Edible Garden AG received preliminary approval from the New Jersey Economic Development Authority to sell up to $3.35 million of its unused New Jersey net operating losses and research‑and‑development tax credits under the Technology Business Tax Certificate Transfer Program for fiscal year 2025.
The program is part of New Jersey’s $75 million annual allocation to support technology and innovation. Eligible companies can transfer tax assets to a qualified buyer in exchange for cash, providing non‑dilutive capital that can be used to strengthen working capital, fund growth initiatives, and accelerate research and development.
As of June 30 2025, the company had $2.8 million in cash. Q2 2025 results showed a net loss of $4 million versus a $1.9 million loss in Q2 2024, and revenue of $3.1 million versus $4.3 million in Q2 2024. The company’s operating margin is –87.27 %, net margin –101.53 %, debt‑to‑equity ratio 1.79, and Altman Z‑Score –3.98, indicating significant financial distress.
CEO Jim Kras said the proceeds would strengthen the balance sheet, support R&D, and advance strategic growth initiatives. The company is shifting toward higher‑margin, shelf‑stable products and exiting lower‑margin categories such as floral and lettuce. The tax credit sale will provide liquidity to fund this transition and expand production capacity, including a new line at the Heartland facility in Grand Rapids, Michigan.
In Q1 2025, the Herbs, Produce & Floral segment generated $2.55 million, while the Vitamins and Supplements segment added $171,000. Revenue declined across segments due to strategic exits, but gross margins improved as the company focused on higher‑margin products.
The company has added a new production line at its Heartland facility to serve the Midwest region and key retail partners, supporting the shift to shelf‑stable products.
Edible Garden uses controlled‑environment agriculture and patented GreenThumb 2.0 software to optimize growing conditions, emphasizing sustainability and operational efficiency.
The company operates in the consumer packaged goods sector, facing challenges in scaling sustainable agriculture and maintaining profitability amid competitive pressures.
The sale will proceed once an approved corporate buyer is identified, final allocation is confirmed, and the New Jersey Economic Development Authority grants closing and compliance approval.
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