May 15th, 2026

The call presented a mix of encouraging top-line momentum and strategic progress alongside notable margin, expense and liquidity challenges. Revenue grew strongly (22.9% YoY) with sizable category gains (cut herbs +45.9%, condiments +51%, vitamins +27%, international +50%) and expanded retail reach (6,000+ stores). Management highlighted meaningful progress on the RTD platform (Tetra Pak partnership, McCormick collaboration, co-manufacturing plan) and an improvement in cash flow (positive operating cash flow of ~$251k and cash rising to ~$2.0M). Offsetting these positives were a significant operating expense increase (+$4.4M vs prior year), higher depreciation (~$2.5M) tied to the RTD pivot, a widened net loss (~$3.7M), reliance on a discrete ~$3.4M tax benefit, ongoing working capital deficits, and near-term execution/capacity risk while dependent on co-manufacturing until the company's factory is online. Overall, momentum and strategic direction are constructive, but financial and execution risks temper the outlook.

Company Guidance

The company’s guidance emphasized disciplined execution to “continue scaling revenue” and margin improvement while prioritizing (1) expanding distribution across a retail footprint now exceeding 6,000 locations (Q1 adds included Target, Safeway, Fresh Market, Hannaford, Busch’s and Woodman’s), (2) improving cost structure by transitioning cut‑herb sourcing and focusing on higher‑margin branded categories, and (3) advancing its RTD manufacturing initiative (Tetra Pak integration at Prairie Hills, prototype run mid‑July, co‑manufacturer supply beginning September, own factory targeted late 2027/early 2028); management pointed to Q1 metrics of revenue up ~22.9% YoY to ~$3.3M (vs ~$2.7M), cut herbs +45.9% (~46%), vitamins +27%, condiments +51%, international sales +50%, a product mix today of ~40–50% cut herbs and ~20% vitamins, operating expenses $10.0M (vs $5.6M), depreciation & amortization up ~$2.5M, a discrete income tax benefit of ~$3.4M, net loss of ~$3.7M (vs ~$3.3M), cash of ~$2.0M (up from $1.1M) with positive operating cash flow of ~$251k, and a 98% ship rate — all cited as the foundation for pursuing the RTD opportunity in a global RTD market forecasted to grow from ~$842.5B in 2025 to ~$1.26T by 2033.