Edible Garden (EDBL) 10-Q 13 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 10, 2024
Document Information Line Items
Entity Registrant Name	EDIBLE GARDEN AG INCORPORATED
Entity Central Index Key	0001809750
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		18,905,058
Entity File Number	001-41371
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	85-0558704
Entity Address Address Line 1	283 County Road 519
Entity Address City Or Town	Belvidere
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	07823
City Area Code	908
Local Phone Number	750-3953
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Common Stocks [Member]
Document Information Line Items
Security 12b Title	Common Stock, par value $0.0001 per share
Trading Symbol	EDBL
Security Exchange Name	NASDAQ
Warrants [Member]
Document Information Line Items
Security 12b Title	Warrants to purchase Common Stock
Trading Symbol	EDBLW
Security Exchange Name	NASDAQ

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 2,214	$ 510
Accounts receivable, net	1,665	1,249
Inventory, net	1,437	678
Prepaid expenses and other current assets	78	210
Total current assets	5,394	2,647
Property, equipment and leasehold improvements, net	3,266	3,893
Finance lease right-of-use assets	125	0
Intangible assets, net	44	47
Other assets	34	69
TOTAL ASSETS	8,863	6,656
Current liabilities:
Accounts payable and other accrued expenses	3,487	2,517
Current maturities of finance lease liabilities	40	0
Short-term debt, net of discounts	1,343	387
Total current liabilities	4,870	2,904
Long-term liabilities:
Long-term debt, net of discounts	649	4,040
Long-term finance lease liabilities	85	0
Total long-term liabilities	734	4,040
Total liabilities	5,604	6,944
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock ($0.0001 par value, 100,000,000 shares authorized, 6,228,392 and 285,282 shares outstanding as of September 30, 2024 and December 31, 2023, respectively (1))	2	1
Series A Convertible Preferred stock ($0.0001 par value, 10,000,000 shares authorized; nil shares outstanding as of September 30, 2024 and December 31, 2023)	0	0
Additional paid-in capital	41,298	29,971
Obligation to issue shares	191	0
Accumulated deficit	(38,232)	(30,260)
Total stockholders' equity (deficit)	3,259	(288)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 8,863	$ 6,656

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common stock, shares par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	6,228,392	285,282
Series A Convertible Preferred Stocks [Member]
Preffered Stock, shares par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 2,584	$ 3,289	$ 9,985	$ 9,965
Cost of goods sold	1,885	3,277	7,696	9,425
Gross profit	699	12	2,289	540
Selling, general and administrative expenses	2,189	2,387	8,823	7,458
Loss from operations	(1,490)	(2,375)	(6,534)	(6,918)
Other income (expenses)
Interest expense, net	(409)	(57)	(944)	(334)
Gain (Loss) from extinguishment of debt	(164)	0	(498)	70
Employee retention credit	0	0	0	1,233
Other income / (loss)	0	1	4	1
Total other income (expenses)	(573)	(56)	(1,438)	970
NET LOSS	(2,063)	(2,431)	(7,972)	(5,948)
Less: Series A Preferred Dividend	0	0	0	(4)
NET LOSS ATTRIBUTABLE TO COMMON STOCK	$ (2,063)	$ (2,431)	$ (7,972)	$ (5,952)
Net Income / (Loss) per common share - basic and diluted (1)	$ (0.65)	$ (13.83)	$ (4.73)	$ (47.72)
Weighted-Average Number of Common Shares Outstanding Basic and Diluted (1)	3,160,392	175,762	1,686,432	124,733

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Obligation To Issue Shares [Member]	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2022		18,136
Balance, amount at Dec. 31, 2022	$ (2,180)	$ 0	$ 0	$ 17,892	$ (20,072)
Issuance of common stock and warrants in public offering, net of expenses, shares		223,486
Issuance of common stock and warrants in public offering, net of expenses, amount	$ 11,979	$ 1	0	11,978	0
Cashless exercise of common stock warrants, shares	1,772,080	43,052
Issuance of common stock for Directors' fees, shares		349
Issuance of common stock for Directors' fees, amount	$ 73	$ 0	0	73	0
Issuance of common stock to employees and consultants, shares		117
Issuance of common stock to employees and consultants, amount	30	$ 0	0	30	0
Series A Preferred dividend	(4)	$ 0	0	(4)	0
Net Income (Loss)	(5,948)			0	(5,948)
Balance, shares at Sep. 30, 2023		285,140
Balance, amount at Sep. 30, 2023	3,950	$ 1	0	29,969	(26,020)
Balance, shares at Jun. 30, 2023		141,354
Balance, amount at Jun. 30, 2023	3,660	$ 0	0	27,249	(23,589)
Issuance of common stock and warrants in public offering, net of expenses, shares		142,536
Issuance of common stock and warrants in public offering, net of expenses, amount	2,721	$ 1	0	2,720	0
Cashless exercise of common stock warrants, shares		1,250
Net Income (Loss)	(2,431)	$ 0	0	0	(2,431)
Balance, shares at Sep. 30, 2023		285,140
Balance, amount at Sep. 30, 2023	3,950	$ 1	0	29,969	(26,020)
Balance, shares at Dec. 31, 2023		285,282
Balance, amount at Dec. 31, 2023	(288)	$ 1	0	29,971	(30,260)
Issuance of common stock and warrants in public offering, net of expenses, shares		5,461,000
Issuance of common stock and warrants in public offering, net of expenses, amount	10,294	$ 1	176	10,117	0
Issuance of common stock to employees and consultants, shares		6,000
Issuance of common stock to employees and consultants, amount	38	$ 0	0	38	0
Net Income (Loss)	(7,972)				(7,972)
Exercises of common stock warrants, shares		218,000
Exercises of common stock warrants, amount	15	$ 0	15	0	0
Sale of common stock pursuant to Equity Distribution Agreement, net of fees, shares		181,710
Sale of common stock pursuant to Equity Distribution Agreement, net of fees, amount	1,147	$ 0	0	1,147	0
Issuance of common stock as payment of severance, shares		3,502
Issuance of common stock as payment of severance, amount	25	$ 0	0	25	0
Issuance of common stock to round up shares due to stock split, shares		72,898
Issuance of common stock to round up shares due to stock split, amount		$ 0		0
Balance, shares at Sep. 30, 2024		6,228,392
Balance, amount at Sep. 30, 2024	3,259	$ 2	191	41,298	(38,232)
Balance, shares at Jun. 30, 2024		3,160,392
Balance, amount at Jun. 30, 2024	511	$ 1	0	36,679	(36,169)
Issuance of common stock and warrants in public offering, net of expenses, shares		3,024,000
Issuance of common stock and warrants in public offering, net of expenses, amount	4,796	$ 1	176	4,619	0
Net Income (Loss)	(2,063)	$ 0	0	0	(2,063)
Exercises of common stock warrants, shares		44,000
Exercises of common stock warrants, amount	15	$ 0	15	0
Balance, shares at Sep. 30, 2024		6,228,392
Balance, amount at Sep. 30, 2024	$ 3,259	$ 2	$ 191	$ 41,298	$ (38,232)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (7,972)	$ (5,948)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense	23	0
Depreciation and amortization	818	1,093
Amortization of operating lease right of use asset	34	68
Amortization of debt discount	62	8
(Gain) / Loss on extinguishment of debt	498	(70)
Stock-based compensation	38	30
Stock issued for payment of severance	25	0
Stock issued to Directors	0	73
Other non-cash expenses	2	5
Change in operating assets and liabilities:
Accounts receivable	(439)	(586)
Inventory	(759)	36
Prepaid expenses and other current assets	57	(299)
Accounts payable and accrued expenses	886	(1,120)
Operating lease liabilities	(34)	(68)
NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES	(6,761)	(6,778)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, equipment and leasehold improvements	(177)	(800)
NET CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES	(177)	(800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt, including related parties	2,453	175
Payments of debt principal, including related parties	(5,237)	(2,103)
Payment of debt issuance costs	(138)	0
Proceeds from sales of common stock from Equity Distribution Agreement	1,187	0
Payment of commissions related to sale of common stock	(45)	0
Proceeds from common stock and warrants issued in public offering	11,551	12,237
Payment of costs related to public offering	(1,133)	(259)
Proceeds from common stock warrant exercises	15	0
Principal payments on finance lease liabilities	(11)	0
Payment of preferred stock dividends	0	(4)
NET CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES	8,642	10,046
NET CHANGE IN CASH	1,704	2,468
Cash at beginning of period	510	110
CASH AT END OF PERIOD	2,214	2,578
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:
Cash paid for interest	820	328
SUPPLEMENTAL DISCLOSURE FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:
Trucks acquired with debt	0	152
Lease liabilities arising from obtaining right-of-use-assets	136	0
Unpaid stock issuance costs	124	0
Directors & Officers insurance policy purchased with financing	$ 75	$ 0

ORGANIZATION NATURE OF BUSINESS

ORGANIZATION NATURE OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2024
ORGANIZATION NATURE OF BUSINESS AND BASIS OF PRESENTATION
ORGANIZATION, NATURE OF BUSINESS, AND BASIS OF PRESENTATION	NOTE 1 – ORGANIZATION, NATURE OF BUSINESS, AND BASIS OF PRESENTATION Organization and Recent Developments Edible Garden Corp., a Nevada corporation, was incorporated on April 9, 2013. On March 28, 2020, Edible Garden Inc., a Wyoming corporation, was incorporated for the purpose of acquiring substantially all of the operating assets of Edible Garden Corp., which was a separately identified reportable segment of its parent company Blum Holdings, Inc. (formerly known as Terra Tech Corporation). The acquisition was completed on March 30, 2020. Prior to March 30, 2020, Edible Garden AG Incorporated had no operations. Hereafter, Edible Garden AG Incorporated and its subsidiaries will collectively be referred to as “Edible Garden,” “we,” “us,” “our,” the “Company” or the “Successor.” Edible Garden Corp., a formerly wholly owned subsidiary of Blum Holdings, Inc. will be referred to as the “Predecessor.” Throughout these financial statements, the Successor and the Predecessor are also referred to as “the Company” and used interchangeably, unless otherwise noted. On October 1, 2024, the Company acquired the Predecessor for the nominal price of $1.00. See Note 12, “ Subsequent Events We authorized 100,000 shares of common stock, par value $0.0001 per share (“common stock”), at formation. On October 14, 2020, we simultaneously declared a 20-for-1 forward stock split of our common stock and increased the number of authorized common shares to 20,000,000. On June 30, 2021, we simultaneously (1) converted Edible Garden from a Wyoming into a Delaware corporation, (2) declared a 1-for-2 reverse stock split of our common stock, and (3) increased the total number of authorized common shares to 50,000,000. On September 8, 2021, we simultaneously declared a 20-for-1 forward stock split of our common stock and increased the number of authorized common shares to 200,000,000. On January 18, 2022, the Company’s board of directors and stockholders approved a 1-for-5 reverse stock split of its outstanding common stock, which became effective on May 3, 2022. On January 26, 2023, we effected a reverse stock split of 1-for-30 and decreased the total number of authorized common shares to 6,666,667. On June 8, 2023, we increased the number of authorized shares of common stock from 6,666,667 shares to 10,000,000 shares. On November 10, 2023, we increased the total number of authorized shares of capital stock of the Company from 20,000,000 to 110,000,000 and increased the total authorized shares of common stock from 10,000,000 shares to 100,000,000 shares. On April 5, 2024, we declared a 1-for-20 reverse stock split of our outstanding common stock. The conversion or exercise prices of our issued and outstanding stock options and warrants were adjusted in connection with the reverse stock split. All historical share and per share amounts reflected throughout this report have been adjusted to reflect the stock splits described above. Nature of Business Edible Garden is a retail seller of locally grown hydroponic produce, nutraceuticals and hot sauce, which is distributed throughout the Northeast and Midwest. Currently, Edible Garden’s products are sold at over 5,000 supermarkets. Our target customers are those individuals seeking fresh produce locally grown using environmentally sustainable methods. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) pursuant to Section 13 or 15(d) under the Securities Exchange Act of 1934. The December 31, 2023 balances reported herein are derived from the audited consolidated financial statements for the year ended December 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s unaudited condensed consolidated financial position as of September 30, 2024 and December 31, 2023, the unaudited condensed consolidated results of operations for the three and nine-month periods ended September 30, 2024 and 2023, and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023 have been included. Going Concern The accompanying financial statements have been prepared assuming that we will continue as a going concern. In an effort to achieve liquidity that would be sufficient to meet all of our commitments, the Company may seek funding through additional debt or equity financing arrangements, implement incremental expense reduction measures or a combination thereof to continue financing its operations. However, we believe that even after taking these actions, we will not have sufficient liquidity to satisfy all of our future financial obligations. The risks and uncertainties surrounding our ability to continue our business with limited capital resources raise substantial doubt as to our ability to continue as a going concern. See Note 11, “ Going Concern

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Pronouncements to Be Adopted in Future Periods In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740) Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reported period. Changes in these estimates and assumptions may have a material impact on the consolidated financial statements and accompanying notes. Examples of significant estimates and assumptions include provisions for doubtful accounts, accrued liabilities, discount rates used in the measurement and recognition of lease liabilities and valuation of our warrants. These estimates generally involve complex issues and require us to make judgments, involving an analysis of historical and future trends, that can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates. Trade and Other Receivables The Company extends non-interest-bearing trade credit to its customers in the ordinary course of business which is not collateralized. Accounts receivable are shown on the face of the consolidated balance sheets net of an allowance for doubtful accounts. The Company analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness and current economic trends, in determining the allowance for doubtful accounts. The Company does not accrue interest receivable on past due accounts receivable. The reserve for credit losses was $92,351 and $136,858 as of September 30, 2024 and December 31, 2023, respectively. Concentrations of Credit Risk During the nine months ended September 30, 2024, five customers accounted for approximately 85.0% of our total revenue. During the nine months ended September 30, 2023, five customers accounted for approximately 83.0% of our total revenue. As of September 30, 2024, approximately 82.5% of our gross outstanding trade receivables were attributed to four customers, 27.3% of which was due from one customer. As of December 31, 2023, approximately 80.4% of our gross outstanding trade receivables were attributed to four customers, 41.1% of which was due from one customer. This concentration of customers leaves us exposed to the risks associated with the loss of one or more of these significant customers, which would materially and adversely affect our revenues and results of operations. The Company maintains a cash balance in a financial institution that is insured by the Federal Deposit Insurance Corporation up to certain federal limitations. At times, the Company’s cash balance exceeds these federal limitations. The amount in excess of insured limitations was approximately $2.0 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively. Inventory We value our inventory at the lower of the actual cost of our inventory, as determined using the first-in, first-out method, or its net realizable value. We periodically review our physical inventory for excess, obsolete, and potentially impaired items and reserve accordingly. Our reserve estimate for excess and obsolete inventory is based on expected future use. Our reserve estimates have historically been consistent with our actual experience as evidenced by actual sale or disposal of the goods. The reserve for excess and obsolete inventory was not material as of September 30, 2024 and December 31, 2023. Prepaid Expenses Prepaid expenses consist of various payments that the Company has made in advance for goods or services to be received in the future. These prepaid expenses include advertising, insurance, and service or other contracts requiring up-front payments. Property, Equipment and Leasehold Improvements, Net Property, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Our fixed assets, which are comprised of leasehold improvements, equipment and vehicles, have useful lives of five years. Expenditures for major renewals and improvements are capitalized, while minor replacements, maintenance and repairs, which do not extend the asset lives, are charged to operations as incurred. Upon sale or disposition, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. The Company continually monitors events and changes in circumstances that could indicate that the carrying balances of its property, equipment and leasehold improvements may not be recoverable in accordance with the provisions of Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” “Property, Equipment and Leasehold Improvements, Net” Intangible Assets Intangible assets continue to be subject to amortization, and any impairment is determined in accordance with ASC 360, “ Property, Plant, and Equipment.” The Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or if a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), the Company will write the carrying value down to the fair value in the period the impairment is identified. Revenue Recognition and Performance Obligations Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company does not offer returns, discounts, loyalty programs or other sales incentive programs that are material to revenue recognition. Payments from our customers are due upon delivery or within a short period after delivery. Disaggregation of Revenue The following tables includes revenue disaggregated by revenue stream for the three and nine months ended September 30, 2024 and 2023: (in thousands) Three Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 2,278 $ 2,901 Vitamins and Supplements 306 388 Total $ 2,584 $ 3,289 (in thousands) Nine Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 8,867 $ 8,731 Vitamins and Supplements 1,118 1,234 Total $ 9,985 $ 9,965 Contract Balances Due to the nature of the Company’s revenue from contracts with customers, the Company does not have material contract assets or liabilities that fall under the scope of ASC Topic 606. Contract Estimates and Judgments On January 1, 2024, the Company and Meijer Distribution, Inc. (the “Buyer”) entered into two agreements pursuant to which the Company will supply and sell products to the Buyer (the “Agreements”). Under the Agreements, the Company sells (i) fresh cut herbs, including basil, bay leaves, chives, cilantro, dill, mint, oregano, rosemary, sage, thyme; (ii) hydroponic basil; and (iii) potted herbs, including basil, chives, cilantro, mint, oregano, parsley, rosemary, sage, thyme, wheatgrass; in quantities and on a delivery schedule requested by the Buyer at prices per unit set in advance by the Company and the Buyer. Under the Agreements, the Company and the Buyer will renegotiate the prices for each unit annually, provided that the price per unit will not increase or decrease at a rate greater than the change in the relevant Consumer Price Index in that year. Once set, the pricing terms will remain fixed for the remainder of the year. Any price increases will take effect after sixty days and any price decrease will be effective immediately. If the Company and the Buyer are unable to mutually agree on price increases, the Company will have the power to terminate the Agreements immediately. In addition, under the agreement governing the purchase of potted herbs, the Company agreed to fund the installation of fixtures in each of the Buyer’s stores to display the potted herbs in an aggregate amount of $806,947. These payments were made as a weekly deduction from the Company’s receivables from the Buyer. The Agreements became effective as of January 1, 2024 and expire on December 31, 2026. The Agreements may be renewed for an additional two-year term upon the mutual agreement of the Company and the Buyer. The Agreements may be terminated by the Buyer without cause upon sixty days’ prior notice. Management has determined the payments for the fixtures should be treated as a reduction in revenue under the guidance of ASC 606. As we do not expect the agreement to be terminated before the end of the three-year term, the aggregate cost of the fixtures of approximately $806,947 will be treated as a reduction in the transaction price of products sold to the Buyer during the three-year term of the contract. Cost of Goods Sold Cost of goods sold includes materials, labor and overhead costs incurred in cultivating, producing, and shipping our products. Advertising Expenses The Company expenses advertising costs as incurred in accordance with ASC 720-35, “Other Expenses – Advertising Cost.” Loss Per Common Share In accordance with the provisions of ASC 260, “Earnings Per Share,” Income Taxes The provision for income taxes is determined in accordance with ASC 740, “Income Taxes.” The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50.0% likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax related interest and penalties as interest expense and selling, general and administrative expense, respectively, on the consolidated statements of operations. Segment Reporting The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment. The Company’s principal decision makers are the Chief Executive Officer and its Interim Chief Financial Officer. Management believes that its business operates as one reportable segment because: a) the Company measures profit and loss as a whole; b) the principal decision makers do not review information based on any operating segment; c) the Company does not maintain discrete financial information on any specific segment; d) the Company has not chosen to organize its business around different products and services, and e) the Company has not chosen to organize its business around geographic areas.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2024
INVENTORY
INVENTORY	NOTE 3 – INVENTORY The following table summarizes inventory as of September 30, 2024 and December 31, 2023: (in thousands) September 30, December 31, 2024 2023 Raw materials $ 597 $ 341 Work-in-progress 783 258 Finished goods 57 79 Total inventory $ 1,437 $ 678

PROPERTY EQUIPMENT AND LEASEHOL

PROPERTY EQUIPMENT AND LEASEHOLD IMPROVEMENTS NET	9 Months Ended
	Sep. 30, 2024
PROPERTY EQUIPMENT AND LEASEHOLD IMPROVEMENTS NET
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET	NOTE 4 – PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET The following table summarizes property, equipment and leasehold improvements as of September 30, 2024 and December 31, 2023: (in thousands) September 30, December 31, 2024 2023 Furniture and equipment 1,306 1,276 Computer hardware 10 6 Leasehold improvements 3,135 3,121 Vehicles 456 456 Land 202 202 Construction in progress 308 182 Subtotal 5,417 5,243 Less accumulated depreciation (2,151 ) (1,350 ) Property, equipment and leasehold improvements, net $ 3,266 $ 3,893 Depreciation expense related to property, equipment and leasehold improvements for the nine months ended September 30, 2024 and 2023 was $804,431 and $1,090,778, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2024
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 5 – INTANGIBLE ASSETS The following table summarizes intangible assets as of September 30, 2024 and December 31, 2023: (in thousands) September 30, 2024 December 31, 2023 Estimated Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying in Years Value Amortization Value Value Amortization Value Amortizing Intangible Assets: Pulp brand recipes 15 $ 50 $ (6 ) $ 44 $ 50 $ (3 ) $ 47 Non-compete agreement 2 62 (62 ) - 62 (62 ) - Total Intangible Assets, net $ 112 $ (68 ) $ 44 $ 112 $ (65 ) $ 47 Amortization expense for the nine months ended September 30, 2024 and 2023 was $2,500. Annual amortization expense for each of the next five years will be $3,333 and the total thereafter $27,500.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2024
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following table summarizes accounts payable and accrued expenses as of September 30, 2024 and December 31, 2023: (in thousands) September 30, 2024 December 31, 2023 Accounts payable $ 1,864 $ 1,233 Current operating lease liability - 34 Accrued interest payable 28 32 Accrued payroll 126 270 Accrued severance 234 - Accrued vacation 123 80 Accrued transaction expenses 124 - Other accrued expenses 123 3 Employee retention credit funds 865 865 Total Accounts Payable and Accrued Expenses $ 3,487 $ 2,517

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2024
NOTES PAYABLE
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE Notes payable as of September 30, 2024 and December 31, 2023 consisted of the following: (in thousands) September 30, December 31, 2024 2023 Secured promissory note $ - $ 3,106 Future receivables financing agreement with Cedar Advance, LLC 932 - NJD Investments, LLC promissory note 640 864 SBA loan 150 150 Vehicle loans 262 325 Insurance financing agreement 51 - Total Gross Debt $ 2,035 $ 4,445 Less: Gross short term debt (1,386 ) (387 ) Less: Long-term debt discount - (18 ) Net Long Term Debt $ 649 $ 4,040 Scheduled maturities of debt as of September 30, 2024, are as follows (in thousands): Years Ending December 31, Cedar Advance, LLC loan NJD Investments, LLC Promissory Note SBA Loan Insurance Financing Vehicle Loans Total 2024 (remaining) 683 77 - 25 22 807 2025 249 316 - 26 92 683 2026 - 247 - - 82 329 2027 - - - - 59 59 Thereafter - - 150 - 7 157 Total $ 932 $ 640 $ 150 $ 51 $ 262 $ 2,035 Secured Promissory Notes On March 30, 2020, the Company entered into a promissory note (the “First Sament Note”) for $3,000,000 with Sament Capital Investments, Inc., a wholly owned subsidiary of the Predecessor, (“Sament”) in connection with the acquisition of the Predecessor’s assets. The First Sament Note accrued interest at a rate of 3.5% per annum on a 360-day year basis and had a maturity date of March 30, 2025. The First Sament Note was secured by the Company’s operating assets purchased from the Predecessor. On November 15, 2023, Sament assigned the note to various third parties who are not affiliated with the Company. On September 30, 2024, the Company prepaid the principal and accrued interest due under the First Sament Note with a premium of $155,322. As a result of the agreement, the Company repaid $3,106,458 of outstanding principal and $9,061 of accrued interest. During the three and nine months ended September 30, 2024, the Company recognized a loss from extinguishment of debt equal to $163,584 for the premium paid plus the unamortized debt discount on the First Sament Note. As of December 31, 2023, the total outstanding balance of $3,106,458 is included in “Long-term debt, net of discounts” On June 2, 2020, the Company entered into a promissory note for $653,870 with Sament (the “Second Sament Note”), which accrued interest at a rate of 3.50% per annum and had a maturity date of June 3, 2023. The Second Sament Note was secured by the Company’s operating assets purchased from the Predecessor. During the year ended December 31, 2021, accrued interest of $23,203 was added to the principal of the Second Sament Note. On February 17, 2023, the Company prepaid the principal and accrued interest due under the Second Sament Note in exchange for Sament agreeing to reduce the principal amount of the Second Sament Note by approximately 10%. As a result of the agreement, the Company repaid $606,653 of outstanding principal, and $27,125 of accrued interest, and recognized a gain from extinguishment of the debt of $70,420 during the nine months ended September 30, 2023. Future Receivables Financing Agreement with Cedar Advance, LLC On March 14, 2024, the Company entered into a standard merchant cash advance agreement (the “Cedar Agreement”) with Cedar Advance LLC (“Cedar”), dated as of March 12, 2024, pursuant to which the Company sold to Cedar $1,491,000 of its future accounts receivable for a purchase price of $1,050,000, less fees and expenses of $50,000, for net funds provided of $1,000,000. Pursuant to the Cedar Agreement, Cedar was expected to withdraw $53,250 a week directly from the Company’s bank account until the $1,491,000 due to Cedar under the Cedar Agreement is paid in full. To secure the Company’s obligations under the Cedar Agreement, the Company granted Cedar a security interest in all accounts, including all deposit accounts, accounts receivable, and other receivables, and proceeds as those terms are defined by Article 9 of the Uniform Commercial Code (the “Collateral”). In addition, the Company agreed not to incur, directly or indirectly, any lien on or with respect to the Collateral. In the event of a default (as defined in the Cedar Agreement), Cedar, among other remedies, can enforce its security interest in the Collateral and demand payment in full of the uncollected receivables purchased plus all fees due under the Cedar Agreement. On May 7, 2024, the Company entered into an amended and restated standard merchant cash advance agreement (the “Restated Agreement”) with Cedar. Under the Restated Agreement, the Company sold to Cedar a total of $2,485,000 of its future accounts receivable collections for a purchase price of $1,750,000. The Company received cash of $544,250 after pay-off of the remaining amount due under the Cedar Agreement of $1,118,250 and fees and expenses of $87,500. Pursuant to the Restated Agreement, the Company is required to pay Cedar 35.0% of all funds collected weekly from customers and Cedar is expected to withdraw $65,395 per week from the Company’s bank account until the $2,485,000 due to Cedar (representing $1,750,000 of principal and $735,000 of interest) under the Restated Agreement is paid in full. Except as amended by the Restated Agreement, the remaining terms of the Cedar Agreement remain in full force and effect. Management determined the Restated Agreement should be accounted for as an extinguishment of debt and recorded a loss on extinguishment of $334,806 during the nine months ended September 30, 2024. Accrued interest and unamortized financing fees on the loan totaled $19,910 and $39,142 as of September 30, 2024, respectively. NJD Investments, LLC Promissory Note On August 30, 2022, the Company entered into a promissory note (the “NJDI Note”) for $1,136,000 with NJDI in connection with its purchase of the assets of 2900 Madison Ave. SE, Grand Rapids, Michigan (“the Property”). The NJDI Note accrues interest at a rate of 5% per annum and will mature on September 1, 2026. The Company may prepay the outstanding amount due at any time without penalty. The Company makes monthly payments of principal and interest of $28,089. The NJDI Note is secured by a mortgage on the Property (the “Mortgage”) and a security interest in the assets owned by the Subsidiary in favor of NJDI (the “Security Agreement”). In addition, the Company’s obligation to repay the amounts due under the NJDI Note, or up to $1,136,000 plus any accrued interest, is guaranteed by the Company under a guaranty in favor of NJDI (the “Guaranty”) entered into on August 30, 2022. Under the Guaranty, in the event that the Company defaulted on the NJDI Note, the Company would be responsible for any sum remaining due after NJDI foreclosed on the Mortgage and exercised its rights under the Security Agreement. During the year ended December 31, 2022, accrued interest of $19,210 was added to the principal of the NJDI Note. As of September 30, 2024 and December 31, 2023, $312,149 and $300,683 of the outstanding balance is included in “ Short-term debt, net of discounts” Long-term debt, net of discounts” Small Business Administration (“SBA”) Loans On June 22, 2020, the Company entered into a U.S. Small Business Administration Loan Authorization and Agreement pursuant to which the Company received loan proceeds of $150,000 (the “SBA Loan”). The SBA Loan was made under, and is subject to the terms and conditions of, the Economic Injury Disaster Loan Program, which was a program expanded for COVID-19 relief under the CARES Act and is administered by the U.S. Small Business Administration. The term of the SBA Loan is thirty (30) years with a maturity date of June 22, 2050 and the annual interest rate of the SBA Loan is a fixed rate of 3.75%. Under the terms of the CARES Act, the use of loan proceeds for the SBA Loan is limited to alleviating economic injury caused by the COVID-19 pandemic. The outstanding balance on the SBA Loan of $150,000 is included in “Long-term debt, net of discounts” Vehicle Loans During the year ended December 31, 2021, the Company entered into three financing agreements totaling $102,681 for the purchase of vehicles. The loans, which accrue interest at rates of 16.84% - 18.66%, mature in 2026. The loans are secured by the vehicles purchased. During the year ended December 31, 2022, the Company entered into two financing agreements totaling $158,214 for the purchase of vehicles. The loans, which accrue interest at a rate of 7.64%, mature in 2027. The loans are secured by the vehicles purchased. During the year ended December 31, 2023, the Company entered into three financing agreements totaling $151,850 for the purchase of vehicles. The loans, which accrue interest at a rate of 10.49%, mature in 2028. The loans are secured by the vehicles purchased. As of September 30, 2024, $90,981 of the total outstanding balance of the vehicle loans is included within “ Short-term debt, net of discounts” “Long-term debt, net of discounts” Short-term debt, net of discounts” “Long-term debt, net of discounts”

STOCKHOLDERS EQUITY (DEFICIT)

STOCKHOLDERS EQUITY (DEFICIT)	9 Months Ended
	Sep. 30, 2024
STOCKHOLDERS EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 8 – STOCKHOLDERS’ EQUITY (DEFICIT) September 2024 Public Offering On September 30, 2024, the Company closed a best-efforts public offering (the “September Offering”) of (i) 4,240,650 common units, each consisting of one share of common stock, par value $0.0001 per share (“common stock”), one Class A warrant (“Class A Warrant”) to purchase one share of common stock and one Class B warrant (“Class B Warrant,” together with the Class A Warrants, the “Warrants”) to purchase one share of common stock at a purchase price of $0.36 per unit; and (ii) 11,460,000 pre-funded units, each consisting of one pre-funded warrant to purchase one share of common stock (“Pre-Funded Warrant”), one Class A Warrant and one Class B Warrant at a purchase price of $0.35 per unit. The Warrants have an exercise price of $0.36 per share, are immediately exercisable, and, in the case of Class A Warrants, will expire on September 30, 2029, and in the case of Class B Warrants, will expire on March 30, 2026. The exercise price of the Class A and Class B Warrants is subject to adjustment for stock splits, reverse splits, and similar capital transactions as described in such Warrants. Subject to certain ownership limitations described in the Pre-Funded Warrants, the Pre-Funded Warrants are immediately exercisable and may be exercised at a nominal exercise price of $0.01 per share of common stock any time until all of the Pre-Funded Warrants are exercised in full. In connection with the September Offering, on September 27, 2024, the Company also entered into a placement agency agreement pursuant to which Maxim Group LLC (the “Placement Agent”) served as the exclusive placement agent in connection with the September Offering. The Company paid the Placement Agent a cash fee of 7.0% of the aggregate gross proceeds raised at the closing of the September Offering and reimbursement of certain expenses and legal fees in the amount of $80,000. The Company also issued to the Placement Agent warrants to purchase up to 785,033 shares of common stock (the “Placement Agent Warrants”). The Placement Agent Warrants have an exercise price of $0.36 per share and substantially the same terms as the Class A Warrants, except the Placement Agent Warrants are not exercisable until March 26, 2025. The Company received gross proceeds of $5,552,484 from the September Offering and paid underwriting and other fees of $755,326, resulting in net proceeds of $4,797,158. As of September 30, 2024, 1,216,650 shares of common stock purchased in the September Offering had not been issued. Management recorded an obligation to issue shares of $176,374 as of September 30, 2024, equal to the allocated fair value of the remaining shares to be issued. May 2024 Public Offering On May 23, 2024, the Company completed a best-efforts public offering (the “May Offering”) of (i) 2,437,000 common units, each consisting of one share of common stock, one Class A warrant (“May Class A Warrant”) to purchase one share of common stock and one Class B warrant (“May Class B Warrant,” together with the May Class A Warrants, the “May Warrants”) to purchase one share of common stock at a purchase price of $2.26 per unit; and (ii) 218,000 pre-funded units, each consisting of one pre-funded warrant to purchase one share of common stock (“May Pre-Funded Warrant”), one May Class A Warrant and one May Class B Warrant at a purchase price of $2.25 per unit. The May Warrants had an exercise price of $2.26 per share, subject to an exercise price reset, were immediately exercisable, and, in the case of May Class A Warrants, will expire on May 23, 2029, and in the case of May Class B Warrants, will expire on November 23, 2025. The Warrants had an exercise price reset feature whereby if, on June 22, 2024, the exercise price of the May Warrants was greater than the arithmetic average of the volume-weighted average price of the common stock for the prior five days (the “reset price”), the exercise price of the May Warrants would be reduced to the reset price. Pursuant to the reset feature, the exercise price of the May Warrants became $1.49 on June 22, 2024. The exercise price of the May Class A and May Class B Warrants is also subject to adjustment for stock splits, reverse splits, and similar capital transactions as described in such May Warrants. Subject to certain ownership limitations described in the May Pre-Funded Warrants, the May Pre-Funded Warrants were immediately exercisable and may be exercised at a nominal exercise price of $0.01 per share of common stock any time until all of the May Pre-Funded Warrants are exercised in full. In connection with the May Offering, on May 22, 2024, the Company also entered into a placement agency agreement pursuant to which Maxim Group LLC (the “May Placement Agent”) served as the exclusive placement agent in connection with the May Offering. The Company paid the May Placement Agent a cash fee of 7.0% of the aggregate gross proceeds raised at the closing of the May Offering and reimbursement of certain expenses and legal fees in the amount of $80,000. The Company also issued to the May Placement Agent warrants to purchase up to an aggregate of 132,750 shares of common stock (the “May Placement Agent Warrants”). The May Placement Agent Warrants have an exercise price of $2.26 per share and have substantially the same terms as the May Class A Warrants, except the May Placement Agent Warrants were not subject to an exercise price reset and are not exercisable until November 18, 2024. The Company received gross proceeds of $5,998,120 from the May Offering and paid underwriting fees of $499,868, resulting in net proceeds of $5,498,252. 2024 Equity Distribution Agreement On February 7, 2024, the Company entered into an Equity Distribution Agreement with Maxim Group LLC (“Maxim” or the “sales agent”), pursuant to which the Company could offer and sell shares of common stock, having an aggregate offering price of up to $1,146,893 (the “Aggregate Offering Amount”) from time to time through the sales agent. The offering under the Equity Distribution Agreement terminated when the Company sold the Aggregate Offering Amount. Maxim was entitled to compensation at a fixed commission rate of 3.5% of the gross sales price per share sold. During the nine months ended September 30, 2024, the Company sold 181,710 shares of common stock for total gross proceeds of $1,146,890 and paid commissions to Maxim of $40,141. 2023 Public Offerings On February 7, 2023, the Company issued an aggregate of 80,950 shares of common stock and warrants to purchase an aggregate of 93,093 shares of common stock (“February Follow-On Warrants”) pursuant to an underwriting agreement between the Company and Maxim Group LLC, as representative of the underwriters (the “Representative”) and raised approximately $10.2 million in gross proceeds. The February Follow-On Warrants, which became exercisable on February 7, 2023, grant the holder the right to purchase one share of common stock at an exercise price equal to $126.00 per share. The February Follow-On Warrants expire on February 7, 2028. In addition to customary cashless exercise, the holders had the right to effect an “alternative cashless exercise” on or after April 10, 2023. In an “alternative cashless exercise,” the aggregate number of shares of common stock issuable is equal to the product of (i) the aggregate number of shares of common stock that would be issuable upon exercise of the February Follow-On Warrant if it was exercised for cash and (ii) 0.5. Also on February 7, 2023, the Company issued warrants to the Representative to purchase up to 4,048 shares of Common Stock at an exercise price of $139.60 per share. These warrants became exercisable on August 2, 2023 and will expire on February 2, 2028. During the nine months ended September 30, 2023, the Company issued 861,040 shares of common stock to the holders who exercised 1,772,080 of the February Follow-On Warrants via the alternative cashless exercise option. On September 8, 2023, the Company issued an aggregate of 2,850,726 shares of common stock and warrants (“September Follow-On Warrants”) to purchase an aggregate of 3,105,834 shares of common stock pursuant to an underwriting agreement between the Company and the Representative and raised approximately $3.1 million of gross proceeds. The September Follow-On Warrants became exercisable on September 8, 2023 to purchase one share of common stock at an exercise price of $1.10 per share and will expire on September 8, 2028. Also on September 8, 2023, the Company issued warrants to the Representative to purchase up to 135,036 shares of common stock at an exercise price of $1.21 per share (the “Representative’s Warrants”). These warrants are initially exercisable on the later to occur of (i) the effective date of an increase in our authorized shares of common stock in an amount sufficient to permit the exercise in full of the Representative’s Warrants or (ii) March 6, 2024 and will expire on September 7, 2028. Common Stock The Company has authorized 100,000,000 shares of common stock with $0.0001 par value. As of September 30, 2024 and December 31, 2023, 6,228,392 and 285,282 common shares were issued and outstanding, respectively. During the nine months ended September 30, 2024, the Company issued 5,943,110 shares of common stock, as summarized below: Number of Shares Issuances of common stock in public offering 5,461,000 Sale of common stock pursuant to Equity Distribution Agreement 181,710 Exercises of warrants 218,000 Issuances of common stock to employees and consultants 6,000 Issuance of common stock as payment for severance 3,502 Issuance of common stock to round up shares due to stock split 72,898 Common stock issued during the nine months ended September 30, 2024 5,943,110 Summary table of common stock share transactions: Shares outstanding at December 31, 2023 285,282 Common stock issuances 5,943,110 Shares outstanding at September 30, 2024 6,228,392 Stock-Based Compensation On January 18, 2022 in connection with the IPO, the board of directors (the “Board”) approved the Edible Garden AG Incorporated 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan provides for equity incentive compensation for employees, non-employee directors, and any other individuals who perform services for the Company. The number of shares initially available for grant under the 2022 Plan was 50,000. A variety of discretionary awards are authorized under the 2022 Plan, including stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The vesting of such awards may be conditioned upon either a specified period of time or the attainment of specific performance goals as determined by the administrator of the 2022 Plan. The option price and terms are also subject to determination by the administrator with respect to each grant. On June 8, 2023 the stockholders of the Company approved the First Amendment to the 2022 Plan, which increased the number of shares of common stock reserved for issuance thereunder by 15,000 shares and extended the term of the 2022 Plan until June 8, 2033. On August 21, 2024, the stockholders of the Company approved the Second Amendment (the “Plan Amendment”) to the 2022 Plan to: (i) increase the number of shares of common stock reserved for issuance thereunder by 650,000 shares, (ii) update the recoupment provisions of the 2022 Plan to be consistent with the Company’s Policy for the Recovery of Erroneously Awarded Compensation, and (iii) extend the term of the 2022 Plan until August 21, 2034. During the nine months ended September 30, 2024, the Company issued 6,000 restricted stock awards to employees and consultants of the Company as compensation. We recognized stock-based compensation expense of $38,280 for the awards, which vested immediately. Also, during the nine months ended September 30, 2024, the Company issued 3,502 shares of common stock with a fair value of $25,000 for payment of accrued severance. Shares available for future stock compensation grants totaled 656,455 at September 30, 2024. Warrants The following table summarizes transactions involving the Company’s outstanding warrants to purchase common stock for the nine months ended September 30, 2024: Warrants Weighted-Average Exercise Price Per Share Outstanding December 31, 2023 179,345 $ 133.65 Warrants issued in public offerings 49,307,083 0.40 Warrants exercised (218,000 ) 0.01 Outstanding at September 30, 2024 49,268,428 $ 0.86

LEASES

LEASES	9 Months Ended
	Sep. 30, 2024
LEASES
LEASES	NOTE 9 – LEASES Management determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. Such assets are classified as right-of-use assets (“lease assets”) with a corresponding lease liability. Finance and operating lease assets and liabilities are recorded at commencement at the present value of future minimum lease payments over the expected lease term. As the implicit discount rate for the present value calculation is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement of the lease. The expected lease terms include options to extend the lease when it is reasonably certain the Company will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term. The Company has finance leases for various vehicles with terms of approximately 3 years. The Company’s finance lease agreements do not contain any material non-lease components, residual value guarantees, or material restrictive covenants. Finance leases recorded on the balance sheet consist of the following as of September 30, 2024 and December 31, 2023: (in thousands) September 30, December 31, 2024 2023 Financing lease assets $ 125 $ - Current maturities of finance lease liabilities $ 40 $ - Long-term finance lease liabilities $ 85 $ - The components of finance lease expense are as follows: (in thousands) Three and Nine Months Ended, Classification on the Statement of Operations September 30, 2024 September 30, 2023 Finance lease cost: Amortization of right-of-use assets Selling, general and administrative expenses $ 11 $ - Interest on finance lease liabilities Interest expense, net 4 - Total finance lease cost $ 15 $ - Other information related to finance lease terms and discount rate is as follows: September 30, 2024 Weighted-average remaining lease term (years) 2.7 Interest rate 10.5 % 21 Table of Contents The table below presents the maturities of finance lease liabilities as of September 30, 2024: (in thousands) Financing Leases 2024 13 2025 52 2026 52 2027 30 Total lease payments 147 Less: interest (22 ) Total finance lease liabilities $ 125 During the nine months ended September 30, 2024, the Company was party to an ongoing arrangement with our predecessor company, Edible Garden Corp., whereby the Company made lease payments of approximately $22,189 per month to the lessor of the land on which our flagship facility is built and for which our predecessor company was the lessee. Our month-to-month arrangement meets the definition of a short-term lease and is therefore excluded from the recognition requirements of ASC 842, “ Leases “Subsequent Events” During the nine months ended September 30, 2024, total operating lease cost was $229,036, all of which was associated with short-term leases. During the nine-month period ended September 30, 2023, total operating lease cost was $218,472, of which $138,192 was associated with short-term leases. As of December 31, 2023, a short-term operating lease liability of $34,415 is included within “Accounts Payable and Accrued Expenses” on the condensed consolidated balance sheet. The table below presents total operating lease assets and lease liabilities as of September 30, 2024 and December 31, 2023: (in thousands) September 30, December 31, 2024 2023 Operating lease assets $ - $ 34 Operating lease liabilities $ - $ 34

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
COMMITMENTS AND CONTINGENCIES (Note 10)
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES Effective January 25, 2024, Michael James retired from his positions as Chief Financial Officer, Treasurer, Secretary and Director of the Company. In connection with Mr. James’s retirement, on January 24, 2024, the Company and Mr. James entered into a separation agreement (the “Separation Agreement”). Pursuant to the terms of the Separation Agreement, the Company agreed to pay Mr. James a severance payment of $300,000 in the form of salary continuation until January 2025. In addition, Mr. James is eligible to earn milestone payments under the Separation Agreement in an aggregate amount up to $300,000 if he completes certain transitional deliverables for the Company. Of this amount, the Company has paid $191,667 in milestone payments to Mr. James as of September 30, 2024. The Company granted Mr. James a restricted stock award with a fair value equal to $25,000 as of April 2, 2024. As described in detail in Note 2, "Summary of Significant Accounting Policies,” From time to time, we may be party to or otherwise involved in legal proceedings arising in the ordinary course of business. Management does not believe that there is any pending or threatened proceeding against us, which, if determined adversely, would have a material adverse effect on our business, results of operations or financial condition.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Sep. 30, 2024
GOING CONCERN
GOING CONCERN	NOTE 11 – GOING CONCERN These financial statements are prepared on a going concern basis. The Company began operating in 2020. During the nine months ended September 30, 2024, we incurred a net loss of $7.97 million. We expect to experience further significant net losses in the foreseeable future. As of September 30, 2024, we had cash available for operations of $2.21 million. We have not been able to generate sufficient cash from operating activities to fund our ongoing operations. Since our inception, we have raised capital through our issuance of debt and equity securities. Our future success is dependent upon our ability to achieve profitable operations and generate cash from operating activities. There is no guarantee that we will be able to generate enough revenue and/or raise capital to support our operations. We will be required to raise additional funds through public or private financing, additional collaborative relationships or other arrangements until we are able to raise revenue and reduce costs to a point of positive cash flow. We are evaluating various options to further reduce our cash requirements to operate at a reduced rate, as well as options to raise additional funds, including obtaining loans and selling securities. There is no guarantee that we will be able to generate enough revenue and/or raise capital to support our operations, or if we are able to raise capital, that it will be available to us on acceptable terms, on an acceptable schedule, or at all. The issuance of additional securities may result in a significant dilution in the equity interests of our current stockholders. Obtaining loans, assuming these loans would be available, will increase our liabilities and future cash commitments. There is no assurance that we will be able to obtain further funds required for our continued operations or that additional financing will be available for use when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due and we will be forced to scale down or perhaps even cease our operations. The risks and uncertainties surrounding our ability to raise capital and to continue our business with limited capital resources raise substantial doubt as to our ability to continue as a going concern for twelve months from the issuance of these financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS The Company has evaluated subsequent events occurring through the date that the financial statements were available to be issued for events requiring recording or disclosure in the September 30, 2024 unaudited condensed consolidated financial statements. Issuances of Common Stock Subsequent to September 30, 2024, the Company issued 1,216,650 shares of common stock in satisfaction of the obligation to issue the remaining shares of common stock from the September Offering. Additionally, the Company issued 3,301,000 shares of common stock for Pre-Funded Warrant exercises. Subsequent to September 30, 2024, the Company issued 16 shares of common stock to employees upon the vesting of restricted stock units previously granted to the employees, pursuant to the 2022 Plan. Acquisition of Edible Garden Corp. On October 1, 2024, the Company acquired Edible Garden Corp. (“EGC”) from Unrivaled Brands, Inc., the Company’s former parent company, for the nominal price of $1.00. At the Company’s inception, it had acquired substantially all of the assets of EGC from Unrivaled Brands, Inc., except for the lease agreement between EGC and Whitetown Realty, LLC (the “Landlord”), made as of December 30, 2014 (the “Lease Agreement”), as amended by a lease extension agreement between EGC and the Landlord, dated September 10, 2019 (the “Lease Extension,” together with the Lease Agreement, the “Lease”), for a 5-acre greenhouse location in Belvidere, New Jersey. As a result, prior to October 1, 2024, the Company had operated the New Jersey property through an informal arrangement with EGC in which the Company effectively rented the property on a month-to-month basis with no set term. On October 1, 2024, upon the closing of its acquisition of EGC, the Company assumed the Lease and became subject to its terms. The Lease has a term that commenced on January 1, 2015 and ends on December 31, 2029. Under the terms of the Lease, the Company will pay the Landlord a monthly lease payment of approximately $22,189. The Lease includes customary covenants, terms, and conditions, along with two options that may be exercised at the discretion of the Company to extend the term of the Lease for additional periods of five years each by providing written notice at least nine months prior to expiration of the current term, provided that no default of the Lease has occurred. Under the Lease, if the Landlord desires to sell the New Jersey property and receives a bona fide written offer, the Company has the right to purchase the New Jersey property at the same price and terms contained in the bona fide written offer. In the event the Company terminates the Lease early, as further described in the Lease, the security deposit of $28,000 will be forfeited to the Landlord as liquidated damages. If the Company (i) fails to pay any lease payment, and such failure continues for five days following the due date, or (ii) breaches any other agreement, covenant or obligation included in the Lease and fails to cure the breach within fifteen days after notice from the Landlord, the Landlord may terminate the Lease upon five business days’ notice to the Company.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Issued Accounting Standards to Be Adopted in Future Periods	In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740)
Use of Estimate	The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reported period. Changes in these estimates and assumptions may have a material impact on the consolidated financial statements and accompanying notes. Examples of significant estimates and assumptions include provisions for doubtful accounts, accrued liabilities, discount rates used in the measurement and recognition of lease liabilities and valuation of our warrants. These estimates generally involve complex issues and require us to make judgments, involving an analysis of historical and future trends, that can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates.
Trade and Other Receivables	The Company extends non-interest-bearing trade credit to its customers in the ordinary course of business which is not collateralized. Accounts receivable are shown on the face of the consolidated balance sheets net of an allowance for doubtful accounts. The Company analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness and current economic trends, in determining the allowance for doubtful accounts. The Company does not accrue interest receivable on past due accounts receivable. The reserve for credit losses was $92,351 and $136,858 as of September 30, 2024 and December 31, 2023, respectively.
Concentration of Credit Risk	During the nine months ended September 30, 2024, five customers accounted for approximately 85.0% of our total revenue. During the nine months ended September 30, 2023, five customers accounted for approximately 83.0% of our total revenue. As of September 30, 2024, approximately 82.5% of our gross outstanding trade receivables were attributed to four customers, 27.3% of which was due from one customer. As of December 31, 2023, approximately 80.4% of our gross outstanding trade receivables were attributed to four customers, 41.1% of which was due from one customer. This concentration of customers leaves us exposed to the risks associated with the loss of one or more of these significant customers, which would materially and adversely affect our revenues and results of operations. The Company maintains a cash balance in a financial institution that is insured by the Federal Deposit Insurance Corporation up to certain federal limitations. At times, the Company’s cash balance exceeds these federal limitations. The amount in excess of insured limitations was approximately $2.0 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively.
Inventory	We value our inventory at the lower of the actual cost of our inventory, as determined using the first-in, first-out method, or its net realizable value. We periodically review our physical inventory for excess, obsolete, and potentially impaired items and reserve accordingly. Our reserve estimate for excess and obsolete inventory is based on expected future use. Our reserve estimates have historically been consistent with our actual experience as evidenced by actual sale or disposal of the goods. The reserve for excess and obsolete inventory was not material as of September 30, 2024 and December 31, 2023.
Prepaid Expenses	Prepaid expenses consist of various payments that the Company has made in advance for goods or services to be received in the future. These prepaid expenses include advertising, insurance, and service or other contracts requiring up-front payments.
Property, Equipment and Leasehold Improvements, Net	Property, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Our fixed assets, which are comprised of leasehold improvements, equipment and vehicles, have useful lives of five years. Expenditures for major renewals and improvements are capitalized, while minor replacements, maintenance and repairs, which do not extend the asset lives, are charged to operations as incurred. Upon sale or disposition, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. The Company continually monitors events and changes in circumstances that could indicate that the carrying balances of its property, equipment and leasehold improvements may not be recoverable in accordance with the provisions of Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” “Property, Equipment and Leasehold Improvements, Net”
Intangible Assets	Intangible assets continue to be subject to amortization, and any impairment is determined in accordance with ASC 360, “ Property, Plant, and Equipment.” The Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or if a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), the Company will write the carrying value down to the fair value in the period the impairment is identified.
Revenue Recognition and Performance obligations	Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company does not offer returns, discounts, loyalty programs or other sales incentive programs that are material to revenue recognition. Payments from our customers are due upon delivery or within a short period after delivery. Disaggregation of Revenue The following tables includes revenue disaggregated by revenue stream for the three and nine months ended September 30, 2024 and 2023: (in thousands) Three Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 2,278 $ 2,901 Vitamins and Supplements 306 388 Total $ 2,584 $ 3,289 (in thousands) Nine Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 8,867 $ 8,731 Vitamins and Supplements 1,118 1,234 Total $ 9,985 $ 9,965 Contract Balances Due to the nature of the Company’s revenue from contracts with customers, the Company does not have material contract assets or liabilities that fall under the scope of ASC Topic 606. Contract Estimates and Judgments On January 1, 2024, the Company and Meijer Distribution, Inc. (the “Buyer”) entered into two agreements pursuant to which the Company will supply and sell products to the Buyer (the “Agreements”). Under the Agreements, the Company sells (i) fresh cut herbs, including basil, bay leaves, chives, cilantro, dill, mint, oregano, rosemary, sage, thyme; (ii) hydroponic basil; and (iii) potted herbs, including basil, chives, cilantro, mint, oregano, parsley, rosemary, sage, thyme, wheatgrass; in quantities and on a delivery schedule requested by the Buyer at prices per unit set in advance by the Company and the Buyer. Under the Agreements, the Company and the Buyer will renegotiate the prices for each unit annually, provided that the price per unit will not increase or decrease at a rate greater than the change in the relevant Consumer Price Index in that year. Once set, the pricing terms will remain fixed for the remainder of the year. Any price increases will take effect after sixty days and any price decrease will be effective immediately. If the Company and the Buyer are unable to mutually agree on price increases, the Company will have the power to terminate the Agreements immediately. In addition, under the agreement governing the purchase of potted herbs, the Company agreed to fund the installation of fixtures in each of the Buyer’s stores to display the potted herbs in an aggregate amount of $806,947. These payments were made as a weekly deduction from the Company’s receivables from the Buyer. The Agreements became effective as of January 1, 2024 and expire on December 31, 2026. The Agreements may be renewed for an additional two-year term upon the mutual agreement of the Company and the Buyer. The Agreements may be terminated by the Buyer without cause upon sixty days’ prior notice. Management has determined the payments for the fixtures should be treated as a reduction in revenue under the guidance of ASC 606. As we do not expect the agreement to be terminated before the end of the three-year term, the aggregate cost of the fixtures of approximately $806,947 will be treated as a reduction in the transaction price of products sold to the Buyer during the three-year term of the contract.
Cost of Goods sold	Cost of goods sold includes materials, labor and overhead costs incurred in cultivating, producing, and shipping our products.
Advertising Expense	The Company expenses advertising costs as incurred in accordance with ASC 720-35, “Other Expenses – Advertising Cost.”
Loss Per Common Share	In accordance with the provisions of ASC 260, “Earnings Per Share,”
Income Taxes	The provision for income taxes is determined in accordance with ASC 740, “Income Taxes.” The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50.0% likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax related interest and penalties as interest expense and selling, general and administrative expense, respectively, on the consolidated statements of operations.
Segment Reporting	The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment. The Company’s principal decision makers are the Chief Executive Officer and its Interim Chief Financial Officer. Management believes that its business operates as one reportable segment because: a) the Company measures profit and loss as a whole; b) the principal decision makers do not review information based on any operating segment; c) the Company does not maintain discrete financial information on any specific segment; d) the Company has not chosen to organize its business around different products and services, and e) the Company has not chosen to organize its business around geographic areas.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of disaggregated revenue	(in thousands) Three Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 2,278 $ 2,901 Vitamins and Supplements 306 388 Total $ 2,584 $ 3,289 (in thousands) Nine Months Ended, September 30, 2024 September 30, 2023 Herbs, Produce & Floral $ 8,867 $ 8,731 Vitamins and Supplements 1,118 1,234 Total $ 9,985 $ 9,965

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2024
INVENTORY
Schedule of Inventory	(in thousands) September 30, December 31, 2024 2023 Raw materials $ 597 $ 341 Work-in-progress 783 258 Finished goods 57 79 Total inventory $ 1,437 $ 678

PROPERTY EQUIPMENT AND LEASEH_2

PROPERTY EQUIPMENT AND LEASEHOLD IMPROVEMENTS NET (Tables)	9 Months Ended
	Sep. 30, 2024
PROPERTY EQUIPMENT AND LEASEHOLD IMPROVEMENTS NET
Schedule of Property, Equipment and Leaehold Improvement, Net	(in thousands) September 30, December 31, 2024 2023 Furniture and equipment 1,306 1,276 Computer hardware 10 6 Leasehold improvements 3,135 3,121 Vehicles 456 456 Land 202 202 Construction in progress 308 182 Subtotal 5,417 5,243 Less accumulated depreciation (2,151 ) (1,350 ) Property, equipment and leasehold improvements, net $ 3,266 $ 3,893

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2024
INTANGIBLE ASSETS
Schedule of Intangible assets	(in thousands) September 30, 2024 December 31, 2023 Estimated Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying in Years Value Amortization Value Value Amortization Value Amortizing Intangible Assets: Pulp brand recipes 15 $ 50 $ (6 ) $ 44 $ 50 $ (3 ) $ 47 Non-compete agreement 2 62 (62 ) - 62 (62 ) - Total Intangible Assets, net $ 112 $ (68 ) $ 44 $ 112 $ (65 ) $ 47

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2024
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Schedule of Accounts Payable and Accrued Expenses	(in thousands) September 30, 2024 December 31, 2023 Accounts payable $ 1,864 $ 1,233 Current operating lease liability - 34 Accrued interest payable 28 32 Accrued payroll 126 270 Accrued severance 234 - Accrued vacation 123 80 Accrued transaction expenses 124 - Other accrued expenses 123 3 Employee retention credit funds 865 865 Total Accounts Payable and Accrued Expenses $ 3,487 $ 2,517

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2024
NOTES PAYABLE
Schedule of notes payable	(in thousands) September 30, December 31, 2024 2023 Secured promissory note $ - $ 3,106 Future receivables financing agreement with Cedar Advance, LLC 932 - NJD Investments, LLC promissory note 640 864 SBA loan 150 150 Vehicle loans 262 325 Insurance financing agreement 51 - Total Gross Debt $ 2,035 $ 4,445 Less: Gross short term debt (1,386 ) (387 ) Less: Long-term debt discount - (18 ) Net Long Term Debt $ 649 $ 4,040
Schedule maturities of long-term debt	Years Ending December 31, Cedar Advance, LLC loan NJD Investments, LLC Promissory Note SBA Loan Insurance Financing Vehicle Loans Total 2024 (remaining) 683 77 - 25 22 807 2025 249 316 - 26 92 683 2026 - 247 - - 82 329 2027 - - - - 59 59 Thereafter - - 150 - 7 157 Total $ 932 $ 640 $ 150 $ 51 $ 262 $ 2,035

STOCKHOLDERS EQUITY (DEFICIT) (

STOCKHOLDERS EQUITY (DEFICIT) (Tables)	9 Months Ended
	Sep. 30, 2024
STOCKHOLDERS EQUITY (DEFICIT)
Schedule of shares of common stock	Number of Shares Issuances of common stock in public offering 5,461,000 Sale of common stock pursuant to Equity Distribution Agreement 181,710 Exercises of warrants 218,000 Issuances of common stock to employees and consultants 6,000 Issuance of common stock as payment for severance 3,502 Issuance of common stock to round up shares due to stock split 72,898 Common stock issued during the nine months ended September 30, 2024 5,943,110 Summary table of common stock share transactions: Shares outstanding at December 31, 2023 285,282 Common stock issuances 5,943,110 Shares outstanding at September 30, 2024 6,228,392
Schedule of warrants	Warrants Weighted-Average Exercise Price Per Share Outstanding December 31, 2023 179,345 $ 133.65 Warrants issued in public offerings 49,307,083 0.40 Warrants exercised (218,000 ) 0.01 Outstanding at September 30, 2024 49,268,428 $ 0.86

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2024
LEASES
Summary of Financing Lease assets and lease Liabilities	(in thousands) September 30, December 31, 2024 2023 Financing lease assets $ 125 $ - Current maturities of finance lease liabilities $ 40 $ - Long-term finance lease liabilities $ 85 $ -
Schedule of Components of finance lease expense	(in thousands) Three and Nine Months Ended, Classification on the Statement of Operations September 30, 2024 September 30, 2023 Finance lease cost: Amortization of right-of-use assets Selling, general and administrative expenses $ 11 $ - Interest on finance lease liabilities Interest expense, net 4 - Total finance lease cost $ 15 $ -
Schedule of finance lease terms and discount rate	September 30, 2024 Weighted-average remaining lease term (years) 2.7 Interest rate 10.5 %
Schedule of maturities of finance lease liabilities	(in thousands) Financing Leases 2024 13 2025 52 2026 52 2027 30 Total lease payments 147 Less: interest (22 ) Total finance lease liabilities $ 125
Summary of Operating Lease assets and lease Liabilities	(in thousands) September 30, December 31, 2024 2023 Operating lease assets $ - $ 34 Operating lease liabilities $ - $ 34

ORGANIZATION NATURE OF BUSINE_2

ORGANIZATION NATURE OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - $ / shares

1 Months Ended

6 Months Ended

Apr. 05, 2024

Nov. 10, 2023

Sep. 08, 2021

Oct. 14, 2020

Jan. 26, 2023

Jan. 18, 2022

Jun. 30, 2021

Jun. 30, 2024

Sep. 30, 2024

Dec. 31, 2023

Jun. 08, 2023

Apr. 09, 2013

Common stock, shares authorized

100,000,000

100,000,000

Description of reverse stock split

declared a 1-for-20 reverse stock split of our outstanding common stock

declared a 20-for-1 forward stock split of our common stock

declared a 20-for-1 forward stock split of our common stock

reverse stock split of 1-for-30 and decreased

1-for-5 reverse stock split of its outstanding common stock

declared a 1-for-2 reverse stock split of our common stock

Common stock, par value

$ 0.0001

$ 0.0001

$ 0.0001

Initial public offering shares

10,000,000

100,000,000

Common Stock Shares [Member]

Common stock, shares authorized

200,000,000

20,000,000

6,666,667

50,000,000

100,000

Capital Stock Of The Company [Member] | Minimum [Member]

Common stock, shares authorized

20,000,000

6,666,667

Capital Stock Of The Company [Member] | Maximum [Member]

Common stock, shares authorized

110,000,000

10,000,000

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue	$ 2,584	$ 3,289	$ 9,985	$ 9,965
Herbs, Produce & Floral [Member]
Revenue	2,278	2,901	8,867	8,731
Vitamins and Supplements [Member]
Revenue	$ 306	$ 388	$ 1,118	$ 1,234

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Reserve for credit losses	$ 92,351		$ 136,858
Insured limitations amount	$ 2,000,000		$ 400,000
Warrants to purchase shares of common stock	37,808,427	179,344
Advertising expenses	$ 149,886	$ 39,265
Description of payments for the fixtures treated as a reduction in revenue	expect the agreement to be terminated before the end of the three-year term, the aggregate cost of the fixtures of approximately $806,947 will be treated as a reduction in the transaction price of products sold to the Buyer during the three-year term of the contract
Installation of fixtures amount	$ 806,947
Agreement expiry date	December 31, 2026
One Customers [Member] | Sales Member
Gross outstanding trade receivables, Percentage	27.30%		41.10%
Four Customers [Member]
Gross outstanding trade receivables, Percentage	82.50%		80.40%
Five Customers [Member]
Total revenue from five customer percentage	85%	83%

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
INVENTORY
Raw materials	$ 597	$ 341
Work-in-progress	783	258
Finished goods	57	79
Total inventory	$ 1,437	$ 678

PROPERTY, EQUIPMENT AND LEASEHO

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Subtotal	$ 5,417	$ 5,243
Less accumulated depreciation	(2,151)	(1,350)
Property, equipment and leasehold improvements, net	3,266	3,893
Construction in progress [Member]
Subtotal	308	182
Furniture and equipment [Member]
Subtotal	1,306	1,276
Computer hardware [Member]
Subtotal	10	6
Leasehold improvements [Member]
Subtotal	3,135	3,121
Vehicles [Member]
Subtotal	456	456
Land [Member]
Subtotal	$ 202	$ 202

PROPERTY, EQUIPMENT AND LEASE_2

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Property, Equipment and Leasehold Improvements [Member]
Depreciation expense	$ 804,431	$ 1,090,778

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Amortizing Intangible Assets, gross carrying value	$ 112	$ 112
Amortizing Intangible Assets, accumulated amortization	(68)	(65)
Amortizing Intangible Assets, net carrying value	44	47
Pulp Brand Recipes [Member]
Amortizing Intangible Assets, gross carrying value	50	50
Amortizing Intangible Assets, accumulated amortization	(6)	(3)
Amortizing Intangible Assets, net carrying value	$ 44	47
Amortizing Intangible Assets, estimated useful life in years	15 years
Non-compete agreement [Member]
Amortizing Intangible Assets, gross carrying value	$ 62	62
Amortizing Intangible Assets, accumulated amortization	(62)	(62)
Amortizing Intangible Assets, net carrying value	$ 0	$ 0
Amortizing Intangible Assets, estimated useful life in years	2 years

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
INTANGIBLE ASSETS
Amortization expense	$ 2,500	$ 2,500
Estimated annual amortization expense
2025	3,333
2026	3,333
2027	3,333
2028	3,333
2029	3,333
thereafter	$ 27,500

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable	$ 1,864	$ 1,233
Current operating lease liability	0	34
Accrued interest payable	28	32
Accrued payroll	126	270
Accrued severance	234	0
Accrued vacation	123	80
Accrued transaction expenses	124	0
Other accrued expenses	123	3
Employee retention credit funds	865	865
Total Accounts Payable and Accrued Expenses	$ 3,487	$ 2,517

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
NOTES PAYABLE
Secured promissory note	$ 0	$ 3,106
Future receivables financing agreement with Cedar Advance, LLC	932	0
NJD Investments, LLC promissory note	640	864
SBA loan	150	150
Vehicle loan	262	325
Insurance financing agreement	51	0
Total gross debt	2,035	4,445
Less: Gross short term debt	(1,386)	(387)
Less: Debt discount	0	(18)
Net long term debt	$ 649	$ 4,040

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1) $ in Thousands	Sep. 30, 2024 USD ($)
Insurance Financing [Member]
2024 (remaining)	$ 25
2025	26
2026	0
2027	0
Thereafter	0
Long term debt total	51
NJD Investments, LLC Promissory [Member]
2024 (remaining)	77
2025	316
2026	247
2027	0
Thereafter	0
Long term debt total	640
SBA Loan [Member]
2024 (remaining)	0
2025	0
2026	0
2027	0
Thereafter	150
Long term debt total	150
Vehicle Loans [Member]
2024 (remaining)	22
2025	92
2026	82
2027	59
Thereafter	7
Long term debt total	262
Total [Member]
2024 (remaining)	807
2025	683
2026	329
2027	59
Thereafter	157
Long term debt total	2,035
Cedar Advance, LLC Loan [Member]
2024 (remaining)	683
2025	249
2026	0
2027	0
Thereafter	0
Long term debt total	$ 932

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)				1 Months Ended			3 Months Ended	9 Months Ended		12 Months Ended
	May 07, 2024	Mar. 14, 2024	Jun. 02, 2020	Aug. 30, 2022	Jun. 22, 2020	Mar. 30, 2020	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accrued interest								$ 155,322
Unamortized discount							$ 0	0		$ 18,000
Interest amount								820,000	$ 328,000
Loss on extinguishment							163,584	163,584
SBA Loan [Member]
Accrued interest								19,301		18,756
Outstanding balance							150,000	150,000		150,000
Interest rate					3.75%
Proceeds from loan					$ 150,000
Maturity date					Jun. 22, 2050
Second Sament Note Member
Accrued interest									27,125
Outstanding balance									606,653
Debt principal									$ 70,420			$ 23,203
First Sament Note Member
Accrued interest								9,061		9,363
Unamortized discount										19,429
Outstanding balance							3,106,458	3,106,458		3,106,458
Promissory note			$ 653,870			$ 3,000,000
Interest rate			3.50%			3.50%
Maturity date			Jun. 03, 2023			Mar. 30, 2025
NJD Investments, LLC Promissory Note [Member]
Accrued interest											$ 19,210
Unamortized financing fees	$ 87,500
Outstanding balance							312,149	312,149		300,683
Promissory note				$ 1,136,000
Interest rate				5%
Monthly installment				$ 28,089
Guaranteed amount				$ 1,136,000
Long term debt balance outstanding							328,119	328,119		563,685
Future accounts receivable	2,485,000
Future accounts receivable purchase price	1,750,000
Future accounts receivable cash received	544,250
Remaining amount due under the Cedar Agreement	$ 1,118,250
Required to pay Cedar	35%
Cedar to withdraw	$ 65,395
Due to Cedar	2,485,000
Interest amount	$ 735,000
Maturity date				Sep. 01, 2026
Future Receivables Financing Agreement with Cedar Advance, LLC [Member]
Accrued interest								19,910
Fees and expenses		$ 50,000						39,142
Prior payment		1,050,000
Net funds		1,000,000
Sale		1,491,000
Withdrawal amount		53,250
Payment due		$ 1,491,000
Loss on extinguishment								334,806
Vehicle Loan [Member]
Outstanding balance							90,981	90,981		85,885
Long term debt balance outstanding							$ 171,070	$ 171,070
Short-term debt, net of discounts										$ 239,343
Accrued interest rate										10.49%	7.64%
Financing agreements										$ 151,850	$ 158,214	$ 102,681
Loan Maturity date										2028	2027	2026
Vehicle Loan [Member] | Maximum [Member]
Accrued interest rate												18.66%
Vehicle Loan [Member] | Minimum [Member]
Accrued interest rate												16.84%

STOCKHOLDERS EQUITY (DEFICIT)_2

STOCKHOLDERS EQUITY (DEFICIT) (Details)	9 Months Ended
	Sep. 30, 2024 shares
STOCKHOLDERS EQUITY (DEFICIT)
Issuances of common stock in public offering	5,461,000
Sale of common stock pursuant to Equity Distribution Agreement	181,710
Exercises of warrants	218,000
Issuances of common stock to employees and consultants	6,000
Issuance of common stock as payment for severance	3,502
Issuance of common stock to round up shares due to stock split	72,898
Common stock issued during the nine months ended September 30, 2024	5,943,110
Shares outstanding	285,282
Common stock issuances	5,943,110
Shares outstanding	6,228,392

STOCKHOLDERS EQUITY (DEFICIT)_3

STOCKHOLDERS EQUITY (DEFICIT) (Details 1)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Exercises of warrants	218,000
Warrants to Purchase [Member]
Warrant outstanding, beginning balance	179,345
Warrants issued in public offering	49,307,083
Exercises of warrants	(218,000)
Warrant outstanding, ending balance	49,268,428
Weighted average exercise price per share Warrant outstanding, beginning balance | $ / shares	$ 133.65
Weighted average exercise price per share Warrants issued in public offering | $ / shares	0.40
Weighted average exercise price per share Warrants exercised | $ / shares	0.01
Weighted average exercise price per share warrant outstanding, ending balance | $ / shares	$ 0.86

STOCKHOLDERS EQUITY (DEFICIT)_4

STOCKHOLDERS EQUITY (DEFICIT) (Details Narrative) - USD ($)				1 Months Ended				9 Months Ended
	Feb. 07, 2024	Sep. 08, 2023	Jun. 08, 2023	Sep. 30, 2024	Sep. 27, 2024	May 23, 2024	Jan. 18, 2022	Sep. 30, 2024	Sep. 30, 2023	Jun. 22, 2024	Dec. 31, 2023	Apr. 09, 2013
Stock-based compensation expense								$ 38,280
Restricted stock awards to employees and consultants								6,000
Exercise price		$ 1.10
Warrants expired date		Sep. 08, 2028
Cashless exercise of common stock warrants, shares									1,772,080
Common stock, shares authorized				100,000,000				100,000,000			100,000,000
Gross proceeds								$ 1,187,000	$ 0
Common stock, shares par value				$ 0.0001				$ 0.0001			$ 0.0001	$ 0.0001
Common stock, issued during the year								5,943,110	861,040
Common stock share issued		2,850,726		6,228,392				6,228,392			285,282
Warrants issued to purchase common stock		3,105,834
Proceeds from Grantors		$ 3,100,000
Warrant to purchase common stock shares		135,036
Warrant to purchase common stock per shares		$ 1.21
Common stock, outstanding				6,228,392				6,228,392			285,282
Stock Compensation Plan [Member]
Future stock compensation grants				656,455				656,455
Common stock, issued during the year								3,502
Common stock issued fair value								$ 25,000
Initial Public Offering [Member]
Stock Option Plan			15,000				50,000
September 2024 Public Offering [Member]
Expiry date description				will expire on September 30, 2029, and in the case of Class B Warrants, will expire on March 30, 2026
Exercise price				$ 0.36	$ 0.36			$ 0.36
Offering and reimbursement and legal fees					$ 80,000
Warrants to purchase shares of common stock					$ 785,033			$ 1,216,650
Gross proceeds from issue of warrant under placement agreement net								4,797,158
Gross proceeds from issue of warrant under placement agreement								5,552,484
Paid underwriting fees								755,326
Obligation to issue shares amount				$ 176,374				$ 176,374
Description of best-efforts public offering				the Company closed a best-efforts public offering (the “September Offering”) of (i) 4,240,650 common units, each consisting of one share of common stock, par value $0.0001 per share (“common stock”), one Class A warrant (“Class A Warrant”) to purchase one share of common stock and one Class B warrant (“Class B Warrant,” together with the Class A Warrants, the “Warrants”) to purchase one share of common stock at a purchase price of $0.36 per unit; and (ii) 11,460,000 pre-funded units, each consisting of one pre-funded warrant to purchase one share of common stock (“Pre-Funded Warrant”), one Class A Warrant and one Class B Warrant at a purchase price of $0.35 per unit
2024 Public offering [Member]
Exercise price				$ 2.26		$ 2.26		$ 2.26		$ 1.49
Offering and reimbursement and legal fees								$ 80,000
Gross proceeds from issue of warrant under placement agreement net								5,498,252
Gross proceeds from issue of warrant under placement agreement								5,998,120
Paid underwriting fees								$ 499,868
Issued of warrants to purchase								132,750
2024 Equity Distribution Agreement [Member] | Series A Convertible Preferred Stocks [Member]
Aggregate offering price	$ 1,146,893
Commission rate	3.50%
Common stock shares sold								181,710
Gross proceeds								$ 1,146,890
Underwriting discounts and commissions and expenses								$ 40,141
2023 Public Offering [Member]
Description of best-efforts public offering	the Company issued an aggregate of 80,950 shares of common stock and warrants to purchase an aggregate of 93,093 shares of common stock (“February Follow-On Warrants”) pursuant to an underwriting agreement between the Company and Maxim Group LLC, as representative of the underwriters (the “Representative”) and raised approximately $10.2 million in gross proceeds. The February Follow-On Warrants, which became exercisable on February 7, 2023, grant the holder the right to purchase one share of common stock at an exercise price equal to $126.00 per share. The February Follow-On Warrants expire on February 7, 2028. In addition to customary cashless exercise, the holders had the right to effect an “alternative cashless exercise” on or after April 10, 2023. In an “alternative cashless exercise,” the aggregate number of shares of common stock issuable is equal to the product of (i) the aggregate number of shares of common stock that would be issuable upon exercise of the February Follow-On Warrant if it was exercised for cash and (ii) 0.5. Also on February 7, 2023, the Company issued warrants to the Representative to purchase up to 4,048 shares of Common Stock at an exercise price of $139.60 per share. These warrants became exercisable on August 2, 2023 and will expire on February 2, 2028					the Company completed a best-efforts public offering (the “May Offering”) of (i) 2,437,000 common units, each consisting of one share of common stock, one Class A warrant (“May Class A Warrant”) to purchase one share of common stock and one Class B warrant (“May Class B Warrant,” together with the May Class A Warrants, the “May Warrants”) to purchase one share of common stock at a purchase price of $2.26 per unit; and (ii) 218,000 pre-funded units, each consisting of one pre-funded warrant to purchase one share of common stock (“May Pre-Funded Warrant”), one May Class A Warrant and one May Class B Warrant at a purchase price of $2.25 per unit

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
LEASES
Financing lease assets	$ 125	$ 0
Current maturities of finance lease liabilities	40	0
Long-term finance lease liabilities	$ 85	$ 0

LEASES (Details 1)

LEASES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
LEASES
Amortization of right-of-use assets	$ 11,000	$ 0	$ 11,000	$ 0
Interest on finance lease liabilities	4,000	0	4,000	0
Total finance lease cost	$ 15,000	$ 0	$ 15,000	$ 0

LEASES (Details 2)

LEASES (Details 2)	9 Months Ended
	Sep. 30, 2024
LEASES
Weighted-average remaining lease term (years)	2 years 8 months 12 days
Interest rate	10.50%

LEASES (Details 3)

LEASES (Details 3) $ in Thousands	Sep. 30, 2024 USD ($)
LEASES
2024	$ 13
2025	52
2026	52
2027	30
Total lease payments	147
Less: interest	(22)
Total finance lease liabilities	$ 125

LEASES (Details 4)

LEASES (Details 4) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
LEASES
Operating lease assets	$ 0	$ 34
Operating lease liabilities	$ 0	$ 34

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
LEASES
Lease payments per month during the period	$ 22,189
Total operating lease cost	$ 229,036	$ 218,472
Short term lease liabilities			$ 34,415
Finance leases terms	3 years
Short-term leases		$ 138,192

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Apr. 02, 2024	Jan. 25, 2024
Payment of products	$ 806,947
Michael James [Member]
Separation Agreement terms, description	eligible to earn milestone payments under the Separation Agreement in an aggregate amount up to $300,000 if he completes certain transitional deliverables for the Company
Salary			$ 300,000
Restricted stock award with a fair value		$ 25,000
Payment of products	$ 191,667

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net Income (Loss)	$ (2,063)	$ (2,431)	$ (7,972)	$ (5,948)
Going Concern [Member]
Net Income (Loss)			(7,970)
Cash balance	$ 2,210		$ 2,210

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Oct. 02, 2024	Oct. 01, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 08, 2023
Issuance shares of common stock for Pre-Funded Warrant			3,301,000
Exercise price					$ 1.10
Common stock share issued			6,228,392	285,282	2,850,726
October 1 2024 [Member] | Edible Garden Corp [Member]
Monthly lease payment	$ 22,189
Exercise price		$ 1
Security deposit			$ 1,216,650
2022 Plan [Member]
Common stock share issued			16