Peter Sidoti

Peter Sidoti of Sidoti & Company inquired about Sow Good's current inventory levels, its need for future financing, and the projected timeline to reach cash flow breakeven.

Answer

Co-Founder and CEO Claudia Goldfarb explained that the company is selling through significant finished goods from the previous year, with two specific SKUs being moved at a discount. She stated that at the current run rate, the business is stable and does not require immediate financing, though it might be evaluated for future expansion. Goldfarb projected reaching cash flow breakeven before the end of the year, a point with which CFO Donna Guy concurred.

Peter Sidoti from Sidoti & Company inquired about Sow Good's inventory levels, its necessity for future financing, and the projected timeline to reach cash flow breakeven.

Answer

Co-Founder & CEO Claudia Goldfarb explained that while significant finished goods inventory from last year remains, it has a long shelf life, with only two SKUs being discounted. She stated that current financing is adequate for the present run rate but that expansion could require re-evaluation. Goldfarb projected reaching cash flow breakeven before the end of the year, a sentiment with which CFO Donna Guy concurred.

Peter Sidoti of Sidoti & Company inquired about Sow Good's current inventory levels, its potential need for future financing, and the projected timeline to achieve cash flow breakeven.

Answer

Co-Founder and CEO Claudia Goldfarb explained that the company holds significant finished goods inventory from the previous year with a long shelf life, which it continues to sell through, with two SKUs being moved at a discount. On financing, she stated that at the current run rate, the business is stable and would only evaluate future financing for R&D or category expansion. Goldfarb projected reaching cash flow breakeven before the end of the year, with which CFO Donna Guy concurred.

Peter Sidoti of Sidoti & Company asked for clarification on capital spending guidance for the year and inquired about the company's plans for its significant and growing cash balance, including potential M&A or shareholder returns.

Answer

CFO Melissa Cougle reiterated capital spending guidance in the low $30 million range, which includes the ECO rigs. She explained the cash balance provides flexibility for continued share repurchases, potential CapEx sharing for future ECO rigs, and strategic M&A, noting that recent M&A conversations have been 'richer.' CEO Stuart Bodden added that the company is not intentionally building a 'war chest' and sees opportunities for both capital returns and M&A.

Peter Sidoti of Sidoti & Company inquired about Rocky Mountain Chocolate Factory's capital needs, including any plans to raise money, the potential use of funds, and the company's commitment to maintaining a clean balance sheet without issuing dilutive instruments. He also asked about the timeline for appointing permanent leadership.

Answer

Interim CEO Jeff Geygan stated that capital needs are an ongoing discussion with the board and there are no immediate plans to raise capital, though it remains under review. He indicated any funds raised would likely be for working capital and that his personal preference is to avoid dilutive capital, but it is ultimately a board decision. Regarding permanent leadership, Mr. Geygan noted it is also a topic of ongoing discussion with the board.

Asked about the company's capital needs, the potential for raising money to fund expansion and capital improvements, and the company's stance on issuing dilutive capital like warrants.

Answer

The interim CEO stated that capital needs are an ongoing discussion with the board and there are no immediate plans to raise capital. If funds were raised, they would be for working capital. He noted his personal preference is to avoid dilutive financing, but it is ultimately a board decision.