintain high ethical, social and environmental sustainability practices for our operations, the views of management and other stakeholders, our impact on the environment, public pressure from investors or policy groups to change our policies, consumer perceptions of our advertising campaigns, sponsorship arrangements or marketing programs, including opportunities we choose to forego due to management philosophy, consumer perceptions of our use of social media, or consumer perceptions of statements made by us, our employees and executives, agents or other third-parties. Operationally, recent heat waves from July through October in the third quarter of 2024 have presented challenges in transporting our freeze-dried treats. These conditions led to reduced shipments, higher inventory levels, and a decline in revenue. Additionally, some candy transported via external distribution channels during the extreme summer heat melted, impacting its shelf performance. We are actively working to remove affected products from shelves and replace them promptly to support recovery in product velocity. In the short term, these measures will impact our market reputation, sell-through rates, and operational results as we address these unforeseen challenges.

In addition, negative publicity, including as a result of the social or political views of our management, employees, customers or vendors, or misconduct by our consumers, customers, vendors or employees, can also spread rapidly through social media. Should we not respond in a timely and appropriate manner to address negative publicity, our brand and reputation may be significantly

harmed. Damage to our reputation or brand image or loss of consumer confidence in our services could adversely affect our business and financial results as well as require additional resources to rebuild or repair our reputation.

Fluctuations in various food and supply, transportation and shipping costs could adversely affect our operating results.

Supplies and prices of the ingredients that we are going to use to may be affected by a variety of factors, such as weather conditions (including the effects of climate change), natural disasters, seasonal fluctuations, demand, politics and economics in the production areas. These factors subject us to shortages or interruptions in product supplies, which could adversely affect our revenue and profits.

We rely on our suppliers to meet our quality standards and to supply ingredients and other products in a timely and safe manner, and in accordance with our product specifications. We have developed and implemented a series of measures to ensure the safety and quality of our third-party supplied products, including using contract specifications, certificates of analysis for some products or ingredients, sample testing by suppliers, and sensory based testing. However, no safety and quality measures can eliminate the possibility that suppliers may provide us with products that are inconsistent with our specifications, below our quality standards, improperly labeled, or unsafe for consumption. If this was to occur, in addition to the risks associated with negative customer and consumer experiences, we could face the possible seizure or recall of our products, or the imposition of civil or criminal sanctions, any of which could have an adverse impact on our business.

In addition, the price of candy, which is currently our main ingredient in our products, can be volatile. The candy of the quality we seek tends to trade on a negotiated basis, depending on supply and demand at the time of the purchase. Further, we intend to begin production of our own candy as feedstock in the near term. An increase in pricing of any candy or candy production ingredients that we are going to use in our products could have a significant adverse effect on our profitability. We cannot assure you that we will be able to secure our candy or candy ingredient supplies.

In addition, our costs are affected by general inflationary pressures related to transportation and shipping costs, particularly to the extent we have additional retail sales and smaller order quantities. As we move toward more refrigerated shipping solutions to mitigate the impact of extreme heat on our product quality, we will incur additional shipping expense. Such inflationary pressures could be passed on to the customer and could cause the price of our products to increase, which may impact the attractiveness of our freeze dried treats relative to other candy or snack options with cost sensitive consumers. We are also subject to a reduction in our profitability due to increased labor costs for our employees. As we look to expand our distribution and market, we may not be able to increase our sales prices to absorb these costs. We cannot provide assurances that we will be able to maintain profitability consistent with our goals. As we plan for the acquisition of additional freeze driers, we also anticipate that the costs for this equipment will be more than as well as the lead time to receive the equipment once ordered will be longer than we have planned. This could increase our capital needs and also delay our ability to ramp up production in a timely manner to correspond to demand.

In addition, we purchase and use significant quantities of cardboard, film, and plastic to package our products. The costs of these products may also fluctuate based on a number of factors beyond our control, including changes in the competitive environment, availability of substitute materials, and macroeconomic conditions. If we are not successful in managing our raw material and packaging costs, if we are unable to increase our prices to fully or partially offset the increased costs, or if such price increases reduce our sales volumes, then such cost increases will adversely affect our operating results.

We may not be able to protect our intellectual property and proprietary technology adequately, which may impact our commercial success.

We believe that our intellectual property and proprietary technology has substantial value and has contributed significantly to the success of our business. We rely on a combination of copyrights, trademarks, trade dress, trade secrets, and trademarks laws, as well as confidentiality agreements and other contractual restrictions, to protect our intellectual property. However, these legal means afford only limited protection and may not adequately protect our intellectual property or permit us to gain or keep any competitive advantage.

Our trademarks, including our Sow Good logo, are valuable assets that reinforce our brand and consumers’ favorable perception of our products. We also rely on unpatented proprietary expertise, recipes and formulations, and other trade secrets and copyright protection to develop and maintain our competitive position. Our continued success depends in part upon our ability to protect and preserve our intellectual property.

Our confidentiality agreements with our employees, consultants, independent contractors and suppliers generally require that all information made known to them be kept strictly confidential. Nevertheless, trade secrets are difficult to protect. Our confidentiality agreements may not effectively prevent disclosure of our proprietary information and may not provide an adequate

remedy in the event of unauthorized disclosure of such information. In addition, others may independently discover our trade secrets, in which case we would not be able to assert trade secret rights against such parties. Further, some of our manufacturing know-how and process has been implemented by or with our co-manufacturers. As a result, we may not be able to prevent others from using similar processes, which could adversely affect our business. In addition, we have not historically obtained confidentiality agreements or invention assignment agreements from all employees and consultants, which could impact our ability to protect our intellectual property and proprietary technology.

We cannot assure you that the steps we have taken to protect our intellectual property rights are adequate, that our intellectual property rights can be successfully defended and asserted in the future, or that third parties will not infringe upon or misappropriate any such rights. In addition, our trademark rights and related registrations may be challenged in the future and could be canceled or narrowed. Failure to protect our trademark rights could prevent us in the future from challenging third parties who use names and logos similar to our trademarks, which may in turn cause consumer confusion or negatively affect customers’ or consumers’ perception of our brand and products. In addition, if we do not keep our trade secrets confidential, others may produce products with our recipes or formulations. Moreover, intellectual property disputes and proceedings and infringement claims may result in a significant distraction for management and significant expense, which may not be recoverable regardless of whether we are successful. Such proceedings may be protracted with no certainty of success, and an adverse outcome could subject us to liability, force us to cease use of certain trademarks or other intellectual property, or force us to enter into licenses with others.

Third parties may initiate legal proceedings alleging that we are infringing or otherwise violating their intellectual property rights.

Our commercial success depends on our ability to develop and commercialize our products without infringing the intellectual property or proprietary rights of third parties. However, from time to time, we may be subject to legal proceedings and claims in the ordinary course of business with respect to intellectual property. Intellectual property disputes can be costly to defend and may cause our business, operating results, and financial condition to suffer. Whether merited or not, we may face allegations that we or parties indemnified by us have infringed or otherwise violated the patents, trademarks, copyrights, or other intellectual property rights of third parties. Such claims may be made by competitors seeking to obtain a competitive advantage or by other parties.

It may also be necessary for us to initiate litigation to defend ourselves in order to determine the scope, enforceability, and validity of third-party intellectual property or proprietary rights, or to establish our respective rights. Regardless of whether claims that we are infringing patents or other intellectual property rights have merit, such claims can be time-consuming, divert management’s attention and financial resources, and can be costly to evaluate and defend. Results of any such litigation are difficult to predict and may require us to stop commercializing or using our products, obtain licenses, modify our products while we develop non-infringing substitutes, or incur substantial damages, settlement costs, or face a temporary or permanent injunction prohibiting us from marketing or providing the affected products. If we require a third-party license, it may not be available on reasonable terms or at all, and we may have to pay substantial royalties, upfront fees, or grant cross-licenses to intellectual property rights for our products and solutions. We may also have to redesign our products so they do not infringe third-party intellectual property rights, which may not be possible or may require substantial monetary expenditures and time, during which our products may not be available for commercialization or use. Even if we have an agreement to indemnify us against such costs, the indemnifying party may be unable to uphold its contractual obligations. If we cannot or do not obtain a third-party license to the infringed intellectual property, license the intellectual property on reasonable terms, or obtain similar intellectual property from another source, our revenue and earnings could be adversely impacted.

Further, some third parties may be able to sustain the costs of complex litigation more effectively than we can because they have substantially greater resources. And even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our common stock. Moreover, any uncertainties resulting from the initiation and continuation of any legal proceedings could have a material adverse effect on our ability to raise the funds necessary to continue our operations. Assertions by third parties that we violate their intellectual property rights could therefore have a material adverse effect on our business, financial condition, and results of operations.

Food safety concerns and concerns about the health risk of our products may have an adverse effect on our business.

Food safety is a top priority for us, and we dedicate substantial resources to ensure that our customers enjoy safe and high-quality treats. However, foodborne illnesses and other food safety issues have occurred in the retail food industry in the past and could occur in the future. Also, our reliance on third-party food suppliers, distributors and food delivery aggregators increases the risk that foodborne illness incidents could be caused by factors outside of our control. A failure or perceived failure to meet our quality or safety standards, including product adulteration, contamination, or tampering, or allegations of mislabeling, whether actual or

perceived, could occur in our operations or those of our co-manufacturers, distributors or suppliers. This could result in time consuming and expensive production interruptions, negative publicity, the destruction of product inventory, the discontinuation of sales or our relationships with such co-manufacturers, distributors, or suppliers, lost sales due to the unavailability of product for a period of time and higher-than-anticipated rates of returns of goods. The occurrence of health-related illnesses or other incidents related to the consumption of our products, including allergies, excessive consumption or death to a consumer, could also adversely affect the price and availability of affected ingredients, resulting in higher costs, disruptions in supply and a reduction in our sales.

Noncompliance with applicable food product quality and safety regulations can limit our ability to access certain markets or result in enforcement action by applicable regulatory agencies, including product recalls, market withdrawals, product seizures, warning letters, injunctions, or criminal or civil liability. Such incidents could also expose us to product liability, negligence or other lawsuits, including consumer class action lawsuits. Any claims brought against us may exceed or be outside the scope of our existing or future insurance policy coverage or limits. Any judgment against us that is more than our policy limits or not covered by our policies or not subject to insurance would have to be paid by us, which would affect our results of operations and financial condition. Moreover, negative publicity also could be generated from false, unfounded or nominal liability claims or limited recalls. The occurrence of foodborne illnesses or food safety issues could also adversely affect the price and availability of affected ingredients, which could result in disruptions in our supply chain, significantly increase costs and/or lower margins for us.

In addition, there is increasing consumer awareness of, and increased media coverage on, the alleged adverse health impacts of consumption of various food products globally. Our products contain fats, sugar and other compounds and allergens, the health effects of which are the subject of public scrutiny, including the suggestion that excessive consumption of sugar and other compounds can lead to a variety of adverse health effects. An unfavorable report on the health effects of certain compounds present in our products, or negative publicity or litigation arising from other health risks such as obesity, could significantly reduce the demand for our products. Additionally, there may be new laws and regulations that could impact the ingredients and nutritional content of our product offerings, or laws and regulations requiring us to disclose the nutritional content of our product offerings or otherwise restrict sales of our treats. A decrease in consumer traffic as a result of these health concerns, laws or regulations or negative publicity could materially and adversely affect our business.

We may face an inherent business risk of exposure to product liability and other claims and lawsuits in the event that the development or use of our products is alleged to have resulted in adverse effects. The sale of products for human use and consumption involves the risk of injury or illness to consumers. Such injuries may result from inadvertent mislabeling, tampering by unauthorized third parties or product contamination or spoilage. Under certain circumstances, we may be required to recall or withdraw products, suspend production of our products, or cease operations, which may lead to a material adverse effect on our business. In addition, customers may stop placing or cancel orders for such products as a result of such events.

Even if a situation does not necessitate a recall or market withdrawal, product liability claims might be asserted against us. While we are subject to governmental inspection and regulations and believe our facilities and those of our co-manufacturers and suppliers comply in all material respects with all applicable laws and regulations, if the consumption of any of our products causes, or is alleged to have caused, a health-related illness or death to a consumer, we may become subject to claims or lawsuits relating to such matters. Even if a product liability claim is unsuccessful or is not fully pursued, the negative publicity surrounding any assertion that our products caused illness or physical harm could cause consumers to lose confidence in the safety and quality of our products. Moreover, claims or liabilities of this type might not be covered by our insurance or by any rights of indemnity or contribution that we may have against others. Although we maintain product liability and product recall insurance in an amount that we believe to be consistent with market practice, we cannot be sure that we will not incur claims or liabilities for which we are not insured or that exceed the amount of our insurance coverage. A product liability judgment against us or a product recall could have a material adverse effect on our business, financial condition, results of operations or liquidity.

We have no control over our products once purchased by consumers. Accordingly, consumers may store or prepare our products in a manner that is inconsistent with our directions or store our products for longer than approved periods of time, which may adversely affect the quality and safety of our products.

Although we believe our insurance coverage to be adequate and consistent with industry practice, we may not have sufficient insurance coverage, and we may not be able to obtain sufficient coverage at a reasonable cost. An inability to obtain product liability insurance at acceptable cost or to otherwise protect against potential product liability claims could prevent or inhibit the commercialization of our products. Further, any claim under our insurance policies may be subject to certain exceptions, may not be honored fully, in a timely manner, or at all, and we may not have purchased sufficient insurance to cover all losses incurred. If we were to incur substantial liabilities or if our business operations were interrupted for a substantial period, we could incur costs and

suffer losses. Inventory, equipment, and business interruption losses may not be covered by our insurance policies. Additionally, insurance coverage may not be available to us at commercially acceptable premiums in the future, or at all.

Overall, we may not be able to avoid significant product liability exposure. A product liability claim could hurt our financial performance. Even if we ultimately avoid financial liability for this type of exposure, we may incur significant costs in defending ourselves that could hurt our financial performance and condition.

Our ability to maintain and expand our distribution network and attract consumers, customers, distributors, retailers and brokers will depend on a number of factors, some of which are outside our control.

We sell a substantial portion of our products through retailers such as Five Below, Target, Misfits Market/Imperfect Foods, TJX Canada, Big Lots, Hy-Vee, Cracker Barrel, and Circle K, and distributors such as Redstone Foods, CB Distributors and Alpine Foods, and online through our website. The largest four purchasers of our products for the nine months ended September 30, 2024 accounted for approximately 72.7% of our revenues for that period.

The loss of, or business disruption at, one or more of these retailers or distributors or a negative change in our relationship with one of our key retailers or a disruption to any one of our sales channels could have a material adverse effect on our business. We have become aware of certain larger competitors using their market clout and marketing spend to limit certain of our key retailers from purchasing our products or reducing our shelf space. If we do not effectively compete with this larger competitors, maintain our relationship with existing retailers and distributors or develop relationships with new retailers and distributors, the growth of our business may be adversely affected, and our business may be harmed.

In addition, we may not be able to successfully manage all or any of the following factors in any of our current or prospective geographic areas of distribution:

Our inability to achieve success with regards to any of these factors in a geographic distribution area will have a material adverse effect on our relationships in that particular geographic area, thus limiting our ability to maintain or expand our market, which will likely adversely affect our revenues and financial results.

Further, if we are required to obtain additional or alternative distribution agreements or arrangements with our distributors or retailers in the future, we cannot be certain that we will be able to do so on satisfactory terms or in a timely manner. Our inability to enter into satisfactory distribution agreements may inhibit our ability to implement our business plan or to establish markets necessary to expand the distribution of our products successfully.

Our customers generally are not obligated to continue purchasing products from us.

Most of our customers are retailers or distributors that buy from us under purchase orders, and we generally do not have long-term agreements with or commitments from these customers for the purchase of products. We cannot provide assurance that our customers will maintain or increase their sales volumes or orders for the products supplied by us or that we will be able to maintain or add to our existing customer base. Decreases in our customers’ sales volumes or orders for products supplied by us may have a material adverse effect on our business, financial condition or results of operations.

If we face labor shortages or increased labor costs, our results of operations and our growth could be adversely affected.

Labor is a significant component of the cost of operating our business. Our ability to meet our labor needs while controlling labor costs is subject to external factors, such as employment levels, prevailing wage rates, minimum wage legislation, union activities, changing demographics, health and other insurance costs and governmental labor and employment requirements. In the event of increasing wage rates, if we fail to increase our wages competitively, the quality of our workforce could decline, while increasing our wages could cause our earnings to decrease. If we face labor shortages or increased labor costs because of increased competition for employees from our competitors and other industries, higher employee-turnover rates, or increases in the federal- or state-mandated minimum wage, change in exempt and non-exempt status, or other employee benefits costs (including costs associated

with health insurance coverage or workers’ compensation insurance), our operating expenses could increase and our business, financial condition and results of operations could be materially and adversely affected.

Our success depends in part on the effectiveness of our digital marketing strategy and the expansion of our social media presence, but there are risks associated with these efforts.

Our digital marketing strategy is integral to our business, as well as to the achievement of our growth strategies. Maintaining, positioning, and enhancing our brand will depend in part on the success of our marketing efforts. As part of these efforts, we rely on social media and other digital marketing to retain customers, attract new customers and consumers to our brand, and enhance the overall visibility of our brand in the market. However, there are a variety of risks associated with these efforts, including the potential for negative comments about or incidents involving us, whether or not accurate, as well as the potential for the improper disclosure of proprietary information about us or consumers. In addition, there is a risk of the U.S. Federal Trade Commission (“FTC”), or other government agency, or other litigation claiming that our marketing does not meet applicable legal requirements or guidance, is not truthful, is misleading, or is unfair or deceptive to consumers. Further, the growing use of social and digital media may increase the speed and extent that information, or misinformation, and opinions about us and our products can be shared. For example, many social media platforms immediately publish content created or uploaded by their participants, often without filters or checks regarding the accuracy of the content posted. Negative publicity about us, our brand or our products on social or digital media could seriously damage our brand and reputation, as well as our significant social media presence. In addition, the misuse of social media and digital marketing platforms by us, our employees, customers, consumers, social media influencers, or business partners could increase our costs, lead to litigation, or result in negative publicity that could damage our reputation. If we do not maintain and enhance the favorable perception of our brand, we may not be able to increase product sales, which could prevent us from achieving our strategic objectives.

Any failure to adequately store, maintain and deliver our products could materially adversely affect our business, reputation, financial condition, and operating results.

Our ability to adequately store, maintain, and deliver our products is critical to our business. Keeping our food products at specific temperatures and humidity levels maintains food safety and quality. In the event of extended power outages, labor disruptions, natural disasters or other catastrophic occurrences, failures of the refrigeration systems in our third-party delivery trucks, or other circumstances, our inability to store inventory at appropriate temperatures and low humidity could result in significant product inventory losses, as well as increased risk of food-borne illnesses and other food safety incidents. Improper handling or storage of food by a customer, without any involvement or fault of ours or our retail customers, could result in food-borne illnesses, which could result in negative publicity and harm to our brand and reputation. Any failure to adequately store, maintain, or transport our products could negatively impact the safety, quality and merchantability of our products and the experience of our customers. The occurrence of any of these risks could materially adversely affect our business, reputation, financial condition, and operating results.

Failure to manage inventory at optimal levels could adversely affect our business, financial condition and results of operations.

We are required to manage a large volume of inventory of products effectively for our business. We depend on our forecasts for the anticipated demand for our products to make procurement plans and manage our inventory. Our forecast for demand, however, may not accurately reflect the actual market demands, which depends on a number of factors including, without limitation, launches of new products, changes in product life cycles and pricing, product defects, changes in consumer spending patterns, supplier back orders and other supplier-related issues, distributors’ and retailers’ procurement plans, as well as the volatile economic environment in the markets where we sell our products. In addition, when we launch a new product with new components or raw material, it may be difficult to establish relationships, determine appropriate raw material and product selection, and accurately forecast market demand for such product. We cannot assure you that we will be able to maintain proper inventory levels for our business at all times, and any such failure may have a material and adverse effect on our business, financial condition and results of operations.

Inventory levels in excess of distributor and/or consumer demand may result in inventory write-downs or an increase in inventory holding costs and a potential negative effect on our liquidity. For example, as of September 30, 2024, our inventory grew to $19.4 million, relative to our cash and cash equivalents of $6.0 million, primarily as a result of our decision to halt shipping of our products during the third quarter and the beginning of October. As we plan to continue expanding our product offerings, we expect to include more products in our inventory, which will make it more challenging for us to manage our inventory effectively and will put more pressure on our storing system. If we fail to manage our inventory effectively, we may be subject to a heightened risk of inventory obsolescence, a decline in inventory values, and significant inventory write-downs or write-offs. In addition, we may be required to lower sale prices in order to reduce inventory level, which may lead to lower gross margins. High inventory levels may also require us to commit substantial capital resources, preventing us from using that capital for other important purposes. Any of the above may materially and adversely affect our results of operations and financial condition.

Conversely, if we underestimate distributor or consumer demand, or if our supplier fails to provide products to us in a timely manner, we may experience inventory shortages, which may, in turn, require us to purchase our products at higher costs, result in unfulfilled product orders, leading to a negative impact on our financial condition and our relationships with distributors or consumers. Under-stocking can lead to missed sales opportunities, while over-stocking could result in inventory depreciation and decreased shelf space for products that are in higher demand. These results could adversely affect our business, financial condition and results of operations.

Information security events, or real or perceived errors, failures, or bugs in our systems; other technology disruptions; or failure to comply with laws and regulations relating to information security could negatively impact our business, our reputation and our relationships with customers.

Our continued success depends in part on our systems, applications, and software continuing to operate to meet our business demands. We rely on information technology systems and infrastructure for substantially all aspects of our business operations. We use mobile applications, social networking, and other online activities to connect with our customers, consumers, suppliers, and employees. Our business involves the storage and transmission of confidential information and intellectual property, including information pertaining to customers, consumers, vendors, distributors, and suppliers, and employees. We also may maintain financial and strategic information about us and our business partners. Further, as we pursue new initiatives that enhance our operations and cost structure, potentially including acquisitions, we may also be required to expand and improve our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk. Like all technology and information systems, such use gives rise to cybersecurity risks, including security incidents, espionage, system disruption through material errors, failures, vulnerabilities, or bugs, particularly when new features or capabilities are released, theft, and inadvertent release of information. Our technology and information systems may be subject to computer viruses or malicious code, break-ins, phishing impersonation attacks, attempts to overload our servers with denial-of-service or other attacks, ransomware, and similar incidents or disruptions from unauthorized access or use of our computer systems, as well as unintentional incidents causing data leakage, any of which could lead to interruptions, delays, or website or mobile app shutdowns. Electronic security attacks designed to gain access to personal, sensitive, or confidential data are constantly evolving, and such attacks continue to grow in sophistication. If we fail to assess and identify cybersecurity risks associated with new initiatives or acquisitions, we may become increasingly vulnerable to such risks.

While we have implemented measures designed to prevent security incidents and cyber attacks, our preventative measures and incident response efforts may not be effective. The theft, destruction, loss, misappropriation, misuse, or release of sensitive or confidential information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely, could result in business disruption, negative publicity, reputational harm, violation of privacy laws, loss of customers, and liability, all of which could have a material adverse effect on our business, operating results, and financial condition. Additionally, as a result of a security incident, we could be subject to demands, claims, and litigation by private parties and investigations, related actions, and penalties by regulatory authorities. Moreover, we could incur significant costs in notifying affected persons and entities and otherwise complying with the multitude of laws and regulations relating to the unauthorized access to, or acquisition, use, or disclosure of personal information.

Further, our operations depend on the continuing and efficient operation of our information technology, communications systems and infrastructure, and on cloud-based platforms, including platforms operated by vendors. Any of these systems and infrastructure are vulnerable to damage or interruption from earthquakes, vandalism, sabotage, terrorist attacks, floods, fires, power outages, telecommunications failures, computer viruses or other deliberate attempts to harm the systems. The occurrence of a natural or intentional disaster, any decision to close a facility we are using without adequate notice, or particularly an unanticipated problem at a cloud- based virtual server facility, could result in harmful interruptions in our service, resulting in adverse effects to our business. Although we have invested in the protection of data and information technology, there can be no assurances that our efforts will protect us against significant breakdowns, breaches in our systems, or other cyber incidents that could have a material adverse effect on our reputation, business, operations, or financial condition of the company.

Our collection, use, and disclosure of information, including personal information, is subject to federal, state and foreign privacy and security regulations and binding industry standards; new or changed regulations could impose significant costs to our operation and failure to comply with those regulations or to adequately secure the information we hold could result in significant liability or reputational harm.

We are subject to numerous federal, state and local rules and regulations relating to the collection, processing, storing, sharing, disclosure, use, and security of personal information and other data. We also are or may in the future be subject to contractual obligations to protect data. We strive to comply with applicable laws, contractual obligations, and our own policies pertaining to the processing of personal information. Nevertheless, such laws, regulations, and other obligations may require us to change our business practices and may negatively impact our ability to expand our business and pursue business opportunities. We may incur significant

expenses to comply with the laws, regulations, and other obligations that apply to us. Additionally, the privacy- and data protection-related laws, rules, and regulations applicable to us may be interpreted and applied in new ways or in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or our practices. Further, new laws, rules, and regulations could be enacted with which we are not familiar or with which our practices do not comply.

Several U.S. jurisdictions have passed omnibus privacy laws that apply to us now or may apply in the future as we grow and expand, and other jurisdictions are considering imposing additional restrictions. Examples include the California Consumer Privacy Act (the “CCPA”), as amended by the California Privacy Rights Act (collectively, “CPRA”). Since the passage of the CCPA, more than ten (10) U.S. states have enacted omnibus privacy laws, which will go into effect at varying dates through 2026. The CCPA and other state omnibus laws provide consumers with substantial rights over their personal information, impose notice obligations on companies, and require companies to implement programs to manage such rights. As Company operates in the business-to-business space, Company will not be directly subject to the majority of the enacted state omnibus privacy laws. Nonetheless, to the extent that certain of these laws are applicable to us, and to the extent that other states enact laws in the future that are or may be applicable to us, we will need to expend resources to evaluate such regulations and implement compliance solutions. If we engage in email marketing or certain telemarketing activities, we will be subject to issue-specific laws pertaining to the use of information, including laws on marketing and advertising, such as the Telephone Consumer Protection Act and the Telemarketing Sales Rule and the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, and their state counterparts.

Further, if our operations bring us into the scope of non-U.S. privacy and data protection regulations, we may be subject to additional privacy and data protection regulations, which may require us to spend resources to comply with such programs and expose us to risk for any actual or perceived failure to comply.

We also are or may be subject to binding industry standards, including the Payment Card Industry Data Security Standard (“PCI-DSS”), due to our acceptance of payment cards. If we or our payment processors fail to comply with the PCI-DSS, we may incur significant fines or liability and lose access to major payment card systems. Industry groups may in the future adopt additional self-regulatory standards by which we are legally or contractually bound.

Compliance with these and any other applicable privacy and data security laws and regulations is a rigorous and time-intensive process, and we may be required to put in place additional mechanisms ensuring compliance with the new data protection rules. Any failure or perceived failure by us to comply with privacy or data protection laws, policies, or industry standards or any security incident that results in the unauthorized release of personal information may result in governmental enforcement actions and investigations, fines and penalties, litigation and/or adverse publicity, including by consumer advocacy groups, and could cause our customers to lose trust in us, which could have an adverse effect on our reputation and business. Such failures could have a material adverse effect on our financial condition and operations. If the third parties we work with violate applicable laws, contractual obligations or suffer a security incident, such violations may also put us in breach of our obligations under privacy laws and regulations and/or could in turn have a material adverse effect on our business.

Our international sales and operations, including our planned business development activities outside of the United States, subject us to additional risks and challenges that can adversely affect our business, results of operations and financial condition.

As part of our growth strategy, we expect to continue to expand our international operations and manufacturing capacity, and provide our treats in additional languages and on-board new customers outside the U.S. Any new markets or countries into which we attempt to conduct business and sell our treats may not be receptive to our business development activities. We believe that our ability to attract new customers is directly correlated to the level of engagement we achieve with our customers in their home countries. To the extent that we are unable to effectively engage with non-U.S. customers, we may be unable to effectively grow in international markets.

Our international operations also subject us to a variety of additional risks and challenges, including:

这些风险和挑战中的任何一个都可能对我们的运营产生不利影响，降低我们的营业收入或增加我们的运营成本，这些都可能对我们在美国以外扩展我们的业务能力产生不利影响，从而影响我们的整体业务，以及我们的运营结果、财务状况和增长前景。

符合适用于我们国际业务的法律法规，显著增加了我们的业务成本。我们可能无法跟上政府要求的变化，因为它们不时发生变化。不遵守这些法规可能对我们的业务产生不利影响。在许多国外国家，他人往往会从事我们内部政策、程序或适用于我们的美国或其他法规所禁止的商业行为。尽管我们已实施旨在确保遵守这些法律和政策的政策和程序，但不能保证我们的员工、承包商、合作伙伴和代理商将遵守这些法律和政策。我们的员工、承包商、合作伙伴或代理商违反法律或我们的政策可能导致营业收入确认延迟、财务报告错误陈述、执法行动、利润违约金返还、罚款、民事和刑事处罚、赔偿金、禁令、其他附带后果及增加成本，包括捍卫此类行动的成本，或禁止进口或出口我们的产品，这些都可能对我们的业务、运营业绩和财务状况产生不利影响。

我们的运营受美国FDA和其他联邦、州及地方当局的监管，以及我们可能销售产品的任何其他地区，而我们不能保证会符合所有法律和法规。

我们的业务受到FDA以及美国和其他可能销售我们产品的任何司法辖区的联邦、州和地方当局的广泛监管。具体来说，对于在美国制造或销售的产品，我们需遵守《联邦食品、药品和化妆品法案（FDCA）》及FDA颁布的相关法规。这一全面的监管计划涵盖了制造、成分、包装、标签和食品安全等诸多方面。根据这一计划，FDA要求生产食品产品的设施遵守一系列要求，包括危害分析和预防控制规定、当前良好制造规范（GMPs）以及供应商验证要求。我们的合作制造商根据我们的规格在其加工厂中准备和包装冻干糖果，并接受外国、联邦、州和地方当局定期检查。如果我们的产品未按照我们的规格和FDA或其他监管机构的严格法规要求进行制造、加工、包装和标签，我们或我们的合作制造商可能受到不利的检查发现或执法行动，这可能会严重影响我们营销产品的能力，或导致曾经已经分发的产品召回。如果FDA或其他监管机构确定我们或我们的供应商或其他业务合作伙伴未遵守适用的监管要求，可能会对我们的业务造成不利影响。

我们寻求通过具有经验的专业人员遵守适用的法律法规，以确保质量保证的合规性，并与进行新产品分析的第三方实验室签订合同，以建立营养标签信息并帮助在分发之前识别某些潜在污染物。我们现有的合规结构可能不足以应对当前或不断变化的监管环境。这可能导致合规覆盖的空白或遗漏必要的新合规活动。不遵守适用的法律法规，或未能保持与我们或其运营相关的许可证、执照或注册，可能使我们面临民事救济或处罚，包括罚款、禁令、产品召回、警告信、或对产品的营销或制造施加限制，并可能导致刑事制裁，任何这些情况都可能导致运营成本增加和声誉受损。此外，适用于食品的法律、法规或政策的变化可能使我们面临不利的政府行动，并对我们的业务、运营结果和财务状况产生重大不利影响。

即使是无意的、非故意的或无知的违反联邦、州或地方监管要求，也可能使我们面临不利的政府行动，并对我们的业务、运营结果和财务状况造成重大不利影响。

FDCA法律管理州际商业中的食品运输，通常不区分故意和无意的非过失违法行为。大多数州和地方法律的运作方式也类似。因此，几乎任何对FDCA或适用的州或地方法律的主观或客观要求的偏离，都使我们面临风险。

各种行政行为、执法行为和/或民事和刑事处罚。未能遵守法律和法规可能对我们的业务、运营结果和财务状况造成重大不利影响。

我们可能无法在纳斯达克资本市场上维持我们普通股的上市。

我们的普通股目前在纳斯达克资本市场上市。我们必须满足某些财务和流动性标准，以维持我们普通股在纳斯达克资本市场的上市。如果我们未能满足任何上市标准，或违反任何上市要求，我们的普通股可能会被退市。我们的普通股从纳斯达克资本市场退市可能会严重影响股东买卖我们普通股的能力，并可能对我们普通股的市场价格以及交易市场的效率产生不利影响。我们普通股的退市可能会显著削弱我们筹集资金的能力以及您投资的价值。

我们普通股的市场价格可能会继续高度波动，并且可能会因众多因素而经历大幅波动，其中部分因素超出我们的控制范围，包括但不限于：

这些及其他因素在很大程度上超出了我们的控件，这些风险的影响，单独或合计，可能导致我们的普通股市场价格和经营业绩以及财务状况发生重大不利变化。

此外，股市经历过价格和成交量的波动，这些波动影响并继续影响着许多公司股票交易价格。这些波动通常与这些公司的经营业绩无关或不成比例。这些广泛的市场和行业板块波动可能会对我们普通股的交易价格产生负面影响。

过去，经历过证券交易波动的公司曾遭受证券集体诉讼。我们未来可能成为这种诉讼的目标。针对我们的证券诉讼可能导致巨额费用，并分散管理层对其他业务事务的关注，这可能会损害我们的业务。

我们从未对我们的普通股支付过分红派息，也不打算在可预见的未来支付分红派息。

我们从未宣布或支付过普通股的任何股息，并且在可预见的将来也没有意向支付任何股息。我们预计如果有的话，未来所有收益将用于偿还债务、资助增长、发展业务、资助运营资本需求以及一般公司用途。未来是否支付股息将由我们的董事会自行决定。因此，投资者应依赖普通股价格升值后的出售来实现任何对我们普通股投资的未来盈利。

未来我们普通股的销售和发行，或可以转换或行使为我们普通股的证券，包括根据我们的股权激励计划，可能导致我们股东的持股比例进一步稀释，并可能导致我们普通股的交易价格下降。

在未来，我们可能以我们随时判断的价格和方式，在一个或多个交易中卖出我们的普通股或可转换或可行使为我们的普通股的证券。我们还预计根据我们的股权激励计划向董事、高管、雇员和顾问发行额外的普通股。如果我们在随后的交易中卖出我们的普通股或可转换或可行使为我们的普通股的证券，或者根据我们的股权激励计划发行普通股，投资者可能会受到重大稀释。此外，在这些随后的交易中的新投资者可能会收到享有高于我们普通股持有者权利的证券。

我们是 “小型报告公司” 和适用于较小报告公司的减少披露要求可能会使我们的普通股对投资者不太具吸引力。

我们是根据适用的SEC规则被归类为“小型报告公司”，这意味着我们非关联方持有的普通股市场价值少于70000万美元，并且我们最近完成的财政年度的年营业收入少于10000万美元。如果（i）我们非关联方持有的股票市场价值少于25000万美元，或者（ii）我们最近完成的财政年度的年营业收入少于10000万美元且我们非关联方持有的股票市场价值少于70000万美元，我们可以继续成为小型报告公司。作为小型报告公司，我们选择在这份10-K年度报告中仅展示最近两年的经审计基本报表，以及与管理层讨论和分析控件及运营结果相关的两个年度披露，并且我们已利用关于高管薪酬的减免披露义务。

我们的季度运营结果可能会显著波动，期与期之间的结果比较可能没有意义，这些波动可能会导致我们普通股的价格下跌。

我们的季度业绩，包括收入、营业费用、营业利润率和盈利能力，未来可能会有显著波动，季度间业绩的比较可能并不具有实际意义。因此，任何一个季度的业绩不应被视为我们未来表现的预测或指示。此外，我们的季度业绩可能无法完全反映我们业务的基本表现。

季度业绩的波动，或任何其他时期的业绩波动，可能会对我们普通股的价值产生负面影响，无论这些波动是否影响或反映我们业务的整体表现。如果我们的季度业绩，或任何其他时期的业绩低于投资者或任何关注我们股票的证券分析师的预期，或者低于我们可能提供的任何指导，我们普通股的交易价格可能会大幅下降。

对我们不利的税法或法规变化，可能会增加产品成本并损害我们的运营业绩。

新的收入、销售、使用或其他税法、法令、规则、条例可能随时颁布。这些颁布可能会损害我们的业务、运营结果和财务状况。此外，现有的税法、法令、规则、条例可能会被解释、修改、变更或对我们产生不利的影响。这些事件可能要求我们在前瞻性或追溯性基础上支付额外的税额，以及要求我们支付对过去应支付的金额进行罚款、处罚和利息，这些都会损害我们的运营结果。

现有财务会计准则或惯例的变化可能要求我们重新报告财务业绩，或损害我们的经营业绩。

根据财务会计准则委员会、证券交易委员会以及其他制定和解读适当财务原则的机构的解读，普通会计准则是需要解读的。这些原则或财报解读的变化可能会对我们的财务结果产生重大影响，并可能影响到在变更公布之前完成的交易的报告。采用这些新准则以及在实施会计准则变更过程中可能出现的困难，包括修改我们的会计系统的能力，可能导致我们未能满足财务报告义务，这可能会导致监管机构采取执法行动，使投资者失去对我们财务报告的信任，并导致我们普通股交易价格下跌。

中东地区以色列与其对手哈马斯、真主党和伊朗之间的冲突可能会影响我们的运营。

我们部分销售来源于以色列，因此我们的业务和运营直接受到以色列的经济、政治、地缘政治和军工-半导体条件的影响。

自1948年以色列建国以来，以色列与邻国及在该地域板块活动的恐怖组织之间发生了一系列武装冲突。这些冲突涉及导弹袭击、敌对渗透和针对以色列各地平民目标的恐怖活动，这对以色列的业务环境产生了负面影响。

2006年夏季，以色列与真主党发生武装冲突，真主党是黎巴嫩的伊斯兰什叶派民兵组织和政党。2008年12月和2009年1月，以色列、哈马斯、巴勒斯坦权力机构和其他组织之间的暴力升级，以及以色列与加沙地带边界沿线广泛的敌对行动，导致加沙地带向以色列南部发射导弹。2012年11月以及2014年7月至8月期间，以色列与控制加沙地带的一个民兵组织和政党发生武装冲突，导致加沙地带向以色列南部发射导弹，以及向特拉维夫附近以及耶路撒冷周边地区发射导弹。2023年10月7日，哈马斯恐怖分子从加沙地带潜入以色列南部边界，并对平民和军事目标发动一系列袭击。哈马斯还对以色列与加沙地带边界沿线以及以色列国内其他地区的人口和工业中心发动了大规模火箭袭击。在袭击之后，以色列安防-半导体内阁宣布对哈马斯宣战，并开始对这些恐怖组织进行军事行动，同时他们持续进行火箭和恐怖袭击。此外，以色列与真主党在黎巴嫩和伊朗之间的冲突可能在未来升级为更大规模的区域型冲突。

任何涉及以色列的敌对行动，或以色列境内或以色列与其贸易伙伴之间贸易中断或削减，均可能对我们的运营和经营结果产生不利影响或使我们更难筹集资金。以色列的冲突局势还可能导致我们的供应链和国际贸易受到干扰，包括我们产品的出口。以色列的冲突局势还可能导致与我们在以色列履行合同的各方声称，根据这些协议中的不可抗力条款，他们没有义务履行这些协议下的承诺。

目前无法预测持续冲突的持续时间或严重程度，以及其对我们业务、运营和财务状况的影响。当前冲突正在迅速演变和发展，可能会干扰我们在以色列的业务和运营，或妨碍我们筹集其他基金的能力等。

我们的业务在很大程度上依赖于高级管理层和其他关键人员的持续努力，包括我们的执行董事会主席Ira和首席执行官Claudia Goldfarb，如果我们失去他们的服务，业务可能会受到严重干扰。.

我们未来的成功在很大程度上取决于我们的高级管理人员和其他关键员工的持续服务，特别是我们的执行主席Ira和首席执行官Claudia Goldfarb的持续贡献，他们的知识、领导才能和技术专长难以替代。我们的高管或关键人员可能随时终止与我们的雇佣关系而无需承担任何处罚。此外，我们没有为任何员工购买重要人员寿险。如果我们的一名或多名高级主管无法或不愿继续在现任职位工作，我们可能需要耗费大量时间和资源来寻找、招聘和整合替补人员到我们的业务中，这将大大分散管理的注意力，严重干扰我们的业务。这也可能对我们执行业务策略的能力造成不利影响。

经济状况恶化或消费者支出减少可能会对我们实施业务策略的能力产生不利影响。

我们的成功在很大程度上依赖于可自由支配的消费，受到整体经济控件和可自由支配收入的影响。对于美国的经济控件没有任何确定性，信用和金融市场以及信恳智能可能随时恶化。因此，在经济动荡或不确定时期，我们可能会经历营业收入的下降。此外，持续的通货膨胀可能会导致可自由支配消费的金额减少，并进一步影响我们的毛利率。未来的经济控件，如就业水平、业务控件、住房开工、利率期货、通货膨胀率、能源和燃料成本以及税率，可能会减少消费或改变消费的购买习惯。任何可自由支配消费金额的重大下降，导致注重成本的消费者在购买食品产品时变得更加挑剔，可能会对我们的营业收入、经营业绩、业务和财务状况产生重大不利影响。

未能成功整合新收购的产品或业务可能会对我们的盈利能力产生负面影响。

我们可能不时考虑收购其他产品或业务的机会，以扩大我们的市场范围或客户群。未来收购的成功将取决于我们有效整合所收购的产品和业务的能力。整合过程可能复杂、昂贵且耗时。如果无法及时且具有成本效益地成功整合所收购的产品或业务，可能会对我们的业务、前景、运营结果和财务状况产生重大不利影响。管理层的注意力分散以及在整合过程中遇到的任何困难也可能对我们管理业务的能力产生重大不利影响。此外，整合过程可能导致关键员工的流失、持续业务的中断、税收成本或低效，或标准的不一致，这些都可能对我们维护品牌吸引力以及与客户、员工或其他第三方的关系，或实现预期的收购收益的能力产生不利影响，并可能损害我们的财务表现。我们不知道是否能够识别出我们认为合适的收购对象，不知道是否能够成功以有利条款完成这些收购，甚至是不知道是否能够成功整合任何收购的产品或业务。此外，任何收购本身固有的额外风险是我们未能实现投资的正回报。

索赔、法律诉讼和其他争议可能会分散我们管理层的注意力，’对我们的声誉产生负面影响，使我们面临重大责任，并使获得保险覆盖变得更加困难。

我们可能不时会涉及各种索赔、法律诉讼和其他争议。我们会评估这些事项，以评估不利结果的可能性，并尽可能估算潜在损失的金额。基于这些评估和估算，我们可能会适当建立准备金。这些评估和估算基于管理层当时可获得的信息，并涉及大量管理判断。实际结果或损失可能与我们的评估和估算有实质性差异.

即使控件不合理，司法诉讼的辩护可能会分散我们管理层的注意力，我们可能需要耗费大量费用来进行辩护。司法诉讼的结果本质上是不确定的，其中一些诉讼的不利判决或和解可能导致我们承担不利的金钱赔偿、罚款或对我们采取禁令救济措施，这可能会对我们的业绩、财务状况和流动性产生重大不利影响。任何司法诉讼或其他纠纷，即使完全获得赔偿或保险，都可能对我们的声誉造成负面影响，使我们更难以有效竞争或在将来获得足够的保险。

此外，虽然我们为某些潜在责任投保，但这些保险并不覆盖所有类型和金额的潜在责任，并且受各种排除条款和可索赔金额上限的限制。即使我们相信某项索赔是由保险覆盖的，保险公司也可能因为各种潜在原因对我们获得赔偿的权利提出异议，这可能会影响我们索赔的时间和金额。

我们的披露控制和流程可能无法防止或发现所有错误或欺诈行为。

我们的披露控制和程序旨在提供合理的保证，确保我们根据《交易所法》在提交的报告中披露的信息被积累并传达给管理层，在规则和SEC规定的表格中进行记录、处理、汇总和报告。我们相信任何披露控制和程序或内部控制和程序，无论多么精心设计和运作，只能提供合理的、而非绝对的保证，控制系统的目标得以实现。这些固有限制包括决策判断可能出现错误，而由于简单的失误或错误可能导致故障。此外，控制可能被一些人的个人行为绕过，被两个或更多人串通，或者未经授权地对控制进行覆盖。因此，由于我们控制系统中的固有限制，由于错误或欺诈可能发生并且未被发现会导致错误陈述或不充分披露。

在截至2024年9月30日的九个月期间，我们的证券以下发行是根据1933年证券法第4(a)(2)条和/或根据其颁布的D类规章第506条免于注册要求的。

2024年3月28日，公司通过定向增发的方式，按照7.25美元的股价出售了515,597股新发行的普通股，共筹集了3,738,078美元的资金，免除了《1933年证券法》第4(a)(2)条的登记要求。定向增发的投资者包括Sow Good的首席执行官和执行主席，以及特定的Sow Good董事会成员、关联方和合格投资者。所得款项用于资助增量资本支出和一般营业费用。

在2024年5月2日，公司以每股10.00美元的价格定价其注册的承销公开发行，共计1,200,000股公司普通股，面值为0.001美元。此外，公司还向承销商授予了一个为期30天的超额配售权，以购买最多180,000股额外的普通股，并向承销商发行了购买120,000股普通股的warrants。2024年5月1日，公司获得了将在纳斯达克资本市场交易所（“纳斯达克”）上市其普通股的批准。在2024年5月2日，纳斯达克开始交易。2024年5月9日，承销商根据完全行使其超额配售权购买了所有额外股份。包括来自额外股份的收益，公开发行的收益约为11,974,976美元，扣除发行费用和承销折扣及佣金。预计这些收益将用于一般企业用途，可能包括扩展我们生产能力的资本支出、资金周转和增长资本、扩展我们的销售和市场功能以及减少我们某些债务的部分分期。

2024年4月15日，公司在行使2021年12月至2023年5月之间发行的warrants（“warrants”）时，发行了2,186,250股普通股，行使价格从2.21美元到2.60美元不等（“warrant行使”）。在warrant行使之前，所有warrants均未被修订。每一位行使warrants的持有人（统称为“持有人”）在与公司根据2021年12月至2023年5月之间发行的多期票据（统称为“票据”）产生债务有关的情况下收到了其warrants。这些warrants在开始时被分类为永久性权益。由于warrants中包含的赎回条款允许公司在每日成交量加权平均股价在连续三十个交易日内超过9.00美元的情况下，以每个warrant 0.001美元的价格赎回warrants，因此，随着公司普通股交易价格的近期上涨，公司收到了来自各个持有人的行使warrants的意图。经过公司董事会的授权，每一位持有人都有机会并同意修订其部分票据（“票据修订”），以允许将本金的部分提前还款，总额等于该持有人的warrants行使价格。除了票据修订外，部分持有人选择使用其票据下的累计未支付利息的部分来支付warrants的行使价格。由于warrant行使，部分票据已全部偿还，因此不需要根据票据修订进行修订（warrant行使，无论是部分或全部本金的偿还，或选择使用票据下的累计未支付利息的部分，加上票据修订，统称为“warrant行使交易”）。由于warrant行使交易，排除递延债务成本的影响，公司债务减少了5,200,362美元，应付利息减少了98,750美元，普通股权益增加了5,299,112美元，公司共计发行了2,186,250股普通股。

2024年9月30日结束的九个月内，公司通过其2020年期权计划，向员工、董事和顾问行使期权，发行了50,459股普通股。这些期权行使所得款项约为163,854美元。目前预计将利用所得款项用于一般企业目的，包括资本支出以扩大我们的生产能力，资助工作和增长资本，扩展我们的销售和营销功能以及减少我们某些未偿还部分的负债。

截至2024年9月30日的九个月期间，公司通过董事和顾问行使2020年发行的warrants，发行了52,500股普通股，作为个人担保债务的补偿。行使这些warrants的总收益约为210,000美元。目前预计这些收益将用于一般公司用途，包括扩大生产能力的资本支出，资助流动和增长资本，扩展我们的销售和营销功能，以及减少我们某些债务的分期。

否公司的一位董事或高管是否采用或终止了任何所谓的Rule 10b5-1计划和/或根据适用法律定义的“非Rule 10b5-1交易安排”。

** 附在本季度报告Form 10-Q中的展品32.1和32.2的认证被视为提供而非提交给证券交易委员会，并且不得通过引用纳入注册人在《1933年证券法》（经修订）或《1934年证券交易法》（经修订）的任何文件中，无论是在本季度报告Form 10-Q日期之前还是之后的任何文件中，无论该文件中包含任何一般的纳入条款。

根据1934年的证券交易法的要求，注册人已经指定代表签署本报告。


特拉华州	27-2345075
(该州或其他司法管辖区公司成立或组织）	（IRS雇主唯一识别号码）
1440 N Union Bower Rd, 欧文市, TX	75061
(主要行政办公室地址)	(邮政编码)


		页

第I部分	财务信息	4

项目 1.	基本报表(未经审计)	4
	截至2024年9月30日的未经审计的资产负债表和2023年12月31日的未经审计的资产负债表	4
	2024年9月30日和2023年结束的三个月和九个月的未经审计的损益表	5
	截至2024年和2023年9月30日的未审计股东权益变动基本报表（三个月和九个月）	6
	2024年9月30日结束的九个月的未经审计的现金流量表	7
	附注（未经审计）	8
项目2。	分销计划	28
项目3。	有关市场风险的定量和定性披露	37
项目4。	控制和程序	38

第二部分	其他信息	39

项目 1.	法律诉讼	39
项目1A。	风险因素	39
项目 2.	未注册的股票股权销售和筹款用途	61
项目3。	对优先证券的违约	62
项目4。	矿山安全披露	62
项目5。	其他信息	62
项目6。	展示资料	63
	签名	64


	九月三十日,			12月31日，
	2024			2023
资产	（未经审计）

流动资产：
现金及现金等价物	$	6,946,387		$	2,410,037
应收账款，净额		1,232,958			2,578,259
存货		19,434,041			4,123,246
预付存货		572,098			563,131
预付费用		202,430			563,164
总流动资产		28,387,914			10,237,837

固定资产和设备：
建设中的工程		2,848,191			1,522,465
固定资产		9,430,983			6,287,422
减少已计提折旧额		(1,550,550	)		(967,602	)
净房地产和设备总资产		10,728,624			6,842,285

存入资金		1,357,956			346,616
租赁权资产		17,193,154			4,061,820
总资产	$	57,667,648		$	21,488,558

负债和股东权益

流动负债:
应付账款	$	1,301,098		$	853,535
应计利息		398,617			860,693
应计费用		1,839,323			648,947
当期应付所得税		65,603			-
经营租赁负债流动部分		2,140,084			550,941
应付票据的流动到期部分，相关方净额为$447,236和$431,854截至2024年9月30日和2023年12月31日的债务折扣$		2,731,901			2,543,146
应付票据的流动到期部分，净额为$26,116和$86,062截至2024年9月30日和2023年12月31日的债务折扣为$		213,134			313,938
流动负债合计		8,689,760			5,771,200

经营租赁负债		16,005,280			3,671,729
应付票据，相关方，净额为$0 和$1,448,858 截至2024年9月30日和2023年12月31日的债务折扣		-			4,171,142
应付票据，净额为$0 和$135,962 截至2024年9月30日和2023年12月31日的债务折扣		150,000			594,038

总负债		24,845,040			14,208,109

承诺和 contingencies

股东权益:
优先股，$0.00010.001面值， 20,000,000已授权股份数，没有股已发行并流通		-		-
普通股，每股面值为 $0.0001；0.001面值， 500,000,000授权股份， 10,245,388和 6,029,371截至2024年9月30日和2023年12月31日，已发行和流通股份数为		10,245			6,029
其他资本公积		91,086,537			66,014,415
累积赤字		(58,274,174	)		(58,739,995	)
股东权益合计		32,822,608			7,280,449

负债和股东权益合计	$	57,667,648		$	21,488,558


	在结束的三个月中						在截至的九个月中
	九月三十日						九月三十日
	2024			2023			2024			2023
收入	$	3,554,157		$	5,034,203		$	30,608,526		$	6,548,479
售出商品的成本		2,998,171			3,698,962			16,415,970			6,679,224
毛利润		555,986			1,335,241			14,192,556			(130,745	)

运营费用：
一般和管理费用：
工资和福利		1,875,908			618,907			6,350,038			1,450,103
专业服务		320,289			294,720			1,382,393			404,256
其他一般和管理费用		1,607,844			74,728			3,879,350			959,218
一般和管理费用总额		3,804,041			988,355			11,611,781			2,813,577
折旧和摊销		8,583			9,261			23,060			94,638
运营费用总额		3,812,624			997,616			11,634,841			2,908,215

净营业收入（亏损）		(3,256,638	)		337,625			2,557,715			(3,038,960	)

其他收入（支出）：
利息收入		39,509			-			43,639			-
利息支出		(225,095	)		(3,641	)		(1,243,428	)		(1,349,486	)
提前清偿债务造成的损失		-			-			(696,502	)		-
其他收入总额（支出）		(185,586	)		(3,641	)		(1,896,291	)		(1,349,486	)

所得税前收入（亏损）		(3,442,224	)		333,984			661,424			(4,388,446	)
所得税的福利（准备金）		62,315			-			(195,603	)		-
净收益（亏损）	$	(3,379,909	)	$	333,984		$	465,821		$	(4,388,446	)

加权平均已发行普通股——基本		10,245,388			5,123,735			8,651,223			4,942,182
普通股每股净收益（亏损）——基本	$	(0.33	)	$	0.07		$	0.05		$	(0.89	)

已发行普通股的加权平均值——摊薄		10,245,388			8,066,577			9,613,553			4,942,182
普通股每股净收益（亏损）——摊薄	$	(0.33	)	$	0.04		$	0.05		$	(0.89	)


	截至九个月的结束
	9月30日,
	2024			2023
经营活动产生的现金流量
净利润（损失）	$	465,821		$	(4,388,446	)
调整以达到净利润（损失）与经营活动现金流量净额的调和：
坏账费用		176,032			-
折旧和摊销		582,948			306,092
使用权资产和负债的非现金摊销		791,360			15,245
过时库存的减值		-			2,075,080
以服务为基础的普通股发行给董事		295,648			125,229
期权摊销		3,394,746			399,436
作为债务折扣发行的权证的摊销		932,883			900,228
提前注销债务的损失		696,502			-
流动资产减少（增加）:
应收账款		1,169,269			(1,197,608	)
预付费用		360,734			(10,760	)
存货		(15,319,762	)		(2,342,871	)
保证金		(1,011,340	)		(12,309	)
当前负债增加（减少）：
应付账款		447,563			257,091
应交所得税		65,603			-
应计利息		(363,326	)		419,807
应计费用		1,190,375			125,270
营运活动产生的净现金流入（流出）		(6,124,944	)		(3,328,516	)

投资活动产生的现金流量
购置固定资产等资产支出		(3,143,561	)		(1,326,276	)
施工支付的现金		(1,325,726	)		-
投资活动所使用的净现金		(4,469,287	)		(1,326,276	)

筹资活动产生的现金流量
普通股发行收益，减去发行成本$859,024		15,712,976			3,675,000
期权和warrants行使所获得的收益		373,855			-
来自应付票据及关联方所收到的收益		-			2,400,000
来自应付票据的收益		-			400,000
偿还借款		(956,250	)		-
筹资活动产生的现金净额		15,130,581			6,475,000

现金及现金等价物的净变动		4,536,350			1,820,208
期初现金及现金等价物		2,410,037			276,464
期末现金及现金等价物	$	6,946,387		$	2,096,672

补充信息：
已支付利息	$	667,293		$	27,878
利息收入	$	43,639			-
所得税已付款项	$	130,000			-

非现金投资和融资活动：
非现金行使warrants	$	5,299,113			-
偿还利息	$	(98,750	)		-
借款偿还	$	(5,200,363	)		-
将施工中的资产重新分类为物业和设备	$	2,864,649		$	1,766,110
与认股权证相关的债务折扣价值	$	-		$	247,880


☒	根据1934年证券交易法第13或15(d)节的季度报告


☐	根据1934年证券交易法第13或15(d)节的转型报告书


大型加速报告人	☐	加速文件提交人	☐
非加速文件提交人	☒	较小的报告公司	☒
新兴成长公司	☐


	截至2023年9月30日的三个月
					额外					总计
	普通股				付费		累积			股东
	股票		金额		资本		赤字			股权
余额，2023 年 6 月 30 日		4,868,083	$	4,868	$	59,117,367	$	(60,401,992	)	$	(1,279,757	)
私募发行中发行的普通股		735,000		74		3,674,926	–				3,675,000
向董事发行的服务普通股	–		–		–		–				-
授予董事和顾问的服务普通股期权	–		–			29,296	–				29,296
授予高级职员和雇员的服务普通股期权	–		–			111,463	–				111,463
截至2023年9月30日的三个月的净收益	–		–		–			333,984			333,984
余额，2023 年 9 月 30 日		5,603,083	$	4,942	$	62,933,052	$	(60,068,008	)	$	2,869,986


	在截至2024年9月30日的九个月中
					额外					总计
	普通股				付费		累积			股东
	股票		金额		资本		赤字			股权
余额，2023 年 12 月 31 日		6,029,371	$	6,029	$	66,014,415	$	(58,739,995	)	$	7,280,449
公开发行中发行的普通股，扣除发行成本		1,380,000		1,380		11,973,596	–				11,974,976
私募发行中发行的普通股		515,597		516		3,737,484	–				3,738,000
向董事发行的服务普通股		31,211		32		295,616	–				295,648
行使股票期权和认股权证的收益		2,289,209		2,288		5,670,680	–				5,672,968
授予董事和顾问的服务普通股期权	–		–			86,892	–				86,892
授予高级职员和雇员的服务普通股期权	–		–			3,307,854	–				3,307,854
截至2024年9月30日的九个月的净收益	–		–		–			465,821			465,821
余额，2024 年 9 月 30 日		10,245,388	$	10,245	$	91,086,537	$	(58,274,174	)	$	32,822,608


	在截至2023年9月30日的九个月中
					额外					总计
	普通股				付费		累积			股东
	股票		金额		资本		赤字			股权
余额，2022 年 12 月 31 日		4,847,384	$	4,847	$	58,485,602	$	(55,679,562	)	$	2,810,887
私募发行中发行的普通股		735,000		74		3,674,926	–				3,675,000
向董事发行的服务普通股		20,699		21		125,208	–				125,229
根据债务融资向关联方票据持有人发放的普通股认股权证	–		–			197,198	–				197,198
根据债务融资向票据持有人授予的普通股认股权证	–		–			50,682	–				50,682
授予董事和顾问的服务普通股期权	–		–			91,990	–				91,990
授予高级职员和雇员的服务普通股期权	–		–			307,446	–				307,446
截至2023年9月30日的三个月的净亏损	–		–		–			(4,388,446	)		(4,388,446	)
余额，2023 年 9 月 30 日		5,603,083	$	4,942	$	62,933,052	$	(60,068,008	)	$	2,869,986


	截至
	9月30日，						增加 /
	2024			2023			（减少）			变动百分比

营业收入	$	3,554,157		$	5,034,203		$	(1,480,046	)		(29	%)
营业成本		2,998,171			3,698,962			(700,791	)		(19	%)
毛利润（亏损）		555,986			1,335,241			(779,255	)		58	%
营业费用：
总务及行政费用：
薪资和福利		1,875,908			618,907			1,257,001			203	%
专业服务		320,289			294,720			25,569			9	%
其他总务及行政费用		1,607,844			74,728			1,533,116			2052	%
总行政及管理费用		3,804,041			988,355			2,815,686			285	%
折旧和摊销		8,583			9,261			(678	)		(7	%)
营业费用总计		3,812,624			997,616			2,815,008			282	%
净营业收入（损失）		(3,256,638	)		337,625			(3,594,263	)		1065	%
其他收入（费用）：
利息收入		39,509			-			39,509			100	%
利息费用		(225,095	)		(3,641	)		(221,454	)		(6082	%)
债务提前清偿损失		-			-			-			100	%
其他总收益(费用)		(185,586	)		(3,641	)		(181,945	)		(4997	%)
税前净利润（亏损）	$	(3,442,224	)	$	333,984		$	(3,776,208	)		1131	%


	截至九个月的时间段
	9月30日，						增加 /
	2024			2023			（减少）			变动百分比

营收	$	30,608,526		$	6,548,479		$	24,060,047			367	%
营业成本		16,415,970			6,679,224			9,736,746			146	%
毛利润（亏损）		14,192,556			(130,745	)		14,323,301		不适用
营业费用：
一般和管理费用：
工资和福利		6,350,038			1,450,103			4,899,935			338	%
专业服务		1,382,393			404,256			978,137			242	%
其他一般及行政开支		3,879,350			959,218			2,920,132			304	%
总管理费用		11,611,781			2,813,577			8,798,204			313	%
折旧与摊销		23,060			94,638			(71,578	)		(76	%)
总营业费用		11,634,841			2,908,215			8,726,626			300	%
净营业收入（亏损）		2,557,715			(3,038,960	)		5,596,675			184	%
其他收入（费用）：
利息收入		43,639			-			43,639			100	%
利息支出		(1,243,428	)		(1,349,486	)		106,058			(8	%)
提前注销债务的损失		(696,502	)		-			(696,502	)		100	%
其他收入（支出）总额		(1,896,291	)		(1,349,486	)		(546,805	)		41	%
税前净利润（亏损）	$	661,424		$	(4,388,446	)	$	5,049,870			115	%


	九个月已结束
	九月三十日
	2024			2023
用于经营活动的净现金	$	(6,124,944	)	$	(3,328,516	)
用于投资活动的净现金		(4,469,287	)		(1,326,276	)
融资活动提供的净现金		15,130,581			6,475,000

现金和现金等价物的净变动	$	4,536,350		$	1,820,208


附件编号	描述
2.1	Sow Good Inc.与Black Ridge Oil & Gas, Inc.的合并协议及计划，日期为2021年1月20日（引用2021年1月22日Sow Good Inc.向证券交易委员会提交的8-k表格的附录2.1）

2.2	Sow Good Inc.与Black Ridge Oil & Gas, Inc.的合并条款，日期为2021年1月20日（引用2021年1月22日Sow Good Inc.向证券交易委员会提交的8-k表格的附录3.1）

2.3	Sow Good Inc.的转化计划（引用2024年2月22日Sow Good Inc.向证券交易委员会提交的8-k表格的附录2.1）

3.1	公司章程（参考引用Sow Good Inc.于2024年2月22日向证券交易委员会提交的表格8-k的附录3.3）

3.2	修订后的公司章程（参考引用Sow Good Inc.于2024年2月22日向证券交易委员会提交的表格8-k的附录3.4）

3.3	转换条款（参考引用Sow Good Inc.于2024年2月22日向证券交易委员会提交的表格8-k的附录3.1）

3.4	转换证书（参考引用Sow Good Inc.于2024年2月22日向证券交易委员会提交的表格8-k的附录3.2）

4.1	Sow Good Inc.普通股股票证书格式 (根据2024年3月22日Sow Good Inc.向证券交易委员会提交的10-k表格的附录4.1的引用)

4.2	证券描述 (根据2024年3月22日Sow Good Inc.向证券交易委员会提交的10-k表格的附录4.1的引用)

31.1*	根据1934年证券交易法规则13a-14(a)或15d-14(a)，首席执行官的认证

31.2*	首席财务官根据1934年证券交易法第13a-14(a)条或15d-14(a)条的认证

32.1**	根据1934年证券交易法规则13a-14(b)或15d-14(b)以及18 U.S.C.第1350条，根据2002年Sarbanes-Oxley法案第906条的采纳，首席执行官的认证

32.2**	首席财务官根据1934年证券交易法第13a-14(b)条或15d-14(b)条和《美国法典》第18卷第1350条的认证，依据2002年萨班斯-奥克斯利法第906条通过

101.INS	内联XBRL实例文档——实例文档未出现在互动数据文件中，因为其XBRL标记嵌入在内联XBRL文档中。

101.SCH	内联XBRL补充架构，带有嵌入式链接基础文档。

104*	封面页面互动数据文件（嵌入在内联XBRL文件中并包含在附件101中）


	SOW GOOD INC.

日期：2024年11月14日	签署：	/ s / Claudia Goldfarb
		Claudia Goldfarb，首席执行官（信安金融执行官）

日期：2024年11月14日	By:	/s/ Brendon Fischer
		Brendon Fischer，临时首席财务官（信安金融官）