Edible Garden Secures $3.35M Tax Credit Cash and Posts 26.4% Holiday Sales Growth

EDBLEDBL

Edible Garden completed the sale of New Jersey net operating losses under the NJEDA Tax Certificate Transfer Program, receiving $3.35 million in non-dilutive cash proceeds. The Company reported a 26.4% YoY increase in holiday sales, including 26.7% gains in cut herbs and a near doubling of wheatgrass sales.

1. Company Completes NOL Sale Generating $3.35 Million in Non-Dilutive Capital

Edible Garden AG Incorporated has closed its participation in the New Jersey Economic Development Authority’s Technology Business Tax Certificate Transfer Program, monetizing previously unused state net operating losses to secure approximately $3.35 million in gross proceeds. This transaction converts tax assets into immediate liquidity without issuing equity or taking on additional debt, strengthening the Company’s balance sheet and bolstering financial flexibility. Management highlighted that the infusion of non-dilutive capital enhances cash flow and supports ongoing operations, strategic growth initiatives and disciplined capital allocation, positioning Edible Garden to invest in expanded CEA capacity and pursue operational efficiency projects that underpin long-term value creation for shareholders.

2. Preliminary Holiday Sales Climb 26.4%, Driving Broad-Based Category Gains

During the key holiday selling period from December 14–31, 2025, Edible Garden delivered a 26.4% year-over-year increase in preliminary, unaudited sales. Core product lines all contributed to growth: cut herbs rose approximately 26.7%, potted herbs climbed 25.0%, hydroponic basil advanced 16.4% and wheatgrass sales nearly doubled versus the prior-year period. Condiments and specialty items, including fermented sauces and krauts, also posted double-digit gains. The Company attributed performance to disciplined execution, high in-full fulfillment rates among the industry’s best and an expanded footprint in over 5,000 retail locations—ranging from Walmart and Target to Amazon and PriceSmart—enabling consistent delivery of fresh, organic produce during peak demand.

3. Enhanced Distribution Network and Operational Reliability

Edible Garden’s expanded network of vertically integrated greenhouses in New Jersey, Michigan and Iowa, complemented by contract grower partnerships near major U.S. markets, underpins its ability to scale supply reliably and reduce food miles. Proprietary technologies—patented GreenThumb 2.0 growing software and Self-Watering in-store displays—optimize environmental conditions and extend shelf life, supporting uninterrupted fulfillment. Management emphasized that these capabilities, combined with sustainable packaging and zero-waste farming protocols, strengthen retailer relationships and set the stage for further distribution gains and margin improvement in 2026.

Sources

GG