Sow Good Inc. Files 10-K for Fiscal Year Ended December 31, 2023

Ticker: SOWG · Form: 10-K · Filed: Mar 22, 2024 · CIK: 1490161

Sentiment: neutral

Topics: 10-K, Financials, Sow Good Inc., Revenue, Debt

TL;DR

<b>Sow Good Inc. filed its 10-K report for the fiscal year ending December 31, 2023, detailing financial performance and asset/debt levels.</b>

AI Summary

Sow Good Inc. (SOWG) filed a Annual Report (10-K) with the SEC on March 22, 2024. Sow Good Inc. reported total assets of $6,029,371 as of December 31, 2023. The company's total debt was $1,173,986 as of December 31, 2023. Revenue for the fiscal year ended December 31, 2023, was $4,318,854. Net income for the fiscal year ended December 31, 2023, was $135,962. Earnings per share (EPS) for the fiscal year ended December 31, 2023, was $0.001.

Why It Matters

For investors and stakeholders tracking Sow Good Inc., this filing contains several important signals. The filing provides a comprehensive overview of Sow Good Inc.'s financial health, including its asset base and debt obligations, which are crucial for investors to assess solvency and financial risk. Key financial metrics such as revenue, net income, and EPS offer insights into the company's operational performance and profitability during the 2023 fiscal year.

Risk Assessment

Risk Level: medium — Sow Good Inc. shows moderate risk based on this filing. The company's financial statements indicate a relatively small asset base ($6,029,371) and a significant debt-to-equity ratio (implied by $1,173,986 debt and potentially low equity), suggesting potential financial leverage and risk.

Analyst Insight

Investors should analyze the company's debt structure and cash flow to understand its ability to service its debt and fund future operations.

Financial Highlights

revenue
4,318,854
total Assets
6,029,371
total Debt
1,173,986
net Income
135,962
eps
0.001

Key Numbers

Key Players & Entities

FAQ

When did Sow Good Inc. file this 10-K?

Sow Good Inc. filed this Annual Report (10-K) with the SEC on March 22, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Sow Good Inc. (SOWG).

Where can I read the original 10-K filing from Sow Good Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Sow Good Inc..

What are the key takeaways from Sow Good Inc.'s 10-K?

Sow Good Inc. filed this 10-K on March 22, 2024. Key takeaways: Sow Good Inc. reported total assets of $6,029,371 as of December 31, 2023.. The company's total debt was $1,173,986 as of December 31, 2023.. Revenue for the fiscal year ended December 31, 2023, was $4,318,854..

Is Sow Good Inc. a risky investment based on this filing?

Based on this 10-K, Sow Good Inc. presents a moderate-risk profile. The company's financial statements indicate a relatively small asset base ($6,029,371) and a significant debt-to-equity ratio (implied by $1,173,986 debt and potentially low equity), suggesting potential financial leverage and risk.

What should investors do after reading Sow Good Inc.'s 10-K?

Investors should analyze the company's debt structure and cash flow to understand its ability to service its debt and fund future operations. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Filing Stats: 4,475 words · 18 min read · ~15 pages · Grade level 17.3 · Accepted 2024-03-22 17:04:10

Key Financial Figures

Filing Documents

Business

Business 1 ITEM 1A

Risk Factors

Risk Factors 13 ITEM 1B Unresolved Staff Comments 34 ITEM 1C Cybersecurity 34 ITEM 2

Properties

Properties 35 ITEM 3

Legal Proceedings

Legal Proceedings 35 ITEM 4 Mine Safety Disclosures 35 PART II ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 36 ITEM 6

Selected Financial Data

Selected Financial Data 39 ITEM 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 ITEM 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 ITEM 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 ITEM 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 50 ITEM 9A

Controls and Procedures

Controls and Procedures 50 ITEM 9B Other Information 51 PART III ITEM 10 Directors, Executive Officers, and Corporate Governance 52 ITEM 11

Executive Compensation

Executive Compensation 54 ITEM 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 ITEM 13 Certain Relationships and Related Transactions, and Director Independence 59 ITEM 14 Principal Accounting Fees and Services 60 PART IV ITEM 15 Exhibits, Financial Statement Schedules 62 ITEM 16 Form 10-K Summary 64

SIGNATURES

SIGNATURES 65 ii Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS Overview Sow Good is a trailblazing U.S.-based freeze dried candy and snack manufacturer dedicated to providing consumers with innovative and explosively flavorful freeze dried treats. Sow Good has harnessed the power of our proprietary freeze drying technology and product-specialized manufacturing facility to transform traditional candy into a novel and exciting everyday confectionaries subcategory that we call freeze dried candy. We began commercializing our freeze dried candy products in the first quarter of 2023, and as of December 31, 2023, we have fourteen stock keeping units ("SKUs") in our Sow Good Candy line of treats and four SKUs in our Sow Good Crunch Cream line. We sell our treats using an omnichannel strategy primarily focused on the wholesale and retail channels with less than 2% of sales coming from e-commerce as of December 31, 2023. As of December 31, 2023, our treats are offered for sale in over 5,850 brick-and-mortar retail outlets in the United States. The rapid demand growth for our delectable treats since their retail debut in March 2023 highlights our consumers' excitement for our novel and explosively flavorful treats that "satisfy your sweet tooth in fewer bites." We have custom-built a 20,945 square foot freeze drying facility in Irving, Texas, and have entered into additional co-manufacturing arrangements in China and Colombia, that together allow us to freeze dry fourteen million units per year to our demanding quality and safety specifications. Freeze drying removes up to 99% of moisture from a product in its frozen state by applying a small amount of heat in an extremely low air pressure, near outer space-like environment, through the use of massive vacuum chambers, resulting in moisture being removed from the product at the speed of sound. This process of removing moisture from the product, which can take up to twenty-four hours, concentrates its flavor, creating a "hyper dried, hyper crunchy, and hyper flavorful

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