Edible Garden Completes Sale of Net Operating Losses and Receives Approximately $3.35 Million in Proceeds

Edible Garden (Nasdaq: EDBL, EDBLW) completed the sale of its New Jersey net operating losses under the NJEDA Technology Business Tax Certificate Transfer Program and received approximately $3.35 million in gross proceeds on January 7, 2026.

Rhea-AI Summary

Edible Garden (Nasdaq: EDBL, EDBLW) completed the sale of its New Jersey net operating losses under the NJEDA Technology Business Tax Certificate Transfer Program and received approximately $3.35 million in gross proceeds on January 7, 2026.

The company said the transaction converts tax assets into immediate, non-dilutive, tax-free capital, which it expects to strengthen the balance sheet, enhance liquidity, and provide strategic flexibility to support operations, investment in the core business, and disciplined capital allocation.

Positive

• $3.35 million gross proceeds received
• Proceeds are non-dilutive, tax-free capital
• Transaction expected to enhance liquidity and balance sheet flexibility

Negative

• None.

Argus Jan 7 session

-10.29% close to close Open Argus

Details

News Market Reaction – EDBL

On Jan 7, the day this news came out, EDBL closed 10.29% below the previous close.

Data tracked by StockTitan Argus for the Jan 7 session.

Market Context

On Jan 7, the day this news came out, the stock closed 10.3% below the previous close. A negative re...

Analysis

On Jan 7, the day this news came out, the stock closed 10.3% below the previous close. A negative reaction despite this non-dilutive cash injection would have fit a recent pattern where positive commercial updates, such as new retail placements and digital expansion, were followed by price declines. With prior filings highlighting a net loss of $4.045 million, limited cash of $828,000, and substantial cash burn, markets may have remained focused on balance sheet risk. In that context, even beneficial transactions like the $3.35 million NOL monetization might not have offset broader concerns.

Key Figures

NOL sale proceeds: $3.35 million Q3 2025 revenue: $2.817 million Q3 2025 net loss: $4.045 million +5 more

NOL sale proceeds

$3.35 million

Gross proceeds from NJEDA NOL sale transaction

Q3 2025 revenue

$2.817 million

Quarter ended September 30, 2025

Q3 2025 net loss

$4.045 million

Quarter ended September 30, 2025

Cash balance

$828,000

As of September 30, 2025

Net cash used in ops

$9.142 million

Nine months ended September 30, 2025

Aquaculture acquisition

$12.0 million

Assets acquired via Series B Preferred Stock

Secured promissory note

$1.75 million

Note requiring weekly payments

Warrant exercise proceeds

$4.2 million

Expected gross proceeds from warrant inducement

Historical Context

5 past events · Latest: 2026-01-06

5 events

1. 2026-01-06

   Sales update

   24h Move

   +20.7%

   Strong holiday-period sales growth across core product portfolio.

2. 2025-12-30

   Board change

   24h Move

   -4.2%

   Appointment of capital markets veteran to Board and committees.

3. 2025-12-24

   New product distribution

   24h Move

   -2.6%

   Western Beef adds fermented sauces and pickles to its stores.

4. 2025-12-18

   Retail expansion

   24h Move

   -9.4%

   Launch of integrated fresh herb program with Weis Markets.

5. 2025-12-11

   E-commerce expansion

   24h Move

   -7.4%

   Kick. Sports Nutrition line added to Target.com platform.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net operating losses, research and development tax credits, non-dilutive

3 terms

net operating losses financial

"completed the sale of its net operating losses (“NOLs”) under the New Jersey"

Net operating losses are the amount by which a company’s allowable tax deductions exceed its taxable income in a given year, creating a tax loss that can be carried forward or backward to reduce taxes in other years. For investors this matters because NOLs can lower future tax payments and boost cash flow—think of them as unused tax credits a business can apply later to improve profitability and valuation or make the company more attractive in a sale or investment.

research and development tax credits financial

"transfer certain unused New Jersey net operating losses and research and development tax credits to"

Tax incentives that let companies reduce their tax bill or receive refunds for qualified spending on developing new or improved products, processes, software, or technical knowledge. For investors, these credits act like a rebate that lowers the effective cost of innovation, improving cash flow and potential profitability, making growth projects less risky and often supporting higher valuations; their value depends on a company’s eligible activity and prevailing tax rules.

non-dilutive financial

"access to non-dilutive, tax-free capital without issuing equity or incurring additional debt"

Non-dilutive describes funding or income that does not reduce existing shareholders’ ownership percentage. It matters to investors because it lets a company raise money or generate value—through grants, loans, licensing deals, or revenue—without issuing extra shares, so each existing share keeps the same claim on profits and control; think of adding toppings to a cake without cutting it into more slices.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Transaction Converts Tax Assets Into Non-Dilutive Capital, Strengthening the Balance Sheet, Liquidity, and Strategic Flexibility

BELVIDERE, NJ, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leading provider of controlled environment agriculture (CEA) solutions and sustainable, locally grown organic produce, today announced that it has completed the sale of its net operating losses (“NOLs”) under the New Jersey Economic Development Authority’s (“NJEDA”) Technology Business Tax Certificate Transfer Program (the “Program”) and has received gross proceeds of approximately $3.35 million.

Through the NJEDA Technology Business Tax Certificate Transfer Program, qualified New Jersey-based technology and innovation-driven companies are permitted to transfer certain unused New Jersey net operating losses and research and development tax credits to approved corporate buyers in exchange for cash. The Program is designed to provide eligible companies with access to non-dilutive, tax-free capital without issuing equity or incurring additional debt.

Jim Kras, Chief Executive Officer of Edible Garden, commented, “The completion of this NOL sale reflects an important step in strengthening the Company’s financial position. By monetizing previously unused New Jersey net operating losses, we converted tax assets into immediate, non-dilutive liquidity that further strengthens our balance sheet, enhances financial liquidity, and builds on the progress we have made in improving our cash flow position through disciplined execution across the business. This enhanced financial flexibility allows us to support ongoing operations, continue investing in our core business, and evaluate disciplined capital allocation decisions as we pursue strategic initiatives focused on growth and operational efficiency. With a stronger balance sheet, we believe Edible Garden is well positioned to deploy capital in ways that support sustainable, long-term value creation for our shareholders.”

ABOUT EDIBLE GARDEN®

Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), delivering locally grown, organic, better-for-you, sustainable produce and products through its Zero-Waste Inspired® next-generation farming model. Available in over 5,000 retail locations across the United States, Caribbean, and South America, Edible Garden is at the forefront of the CEA and sustainability technology movement, distinguished by its advanced safety-in-farming protocols, sustainable packaging, patented GreenThumb software, and innovative Self-Watering in-store displays. The Company operates state-of-the-art, vertically integrated greenhouses and processing facilities, including Edible Garden Heartland in Grand Rapids, Michigan; Edible Garden Prairie Hills in Webster City, Iowa; and its headquarters at Edible Garden Belvidere in New Jersey. It also partners with a network of contract growers strategically located near major U.S. markets to ensure freshness and reduce environmental impact.

Edible Garden’s proprietary GreenThumb 2.0 software—protected by U.S. Patents US 11,158,006 B1, US 11,410,249 B2, and US 11,830,088 B2—optimizes vertical and traditional greenhouse growing conditions while aiming to reduce food miles. Its patented Self-Watering display (U.S. Patent No. D1,010,365) is designed to extend plant shelf life and elevate in-store presentation. In addition to its core CEA operations, Edible Garden owns three patents in advanced aquaculture technologies: a closed-loop shrimp farming system (US 6,615,767 B1), a modular recirculating aquaculture setup with automated water treatment and feeding (US 10,163,199 B2), and a sensor-driven ammonia control method utilizing electrolytic chlorine generation (US 11,297,809 B1).

The Company has been recognized as a FoodTech 500 firm by Forward Fooding, a leading AgriFoodTech organization, and is a Giga Guru member of Walmart’s Project Gigaton sustainability initiative. Edible Garden also develops and markets a growing line of nutrition and specialty food products, including Vitamin Way® and Vitamin Whey®—plant and whey protein powders—and Kick. Sports Nutrition, a premium performance line for health-conscious athletes seeking cleaner, better-for-you options. The Company’s offerings further include fresh, sustainable condiments such as Pulp fermented gourmet and chili-based sauces, as well as Pickle Party, a collection of fermented fresh pickles and krauts.

Learn more at https://ediblegardenag.com.
For Pulp products, visit https://www.pulpflavors.com.
For Vitamin Whey® products, visit https://vitaminwhey.com.
For Kick. Sports Nutrition products, visit https://kicksportsnutrition.net/.

Watch the Company’s latest corporate video here.

Forward-Looking Statements

This press release contains forward-looking statements, including with respect to the Company’s growth strategies, ability to expand its distribution network and distribution relationships, and performance as a public company. The words “believe,” “expect,” “intend,” “look forward,” “objective,” “plan,” “seek,” “strategy,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company’s ability to achieve its growth objectives. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.

Investor Contacts:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Edible Garden announce on January 7, 2026 regarding EDBL?

Edible Garden announced it sold New Jersey net operating losses and received approximately $3.35 million in gross proceeds.

How did Edible Garden monetize its tax assets in the NJEDA program (EDBL)?

Edible Garden transferred unused New Jersey NOLs through the NJEDA Technology Business Tax Certificate Transfer Program for cash proceeds.

Is the $3.35 million from Edible Garden (EDBL) dilutive to shareholders?

No — the company described the proceeds as non-dilutive capital that does not require issuing equity.

How will the $3.35 million from Edible Garden (EDBL) be used?

The company said proceeds strengthen the balance sheet, enhance liquidity, support operations, and allow disciplined capital allocation.

Which program enabled Edible Garden (EDBL) to sell its New Jersey NOLs?

The sale occurred under the NJEDA Technology Business Tax Certificate Transfer Program for qualified New Jersey technology and innovation companies.

Will Edible Garden (EDBL) incur debt by selling its NOLs?

No — the company described the transaction as providing cash without issuing equity or incurring additional debt.