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- Going Concern (worsened) — Disclosure now includes capital deficiency (stockholders' deficit) in addition to recurring losses and insufficient revenue, indicating deteriorated financial condition.
Sow Good exits manufacturing, sells assets to insiders for $1.5M, warns of going concern
Filed March 31, 2026 · Period ending December 31, 2025 · Compared to 10-K Mar 27, 2025 · ~2 min read
Key Changes
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Company sold $10.8M of manufacturing assets to related party Trea Grove for $1.5M, recognizing $11.3M loss. Now earns 10% commission on distributor sales through July 2026 agreement. Headcount cut 91% (86 to 8 employees).
Business & MD&A: Asset Sale verify on EDGAR → -
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Management disclosed substantial doubt about ability to continue as going concern, citing insufficient funds for next twelve months and capital deficiency (stockholders' deficit of $ 1,297,851 vs. $32M equity in prior year).
MD&A & Notes: Going Concern verify on EDGAR → -
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Freeze-dried candy category experienced significant sales decline in late 2025. Company reported zero revenue from continuing operations in 2025 vs. $32M in 2024. All prior manufacturing results reclassified to discontinued operations showing $33.8M loss.
MD&A & Risk Factors: Category Decline verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Source-verified from EDGAR · Narrative written by AI · Jun 3, 2026 · How we verify