# EDGAR Filing Document

**Accession Number:** 0001490161
**File Stem:** 0001193125-26-133385
**Filing Date:** 2026-3
**Character Count:** 514512
**Document Hash:** 38818dadccc94b6f73d5c1d13fede095
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-133385.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0001193125-26-133385

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 111

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sow Good Inc.
- **CENTRAL INDEX KEY:** 0001490161
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOOD & KINDRED PRODUCTS [2000]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 272345075
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42037
- **FILM NUMBER:** 26817306

**BUSINESS ADDRESS:**
- **STREET 1:** 1440 N. UNION BOWER
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75061
- **BUSINESS PHONE:** (214) 623-6055

**MAIL ADDRESS:**
- **STREET 1:** 1440 N. UNION BOWER
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75061

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Black Ridge Oil & Gas, Inc.
- **DATE OF NAME CHANGE:** 20120403

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ante5, Inc.
- **DATE OF NAME CHANGE:** 20100422

?xml version='1.0' encoding='ASCII'? 10-K

[**<u>**Table of Contents**</u>**](#toc_page)

**U.S. SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM** 10-K

☒ **ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended: December 31, 2025

**or**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1933**

**For the transition period from ________ to _________**

*Commission file number* 001-42037

![img29935796_0.jpg](img29935796_0.jpg)

SOW GOOD INC.

*(Exact name of registrant as specified in its charter)*

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| | |
|:---|:---|
| Delaware | 27-2345075 |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |
| 1440 N Union Bower Rd**,** Irving**,** Texas | 75061 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**<u>Registrant's telephone number, including area code: (</u>**214**<u>)</u>** 623-6055

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of Each Exchange On<br>Which Registered** |
| Common stock, par value $0.001 per share | SOWG | The Nasdaq Capital Market |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of voting stock held by non-affiliates of the registrant was approximately $4,574,447 as of June 30, 2025 (computed by reference to the last sale price of a share of the registrant's Common Stock on that date as reported by The Nasdaq Capital Market).

There were 13,328,469 shares outstanding of the registrant's common stock as of March 26, 2026.

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**CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**

We are including the following discussion to inform our existing and potential security holders generally of some of the risks and uncertainties that can affect our company and to take advantage of the "safe harbor" protection for forward-looking statements that applicable federal securities law affords.

From time to time, our management or persons acting on our behalf may make forward-looking statements to inform existing and potential security holders about our company. All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations and industry conditions are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items making assumptions regarding actual or potential future sales, market size, collaborations, trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our control) that could cause actual results to differ materially from those set forth in the forward-looking statements include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to provide shareholder value through strategic alternatives, including potential partnerships, acquisitions and corporate transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain the benefits of our recent private placement and strategic asset sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the consummation of the second tranche of our recent private placement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the continued market for freeze-dried candy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to compete successfully in the highly competitive industry in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain and enhance our brand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully implement our growth strategies related to launching new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully enter new markets internationally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effectiveness and efficiency of our marketing programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to manage current operations and to manage future growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our future operating performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to attract new customers or retain existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to protect and maintain our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the government regulations to which we are subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain adequate liquidity to meet our financial obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to obtain sufficient sales and distributions for our freeze dried product offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential for supply chain disruption and delay;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential for transportation, labor, and raw material cost increases; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other risks and uncertainties set forth under "*Risk Factors*."

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. We have based these forward-looking statements and statements of belief on our current expectations and assumptions about future events as of the date of this report. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, results actually achieved may differ materially from expected results in these statements.

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Forward-looking statements speak only as of the date they are made. You should consider carefully the statements in "Item 1A. Risk Factors" and other sections of this report, which describe factors that could cause our actual results to differ from those set forth in the forward-looking statements.

Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, other than as may be required by applicable law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the United States Securities and Exchange Commission (the "SEC") which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.

**<u>NOTE REGARDING INDUSTRY AND MARKET DATA</u>**

This Annual Report contains market data and industry statistics and forecasts that are based on independent industry publications and other publicly available information. Although we believe these sources are reliable, we do not guarantee the accuracy or completeness of this information and we have not independently verified this information. In addition, the market and industry data and forecasts included in this report may involve estimates, assumptions and other risks and uncertainties and are subject to change based on various factors, including those discussed in Part I, "Item 1A. Risk Factors," contained in this Annual Report. Accordingly, investors should not place undue reliance on this information.

*Unless otherwise indicated, "the Company," "we," "our," "us" and "Sow Good" are used in this report to refer to the businesses of Sow Good Inc. and its consolidated subsidiaries.*

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [**<u>PART 1</u>**](#part_i) |  |  |
| ITEM 1 | [<u>Business</u>](#item_1_business) | 1 |
| ITEM 1A | [<u>Risk Factors</u>](#item_1a_risk_factors) | 7 |
| ITEM 1B | [<u>Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 22 |
| ITEM 1C | [<u>Cybersecurity</u>](#item_1c_cybersecurity) | 22 |
| ITEM 2 | [<u>Properties</u>](#item_2_properties) | 23 |
| ITEM 3 | [<u>Legal Proceedings</u>](#item_3_legal_proceedings) | 23 |
| ITEM 4 | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 23 |
| [**<u>PART II</u>**](#part_ii) |  |  |
| ITEM 5 | [<u>Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities</u>](#item_5_market_for_registrant_common) | 24 |
| ITEM 6 | [<u>Selected Financial Data</u>](#item_6_selected_financial_data) | 25 |
| ITEM 7 | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_mda) | 26 |
| ITEM 7A | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_7a) | 32 |
| ITEM 8 | [<u>Financial Statements and Supplementary Data</u>](#item_8_financial_statements) | 34 |
| ITEM 9 | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9) | 50 |
| ITEM 9A | [<u>Controls and Procedures</u>](#item_9a) | 50 |
| ITEM 9B | [<u>Other Information</u>](#item_9b) | 51 |
| [**<u>PART III</u>**](#part_iii) |  |  |
| ITEM 10 | [<u>Directors, Executive Officers, and Corporate Governance</u>](#item_10_directors_executive_officers) | 52 |
| ITEM 11 | [<u>Executive Compensation</u>](#item_11_executive_compensation) | 58 |
| ITEM 12 | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item_12_security_ownership) | 66 |
| ITEM 13 | [<u>Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationships) | 67 |
| ITEM 14 | [<u>Principal Accounting Fees and Services</u>](#item_14_principal_accounting_fees_) | 71 |
| [**<u>PART IV</u>**](#part_iv) |  |  |
| ITEM 15 | [<u>Exhibits, Financial Statement Schedules</u>](#item_15_exhibits_financial_statement) | 73 |
| ITEM 16 | [<u>Form 10-K Summary</u>](#item_16_form_10_k_summary) | 76 |
|  | [<u>SIGNATURES</u>](#signatures) | 77 |

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**PART I**

**ITEM 1. BUSINESS**

**Overview**

Sow Good Inc. is a U.S.-based consumer packaged goods company that pioneered the freeze dried candy category. Since commencing commercial sales in the first quarter of 2023, Sow Good developed and scaled a proprietary freeze drying manufacturing operation dedicated to transforming traditional candy and snacks into novel, intensely flavorful treats it markets under the "hyper dried, hyper crunchy, hyper flavorful" brand positioning.

**Recent Strategic Transactions**

On December 30, 2025, the Company sold substantially all of its manufacturing assets, including six proprietary freeze drying machines and other property and equipment with an aggregate net book value of approximately $10,793,563, to Trea Grove, LLC, ("Trea Grove"), a related party, for total consideration of $1.5 million. Concurrently, the Company entered into an exclusive Distribution Agreement with Trea Grove, pursuant to which Trea Grove serves as the exclusive worldwide distributor of Sow Good's remaining finished goods inventory, with the Company receiving 10% of gross receipts from customer sales. The Distribution Agreement has a term through July 31, 2026.

As a result of these transactions, the Company no longer operates manufacturing facilities and has transitioned to a capital-light model for the duration of the Distribution Agreement. The Company's board and management are evaluating strategic alternatives for the business going forward.

Additionally, on December 31, 2025, the Company entered into a Securities Purchase Agreement for the private placement of two tranches of convertible preferred stock (the "Private Placement"). The Company completed the sale of the first tranche by issuing 1,500,000 Series AA Convertible Non-Redeemable Preferred Stock, par value $0.001 per share, of the Company (the "Series AA Preferred Stock") with proceeds to the Company of $3,000,000, which were used to pay down debt, reduce headcount, and for operational purposes. Pursuant to the Securities Purchase Agreement, the Company expects to consummate the sale of the second tranche with the issuance of 1,500,000 Series AAA Convertible Redeemable Preferred Stock, par value $0.001 per share, of the Company (the "Series AAA Preferred Stock") for additional proceeds of $3,000,000 in March 2026. The terms of the Series AAA Preferred Stock are substantially similar to the terms of the Series AA Preferred Stock, except that the Series AAA Preferred Stock are redeemable at a price of $200 per share, and each share of Series AA Preferred Stock is initially convertible into 14 shares of Common Stock where each share of Series AAA Preferred Stock is initially convertible into 250 shares of Common Stock (subject to adjustment as provided in the Series AAA certificate of designations).

**Products**

Sow Good sells freeze-dried candy and snack products through a distributor. The freeze drying process removes up to 99% of moisture from products in their frozen state through the application of low heat in a near-vacuum environment, concentrating flavor and producing a uniquely crunchy texture with a long shelf life and natural preservation characteristics.

**Facilities**

Prior to the December 30, 2025 asset sale, the Company operated a custom-built 20,945 square foot freeze drying facility located at 1440 N. Union Bower Road, Irving, Texas, which was leased under a related party lease with Mr. Goldfarb, and housed six bespoke, proprietary freeze dryers capable of producing up to 24 million units of freeze dried candy annually. The manufacturing equipment were among the assets transferred to Trea Grove, LLC as part of the asset sale, and the lease was exited. Sow Good maintains an approximately 10,000 square foot warehouse for remaining inventory, leased through July 2026.

**Founders and Background**

Sow Good was co-founded by Claudia Goldfarb and Ira Goldfarb. Mr. Goldfarb and Mrs. Goldfarb are also the Managing Members of Trea Grove, LLC, the buyer in the December 2025 asset sale and the Company's exclusive distributor. See "Related Party Transactions" for a full description of those arrangements.

**Our Market Opportunity**

We believe the candy category is stagnant, repetitive, and in need of revitalization to reengage and captivate consumers seeking innovative ways to satisfy their sweet cravings. We see our market opportunity existing at the intersection of two categories: the burgeoning freeze dried candy category and the non-chocolate confections category. While we observed the freeze dried candy category experience a significant rise in popularity during 2024 and the first half of 2025, we have observed market data showing a significant decline in sales in the freeze dried candy category toward the end of 2025. For these reasons, the Company has transitioned to a

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capital-light model for the duration of the Distribution Agreement. The Company's board and management are evaluating strategic alternatives for the business going forward.

***A Distinctive and Trusted Brand Name***

We believe we have a distinctive brand that consumers trust and helps distinguish our product on crowded retail shelves. Since Sow Good's inception, we have invested heavily to elevate the Sow Good brand by creating a distinctive and cohesive brand design that sparks consumer curiosity and a desire to sample additional flavors carried by Sow Good. In addition, we use premium packaging materials to communicate the high-quality nature of our products and differentiate ourselves from competitive offerings.

**Our Growth Strategy**

Following the sale of substantially all manufacturing and operating assets and the entry into a long-term Distribution Agreement, Sow Good Inc. now operates as a commission-based distribution and brand-focused company. We do not manufacture products. Our business model is centered on developing and supporting the Sow Good brand, driving consumer demand, and earning a fixed percentage of distributor gross receipts from sales of Sow Good-branded products.

Our growth strategy is focused on three primary elements: (i) maintaining a lean, asset-light operating structure while we pursue strategic alternatives; (ii) strengthening brand awareness and consumer engagement; and (iii) expanding distribution through our distribution partner.

**Maintain an Asset-Light Operating Structure While We Pursue Strategic Alternatives**

Our current business model is asset-light and does not require ownership of manufacturing facilities, production equipment, or inventory. We believe this structure provides flexibility, scalability, and reduced capital requirements relative to a vertically integrated manufacturing model, while allowing management to focus on pursuing strategic alternatives. Given the substantial decline in sales experienced by the freeze dried candy category, and with the benefit of the proceeds from the Private Placement, our management is reviewing strategic alternatives to create shareholder value in adjacent categories as well as other industries.

**Strengthen Brand Awareness and Consumer Engagement**

We believe brand recognition and consumer loyalty are critical drivers of long-term value. We seek to build a trusted brand associated with novel, high-quality freeze-dried treats that consistently deliver a differentiated sensory experience. Our efforts are focused on increasing brand visibility across digital channels, social media platforms, and retail environments, as well as supporting marketing initiatives that drive consumer trial and repeat purchases.

We work collaboratively with our distribution partner to support retail launches, merchandising initiatives, and promotional campaigns designed to increase shelf presence, improve sell-through velocity, and expand consumer awareness of the Sow Good brand.

**Expand Distribution Through Our Distribution Partner**

Under the Distribution Agreement, our distribution partner is responsible for sales, order fulfillment, warehousing, logistics, and customer relationships with retailers and distributors. Our role is to support and influence distribution expansion through brand development, product strategy, and marketing support. Growth in distribution footprint and sell-through directly increases gross receipts earned by our distribution partner, from which we earn a fixed commission.

**Our Products**

Sow Good operates as a brand owner and brand steward of freeze-dried snack products marketed under the Sow Good name. Product manufacturing, packaging, and distribution are performed by third parties under contractual arrangements. Current product categories include freeze-dried candy marketed under the Sow Good Candy brand, as well as other freeze-dried snack concepts under development.

**Sow Good Candy – Freeze-Dried Candy**

Sow Good Candy consists of freeze-dried versions of familiar gummy, chewy, and hard candies transformed into crunchy snack formats with concentrated flavor and expanded texture. Products are offered in a variety of flavor profiles, shapes, and pack sizes.

**Supply Chain and Manufacturing**

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Sow Good does not manufacture products and does not own or operate production facilities. Manufacturing, packaging, and sourcing of raw materials are performed by third-party partners engaged by our distribution partner.

We rely on our distribution partner to manage relationships with manufacturers and suppliers, maintain appropriate quality standards, and ensure compliance with applicable food safety and regulatory requirements. We work collaboratively with our partners to support product specifications, quality expectations, and brand standards.

**Quality Control**

We expect our manufacturing partners to operate in compliance with applicable FDA, USDA, and other regulatory requirements and to maintain food safety and quality certifications appropriate for the products manufactured. Our distribution partner is responsible for overseeing quality assurance processes, while we provide brand-level input regarding product standards and consumer expectations.

**Sales Channels and Product Distribution**

Sow Good-branded products are sold to retailers and distributors through our distribution partner. We do not sell products directly to retailers or consumers and do not maintain an e-commerce fulfillment operation. Products are distributed across conventional grocery, natural and specialty grocery, club, and convenience store channels, as well as other retail formats, depending on distribution partner relationships and market opportunities.

**Sales and Marketing**

We maintain a lean internal team focused on partner coordination. Our role is to support distribution efforts.

**Competition**

Sow Good competes in the freeze-dried candy and snack categories and, more broadly, within the packaged snack food market. Competition includes large multinational food companies, regional brands, and smaller specialty snack producers. Competitive factors include brand recognition, product differentiation, quality, price, innovation, distribution reach, and marketing effectiveness.

**Culture, Employees and Human Capital Resources**

As of December 31, 2025, we had a small team of employees primarily focused on executive management, finance, and partner coordination. We believe our culture emphasizes accountability and disciplined execution. Our human capital strategy is centered on retaining a lean, highly skilled workforce aligned with our asset-light business model.

We maintain TikTok, Instagram, and Facebook accounts under the username @thisissowgood. Our social media presence allows us to directly connect with our audience and field customer service requests.

**Our Competition** 

Our brands primarily operate within the freeze dried candy and non-chocolate confections categories, but we also compete within the larger conventional packaged food category. The categories and markets we operate in are highly competitive and comprised of a diverse set of participants that include global multinational, national, regional, and local firms offering branded and/or private label products. Some of these competitors may have greater financial and other resources, longer operating histories, a broader assortment of product offerings, products that are well-accepted in the marketplace, more established relationships with retailers, and greater brand visibility among consumers.

Within the conventional packaged food category, our competitors include, but are not limited to, Nestlé S.A., The Hershey Company, Mars Inc., PepsiCo, Inc., Van Drunen Farms, Mondelēz International, Haribo. Within the freeze dried candy category, we believe our primary direct competitors are both larger companies, like Mars, Inc. or the Hershey Company, and smaller or local companies that have significantly lower production capacity, distribution and/or branding, and includes such firms such as Crazy Candy and Trendy Treats.

We believe the principal competitive factors for our business are taste, product quality, brand recognition and loyalty, price, convenience, product variety and innovation, customer service, access to retailer shelf-space, effectiveness of marketing and promotional activity, and the ability to respond to evolving customer preferences. While we believe we can compete favorably with respect to each of these factors, there is no guarantee that we will be able to compete effectively against our current or future competitors, particularly those with greater financial and market resources.

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**Culture, Employees and Human Capital Resources**

Sow Good firmly believes that we can all plant positive seeds to sow a better version of ourselves, our communities, and our world. We plant our seeds by coming into work each day dedicated to creating delicious treats that enrich the lives of our customers, partners and employees. We believe that we are only as excellent as our employees, which is why we provide a living wage, an energizing working environment, full benefits, and stock options to every employee. We strive for nothing short of excellence because that is what our customers, employees, and environment deserve. We believe that our company culture has been and will continue to be a key contributor to the fulfillment of this commitment. Our culture enables us to foster the creativity, teamwork, focus, and innovation we need to support our growth.

As of December 31, 2025, we had 8 full-time employees. Currently, none of our employees are covered by collective bargaining agreements. To date, we have never experienced an organized work stoppage, strike or labor dispute.

Our human resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and additional employees. The principal purposes of our equity incentive plans are to attract, retain and motivate selected employees, consultants and directors through the granting of stock-based compensation awards and cash-based performance bonus awards.

**Office Locations**

We do not own any real property. Prior to December 30, 2025, our principal executive office and manufacturing facility was located in Irving, Texas, where we leased approximately 20,945 square feet of space under a lease agreement with an entity owned entirely by Ira Goldfarb, a related party. On December 31, 2025, concurrently with the sale of our manufacturing assets, the Company exited that lease.

As of December 31, 2025, we lease a 9,900 square feet warehouse facility located in Dallas, Texas which we use to receive, store, package, and distribute our products. We believe that these facilities are sufficient to meet our current needs.

**Trademarks and Other Intellectual Property**

Our intellectual property consists primarily of trademarks, trade names, trade dress, copyrights, domain names, and related brand assets associated with the Sow Good brand. We do not own any registered patents.

Our intellectual property is a strategically important component of our business and is central to our brand-focused, asset-light operating model. We believe our trademarks and trade dress are valuable assets that reinforce the distinctiveness of the Sow Good brand, support consumer recognition, and contribute to building long-term brand equity. We consider the "Sow Good" name and the "Sow Good" logo, together with related product and packaging marks, to be among our most important intellectual property assets. Our products are marketed and sold under the Sow Good brand pursuant to our contractual arrangements with our distribution and manufacturing partner.

As of December 31, 2025, we owned two U.S. trademark registrations and had six pending U.S. trademark applications. We also own the registered domain names www.thisissowgood.com and www.sowginc.com. The information contained on or accessed through our websites does not constitute part of this report.

In addition to registered intellectual property, we rely on proprietary brand concepts, product concepts, packaging designs, marketing content, and other creative materials that are protected, where applicable, by copyright and trade secret laws. We treat the confidential aspects of our brand strategy, product concepts, marketing plans, and commercial relationships as proprietary and take reasonable measures to maintain their confidentiality.

We no longer rely on proprietary manufacturing processes, equipment designs, or production-related trade secrets as part of our business model. Manufacturing and production activities are performed by third-party partners, and we rely on contractual protections to safeguard our intellectual property and brand standards in those arrangements.

While there is no active litigation involving our intellectual property, we may be required from time to time to enforce or defend our rights. For additional information regarding risks related to our intellectual property portfolio, see *"Risk Factors—Risks Related to Our Intellectual Property, Information Technology, and Privacy."*

**Security, Privacy and Data Protection**

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The regulatory environment surrounding information security and privacy is demanding, with the frequent imposition of new and changing requirements across our business. Various federal, state, and foreign legislative and regulatory bodies may expand current laws or regulations, enact new laws or regulations, or issue revised rules or guidance regarding privacy, data protection, information security, and consumer protection. We must comply with increasingly complex and rigorous laws and regulations regarding privacy and the collection, storage, use, processing, transfer, transmission, disclosure, and protection of personal and other data, which require us, among other things, to maintain reasonable and appropriate data security measures and to provide timely notice to individuals and regulators in the event that such personal information is compromised.

Earning and maintaining the trust of our customers, consumers, supply chain partners, employees, and securityholders is critical to the success and growth of our business, and we take significant measures to protect the privacy and security of their personal data and to comply with applicable laws. We have established and maintain an information security program, which is aligned with applicable standards and regulations, including Payment Card Industry Data Security Standard ("PCI-DSS"). In November 2020, California voters passed the California Privacy Rights Act ("CPRA"), which became fully effective on January 1, 2023. The CPRA imposed additional data privacy compliance requirements on companies covered by the legislation, including the expansion of consumers' rights with respect to certain sensitive personal information. The CPRA also established a new regulatory agency dedicated to enforcing the requirements of the California Consumer Privacy Act ("CCPA") and CPRA. The effects of the CCPA and CPRA may require us to continue to materially modify our data processing practices and policies and to incur substantial compliance-related costs and expenses. We must also comply with laws on advertising, including the Telephone Consumer Protection Act ("TCPA") the Telemarketing Sales Rule, and Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 ("CAN-SPAM Act").

Our team of professionals works to identify and mitigate risks, implement best practices, and continue to evaluate ways to improve our information security. These steps include data encryption in transit and at rest, network security, limiting and authorizing access controls, and multi-factor authentication for access to systems with data. We also employ regular system monitoring, logging, and alerting to retain and analyze the security state of our corporate and production infrastructure. In addition, we take appropriate steps to help ensure that appropriate security measures are maintained by the third-party vendors we use, including by conducting security reviews.

**Government Regulation**

The food industry is highly regulated. We and our suppliers are subject to extensive laws and regulations in the United States by federal, state, and local government authorities, or by federal, state, and local government authorities in other jurisdictions where they are located. These laws and regulations apply to many aspects of our business, including the manufacture, packaging, labeling, distribution, advertising, sale, quality, and safety of our products, as well as the health and safety of our employees and the protection of the environment.

Our business is subject to extensive regulation by the FDA and the U.S. Federal Trade Commission ("FTC"), and other federal, state, and local authorities in the United States, and any other jurisdictions in which we may manufacture or sell our products. Specifically, in the United States, we and our products are subject to the requirements of the FDA and regulations promulgated thereby. This comprehensive regulatory program governs the manufacturing, nutritional value, composition and ingredients, packaging, labeling, and safety of food. Under this program, the FDA requires that facilities that manufacture food products comply with a range of requirements, including hazard analysis and preventative controls regulations, GMPs, and supplier verification requirements. Our processing facilities are subject to periodic inspection by foreign, federal, state, and local authorities. For example, our Irving, Texas facility is subject to periodic inspections by the FDA and Occupational Safety and Health Administration to evaluate compliance with certain applicable requirements. We seek to comply with applicable laws and regulations through a combination of employing internal experience and expert personnel to monitor quality-assurance compliance, and we contract with third-party laboratories that conduct analyses of new products to establish nutrition labeling information and to help identify certain potential contaminants before distribution.

The FDA's Foreign Supplier Verification Program requires that the U.S. owner or consignee of imported food take steps to verify that the foreign supplier of imported food is manufacturing the food in accordance with FDA requirements, that the importer understand what hazards the foreign supplier is controlling and how those hazards are controlled, and that this oversight program is documented. The regulation is being implemented using a tiered series of compliance dates based on the size of the U.S. importer and the foreign supplier. We have developed a program that we believe is in compliance with this regulation and are monitoring its ongoing implementation.

The FDA also requires that certain nutrition and product information appear on our product labels and, more generally, that our labels and labeling be truthful and not misleading. Similarly, the FTC requires that our marketing and advertising be truthful, not misleading, and not deceptive to consumers. We are also restricted from making certain types of claims about our products, including nutrient content claims, health claims, and claims regarding the effects of our products on any structure or function of the body, whether express or implied, unless we satisfy certain regulatory requirements and our representations are not misleading. Further, we must comply with additional laws impacting our advertising, including the TCPA, the Telemarketing Sales Rule, and the CAN-SPAM Act.

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In addition to federal regulatory requirements in the United States, certain states impose their own manufacturing and labeling requirements. For example, every state in which our products are manufactured requires facility registration with the relevant state food safety agency, and those facilities are subject to state inspection as well as federal inspection. Further, states can impose state-specific labeling requirements, such as Proposition 65 in California.

We are currently subject to international laws and regulations where we manufacture our products, and to the extent we commence selling and distributing our products internationally, we will become subject to additional laws and regulations.

We are also subject to labor and employment laws, laws governing advertising, privacy laws, safety regulations, and other laws, including consumer protection regulations that regulate retailers or govern the promotion and sale of merchandise. Our operations, and those of our suppliers and any potential co-manufacturers, are also subject to various laws and regulations relating to environmental protection and worker health and safety matters.

Although we have implemented policies and procedures designed to comply with existing laws and regulations, we operate in a highly regulated environment with constantly evolving legal and regulatory frameworks. Consequently, we are subject to heightened risk of legal claims, government investigations, or other regulatory enforcement actions.

**Legal Proceedings**

From time to time, we may be involved in various disputes and litigation matters that arise in the ordinary course of business. We are not currently engaged in any material legal proceedings.

C**orporate Information**

Sow Good Inc. ("SOWG," "Sow Good," "us," "our," "we," or the "Company") is a U.S.-based brand owner and commission-based distributor of freeze-dried candy and snack products. Following the sale of substantially all manufacturing and operating assets and the entry into a long-term Distribution Agreement, the Company no longer manufactures products and instead earns a fixed percentage of distributor gross receipts from sales of Sow Good-branded products.

Formerly Black Ridge Oil & Gas, Inc. (a business that participated in the acquisition and development of oil and gas leases and was acquired by the Company on October 1, 2020), the Company initially focused on the production of freeze-dried fruits and vegetables, later expanding into freeze-dried candy and other snacks prior to transitioning to its current asset-light operating model.

At the time of the acquisition of Black Ridge Oil & Gas, Inc., the Company's common stock began to be quoted on the OTCQB under the trading symbol "SOWG," from the former trading symbol "ANFC." Prior to April 2, 2012, Black Ridge Oil & Gas was known as Ante5, Inc., a publicly traded company since July 1, 2010. Effective February 15, 2024, Sow Good Inc. reincorporated in the State of Delaware from the State of Nevada under the name Sow Good Inc. pursuant to a plan of conversion. On May 2, 2024, trading of the Company's common stock commenced on the Nasdaq Capital Market.

Our principal executive offices are located at 1440 N. Union Bower Road, Irving, Texas 75061, and our telephone number is (214) 623-6055. Our website addresses are www.thisissowgood.com and www.sowginc.com. Information contained on, or accessible through, our websites is not incorporated by reference into this report, and you should not consider information on our websites to be part of this report.

**Available Information** – **Reports to Security Holders**

Our website addresses are www.thisissowgood.com and www.sowginc.com. We make available on our www.sowginc.com website, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports after we electronically file those materials with, or furnish those materials to, the SEC, along with certain other materials. Electronic filings with the SEC are also available on the SEC internet website at www.sec.gov.

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**ITEM 1A. RISK FACTORS**

**Summary Risk Factors** 

*The risk factors described below are a summary of the principal risk factors associated with an investment in the Company. These are not the only risks we face. You should carefully consider these risk factors, together with the risk factors set forth in Item 1A of this Annual Report on Form 10-K and the other reports and documents filed by us with the SEC.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have a limited operating history in our current form and have incurred significant operating losses. As a result of continuing investments to support our brand and distribution strategy, we may not achieve or sustain profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The retail food and non-chocolate confectionary and freeze dried candy segments are highly competitive. If our competitors are more successful or offer better value to consumers, our business could decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We rely on Trea Grove, a sole supplier, for the manufacture and distribution of our treats, and our supply chain may be interrupted and prevent us from obtaining the necessary materials we need to operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consumer preferences for our products, or for freeze dried candy generally have changed and could change rapidly, and, if we are unable to respond quickly to new trends, our business may be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any damage to our reputation or brand image could adversely affect our business or financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fluctuations in various food and supply, transportation and shipping costs could adversely affect our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may not be able to protect our intellectual property and proprietary technology adequately, which may impact our commercial success.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Food safety concerns and concerns about the health risk of our products may have an adverse effect on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Failure to manage inventory at optimal levels could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information security events, or real or perceived errors, failures, or bugs in our systems; other technology disruptions; or failure to comply with laws and regulations relating to information security could negatively impact our business, our reputation and our relationships with customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our operations are subject to regulation by the FDA and other federal, state, and local authorities in the U.S., and in any other jurisdictions in which we may sell our products, and there is no assurance that we will be in compliance with all laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The market price of our common stock is, and is likely to continue to be, highly volatile and subject to wide fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have never paid dividends on our common stock and we do not intend to pay dividends for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are a "smaller reporting company," and the reduced disclosure requirements applicable to smaller reporting companies may make our common stock less attractive to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The concentration of our stock ownership limits our stockholders' ability to influence corporate matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our business depends substantially on the continuing efforts of our Distributors and their key personnel, including Ira and Claudia Goldfarb, and our business may be severely disrupted if we lose their services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A worsening of economic conditions or a decrease in consumer spending may adversely impact our ability to implement our business strategy.

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**Risks Related to Our Operating History, Financial Position and Capital Needs**

***We have a limited operating history in our current form and have incurred significant operating losses. As a result of continuing investments to support our brand and distribution strategy, we may not achieve or sustain profitability.***

Sow Good commenced commercial sales of Sow Good-branded products in 2021 and expanded into freeze-dried candy and other snack categories in 2023. As a result of continued and accelerating declines of both our sales and the sales within the freeze dried candy category more broadly, in December 2025, we sold substantially all manufacturing and operating assets and entered into a long-term Distribution Agreement pursuant to which we transitioned to a commission-based, asset-light business model to pursue strategic alternatives. Under this model, we no longer manufacture products or own inventory and instead earn a fixed percentage of distributor gross receipts from sales of Sow Good-branded products.

Because this business model is relatively new, we have a limited operating history in our current form upon which to evaluate our performance, forecast future results, or assess the long-term sustainability of our operations. Our historical financial results were generated under a materially different vertically integrated manufacturing model and are not necessarily indicative of future results. This lack of operating history increases the uncertainty associated with our ability to accurately forecast revenues, expenses, cash flows, and working capital needs and to effectively plan our business.

Our future success depends on a number of factors, including the continued existence of the freeze dried candy category, our ability to find strategic alternatives in adjacent categories or other industries, our ability to build and maintain brand awareness, support product innovation, expand distribution through our distribution partner, and maintain productive relationships with third-party manufacturers and distributors. We must also effectively manage a lean corporate infrastructure while meeting the reporting, compliance, and governance obligations associated with being a public company. Our strategic priorities may need to evolve over time, and we may not be successful in adapting our strategy to changing market conditions, consumer preferences, or competitive dynamics.

In the years ended December 31, 2025 and December 31, 2024, we incurred net losses from continuing operations of approximately $6.8 million and $11.8 million, respectively. We expect to continue to incur operating losses in the near term as we pursue strategic alternatives, invest in brand development, marketing, product support, personnel, and public company infrastructure. Even if we succeed in increasing gross receipts generated by sales of Sow Good-branded products, we may not be able to generate commission revenue in amounts sufficient to offset our operating expenses.

We cannot assure that we will achieve profitability in the foreseeable future whether through the continued sale of freeze dried candy or through strategic alternatives, or, if achieved, that we will be able to sustain profitability. Failure to do so could materially and adversely affect our business, financial condition, results of operations, and the trading price of our common stock.

***We may need additional funding in order to fund our existing commercial operations, commercialize new products and grow our business.*** 

To date, we have financed our operations through the sale of securities including public offerings and private placements of our equity, equity-linked and debt securities. We have devoted substantially all our financial resources and efforts to developing our products, workforce, and manufacturing capabilities. Our long-term growth and success are dependent upon the freeze dried candy category's return to growth, our ability to find strategic alternatives, our ability ultimately to expand our manufacturing capacity and generate cash from operating activities. There is no assurance that we will be able to generate sufficient cash from operations or access the capital we need to grow our business. Our inability to obtain additional capital could have a material adverse effect on our ability to fully implement our business plan as described herein and grow our business, to a greater extent than we can with our existing financial resources.

If our available cash balances, net proceeds from anticipated offerings/or anticipated cash flow from operations are insufficient to satisfy our liquidity requirements because of lower demand for our products or due to other risks described herein, we may seek to sell common stock or other securities, enter into an additional credit facility or seek another form of third-party funding, including debt financing. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing stockholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements.

We may consider raising additional capital in the future to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons, including to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide for additional capacity;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increase our sales and marketing efforts and address competitive developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide for supply and inventory costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fund development and marketing efforts of any future products or additional features to then-current products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquire, license or invest in new technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquire or invest in complementary businesses or assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•finance capital expenditures and general and administrative expenses.

Our present and future funding requirements will depend on many factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the health of the freeze dried candy category;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve revenue growth and improve gross margins;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost of expanding our operations and offerings, including our sales and marketing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect of competing market developments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs related to international expansion.

The various ways we could raise additional capital carry potential risks. If we raise funds by issuing equity securities, dilution to our stockholders could result. Any equity securities issued also could provide for rights, preferences, or privileges senior to those of holders of shares of our common stock. If we raise funds by issuing debt securities, those debt securities would have rights, preferences, and privileges senior to those of holders of shares of our common stock. The terms of any debt securities issued or borrowings made pursuant to a credit agreement could impose significant restrictions on our operations. If we raise additional funds through collaborations and licensing arrangements, we might be required to relinquish significant rights or grant licenses on terms that are not favorable to us.

***Our business depends substantially on the continuing efforts of our Distributors and their key personnel, including Ira and Claudia Goldfarb, and our business may be severely disrupted if we lose their services****.*

Our future success heavily depends on the continued service of our Distributor and their key employees, especially the continued contributions of Ira and Claudia Goldfarb, whose knowledge, leadership and technical expertise would be difficult to replace. Our executive officers or key personnel could terminate their employment with us at any time without penalty. In addition, we do not maintain key person life insurance policies on any of our employees. If one or more of our senior executives is unable or unwilling to continue to work for us in the present position, we may have to spend a considerable amount of time and resources searching, recruiting, and integrating a replacement into our operations, which would substantially divert management's attention from our business and severely disrupt our business. This may also adversely affect our ability to execute our business strategy.

***Our prior rapid growth has not been indicative of our future growth, and our limited operating history may make it difficult to assess our future viability.*** 

Our revenues grew from approximately $88.4 thousand for the year ended December 31, 2021 to approximately $428.1 thousand for the year ended December 31, 2022 and approximately $16.1 million for the year ended December 31, 2023, reflecting the ramp of our former vertically integrated manufacturing and direct-sales model. We experienced significant declines in revenue during the third and fourth quarters of 2024 and throughout 2025 as we experience the impact of external competition and, in late 2025, the significant reduction in sales within the freeze dried candy category. For the year ended December 31, 2025, we reported $0.0 million of revenue from continuing operations as we exited the manufacturing and direct-sales business and transitioned to a commission-based distribution model in connection with the sale of substantially all operating assets and entry into a long-term Distribution Agreement.

Results of operations for the years ended December 31, 2025 and 2024 have been reclassified on our Statement of Operations as either a gain or loss on discontinued operations, net of tax. For the years ended December 31, 2025 and 2024, we reclassified a loss of $33.8 million and a gain of $8.1 million, respectively to discontinued operations.

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Our historical revenue growth rates have not been indicative of future results. We initially saw a rapid rise in sales alongside the growth of the freeze dried candy category. However, those sales plummeted with the entry of larger candy companies into the freeze dried candy category and the subsequent substantial decline of the freeze dried candy category more broadly. Under our current business model, we expect future revenues to consist solely of commission revenue based on a fixed percentage of distributor gross receipts from sales of Sow Good-branded products, while we pursue strategic alternatives. If product sales through our distribution partner increase, we expect our commission revenue to increase accordingly; however, the absolute level and growth rate of such revenue will depend on factors outside of our direct control, including the performance and execution of our distribution partner and broader market conditions.

In addition, we may face increased competition from current or new competitors that may reduce our market share and thereby limit our growth. Since the initial commercialization of our freeze dried candy treats in March 2023, we have not yet demonstrated the ability to sustain growth over a long period of time or maintain profitability. Consequently, any predictions about our future success or viability may not be as accurate as they could be if we had a longer operating history or had previously achieved sustained profitability.

***If we are unable to successfully manage new product launches, our business and financial results could be adversely affected.***

Due to the highly competitive nature of our product sector and the overall reduction of sales therein, we expect and intend to continue to introduce new products and evolve existing products to better match consumer demand. The success of new and evolved products depends on a number of factors, including timely and successful development and consumer acceptance. Such endeavors may also involve significant risks and uncertainties, including distraction of management from current operations, greater than expected liabilities and expenses, inadequate return on capital, exposure to additional regulations and reliance on the performance of third-parties, any of which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

**Risks Related to Our Business and Industry** 

***The retail food and non-chocolate confectionary and freeze dried candy segments are highly competitive. If our competitors are more successful or offer better value to consumers, our business could decline.***

We operate in a very competitive environment that is characterized by competition from a number of other retailers in the market in which we operate. We compete with large national and regional food retail companies, some of which have greater financial and operational resources than us, and with smaller local retailers, some of which may have lower administrative costs than us. We are at a competitive disadvantage relative to certain of our large national and regional competitors whose operations are more geographically diversified than ours.

Increased competition could hurt our business. The freeze dried candy category is fragmented and has seen a significant decline in sales during the fourth quarter of 2025, but remains very competitive. We have experienced a reduction in revenue due to the entrant of a significant competitor in 2024. New competitors may easily enter the freeze dried candy market on which we are focused. The competitors may offer an equivalent or superior product to that of the Company. We expect the number of companies offering products and services in our market segment to increase.

If we are unable to compete effectively in our markets, our business could decline disproportionately to our competitors, and our results of operations and financial condition could be adversely affected. We can provide no assurance that we will be able to continue to compete successfully in any of our markets. Our inability to continue to compete successfully in any of our markets could have a material adverse effect on our business, prospects, liquidity, financial condition, and results of operations.

***We rely on Trea Grove, a sole supplier, for the manufacture and distribution of our treats, and our supply chain may be interrupted and prevent us from obtaining the necessary materials we need to operate.***

On December 30, 2025, the Company sold substantially all of its manufacturing assets, including six proprietary freeze drying machines and other property and equipment with an aggregate net book value of approximately $10,793,563, to Trea Grove, a related party, for total consideration of $1.5 million. Concurrently, the Company entered into an exclusive Distribution Agreement with Trea Grove, pursuant to which Trea Grove serves as the exclusive worldwide distributor of Sow Good's remaining finished goods inventory, with the Company receiving 10% of gross receipts from customer sales. The Distribution Agreement has a term through July 31, 2026. We rely on Trea Grove to meet our high-quality standards and supply products in a timely and efficient manner. There is, however, no assurance that quality ingredients will continue to be available to Trea Grove to meet our specific and growing needs. This may be due to, among other reasons, problems with our suppliers' and vendors' businesses, finances, labor relations, ability to export or import materials, product quality issues, costs, production, insurance and reputation, as well as disease outbreaks or pandemics such as the COVID-19 pandemic, acts of war, terrorism, natural disasters, fires, earthquakes, flooding or other catastrophic occurrences. If for any reason our suppliers or vendors became unable or unwilling to continue to provide services to Trea Grove, this would likely lead to an interruption in our ability to import our products until we found another source that could provide these services. Failure to find a suitable replacement,

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even on a temporary basis, would have a material adverse effect on our ability to meet our production targets, make it difficult to grow and would have an adverse effect on our results of operations.

During the year ended December 31, 2025, three key suppliers, Shandong Richfield Foodstuffs Co LTD, Albanese and Jiangsu Shengifan Foodstuff accounted for approximately 77% of our total raw material and packaging purchases for our products. Additionally, neither of Trea Grove, no the Company has any contractual obligations for the continued supply of raw material and packaging from these key suppliers. As a result of this concentration in the supply chain for our products, our freeze-dried candy business and related operations would be negatively affected if any of these key suppliers of Trea Grove were to experience significant disruption affecting the price, quality, availability or timely delivery of their products. While we have not had supply chain disruptions to date, and believe that additional sources for our products' raw material and packaging, can be found. In the event that our supply from current suppliers is interrupted, our operations may be interrupted in the interim resulting in lost revenue, added costs such as, without limitation, shipping costs, and distribution delays that could harm our business and customer relationships until we are able to identify one or more alternative suppliers.

***We have experienced a decline in revenues from the loss of significant customers which has adversely affected our results of operations and financial condition.***

Our results of operations and financial condition have been and could continue to be adversely affected by the loss of significant customers or any significant reduction in revenue volumes from our significant customers, which has occurred in the past and could occur in the future. Certain of our significant customers entered into exclusivity agreements in 2024 with larger new market entrants that have significantly reduced our shelf space and revenue. If other customers enter into exclusivity arrangements with our competitors, or other factors occur limiting our shelf space with significant customers, our revenue will be further reduced. In addition, the freeze dried candy category has seen significant declines in sales, which has led to, and could further lead to, the loss of key customers.

***Consumer preferences for our products, or for freeze dried candy generally have changed and could change rapidly, and, if we are unable to respond quickly to new trends, our business may be adversely affected.***

Our business is focused in part on the development, manufacture, marketing, and sale of freeze dried treats. Consumer preferences, and therefore demand for our products have changed, and could further change rapidly as a result of a number of factors, including consumer demand for specific nutritional content, dietary habits, or restrictions, including perceptions regarding food quality, concerns regarding the health effects of certain ingredients or macronutrient ratios, shifts in preferences for product attributes, laws and regulations governing product claims, brand reputation and loyalty, and product pricing. Further, freeze dried candy as a market entrant is in its nascent stage and has not seen wide-spread acceptance. On the contrary, the freeze dried candy category has seen a significant decline in sales recently which has further negatively impacted our results of operations and financial condition. A continued shift in consumer demand away from our products, or towards competitive products, could limit our product sales, reduce our market share, and negatively impact our brand reputation, any of which could adversely affect our business, operating results, and financial condition.

***If we fail to grow the value and enhance the visibility of our brand, our business could suffer.***

A key component of our business strategy involves maintaining the value and enhancing the visibility of our "Sow Good" brand. Our ability to maintain, position and enhance our brand will depend on a number of factors, including continued viability of the freeze dried candy category, the market acceptance of our current and future product offerings, the nutritional content of our products, food quality and safety, quality assurance, our advertising and marketing efforts, and our ability to build relationships with customers and consumers. Any negative publicity, regardless of its accuracy, could materially adversely affect our business. Brand value is often based on perceptions of subjective qualities, and any incident that erodes the loyalty of our customers, suppliers, or consumers, could significantly reduce the value of our brand and harm our business.

***Any damage to our reputation or brand image could adversely affect our business or financial results.***

Maintaining a good reputation is critical to our business. Our reputation or brand image has been affected by our product melting problems in 2024 and could be in the future adversely impacted by, among other things, any failure to maintain high ethical, social and environmental sustainability practices for our operations, the views of management and other stakeholders, our impact on the environment, public pressure from investors or policy groups to change our policies, consumer perceptions of our advertising campaigns, sponsorship arrangements or marketing programs, including opportunities we choose to forego due to management philosophy, consumer perceptions of our use of social media, or consumer perceptions of statements made by us, our employees and executives, agents or other third-parties. Negative publicity, including as a result of the social or political views of our management, employees, customers or vendors, or misconduct by our consumers, customers, vendors or employees, can also spread rapidly through social media. Should we not respond in a timely and appropriate manner to address negative publicity, our brand and reputation may be significantly harmed. Damage to our reputation or brand image or loss of consumer confidence in our products could adversely affect our business and financial results as well as require additional resources to rebuild or repair our reputation.

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***Fluctuations in various food and supply, transportation and shipping costs could adversely affect our operating results.*** 

Supplies and prices of the ingredients that we are going to use to may be affected by a variety of factors, such as weather conditions (including the effects of climate change), natural disasters, seasonal fluctuations, demand, politics and economics in the production areas. These factors subject us to shortages or interruptions in product supplies, which could adversely affect our revenue and profits.

The price of candy, which is currently our main ingredient in our products, can be volatile. The candy of the quality our productions require tends to trade on a negotiated basis, depending on supply and demand at the time of the purchase. An increase in pricing of any candy that we are going to use in our products could have a significant adverse effect on the profitability of our products. We cannot assure you that we or Trea Grove will be able to secure the candy supply for our treats.

In addition, the profitability of our products are affected by general inflationary pressures related to transportation and shipping costs, particularly to the extent we have additional retail sales and smaller order quantities. Such inflationary pressures could be passed on to the customer and could cause the price of our products to increase, which may impact the attractiveness of our freeze dried treats relative to other candy or snack options with cost sensitive consumers. We are also subject to a reduction in our profitability due to increased labor costs. As we look to expand our distribution and market, we may not be able to increase our sales prices to absorb these costs. We cannot provide assurances that we will be able to maintain profitability consistent with our goals.

In addition, our products use significant quantities of cardboard, film, and plastic to package our products. The costs of these products may also fluctuate based on a number of factors beyond our control, including changes in the competitive environment, availability of substitute materials, and macroeconomic conditions. Such cost increases could adversely affect our operating results.

***We may not be able to protect our intellectual property and proprietary technology adequately, which may impact our commercial success.***

We believe that our intellectual property has substantial value and has contributed significantly to the success of our business. We rely on a combination of copyrights, trademarks, trade dress, trade secrets, and trademarks laws, as well as confidentiality agreements and other contractual restrictions, to protect our intellectual property. However, these legal means afford only limited protection and may not adequately protect our intellectual property or permit us to gain or keep any competitive advantage.

Our trademarks, including our Sow Good logo, are valuable assets that reinforce our brand and consumers' favorable perception of our products. We also rely on unpatented proprietary expertise, recipes and formulations, and other trade secrets and copyright protection to develop and maintain our competitive position. Our continued success depends in part upon our ability to protect and preserve our intellectual property.

Our confidentiality agreements with our employees, consultants, independent contractors and suppliers generally require that all information made known to them be kept strictly confidential. Nevertheless, trade secrets are difficult to protect. Our confidentiality agreements may not effectively prevent disclosure of our proprietary information and may not provide an adequate remedy in the event of unauthorized disclosure of such information. In addition, others may independently discover our trade secrets, in which case we would not be able to assert trade secret rights against such parties. Further, some of our manufacturing know-how and process had been implemented by or with our prior co-manufacturers. As a result, we may not be able to prevent others from using similar processes, which could adversely affect our business. In addition, we have not historically obtained confidentiality agreements or invention assignment agreements from all employees and consultants, which could impact our ability to protect our intellectual property and proprietary technology.

We cannot assure you that the steps we have taken to protect our intellectual property rights are adequate, that our intellectual property rights can be successfully defended and asserted in the future, or that third parties will not infringe upon or misappropriate any such rights. In addition, our trademark rights and related registrations may be challenged in the future and could be canceled or narrowed. Failure to protect our trademark rights could prevent us in the future from challenging third parties who use names and logos similar to our trademarks, which may in turn cause consumer confusion or negatively affect customers' or consumers' perception of our brand and products. In addition, if we do not keep our trade secrets confidential, others may produce products with our recipes or formulations. Moreover, intellectual property disputes and proceedings and infringement claims may result in a significant distraction for management and significant expense, which may not be recoverable regardless of whether we are successful. Such proceedings may be protracted with no certainty of success, and an adverse outcome could subject us to liability, force us to cease use of certain trademarks or other intellectual property, or force us to enter into licenses with others.

***Third parties may initiate legal proceedings alleging that we are infringing or otherwise violating their intellectual property rights.*** 

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Our commercial success depends on our ability to develop and commercialize our products without infringing the intellectual property or proprietary rights of third parties. However, from time to time, we may be subject to legal proceedings and claims in the ordinary course of business with respect to intellectual property. Intellectual property disputes can be costly to defend and may cause our business, operating results, and financial condition to suffer. Whether merited or not, we may face allegations that we or parties indemnified by us have infringed or otherwise violated the patents, trademarks, copyrights, or other intellectual property rights of third parties. Such claims may be made by competitors seeking to obtain a competitive advantage or by other parties.

It may also be necessary for us to initiate litigation to defend ourselves in order to determine the scope, enforceability, and validity of third-party intellectual property or proprietary rights, or to establish our respective rights. Regardless of whether claims that we are infringing patents or other intellectual property rights have merit, such claims can be time-consuming, divert management's attention and financial resources, and can be costly to evaluate and defend. Results of any such litigation are difficult to predict and may require us to stop commercializing or using our products, obtain licenses, modify our products while we develop non-infringing substitutes, or incur substantial damages, settlement costs, or face a temporary or permanent injunction prohibiting us from marketing or providing the affected products. If we require a third-party license, it may not be available on reasonable terms or at all, and we may have to pay substantial royalties, upfront fees, or grant cross-licenses to intellectual property rights for our products and solutions. We may also have to redesign our products so they do not infringe third-party intellectual property rights, which may not be possible or may require substantial monetary expenditures and time, during which our products may not be available for commercialization or use. Even if we have an agreement to indemnify us against such costs, the indemnifying party may be unable to uphold its contractual obligations. If we cannot or do not obtain a third-party license to the infringed intellectual property, license the intellectual property on reasonable terms, or obtain similar intellectual property from another source, our revenue and earnings could be adversely impacted.

Further, some third parties may be able to sustain the costs of complex litigation more effectively than we can because they have substantially greater resources. And even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our common stock. Moreover, any uncertainties resulting from the initiation and continuation of any legal proceedings could have a material adverse effect on our ability to raise the funds necessary to continue our operations. Assertions by third parties that we violate their intellectual property rights could therefore have a material adverse effect on our business, financial condition, and results of operations.

***Food safety concerns and concerns about the health risk of our products may have an adverse effect on our business.***

Food safety is a top priority for us, and we dedicate substantial resources to ensure that our customers enjoy safe and high-quality treats. However, foodborne illnesses and other food safety issues have occurred in the retail food industry in the past and could occur in the future. Also, our reliance on third-party food suppliers, distributors and food delivery aggregators increases the risk that foodborne illness incidents could be caused by factors outside of our control. A failure or perceived failure to meet our quality or safety standards, including product adulteration, contamination, or tampering, or allegations of mislabeling, whether actual or perceived, could occur in our operations, distributors or suppliers. This could result in time consuming and expensive production interruptions at Trea Grove (our sole supplier), negative publicity, the destruction of product inventory, the discontinuation of sales or our relationships with such distributors or suppliers, lost sales due to the unavailability of product for a period of time and higher-than-anticipated rates of returns of goods. The occurrence of health-related illnesses or other incidents related to the consumption of our products, including allergies, excessive consumption or death to a consumer, could also adversely affect the price and availability of affected ingredients, resulting in higher costs, disruptions in supply and a reduction in our sales.

Noncompliance with applicable food product quality and safety regulations can result in enforcement action by applicable regulatory agencies, including product recalls, market withdrawals, product seizures, warning letters, injunctions, or criminal or civil liability. Such incidents could also expose us to product liability, negligence or other lawsuits, including consumer class action lawsuits. Any claims brought against us may exceed or be outside the scope of our existing or future insurance policy coverage or limits. Any judgment against us that is more than our policy limits or not covered by our policies or not subject to insurance would have to be paid by us, which would affect our results of operations and financial condition. Moreover, negative publicity also could be generated from false, unfounded or nominal liability claims or limited recalls. The occurrence of foodborne illnesses or food safety issues could also adversely affect the price and availability of affected ingredients, which could result in disruptions in our supply chain, significantly increase costs and/or lower margins for us.

In addition, there is increasing consumer awareness of, and increased media coverage on, the alleged adverse health impacts of consumption of various food products globally. Our products contain fats, sugar and other compounds and allergens, the health effects of which are the subject of public scrutiny, including the suggestion that excessive consumption of sugar and other compounds can lead to a variety of adverse health effects. An unfavorable report on the health effects of certain compounds present in our products, or negative publicity or litigation arising from other health risks such as obesity, could significantly reduce the demand for our products. Additionally, there may be new laws and regulations that could impact the ingredients and nutritional content of our product offerings, or laws and

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regulations requiring us to disclose the nutritional content of our product offerings or otherwise restrict sales of our treats. A decrease in consumer traffic as a result of these health concerns, laws or regulations or negative publicity could materially and adversely affect our business.

***Product liability exposure may subject us to significant liability.***

We may face an inherent business risk of exposure to product liability and other claims and lawsuits in the event that the development or use of our technology or prospective products is alleged to have resulted in adverse effects. The sale of products for human use and consumption involves the risk of injury or illness to consumers. Such injuries may result from inadvertent mislabeling, tampering by unauthorized third parties or product contamination or spoilage. Under certain circumstances, we may be required to recall or withdraw products, suspend production of our products, or cease operations, which may lead to a material adverse effect on our business. In addition, customers may stop placing or cancel orders for such products as a result of such events.

Even if a situation does not necessitate a recall or market withdrawal, product liability claims might be asserted against us. While we are subject to governmental inspection and regulations and believe our facilities and those of our co-manufacturers and suppliers comply in all material respects with all applicable laws and regulations, if the consumption of any of our products causes, or is alleged to have caused, a health-related illness or death to a consumer, we may become subject to claims or lawsuits relating to such matters. Even if a product liability claim is unsuccessful or is not fully pursued, the negative publicity surrounding any assertion that our products caused illness or physical harm could cause consumers to lose confidence in the safety and quality of our products. Moreover, claims or liabilities of this type might not be covered by our insurance or by any rights of indemnity or contribution that we may have against others. Although we maintain product liability and product recall insurance in an amount that we believe to be consistent with market practice, we cannot be sure that we will not incur claims or liabilities for which we are not insured or that exceed the amount of our insurance coverage. A product liability judgment against us or a product recall could have a material adverse effect on our business, financial condition, results of operations or liquidity.

We have no control over our products once purchased by consumers. Accordingly, consumers may store or prepare our products in a manner that is inconsistent with our directions or store our products for longer than approved periods of time, which may adversely affect the quality and safety of our products.

Although we believe our insurance coverage to be adequate and consistent with industry practice, we may not have sufficient insurance coverage, and we may not be able to obtain sufficient coverage at a reasonable cost. An inability to obtain product liability insurance at acceptable cost or to otherwise protect against potential product liability claims could prevent or inhibit the commercialization of our products. Further, any claim under our insurance policies may be subject to certain exceptions, may not be honored fully, in a timely manner, or at all, and we may not have purchased sufficient insurance to cover all losses incurred. If we were to incur substantial liabilities or if our business operations were interrupted for a substantial period, we could incur costs and suffer losses. Inventory, equipment, and business interruption losses may not be covered by our insurance policies. Additionally, insurance coverage may not be available to us at commercially acceptable premiums in the future, or at all.

Overall, we may not be able to avoid significant product liability exposure. A product liability claim could hurt our financial performance. Even if we ultimately avoid financial liability for this type of exposure, we may incur significant costs in defending ourselves that could hurt our financial performance and condition.

***Our customers are not obligated to continue purchasing products from us.*** 

Most of our customers are retailers or distributors that buy from us under purchase orders, and we generally do not have long-term agreements with or commitments from these customers for the purchase of products. We cannot provide assurance that our customers will maintain or increase their sales volumes or orders for the products supplied by us or that we will be able to maintain or add to our existing customer base. Decreases in our customers' sales volumes or orders for products supplied by us may have a material adverse effect on our business, financial condition or results of operations.

***Any failure to adequately store, maintain and deliver our products could materially adversely affect our business, reputation, financial condition, and operating results.*** 

Our ability to adequately store, maintain, and deliver our products is critical to our business. Keeping our food products at specific temperatures and humidity levels maintains food safety and quality. For example, in 2024, our products suffered a melting issue during shipment that resulted in a loss of sales and additional costs related to remediation. In the event of extended power outages, labor disruptions, natural disasters or other catastrophic occurrences, including extreme heat, failures of the refrigeration systems in our third-party delivery trucks, or other circumstances, our inability to store inventory at appropriate temperatures and low humidity could result in significant product inventory losses, as well as increased risk of food-borne illnesses and other food safety incidents. Improper handling or storage of food by a customer, without any involvement or fault of ours or our retail customers, could result in food-borne illnesses,

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which could result in negative publicity and harm to our brand and reputation. Any failure to adequately store, maintain, or transport our products could negatively impact the safety, quality and merchantability of our products and the experience of our customers. The occurrence of any of these risks could materially adversely affect our business, reputation, financial condition, and operating results.

***Failure to manage inventory at optimal levels could adversely affect our business, financial condition and results of operations.*** 

We are required to manage a large volume of inventory of products effectively for our business. We depend on our forecasts for the anticipated demand for our products to make procurement plans and manage our inventory. Our forecast for demand, however, may not accurately reflect the actual market demands, which depends on a number of factors including, without limitation, launches of new products, changes in product life cycles and pricing, product defects, changes in consumer spending patterns, supplier back orders and other supplier-related issues, distributors' and retailers' procurement plans, as well as the volatile economic environment in the markets where we sell our products. In addition, when we launch a new product with new components or raw material, it may be difficult to establish relationships, determine appropriate raw material and product selection, and accurately forecast market demand for such product. We cannot assure you that we will be able to maintain proper inventory levels for our business at all times, and any such failure may have a material and adverse effect on our business, financial condition and results of operations.

Inventory levels in excess of distributor and/or consumer demand may result in inventory write-downs or an increase in inventory holding costs and a potential negative effect on our liquidity. As we plan to continue expanding our product offerings, we expect to include more products in our inventory, which will make it more challenging for us to manage our inventory effectively and will put more pressure on our storing system. If we fail to manage our inventory effectively, we may be subject to a heightened risk of inventory obsolescence, a decline in inventory values, and significant inventory write-downs or write-offs. For example, with the loss of certain significant customers and the reduction in sales related to the heat related product damage in late 2024, our inventory levels based on our growth rate at the beginning of 2024 increased significantly, resulting in write-downs and negatively impacted our financial position. In addition, we may be required to lower sale prices in order to reduce inventory level, which may lead to lower gross margins. High inventory levels may also require us to commit substantial capital resources, preventing us from using that capital for other important purposes. Any of the above may materially and adversely affect our results of operations and financial condition.

Conversely, if we underestimate distributor or consumer demand, or if our supplier fails to provide products to us in a timely manner, we may experience inventory shortages, which may, in turn, require us to purchase our products at higher costs, result in unfulfilled product orders, leading to a negative impact on our financial condition and our relationships with distributors or consumers. Under-stocking can lead to missed sales opportunities, while over-stocking could result in inventory depreciation and decreased shelf space for products that are in higher demand. These results could adversely affect our business, financial condition and results of operations.

***Information security events, or real or perceived errors, failures, or bugs in our systems; other technology disruptions; or failure to comply with laws and regulations relating to information security could negatively impact our business, our reputation and our relationships with customers.***

Our continued success depends in part on our systems, applications, and software continuing to operate to meet our business demands. We rely on information technology systems and infrastructure for substantially all aspects of our business operations. We use mobile applications, social networking, and other online activities to connect with our customers, consumers, suppliers, and employees. Our business involves the storage and transmission of confidential information and intellectual property, including information pertaining to customers, consumers, vendors, distributors, and suppliers, and employees. We also may maintain financial and strategic information about us and our business partners. Further, as we pursue new initiatives that enhance our operations and cost structure, potentially including acquisitions, we may also be required to expand and improve our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk. Like all technology and information systems, such use gives rise to cybersecurity risks, including security incidents, espionage, system disruption through material errors, failures, vulnerabilities, or bugs, particularly when new features or capabilities are released, theft, and inadvertent release of information. Our technology and information systems may be subject to computer viruses or malicious code, break-ins, phishing impersonation attacks, attempts to overload our servers with denial-of-service or other attacks, ransomware, and similar incidents or disruptions from unauthorized access or use of our computer systems, as well as unintentional incidents causing data leakage, any of which could lead to interruptions, delays, or website or mobile app shutdowns. Electronic security attacks designed to gain access to personal, sensitive, or confidential data are constantly evolving, and such attacks continue to grow in sophistication. If we fail to assess and identify cybersecurity risks associated with new initiatives or acquisitions, we may become increasingly vulnerable to such risks.

While we have implemented measures designed to prevent security incidents and cyber attacks, our preventative measures and incident response efforts may not be effective. The theft, destruction, loss, misappropriation, misuse, or release of sensitive or confidential information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely, could result in business disruption, negative publicity, reputational harm, violation of privacy laws, loss of customers, and liability, all of which could have a material adverse effect on our business, operating results, and financial condition. Additionally, as a

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result of a security incident, we could be subject to demands, claims, and litigation by private parties and investigations, related actions, and penalties by regulatory authorities. Moreover, we could incur significant costs in notifying affected persons and entities and otherwise complying with the multitude of laws and regulations relating to the unauthorized access to, or acquisition, use, or disclosure of personal information.

Further, our operations depend on the continuing and efficient operation of our information technology, communications systems and infrastructure, and on cloud-based platforms, including platforms operated by vendors. Any of these systems and infrastructure are vulnerable to damage or interruption from earthquakes, vandalism, sabotage, terrorist attacks, floods, fires, power outages, telecommunications failures, computer viruses or other deliberate attempts to harm the systems. The occurrence of a natural or intentional disaster, any decision to close a facility we are using without adequate notice, or particularly an unanticipated problem at a cloud- based virtual server facility, could result in harmful interruptions in our service, resulting in adverse effects to our business. Although we have invested in the protection of data and information technology, there can be no assurances that our efforts will protect us against significant breakdowns, breaches in our systems, or other cyber incidents that could have a material adverse effect on our reputation, business, operations, or financial condition of the company.

***Our collection, use, and disclosure of information, including personal information, is subject to federal, state and foreign privacy and security regulations and binding industry standards; new or changed regulations could impose significant costs to our operation and failure to comply with those regulations or to adequately secure the information we hold could result in significant liability or reputational harm.*** 

We are subject to numerous federal, state and local rules and regulations relating to the collection, processing, storing, sharing, disclosure, use, and security of personal information and other data. We also are or may in the future be subject to contractual obligations to protect data. We strive to comply with applicable laws, contractual obligations, and our own policies pertaining to the processing of personal information. Nevertheless, such laws, regulations, and other obligations may require us to change our business practices and may negatively impact our ability to expand our business and pursue business opportunities. We may incur significant expenses to comply with the laws, regulations, and other obligations that apply to us. Additionally, the privacy- and data protection-related laws, rules, and regulations applicable to us may be interpreted and applied in new ways or in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or our practices. Further, new laws, rules, and regulations could be enacted with which we are not familiar or with which our practices do not comply.

Several U.S. jurisdictions have passed omnibus privacy laws that apply to us now or may apply in the future as we grow and expand, and other jurisdictions are considering imposing additional restrictions. Examples include the California Consumer Privacy Act (the "CCPA"), as amended by the California Privacy Rights Act (collectively, "CPRA"). Since the passage of the CCPA, more than ten (10) U.S. states have enacted omnibus privacy laws, which will go into effect at varying dates through 2026. The CCPA and other state omnibus laws provide consumers with substantial rights over their personal information, impose notice obligations on companies, and require companies to implement programs to manage such rights. As Company operates in the business-to-business space, Company will not be directly subject to the majority of the enacted state omnibus privacy laws. Nonetheless, to the extent that certain of these laws are applicable to us, and to the extent that other states enact laws in the future that are or may be applicable to us, we will need to expend resources to evaluate such regulations and implement compliance solutions. If we engage in email marketing or certain telemarketing activities, we will be subject to issue-specific laws pertaining to the use of information, including laws on marketing and advertising, such as the Telephone Consumer Protection Act and the Telemarketing Sales Rule and the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, and their state counterparts.

Further, if our operations bring us into the scope of non-U.S. privacy and data protection regulations, we may be subject to additional privacy and data protection regulations, which may require us to spend resources to comply with such programs and expose us to risk for any actual or perceived failure to comply.

We also are or may be subject to binding industry standards, including the Payment Card Industry Data Security Standard ("PCI-DSS"), due to our acceptance of payment cards. If we or our payment processors fail to comply with the PCI-DSS, we may incur significant fines or liability and lose access to major payment card systems. Industry groups may in the future adopt additional self-regulatory standards by which we are legally or contractually bound.

Compliance with these and any other applicable privacy and data security laws and regulations is a rigorous and time-intensive process, and we may be required to put in place additional mechanisms ensuring compliance with the new data protection rules. Any failure or perceived failure by us to comply with privacy or data protection laws, policies, or industry standards or any security incident that results in the unauthorized release of personal information may result in governmental enforcement actions and investigations, fines and penalties, litigation and/or adverse publicity, including by consumer advocacy groups, and could cause our customers to lose trust in us, which could have an adverse effect on our reputation and business. Such failures could have a material adverse effect on our financial condition and operations. If the third parties we work with violate applicable laws, contractual obligations or suffer a security incident,

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such violations may also put us in breach of our obligations under privacy laws and regulations and/or could in turn have a material adverse effect on our business.

**Risks Related to the Regulatory Environment** 

***Our operations are subject to regulation by the FDA and other federal, state, and local authorities in the U.S., and in any other jurisdictions in which we may sell our products, and there is no assurance that we will be in compliance with all laws and regulations.***

Our operations are subject to extensive regulation by the FDA, and other federal, state, and local authorities in the U.S. and in any other jurisdictions in which we may sell our products. Specifically, for products manufactured or sold in the U.S., we are subject to the requirements of the Federal Food, Drug, and Cosmetic Act ("FDCA") and regulations promulgated thereunder by the FDA. This comprehensive regulatory program governs, among other things, the manufacturing, ingredients, packaging, labeling, and safety of food. Under this program, the FDA requires that facilities that manufacture food products comply with a range of requirements, including hazard analysis and preventative controls regulations, current good manufacturing practices ("GMPs"), and supplier verification requirements. If our products are not manufactured, processed, packaged and labeled in conformity with our specifications and the strict regulatory requirements of the FDA or other regulatory authorities, we may be subject to adverse inspectional findings or enforcement actions, which could materially impact our ability to market our products or result in a recall of our product, that have already been distributed. If the FDA or another regulatory authority determines that we or our suppliers or other business partners have not complied with applicable regulatory requirements, our business may be adversely impacted.

We seek to comply with applicable laws and regulations through expert personnel with experience to ensure quality-assurance compliance and contracting with third-party laboratories that conduct analyses of new products to establish nutrition labeling information and to help identify certain potential contaminants before distribution. Our existing compliance structures may be insufficient to address the current or changing regulatory environment. This may result in gaps in compliance coverage or the omission of necessary new compliance activity. The failure to comply with applicable laws and regulations, or maintain permits, licenses, or registrations relating to our or their operations, could subject us to civil remedies or penalties, including fines, injunctions, product recalls, warning letters, or restrictions on the marketing or manufacturing of products, as well as potential criminal sanctions, any of which could result in increased operating costs and reputational harm. In addition, changes to laws, regulations, or policies applicable to foods could leave us vulnerable to adverse governmental action and materially adversely affect our business, operating results, and financial condition.

***Even inadvertent, non-negligent or unknowing violations of federal, state, or local regulatory requirements could expose us to adverse governmental action and materially adversely affect our business, operating results, and financial condition.*** 

The FDCA, which governs the shipment of foods in interstate commerce, generally does not distinguish between intentional and unknowing, non-negligent violations of the law's requirements. Most state and local laws operate similarly. Consequently, almost any deviation from subjective or objective requirements of the FDCA, or applicable state or local laws, leaves us vulnerable to a variety of administrative actions, enforcement actions, and/or civil and criminal penalties. Failure to comply with laws and regulations could materially adversely affect our business, operating results, and financial condition.

**Risks Related to Ownership of Our Common Stock**

***If we fail to comply with the continued listing requirements of Nasdaq, our common stock may be delisted and the price of our common stock and our ability to access the capital markets could be negatively impacted.***

Our common stock is currently listed for trading on Nasdaq. We must satisfy Nasdaq's continued listing requirements. A delisting of our common stock from Nasdaq could materially reduce the liquidity of our common stock and result in a corresponding material reduction in the price of our common stock. In addition, delisting could harm our ability to raise capital through alternative financing sources on terms acceptable to us, or at all, and may result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business development opportunities.

We have in the past, and may in the future, be unable to comply with certain of the listing standards that we are required to meet to maintain the listing of our common shares on Nasdaq. For example, on May 14, 2025, we received a letter from the Staff indicating that, based upon the closing bid price of our common stock for the 30 consecutive business days, we did not meet the minimum bid price of $1.00 per share required for continued listing on Nasdaq pursuant to the Minimum Bid Price Rule. The letter also indicated that we will be provided with a compliance period of 180 calendar days, or until November 10, 2025, in which to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A). On November 11, 2025, Nasdaq subsequently issued a letter providing us with an additional 180 day compliance period, or until May 11, 2026 to regain compliance.

In order to regain compliance with the Minimum Bid Price Rule, our common stock must maintain a minimum closing bid price of $1.00 for at least ten consecutive business days during the Minimum Bid Price Compliance Period. However, if it appears to Nasdaq that

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we will be unable to cure the deficiency, Nasdaq will provide notice that our common stock will be subject to delisting. There can be no assurance that the Nasdaq staff would grant our request for continued listing subsequent to any delisting notification. In the event of such a notification, we may appeal the Staff's determination to delist its securities.

There is no assurance that we will regain compliance with the Minimum Bid Price Requirement or maintain compliance with the minimum listing requirements with all applicable requirements for continued listing on Nasdaq. If our common stock were delisted from Nasdaq, trading of our common stock would most likely take place on an over-the-counter market established for unlisted securities, such as the OTCQB or the Pink Market maintained by OTC Markets Group Inc. An investor would likely find it less convenient to sell, or to obtain accurate quotations in seeking to buy, our common stock on an over-the-counter market, and many investors would likely not buy or sell our common stock due to difficulty in accessing over-the-counter markets, policies preventing them from trading in securities not listed on a national exchange or other reasons. In addition, as a delisted security, our common stock would be subject to SEC rules as a "penny stock," which impose additional disclosure requirements on broker-dealers. The regulations relating to penny stocks, coupled with the typically higher cost per trade to the investor of penny stocks due to factors such as broker commissions generally representing a higher percentage of the price of a penny stock than of a higher-priced stock, would further limit the ability of investors to trade in our common stock. In addition, delisting could harm our ability to raise capital through alternative financing sources on terms acceptable to us, or at all, and may result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business development opportunities. For these reasons and others, delisting would adversely affect the liquidity, trading volume and price of our common stock, causing the value of an investment in us to decrease and having an adverse effect on our business, financial condition and results of operations, including our ability to attract and retain qualified employees and to raise capital.

***The market price of our common stock has been, and is likely to continue to be, highly volatile and subject to wide fluctuations.***

The market price of our common stock is likely to continue to be highly volatile and could be subject to wide fluctuations in response to a number of factors, some of which are beyond our control, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•market reception to potential strategic alternative announcements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dilution caused by our issuance of additional shares of common stock and other forms of equity securities including those issued in, or deliverable upon conversion of the securities issued in, the Private Placement, which we expect to make in connection with future capital financings to fund our operations and growth, to attract and retain valuable personnel and in connection with future strategic partnerships with other companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•quarterly variations in our revenues and operating expenses as we commence our production and sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the valuation of similarly situated companies, both in our industry and in other industries sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•challenges associated with timely SEC filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in analysts' estimates affecting our company, our competitors and/or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the accounting methods used in or otherwise affecting our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additions and departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fluctuations in interest rates and the availability of capital in the capital markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•significant sales of our common stock following the registration of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any guidance we may provide to the public, any changes in this guidance, or our failure to meet this guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•announcements of new products by us or our competitors, and competition from new or existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•addition or loss of significant customers, suppliers or other business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•new laws or regulations applicable to our business or products, or changes to the interpretation of existing laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•announcements of significant acquisitions, strategic partnerships, or joint ventures by us or our competitors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•outcome of litigation, regulatory matters, enforcement actions, or other disputes that may arise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general economic, industry, and market conditions.

These and other factors are largely beyond our control, and the impact of these risks, singly or in the aggregate, may result in material adverse changes to the market price of our common stock and our results of operations and financial condition.

Further, the stock markets have experienced price and volume fluctuations that have affected and continue to affect the trading prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations may negatively impact the trading price of our common stock.

In the past, companies that have experienced volatility in the trading of their securities have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns, which could harm our business.

***We have never paid dividends on our common stock and we do not intend to pay dividends for the foreseeable future.*** 

We have never declared or paid any dividends on our common stock and do not intend to pay any dividends in the foreseeable future. We anticipate that we will retain all of our future earnings if any, to service debt, fund growth, develop our business, fund working capital needs, and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors and in accordance with applicable state law. Accordingly, investors should rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment in our common stock.

***Future sales and issuances of our common stock, or securities convertible into or exercisable for our common stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause the trading price of our common stock to decline.*** 

In the future, we may sell shares of our common stock, or securities convertible into or exercisable for our common stock, in one or more transactions at prices and in a manner we determine from time to time. For example, we issued 1,500,000 shares of Series AA Preferred Stock in the Private Placement, and we intend to consummate the sale of 1,500,000 shares of our Series AAA Preferred Stock in March 2026. The conversion of the Series AA Preferred Stock and/or the Series AAA Preferred Stock would result in substantial dilution to the percentage of ownership a holder of our common stock holds prior to any such conversion. We also expect to issue additional shares of our common stock to directors, officers, employees, and consultants pursuant to our equity incentive plans. If we sell shares of our common stock, or securities convertible into or exercisable for our common stock, in subsequent transactions, or if shares of our common stock are issued pursuant to our equity incentive plans, investors may be materially diluted. In addition, new investors in such subsequent transactions could receive securities with rights senior to those of holders of our common stock.

***We are a*** "***smaller reporting company,***" ***and the reduced disclosure requirements applicable to smaller reporting companies may make our common stock less attractive to investors.*** 

We are a "smaller reporting company" under applicable SEC rules, meaning that the market value of our common stock held by non-affiliates is less than $700.0 million and our annual revenue was less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250.0 million, or (ii) our annual revenue was less than $100.0 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates was less than $700.0 million. As a smaller reporting company, we have chosen to present only the two most recent years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations disclosure in this Annual Report on Form 10-K, and we have taken advantage of reduced disclosure obligations regarding executive compensation.

***Our quarterly operating results have fluctuated and may in the future fluctuate significantly, period-to-period comparisons of our results may not be meaningful, and these fluctuations may cause the price of our common stock to decline.*** 

Our quarterly results, including our revenues, operating expenses, operating margins, and profitability, may fluctuate significantly in the future, and period-to-period comparisons of our results may not be meaningful. Accordingly, the results of any one quarter should not be viewed as a prediction or indication of our future performance. In addition, our quarterly results may not fully reflect the underlying performance of our business.

Factors that may cause fluctuations in our quarterly results include, but are not limited to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the market for freeze dried candy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to retain our existing customers, and expand sales of our products to our existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to attract new customers and consumers to our brand, the type and amount of products purchased, and the cost of acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the mix of our products sold during the period, and the gross margins associated with those sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in our pricing policies, or those of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount and timing of discounts, rebates, or promotional activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount and timing of costs and operating expenses related to the expansion of manufacturing capacity, distribution channels, production capabilities, and operational infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount and timing of costs and operating expenses associated with developing and commercializing new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount and timing of costs and operating expenses related to the acquisition of businesses, assets, technologies, or intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and impact of any security breaches, service outages or other performance problems with our technology infrastructure and software solutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and costs associated with legal or regulatory actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the competitive dynamics of our industry, including consolidation among customers, suppliers, or competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•loss of our executive officers or other key employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•trends and conditions impacting the consumer packaged goods industry, and the freeze dried goods category in particular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impacts and disruptions caused by the COVID-19 pandemic, or any other pandemics, epidemics, disease outbreak, or similar widespread public health concern on our business and operating results, or incidence of disease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general economic, political, social, and market conditions.

Fluctuations in quarterly results, or for any other period, may negatively impact the value of our common stock, regardless of whether they impact or reflect the overall performance of our business. If our quarterly results, or results for any other period, fall below the expectations of investors or any securities analysts who follow our stock, or below any guidance we may provide, the trading price of our common stock could decline substantially.

**Risks Related to Accounting and Tax Matters**

***Changes in tax laws or regulations that are applied adversely to us in the various tax jurisdictions to which we are subject could increase the costs of our products and harm our operating results.*** 

New income, sales, use, or other tax laws, statutes, rules, regulations, or ordinances could be enacted at any time. Those enactments could harm our business, operating results, and financial condition. Further, existing tax laws, statutes, rules, regulations, or ordinances could be interpreted, changed, modified, or applied adversely to us. These events could require us to pay additional tax amounts on a prospective or retroactive basis, as well as require us to pay fines, and penalties, and interest for past amounts deemed to be due, any of which would harm our operating results.

***Changes in existing financial accounting standards or practices may require us to restate our reported financial results or harm our operating results.*** 

GAAP is subject to interpretation by the Financial Accounting Standards Board, the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect

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on our reported financial results and could affect the reporting of transactions completed before the announcement of a change. Adoption of such new standards and any difficulties in the implementation of changes in accounting principles, including the ability to modify our accounting systems, could cause us to fail to meet our financial reporting obligations, which could lead to regulatory enforcement actions, cause investors to lose confidence in our financial reports, and result in a decline in the trading price of our common stock.

**General Risks**

***A worsening of economic conditions or a decrease in consumer spending may adversely impact our ability to implement our business strategy.***

Our success depends to a significant extent on discretionary consumer spending, which is influenced by general economic conditions and the availability of discretionary income. There is no certainty regarding economic conditions in the United States, and credit and financial markets and confidence in economic conditions could deteriorate at any time. Accordingly, we may experience declines in revenue during economic turmoil or during periods of uncertainty. In addition, sustained periods of inflation may result in a decline in the amount of discretionary spending and otherwise hamper our gross margins. Future economic conditions such as employment levels, business conditions, housing starts, interest rates, inflation rates, energy and fuel costs and tax rates could reduce consumer spending or change consumer purchasing habits. Any material decline in the amount of discretionary spending, leading cost-conscious consumers to be more selective in food products purchased, could have a material adverse effect on our revenue, results of operations, business and financial condition.

***Global climate change, severe weather patterns and natural disasters may negatively affect our business, operating results, financial condition, cash flows and prospects.***

We are subject to risks associated with the long-term effects of climate change on the global economy and on our industry in particular. Extreme weather and natural disasters that occur around the globe, such as drought, extreme heat and heat waves, wildfires, storms, changes in ocean currents and flooding, could make it more difficult and costly for us to manufacture and deliver our products to our customers, obtain raw materials from our suppliers, or perform other critical corporate functions.

Adverse weather conditions and natural disasters could increase our costs of storing and transporting our inventory or disrupt production schedules. Our manufacturing operations also could be adversely affected by reduced water availability resulting from droughts or other interruptions from acute and chronic physical climate events due to climate change, including droughts, heat waves, freezing temperatures, changing precipitation patterns and heat stress. There is a global concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse effect on global temperatures, weather patterns and the frequency and severity of natural disasters. The impact of a natural disaster such as an earthquake, tsunami, tornado, flood, wildfire, drought or other natural disaster or severe weather event at any of our facilities on our overall operations is difficult to predict, but such a natural disaster or severe weather event could seriously disrupt our entire business and lead to substantial losses.

***The failure to successfully integrate newly acquired products or businesses could negatively impact our profitability.*** 

From time to time, we may consider opportunities to acquire other products or businesses that may expand the breadth of our markets or customer base. The success of future acquisitions will be dependent upon our ability to effectively integrate the acquired products and operations into our business. Integration can be complex, expensive and time-consuming. The failure to successfully integrate acquired products or businesses in a timely and cost-effective manner could materially adversely affect our business, prospects, results of operations and financial condition. The diversion of our management's attention and any difficulties encountered in any integration process could also have a material adverse effect on our ability to manage our business. In addition, the integration process could result in the loss of key employees, the disruption of ongoing businesses, tax costs or inefficiencies, or inconsistencies in standards, any of which could adversely affect our ability to maintain the appeal of our brand and our relationships with customers, employees or other third parties or our ability to achieve the anticipated benefits of such acquisitions and could harm our financial performance. We do not know if we will be able to identify acquisitions we deem suitable, whether we will be able to successfully complete any such acquisitions on favorable terms or at all, or whether we will be able to successfully integrate any acquired products or businesses. Additionally, an additional risk inherent in any acquisition is that we fail to realize a positive return on our investment.

***Claims, legal proceedings, and other disputes could divert our management***'***s attention, have a negative impact on our reputation, expose us to significant liabilities, and make it more difficult to obtain insurance coverage.***

From time to time, we may be party to various claims, legal proceedings, and other disputes. We evaluate these matters to assess the likelihood of unfavorable outcomes and to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we may establish reserves, as appropriate. These assessments and estimates are based on the information available to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from our assessments and estimates.

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Even when not merited, the defense of legal proceedings may divert our management's attention, and we may incur significant expenses in defending these matters. The results of legal proceedings are inherently uncertain, and adverse judgments or settlements in some of these proceedings may result in adverse monetary damages, penalties, or injunctive relief against us, which could have a material adverse effect on our operating results, financial condition, and liquidity. Any legal proceedings or other disputes, even if fully indemnified or insured, could have a negative impact on our reputation, and make it more difficult to compete effectively or to obtain adequate insurance in the future.

Further, while we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions and caps on amounts recoverable. Even if we believe a claim is covered by insurance, insurers may dispute our entitlement to recovery for a variety of potential reasons, which may affect the timing and amount of our recovery.

***Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.***

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in reports we file or submit under the Exchange Act is accumulated and communicated to management, recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements or insufficient disclosures due to error or fraud may occur and not be detected.

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

None.

**ITEM 1C. CYBERSECURITY**

***Risk Management and Strategy:***

The Company has processes for assessing, identifying, and managing material risks from cybersecurity threats. The Company has designed and implemented a cybersecurity incident response plan and related processes, which is overseen by an internal information technology specialist. Cybersecurity threats are identified and escalated to a member of management pursuant to criteria set forth in these processes.

The audit committee of the board of directors (the "Audit Committee") is responsible for establishing and monitoring the integrity and effectiveness of controls and other procedures, which are designed to ensure that (1) all information required to be disclosed is recorded, processed, summarized, and reported accurately and on a timely basis, and (2) all such information is accumulated and communicated to management and the Company's board of directors, as appropriate, to allow for timely decisions regarding such disclosures. The controls and procedures subject to the Audit Committee's oversight include processes related to managing material risks from cybersecurity threats. Accordingly, the Company's cybersecurity processes have been integrated into the Company's overall processes.

***Governance:*** 

The Audit Committee operates under a written charter adopted by the Company's board of directors. The Audit Committee oversees, among other things, a system of internal controls, including internal controls designed to assess, identify, and manage material risks from cybersecurity threats. The Audit Committee is also responsible for the adequacy and effectiveness of the Company's internal controls, including those internal controls that are designed to assess, identify, and manage material risks from cybersecurity threats.

The Audit Committee is informed of material risks, if any, from cybersecurity threats pursuant to escalation criteria set forth in the Company's disclosure controls and procedures. Further, at least once per quarter, a member of the Company's Audit Committee reports material risks, if any, from cybersecurity threats to the Company's board of directors.

The Company's management team also assesses and manages material risks, if any, from cybersecurity threats.

The Audit Committee is responsible for establishing and monitoring the integrity and effectiveness of controls and other procedures, including controls and procedures related to managing material risks from cybersecurity threats, which are designed to ensure

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that (1) all information required to be disclosed is recorded, processed, summarized, and reported accurately and on a timely basis, and (2) all such information is accumulated and communicated to management and the Company's board of directors, as appropriate, to allow for timely decisions regarding such disclosures.

The Company's has hired an Information Technology Consultant who oversees the Company's incident response plan and related processes designed to assess and manage material risks, if any, from cybersecurity threats. The Information Technology Manager also coordinates with any consultants, auditors and other third parties to assess and manage material risks, if any, from cybersecurity threats.

The Company's Information Technology Consultant is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents pursuant to criteria set forth in the Company's incident response plan and related processes. The Company's Information Technology Consultant is also informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents pursuant to notification criteria set forth in the Company's contracts with third-party service providers. Further, the Company's Information Technology Consultant is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents pursuant to reports prepared by consultants, auditors, and other third parties retained by the Company, if necessary, to investigate cybersecurity incidents.

The Company's Information Technology Consultant informs the Audit Committee of cybersecurity incidents that may be material pursuant to escalation criteria set forth in the Company's incident response plan and related processes.

The Company's Information Technology Consultant or a delegate thereof also prepares a report for the Audit Committee and the Company's board of directors concerning material risks, if any, from cybersecurity threats at least once per quarter, and more often to the extent necessary pursuant to the escalation criteria set forth in the Company's processes described herein.

As of the date of this Annual Report on Form 10-K, the Company is not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition. For additional information concerning risks related to cybersecurity, see Item 1A. Risk Factors.

**ITEM 2. PROPERTIES**

We do not own any real property. Prior to December 31, 2025, our principal executive office and manufacturing facility was located in Irving, Texas, where we leased approximately 20,945 square feet of space under a lease agreement with an entity owned entirely by Ira Goldfarb, a related party. Concurrently with our Asset Sale, the Company exited the lease on December 31, 2025.

The Company leases a 9,900 square foot warehouse facility located in Dallas, Texas, which we use to receive, store, package, and distribute our products, as well as for office and administrative purposes. We believe that this facility is sufficient to meet our current needs.

**ITEM 3. LEGAL PROCEEDINGS**

From time to time in the ordinary course of business, we are a party to various types of legal proceedings. We do not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows.

**ITEM 4. MINE SAFETY DISCLOSURES**

None.

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**PART II**

**ITEM 5. MARKET FOR REGISTRANT**'**S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Common Stock**

On May 2, 2024, trading of the Company's common stock commenced on the Nasdaq Capital Market stock exchange under the symbol "SOWG." Prior to that, shares of our common stock traded on the over-the-counter market and were quoted on the OTCQB tier of the OTC Markets under the symbol "SOWG." On March 26, 2026, the closing price of our common stock was $0.54.

The following table sets forth, for the fiscal quarters indicated, the high and low bid information for our common stock, as reported on The Nasdaq Capital Market or OTC Markets, as applicable. During periods for which the shares were traded on the OTC Markets, the following quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

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| | | |
|:---|:---|:---|
|  | High | Low |
| **Fiscal Year Ended December 31, 2025** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;First Quarter | $4.12 | $0.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Second Quarter | $1.12 | $0.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Third Quarter | $2.12 | $0.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fourth Quarter | $1.01 | $0.23 |
| **Fiscal Year Ended December 31, 2024** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;First Quarter | $10.50 | $7.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Second Quarter | $23.68 | $9.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Third Quarter | $23.56 | $10.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fourth Quarter | $11.50 | $2.04 |

---

As of March 26, 2026, there were approximately 331 record holders of our common stock, not including shares held in "street name" in brokerage accounts which is unknown, and 13,328,469 shares of common stock outstanding on record.

**Dividend Policy**

Since the inception of the Company, we have not declared or paid, and do not anticipate declaring or paying in the foreseeable future, any cash dividends on our common stock. Any future determination to declare and pay cash dividends will be at the discretion of our board of directors in accordance with applicable laws and will depend on, among other things, our financial condition, results of operations, cash requirements, contractual restrictions and such other factors as our Board of Directors deems relevant. Our ability to pay dividends in the future may also be limited by covenants of any future outstanding indebtedness we incur.

**Unregistered Issuance of Equity Securities** 

The following issuances of our securities during the twelve months ended December 31, 2025 were exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 4(a)(2) thereof and/or Rule 506 of Regulation D promulgated thereunder.

On December 31, 2025, the Company entered into a Securities Purchase Agreement with David Lazar for the private placement of two tranches of convertible preferred stock (. The Company completed the sale of the first tranche by issuing 1,500,000 shares of Series AA Preferred Stock with proceeds to the Company of $3,000,000, which were used to pay down debt, reduce headcount, and for operational purposes. Pursuant to the Securities Purchase Agreement, the Company expects to consummate the sale of the second tranche with the issuance of 1,500,000 shares of Series AAA Preferred Stock for additional proceeds of $3,000,000 in March 2026. The terms of the Series AAA Preferred Stock are substantially similar to the terms of the Series AA Preferred Stock, except that the Series AAA Preferred Stock are redeemable at a price of $200 per share, and each share of Series AA Preferred Stock is initially convertible into 14 shares of Common Stock where each share of Series AAA Preferred Stock is initially convertible into 250 shares of Common Stock (subject to adjustment as provided in the Series AAA certificate of designations).

On April 28, 2025, the Company restructured its outstanding current debt through the issuance of Convertible Notes in a dollar-for-dollar exchange. On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with Claudia and Ira Goldfarb and Lyle Berman for the exchange of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2.7 million, maturity dates ranging from April 8, 2025 to August 23, 2025 and interest rates ranging from

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6% to 8%. Pursuant to the Exchange Agreement, holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an amount equal to $2.8 million, the aggregate principal amount of the Outstanding Notes, plus accrued and unpaid interest thereunder. The Convertible Notes have a maturity date of April 30, 2030 and will pay interest semiannually in arrears on May 1 and November 1 beginning on November 1, 2025. At the Company's election, interest payable on an interest payment date may be added to the principal amount of the Convertible Note on the applicable interest payment date and will no longer be owed to holders of the Convertible Notes. The Convertible Notes are convertible at the election of the holders, in whole or in part, into shares of common stock based on a price per share equal to the average closing price of such common stock for the five trading days immediately prior to the execution of and entry into the Convertible Notes, with such conversion prices ranging from $0.62 to $0.63. The Convertible Notes are senior in right of payment to all existing and future debt obligations of the Company and will be secured by all existing and future assets of the Company. The Convertible Notes are redeemable by the Company at any time upon ten days' notice and at the option the holders for the principal amount thereof plus interest, beginning on January 1, 2026.

**ITEM 6. SELECTED FINANCIAL DATA.**

Not applicable.

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**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated historical financial statements and the notes to those statements that appear elsewhere in this report. Certain statements in the discussion contain forward-looking statements based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors.

**Overview and Outlook**

Sow Good Inc. is a U.S.-based consumer packaged goods company that pioneered the freeze dried candy category. Since commencing commercial sales in the first quarter of 2023, Sow Good developed and scaled a proprietary freeze drying manufacturing operation dedicated to transforming traditional candy and snacks into novel, intensely flavorful treats it markets under the "hyper dried, hyper crunchy, hyper flavorful" brand positioning.

**Recent Strategic Transactions**

On December 30, 2025, the Company completed a series of strategic transactions that fundamentally changed the nature of its operations. The Company sold substantially all of its manufacturing assets — including six proprietary freeze drying machines and other property and equipment with an aggregate net book value of approximately $10 million — to Trea Grove, LLC, a related party, for total consideration of $1.5 million. Concurrently, the Company entered into an exclusive Distribution Agreement with Trea Grove, LLC, pursuant to which Trea Grove serves as the exclusive worldwide distributor of Sow Good's remaining finished goods inventory, with the Company receiving 10% of gross receipts from customer sales. The Distribution Agreement has a term through July 31, 2026. Additionally, the Company completed a $3.0 million convertible preferred stock offering, the proceeds of which were used to pay down debt and for operational purposes.

As a result of these transactions, the Company no longer operates manufacturing facilities and has transitioned to a capital-light model for the duration of the Distribution Agreement. The Company's board and management are evaluating strategic alternatives for the business going forward.

On December 31, 2025, the Company entered into a Securities Purchase Agreement with David Lazar for the private placement of two tranches of convertible preferred stock (. The Company completed the sale of the first tranche by issuing 1,500,000 shares of Series AA Preferred Stock with proceeds to the Company of $3,000,000, which were used to pay down debt, reduce headcount, and for operational purposes. Pursuant to the Securities Purchase Agreement, the Company expects to consummate the sale of the second tranche with the issuance of 1,500,000 shares of Series AAA Preferred Stock for additional proceeds of $3,000,000 in March 2026. The terms of the Series AAA Preferred Stock are substantially similar to the terms of the Series AA Preferred Stock, except that the Series AAA Preferred Stock are redeemable at a price of $200 per share, and each share of Series AA Preferred Stock is initially convertible into 14 shares of Common Stock where each share of Series AAA Preferred Stock is initially convertible into 250 shares of Common Stock (subject to adjustment as provided in the Series AAA certificate of designations).

In connection with the Private Placement the Company experienced a leadership transition with (i) Claudia Goldfarb stepping down as Chief Executive Officer while remaining with the Company as Chief Operating Officer and a member of the Company's board of directors (the "Board"), (ii) members of the Board Chris Ludeman and Joe Mueller resigning from the Board in connection with the private placement and strategic asset sale, (iii) David Lazar being appointed Chief Executive Officer and elected to the Board, serving as the Board's Chairman and (iv) David Natan being elected to the Board and serving as Audit Committee Chairman following Mr. Ludeman's resignation.

**Products**

Sow Good offers freeze dried candy and snack products. The freeze drying process removes up to 99% of moisture from products in their frozen state through the application of low heat in a near-vacuum environment, concentrating flavor and producing a uniquely crunchy texture with a long shelf life and natural preservation characteristics.

**A Distinctive and Trusted Brand Name**

We believe we have a distinctive brand that consumers trust and helps distinguish our product on crowded retail shelves. Since Sow Good's inception, we have invested heavily to elevate the Sow Good brand by creating a distinctive and cohesive brand design that sparks consumer curiosity and a desire to sample additional flavors carried by Sow Good. In addition, we use premium packaging materials to communicate the high-quality nature of our products and differentiate ourselves from competitive offerings.

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**Key Factors Affecting our Performance**

Our future success is dependent upon many factors. While the factors and trends described below present opportunities for us, they also pose significant challenges that we must successfully address to enable us to sustain and grow of our business and improve our results of operations. These factors and trends in our business have driven fluctuations in revenues over the periods presented and are expected to be key drivers of our results of operations and liquidity position for the foreseeable future.

***The State of the Freeze Dried Candy Category***

While we observed the freeze dried candy category experience a significant rise in popularity during 2024 and the first half of 2025, we have observed market data showing a significant decline in sales in the freeze dried candy category toward the end of 2025. This decline could be the result of a number of factors, including the disjointed nature of freeze dried candy providers and the variance in quality, the arrival of large multinational market entrants and their desire to reduce competition in the space, or the exhaustion of consumer appetite of freeze dried candy. As a result of the slowdown in the market for freeze dried candy, the Company has transitioned to a capital-light model for the duration of the Distribution Agreement.

***Ability to Compete Against Competitors with Greater Resources and Market Clout***

We operate in a highly competitive industry against competitors with significantly greater financial and other resources. We have become aware of certain of our competitors using their status in the market and marketing spend to limit our current and future customers from purchasing our products or reducing our shelf space. This caused the loss of significant customers with resulted in a significant reduction in revenue and an increase in our inventory. Our ability to keep our current customers, or grow our SKU portfolio on their shelves, and continue to expand our sales with new customers will depend on our competitors' ability to leverage their market status and financial resources to limit our access to consumers and our ability to compete with these larger competitors.

***Ability to Grow Our Customer Base in Retail and Traditional Wholesale Distribution Channels*** 

We are currently seeking to grow our customer base in a variety of physical retail and traditional wholesale distribution channels. Our products have launched in retailers nationwide from convenience and grocery stores to big-box retailers and distributors, such as Five Below, Albertsons and C&S Wholesale. In addition, we have expanded our market to two Middle East distributors. Given the nascent state of the freeze dried candy segment and the number of potential retailer and wholesaler customers, we also believe there is a significant growth opportunity with customer acquisition in both the retail and wholesale channels, domestically and internationally. Customer acquisition in these channels depends on, among other things, our go-to-market function and our ability to meet the demand of customers who require large volumes of products.

***Impact of inflation and other factors on our supply chain and operations.***

We expect supplies and prices of the ingredients that we are going to use to be affected by a variety of factors, such as war, weather, seasonal fluctuations, demand, politics and economics in the producing countries. These factors subject us to shortages or interruptions in product supplies, which could adversely affect our revenue and profits.

**Components of Results of Operations** 

***Revenues***

We recognize revenues from the sales of our freeze dried treats. The Company recognizes revenues when orders are shipped to customers.

***Operating Expenses*** 

Our operating expenses consist of general and administrative expenses, which includes salaries and benefits expenses, professional services expenses and other general and administrative expenses.

We expect our general and administrative expenses will increase as our business grows.

***Interest Expense*** 

Interest expense consists primarily of the cash interest expense on outstanding debt and the amortization of the debt discount created upon the issuance of warrants in connection with debt.

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***Interest Income***

Interest income consists primarily of the interest on short-term U.S Treasury Bonds.

***Provision for Income Taxes*** 

The Company recognized federal income tax of $0 for the twelve months ended December 31, 2025 and 2024, respectively. The Company's effective tax rates for the twelve months ended December 31, 2025 and 2024 differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company's deferred tax assets and permanent differences.

**Segment Overview**

Our chief operating decision makers, who are our Chief Executive Officer and our Executive Chairman, review financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance, as well as for strategic operational decisions and managing the organization. For each of the years ended December 31, 2025 and 2024, we have determined that we have one operating segment and one reportable segment.

**Results of Operations for the Years Ended December 31, 2025 and December 31, 2024.**

The following table summarizes selected items from the statement of operations for the years ended December 31, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended | Year Ended |  |  |
|  | December 31, | December 31, | Increase / |  |
|  | 2025 | 2024 | (Decrease) | % Change |
| Revenues | $- | $- | $- | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold | - | - | - | 0% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;General and administrative expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and benefits | 4410288 | 7614215 | (3203927) | (42%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 838654 | 1589287 | (750633) | (47%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other general and administrative expenses | 1323667 | 1854779 | (531112) | (29%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative expenses | 6572609 | 11058281 | (4485672) | (41%) |
| Depreciation and amortization | 33101 | 31644 | 1457 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6605710 | 11089925 | (4484215) | (40%) |
| Net operating loss | (6605710) | (11089925) | 4484215 | (40%) |
| Other expense: |  |  |  |  |
| &nbsp;&nbsp;Loss on impairment of long lived assets | (57602) |  |  |  |
| &nbsp;&nbsp;Interest expense | (159953) | (741204) | 581251 | (78%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (217555) | (741204) | 581251 | (78%) |
| &nbsp;&nbsp;Net loss before tax provision | $(6823265) | $(11831129) | $5007864 | (42%) |

---

*Revenues*

As a result of the Asset Sale Agreement and Distribution Agreement entered into on December 30 and December 31, 2025, respectively, the Company exited its manufacturing and omnichannel sales business for freeze dried candy and related products. Under the new business model, the Company operates as a commission-based distribution agent and earns a percentage of distributor gross receipts from sales of Sow Good-branded products. Because the prior manufacturing and product sales activities were discontinued as part of these transactions, all revenues associated with the sale of freeze dried candy and related products have been reclassified to loss from discontinued operations for all periods presented. Accordingly, the Company recognized no revenue from continuing operations for the twelve months ended December 31, 2025 and 2024.

Results of operations for the years ended December 31, 2025 and 2024 have been reclassified on our Statement of Operations as either a gain or loss on discontinued operations, net of tax. For the years ended December 31, 2025 and 2024, we reclassified a loss of $33.8 million and a gain of $8.1 million, respectively to discontinued operations.

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*Cost of Goods Sold*

As a result of the transactions described above, the Company no longer manufactures or sells products directly and therefore does not incur cost of goods sold in its continuing operations. All costs associated with the manufacturing and sale of freeze dried candy, including inventory write-downs, production costs, and related overhead previously included in cost of goods sold, have been reclassified to discontinued operations for all periods presented. These costs include charges recorded to write down finished goods and raw materials inventory associated with SKUs the Company no longer intends to produce or sell, as well as related overhead allocations associated with the discontinued manufacturing operations.

*General and administrative expenses*

*<u>Salaries and benefits</u>*

Salaries and benefits for the twelve months ended December 31, 2025 were $4.4 million, compared to $7.6 million for the twelve months ended December 31, 2024, a decrease of $3.2 million, or (42%), related to decreased headcount. Salaries and benefits included amortization of stock options granted to employees and officers for the twelve months ended December 31, 2025 of $1.4 million, compared to $4.4 million for the twelve months ended December 31, 2024, decrease of $3.0 million, or -68%, mainly due to forfeitures of unvested stock options during the fourth quarter of 2025. Salaries, payroll tax and benefits other than the amortization of stock options decreased $0.4 million, or 13% over the comparative period, as a result of decreased headcount. Severance cost of $2.4 million incurred in the fourth quarter of 2025 was included in discontinued operations.

*<u>Professional services</u>*

Professional services were $838.7 thousand for the twelve months ended December 31, 2025, compared to $1.6 million for the twelve months ended December 31, 2024, a decrease of $750.6 thousand, or (47%). The decrease was primarily driven by the absence of professional service costs related to the 2024 underwritten public offering and reduced services as a result of scaling down activities during the twelve months ended December 31, 2025.

*<u>Other general and administrative expenses</u>*

Other general and administrative expenses for the twelve months ended December 31, 2025 was $1.3 million, compared to $1.9 million for the twelve months ended December 31, 2024, a decrease of $531.1 thousand, or (29%). The decrease is primarily attributable to a decrease of $388,506 in travel and entertainment costs.

*Depreciation*

Depreciation of property and equipment was $33.1 thousand and $31.6 thousand for the twelve months ended December 31, 2025 and 2024, respectively.

*Other expense*

Other expense consisted primarily of interest expense on notes payable of $156.6 thousand and $741.2 thousand for the twelve months ended December 31, 2025 and 2024, respectively, and $57.6 thousand of impairment expense on long lived assets for the twelve months ended December 31, 2025. The decrease in interest expense compared to the prior year was primarily attributable to a reduction in the average outstanding balance of notes payable during the period. Certain interest expense related to discontinued operations was been included in gain (loss) on discontinued operations for all periods presented.

*Net loss on continuing operations*

Pretax net loss on continuing operations for the twelve months ended December 31, 2025 was $6.8 million, compared to a pretax net loss on continuing operations of $11.8 million during the twelve months ended December 31, 2024, a decreased loss of $5.0 million. The decreased net loss was due primarily to the decreased salaries and benefits of $3.3 million, decreased professional services of $956,375, and decreased other general and administrative costs of $531,112.

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*Provision for Income Taxes*

The Company maintains a full valuation allowance related to our net deferred tax assets, primarily due to our historical net loss position. For each of the twelve months ended December 31, 2025 and 2024, the Company recognized federal income tax expense of $0, and $0, respectively.

**Liquidity and Capital Resources**

The following table summarizes our total current assets, liabilities and working capital at December 31, 2025 and December 31, 2023.

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Current Assets | $3392778 | $25076141 |
| Current Liabilities | $6187442 | $4891426 |
| Working Capital | $(2794664) | $20184715 |

---

As of December 31, 2025, we had working capital of $2.8 million, compared to working capital of $20.2 million as of December 31, 2024. The decreased working capital is mainly attributable to decreases in inventory of approximately $20.4 million and cash of $2.2 million. As of December 31, 2025, our balance of cash and cash equivalents was $1.5 million, compared to $3.7 million at December 31, 2024. Our plan for satisfying our cash requirements for the next twelve months is through cash on hand, however we will require additional financing in the form of equity or debt which may not be available on favorable terms, or at all. We may not have sufficient funds to sustain our operations for the next twelve months. These factors raise substantial doubt about our ability to continue as a going concern. See Note 3 – "Going Concern" of the notes to consolidated financial statements in this Annual Report on Form 10-K for additional information.

***Indebtedness*** 

*Promissory Notes and Warrants*

On April 28, 2025, the Company restructured its outstanding current debt through the issuance of Convertible Notes in a dollar-for-dollar exchange. On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with related party holders of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2.7 million, maturity dates ranging from April 8, 2025 to August 23, 2025 and interest rates ranging from 6% to 8%. Pursuant to the Exchange Agreement, holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an amount equal to $2.8 million, the aggregate principal amount of the Outstanding Notes, plus accrued and unpaid interest thereunder. The Convertible Notes have a maturity date of April 30, 2030 and will pay interest semiannually in arrears on May 1 and November 1 beginning on November 1, 2025. At the Company's election, interest payable on an interest payment date may be added to the principal amount of the Convertible Note on the applicable interest payment date and will no longer be owed to holders of the Convertible Notes. The Convertible Notes are convertible at the election of the holders, in whole or in part, into shares of common stock based on a price per share equal to the average closing price of such common stock for the five trading days immediately prior to the execution of and entry into the Convertible Notes, with such conversion prices ranging from $0.62 to $0.63. The Convertible Notes are senior in right of payment to all existing and future debt obligations of the Company and will be secured by all existing and future assets of the

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Company. The Convertible Notes are redeemable by the Company at any time upon ten days' notice and at the option the holders for the principal amount thereof plus interest, beginning on January 1, 2026.

***Cash Flows***

The following table summarizes our cash flows during the twelve months ended December 31, 2025 and 2024, respectively.

---

| | | |
|:---|:---|:---|
|  | Year Ended | Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Net cash used in operating activities | $(4305127) | $(9426745) |
| Net cash provided by investing activities | - | (5927876) |
| Net cash provided by financing activities | 2056132 | 16668024 |
| Net change in cash and cash equivalents | $(2248995) | $1313403 |

---

Net cash used in continuing operating activities was $4.3 million for the twelve months ended December 31, 2025, compared to $4.4 million of cash used in continuing operating activities twelve months ended December 31, 2024. The decrease in cash used in continuing operating activities of $0.6 million was primarily due to cash provided by changes in working capital. Cash used by discontinued operations was $0.6 million twelve months ended December 31, 2025 compared to cash used by discontinued operations of $13.2 million for the twelve months ended December 31, 2024.

Net cash used in investing activities of the continuing operation was $0 for twelve months ended December 31, 2025, and the twelve months ended December 31, 2024. Cash used in investing activities of discontinued operations during the twelve months ended December 31, 2025 was $0, compared to $5.9 million for the twelve months ended December 31, 2024, which was primarily used for additional freezers.

Net cash provided by financing activities for continuing operations was $3.0 million and $0 for the twelve months ended December 31, 2025 and 2024, respectively. Net cash provided by financing activities for the twelve months ended December 31, 2025 consisted of $3.0 million of proceeds from the sale of 1,500,000 convertible preferred shares at $2.00 per share. Cash used by discontinued operations was $943,868 during the twelve month period ended December 31, 2025. This cash was used to pay down related party long term convertible notes payable. Cash provided by financing activities of discontinued operations was $16.7 million for the twelve month period ended December 31, 2024. This cash was raised pursuant multiple private and public offerings, and the issuance of shares related to warrant exercises provided $5.3 million, in exchange for $5.2 million in repayment of notes payable, and $98,750 of repayment of interest during the twelve months ended December 31, 2024. In addition, another $1.6 million was used to repay borrowings during 2024.

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**Contractual Obligations and Commitments**

On July 1, 2023, the Company entered into a lease for additional warehouse space in Irving, Texas, of approximately 9,000 feet under a 37-month lease at a rate of $8,456 per month, with approximately a 4% annual escalation of lease payments. The facility lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company's leases do not provide implicit discount rates, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate for the lease at the time of commencement was 8%.

On May 22, 2024, the Company entered into an industrial lease (the "Lease") with USCIF Pinnacle Building B LLC, a Delaware limited liability company. Pursuant to the terms of the Lease, the Company will lease approximately 324,000 rentable square feet from the Lessor at 4024 Rock Quarry Road, Dallas, Texas for a term of approximately 62 months, which the Company intends to use as industrial and manufacturing space. The term of the Lease commenced on May 22, 2024. The Lease provides for graduated rent payments starting at $122,175 per month, and increasing up to $297,289.14 per month by the end of the Lease, plus taxes, insurance and common area maintenance costs. The Company was required to provide a security deposit in the amount of $1,000,000 in connection with the Lease. Effective September 30, 2025, the Company agreed with Pinnacle to exit the facility on January 31, 2026. As a result of reducing the lease term by 42 months, the company reduced the related right-of-use asset by $10,397,922 and the lease liability by $11,829,536, resulting in a noncash gain $1,427,649, which is included in the loss from discontinued operations for the year ended December 31, 2025.

On October 26, 2023, the Company entered into a lease agreement (the "2023 Lease Agreement") with Prologis, Inc., a Maryland corporation. Pursuant to the terms of the 2023 Lease Agreement, beginning on November 1, 2023 the Company leases approximately 51,264 rentable square feet at Stemmons 10, 308 Mockingbird Lane, Dallas, TX 75247 for a term of approximately five years and two months (the "Initial Term"), which the Company intends to use as warehousing and distribution space. The 2023 Lease Agreement provides for base rent payments starting at approximately $42.5 thousand per month (taking into consideration an initial phase-in of the base rent obligation) in the first year of the Initial Term, and increase each year, up to approximately $51.7 thousand per month during the last year of the Initial Term. The 2023 Lease Agreement may be extended for a period of five years, at the option of the Company, at a rate to be based on a fair market rent rate determined at the time of the extension. Effective September 30, 2025, the Company agreed with Prologis to exit the lease as of September 30, 2025. As a result of reducing the lease term by 39 months, the company derecognized the related right-of-use asset $2,325,675 and the lease liability of $2,673,619, resulting in a noncash gain of $347,853, which is included in the loss from discontinued operations for the year ended December 31, 2025.

The Company was party to a real property lease for its 20,945 square foot facility at 1440 N. Union Bower Rd., Irving, TX 75061, under which an entity owned entirely by Ira Goldfarb, a related party. The lease term is through September 15, 2025, with two five-year options to extend, at a monthly lease term of $10.0 thousand, with approximately a 3% annual escalation of lease payments commencing September 15, 2021. Concurrently with the Asset Sale entered into on December 30, 2025, the company exited this lease and derecognized the related right-of-use asset $1,040,742 and the lease liability of $1,171,490, resulting in a noncash gain of $120,773, which is included in the loss from discontinued operations for the year ended December 31, 2025.

**Off-Balance Sheet Arrangements**

None.

**Critical Accounting Policies and Estimates**

The preparation of the Company's financial statements requires management to make judgments and estimates due to uncertainties affecting the application of accounting policies. Different conditions or assumptions could lead to different reported amounts. The Company bases its estimates on historical experience and other reasonable assumptions. If actual results differ from these estimates, adjustments are recognized in the period they become known. Significant accounting policies are detailed in Note 2 of the Consolidated Financial Statements.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Commodity Price Risk**

We do not expect any significant effects from commodity price risk outside of inherent inflationary risks.

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**Interest Rate Risk**

We are not a party to agreements that subject us to floating rates of interest and do not anticipate entering into any transactions that would expose us to any direct interest rate risk.

**Foreign Currency Risk** 

We did not hold any significant cash balances in foreign jurisdictions as of December 31, 2025. However, we anticipate that as our foreign operations grow, we will hold more cash in foreign jurisdictions, and thereby expose ourselves to greater currency fluctuation risk than we currently experience.

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**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OF SOW GOOD INC.**

**SOW GOOD INC.**

**FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED December 31, 2025 and 2024**

**CONTENTS**

---

| | |
|:---|:---|
| [<u>Report of Independent Registered Public Accounting Firm</u>](#report_of_independent_regis_public_accou) (PCAOB ID 1013) | [<u>F-</u><u>1</u>](#report_of_independent_regis_public_accou) |
| [<u>Balance Sheets as of December 31, 2025 and 2024</u>](#condensed_balance_sheets) | [<u>F-</u><u>3</u>](#condensed_balance_sheets) |
| [<u>Statements of Operations for the years ended December 31, 2025 and 2024</u>](#condensed_statements_of_operations) | [<u>F-</u><u>4</u>](#condensed_statements_of_operations) |
| [<u>Statement of Stockholders' (Deficit) Equity for the years ended December 31, 2025 and 2024</u>](#stockholders_equity) | [<u>F-</u><u>5</u>](#stockholders_equity) |
| [<u>Statements of Cash Flows for the years ended December 31, 2025 and 2024</u>](#statements_of_cash_flows) | [<u>F-</u><u>6</u>](#statements_of_cash_flows) |
| [<u>Notes to the Financial Statements</u>](#notes_to_condensed_financial_statements) | [<u>F-</u><u>7</u>](#notes_to_condensed_financial_statements) |

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**Report of Independent Registered Public Accounting Firm**

Stockholders and Board of Directors

Sow Good, Inc.

Irving, TX

**Opinion on the Financial Statements**

We have audited the accompanying balance sheets of Sow Good, Inc. ("the Company") as of December 31, 2025 and 2024, the related statements of operations, stockholders' (deficit) equity, and cash flows for the years ended December 31, 2025 and 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025 and 2024, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern Uncertainty – See Also Critical Audit Matters Section Below** 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has suffered recurring losses from operations, has a capital deficiency and does not have an established source of revenues sufficient to cover its operating costs, which raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Discontinued Operations**

As further discussed in Note 4 to the financial statements, on December 30, 2025, the Company sold substantially all of its manufacturing and operating assets to its former Executive Chairman and former Chief Executive Officer and exited its legacy business and no longer manufactures products. Accordingly, the results of the former manufacturing business have been classified as discontinued operations for all periods presented.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also includes evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinion on the critical audit matters or on the accounts or disclosures to which it relates.

***Going Concern – Refer to Note 3 to the Financial Statements*** 

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*Critical Audit Matter Description* 

As described further in Note 3 to the financial statements, the Company has suffered recurring losses from operations, has capital deficiency and does not have an established source of revenues sufficient to cover its operating costs. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its business plan and eventually attain profitable operations. Accordingly, the Company has determined that these factors raise substantial doubt as to the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements. Management intends to continue to fund its business by way of public or private offerings of the Company's stock or through loans from private investors, in order satisfy the Company's obligations as they come due for at least one year from the financial statement issuance date. However, the Company has not concluded that these plans alleviate the substantial doubt related to its ability to continue as a going concern.

*How the Critical Audit Matter was Addressed in the Audit* 

We determined the Company's ability to continue as a going concern is a critical audit matter due to the estimation and uncertainty regarding the Company's available capital and the risk of bias in management's judgments and assumptions in their determination. Our audit procedures related to the Company's assertion on its ability to continue as a going concern included the following, among others:

• We performed testing procedures such as analytical procedures to identify conditions and events that indicate that there could be substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

• We reviewed and evaluated management's plans for dealing with adverse effects of these conditions and events.

• We inquired of Company management and reviewed company records to assess whether there are additional factors that contribute to the uncertainties disclosed.

/s/ Urish Popeck & Co., LLC

We have served as the Company's auditor since 2023.

Pittsburgh, Pennsylvania

March 31, 2026

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**SOW GOOD INC.**

**BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $1474445 | $3723440 |
| Accounts receivable - related party | 1651471 | - |
| Other receivables | 93198 | - |
| Inventory, net | 22871 | - |
| Prepaid expenses | 90460 | 523442 |
| Current assets of discontinued operations | 60333 | 20829259 |
| Total current assets | 3392778 | 25076141 |
| Property and equipment, net | 21667 | 128900 |
| Security deposit | 283972 | 300370 |
| Right-of-use asset | 76971 | 200710 |
| Assets of discontinued operation | - | 28989610 |
| Total assets | $3775388 | $54695731 |
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable | $1297851 | $1368006 |
| Accrued interest | 96453 | - |
| Accrued severance | 2442500 | - |
| Accrued expenses | 584186 | 976153 |
| Current portion of operating lease liabilities | 78171 | 125987 |
| Current maturities of Convertible notes payable, related parties, net of $518,530 and $0 of debt discounts as of December 31, 2025 and December 31, 2024, respectively | 1341420 | - |
| Current maturities of notes payable, related parties, net of $0 and $304,500 of debt discounts at December 31, 2025 and December 31, 2024, respectively | - | 2195500 |
| Current maturities of notes payable, net of $0 and $13,470 of debt discounts as of December 31, 2025 and December 31, 2024, respectively | - | 225780 |
| Current liabilities related to discontinued operations | 346861 | 2473115 |
| Total current liabilities | 6187442 | 7364541 |
| Operating lease liabilities | - | 79575 |
| Notes payable | 150000 | 150000 |
| Liabilities of discontinued operation | - | 15113553 |
| Total liabilities | 6337442 | 22707670 |
| Commitments and contingencies |  |  |
| Stockholders' (deficit) equity: |  |  |
| Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding | 1500 | - |
| Common stock, $0.001 par value, 500,000,000 shares authorized, 12,223,599 and 11,300,624 shares issued and outstanding as of December 31, 2025 and December 31, 2024 | 12224 | 11300 |
| Additional paid-in capital | 100507939 | 94418972 |
| Accumulated deficit | (103083717) | (62442211) |
| Total stockholders' (deficit) equity | (2562054) | 31988061 |
| Total liabilities and stockholders' (deficit) equity | $3775388 | $54695731 |

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The accompanying notes are an integral part of these financial statements.

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**SOW GOOD INC.**

**STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Revenues | $- | $- |
| Operating expenses: |  |  |
| General and administrative expenses: |  |  |
| Salaries and benefits | 4410288 | 7614215 |
| Professional services | 838654 | 1589287 |
| Other general and administrative expenses | 1323667 | 1854779 |
| Total general and administrative expenses | 6572609 | 11058281 |
| Depreciation and amortization | 33101 | 31644 |
| Total operating expenses | 6605710 | 11089925 |
| Net operating loss | (6605710) | (11089925) |
| Other expense: |  |  |
| Interest expense | (159953) | (741204) |
| Loss on impairment of long lived assets | (57602) | - |
| Total other expense | (217555) | (741204) |
| Loss from continuing operations before income tax | (6823265) | (11831129) |
| Income tax provision | - | - |
| Net loss from continuing operations | (6823265) | (11831129) |
| Income (loss) of discontinued operations, net of tax | (33818241) | 8128913 |
| Net loss | $(40641506) | $(3702216) |
| Weighted average common shares outstanding - basic and diluted | 11838442 | 9238233 |
| Continuing loss per common share - basic and diluted | $(0.58) | $(1.28) |
| Discontinued income (loss), net of tax per common share - basic and diluted | $(2.86) | $0.88 |
| Net loss per common share - basic and diluted | $(3.44) | $(0.40) |

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The accompanying notes are an integral part of these financial statements.

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**SOW GOOD INC.**

**STATEMENT OF STOCKHOLDERS' (DEFICIT) EQUITY**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 | For the Twelve Months Ended December 31, 2025 |
|  |  |  |  |  | Additional |  | Total |
|  | Preferred Stock | Preferred Stock | Common Stock | Common Stock | Paid-in | Accumulated | Stockholders' |
|  | Shares | Amount | Shares | Amount | Capital | Deficit | Equity |
| Balance, December 31, 2024 | – | $- | 11300624 | $11300 | $94418972 | $(62442211) | $31988061 |
| Series AA Convertible Non-Redeemable Preferred Stock | 1500000 | 1500 | – | – | 2998500 | – | 3000000 |
| Common stock issued to directors for services | – | – | 139907 | 142 | 279858 | – | 280000 |
| Common stock issued to officers for services | – | – | 783068 | 782 | 688506 | – | 689288 |
| Common stock options granted to directors and advisors for services | – | – | – | – | 17581 | – | 17581 |
| Common stock options granted to officers and employees for services | – | – | – | – | 1410364 | – | 1410364 |
| Additional paid in capital from exchange of related party debt, net | – | – | – | – | 694158 | – | 694158 |
| Net loss for the twelve months ended December 31, 2025 | – | – | – | – | – | (40641506) | (40641506) |
| Balance, December 31, 2025 | 1500000 | $1500 | 12223599 | $12224 | $100507939 | (103083717) | $(2562054) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 | For the Twelve Months Ended December 31, 2024 |
|  |  |  |  |  | Additional |  | Total |
|  | Preferred Stock | Preferred Stock | Common Stock | Common Stock | Paid-in | Accumulated | Stockholders' |
|  | Shares | Amount | Shares | Amount | Capital | Deficit | Equity |
| Balance, December 31, 2023 | – | $- | 6029371 | $6029 | $66014415 | $(58739995) | $7280449 |
| Common stock issued in public offering, net of offering costs | – | – | 1380000 | 1380 | 11973596 | – | 11974976 |
| Common stock issued in at-the-market offering, net of offering costs | – | – | 1042862 | 1043 | 2190170 | – | 2191213 |
| Common stock issued in private placement offering | – | – | 515597 | 516 | 3737484 | – | 3738000 |
| Common stock issued pursuant to stock purchase agreement | – | – | 12374 | 12 | 25354 | – | 25366 |
| Common stock issued to directors for services | – | – | 31211 | 32 | 295616 | – | 295648 |
| Proceeds from the exercise of stock options and warrants | – | – | 2289209 | 2288 | 5670680 | – | 5672968 |
| Common stock options granted to directors and advisors for services | – | – | – | – | 86892 | – | 86892 |
| Common stock options granted to officers and employees for services | – | – | – | – | 4424765 | – | 4424765 |
| Net loss for the twelve months ended December 31, 2024 | – | – | – | – | – | (3702216) | (3702216) |
| Balance, December 31, 2024 | – | $- | 11300624 | $11300 | $94418972 | $(62442211) | $31988061 |

---

The accompanying notes are an integral part of these financial statements.

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[**<u>**Table of Contents**</u>**](#toc_page)

**SOW GOOD INC.**

**STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net (loss) from continuing operations | $(6823265) | $(11831129) |
| Net (loss) income from discontinued operations | (33818241) | 8128913 |
| Adjustments to reconcile net loss to net cash used in continuing operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bad debts expense | 26895 | 187363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 33101 | 31644 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash amortization of right-of-use asset and liability | 123721 | 114281 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity compensation | 2396450 | 3690394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discounts | 81210 | 500821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 128250 | 1930749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (90460) | 180524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (70155) | 514471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 96453 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (230122) | 327205 |
| Net cash (used in) continuing operations | (4327922) | (4353677) |
| Net cash (used in) discontinued operations | 22795 | (5073068) |
| Cash used in operations | (4305127) | $(9426745) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed asset additions and disposals, net | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for construction in progress | - | - |
| Net cash (used in) investing - continuing operations | - | - |
| Net cash (used in) investing - discontinued operations | - | (5927876) |
| Cash used in investing | $- | $(5927876) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common stock offerings, net offering costs of $0 and $1,110,013, respectively | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from preferred stock offering | 3000000 | - |
| Net cash provided by financing activities - continuing operations | 3000000 | - |
| Net cash provided by financing activities - discontinued operations | (943868) | 16668024 |
| Net cash provided by financing activities | $2056132 | $16668024 |
| NET INCRASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2248995) | 1313403 |
| &nbsp;&nbsp;&nbsp;&nbsp;CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3723440 | 2410037 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $1474445 | $3723440 |
| SUPPLEMENTAL INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | 10234 | 667293 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES DISCONTINUED OPERATIONS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received - discontinued operations | - | 43639 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid - discontinued operations | - | 130000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash exercise of warrants | - | 5299113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement of Notes Payable, related party in non-cash debt exchange | (2500000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Convertible Notes Payable, related party, including accrued interest of $64,568 in debt exchange | 290869 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of interest | (138162) | 98750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of borrowings | (239250) | (5200363) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification of construction in progress to property and equipment | 682469 | 3269332 |

---

The accompanying notes are an integral part of these financial statements.

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**SOW GOOD INC.**

**Notes to Financial Statements**

**Note 1** – **Organization and Nature of Business**

Sow Good Inc. ("SOWG," "Sow Good," "us," "our," "we," or the "Company") is a U.S.-based company that, through a third-party distribution arrangement, participates in the commercialization of freeze-dried candy products. The Company historically operated as a manufacturer of freeze-dried consumer packaged goods, including candy, fruits, vegetables, and snack products.

Formerly Black Ridge Oil & Gas, Inc. (a business that participated in the acquisition and development of oil and gas leases and was acquired by the Company on October 1, 2020), the Company transitioned its focus to freeze-dried food products following the acquisition. At the time of the acquisition of Black Ridge Oil & Gas, Inc., the Company's common stock began to be quoted on the OTCQB under the trading symbol "SOWG," from the former trading symbol "ANFC." Prior to April 2, 2012, Black Ridge Oil & Gas, Inc. was known as Ante5, Inc., a publicly traded company since July 1, 2010. Effective February 15, 2024, Sow Good Inc. reincorporated in the State of Delaware from the State of Nevada pursuant to a plan of conversion. On May 2, 2024, trading of the Company's common stock commenced on the Nasdaq Capital Market.

In May 2021, the Company announced the launch of its first direct-to-consumer freeze-dried consumer packaged goods ("CPG") line of non-GMO products, including ready-to-make smoothies, gluten-free granola, and snacks. In the first quarter of 2023, the Company launched a freeze-dried candy product line and subsequently discontinued its smoothie, snack, and granola products. The Company expanded manufacturing capacity during 2023 and 2024 through the construction and installation of multiple freeze-dryers to support anticipated growth in candy production.

During December 2025, the Company completed a strategic shift away from direct manufacturing and product sales and entered into a distribution agreement pursuant to which a third-party distributor serves as the exclusive distributor of the Company's freeze-dried candy products. Under this arrangement, the distributor is responsible for commercialization, sales, marketing, fulfillment, and customer relationships, and the Company earns a contractual percentage of distributor gross receipts. As a result of this strategic shift, the Company no longer operates a manufacturing business and does not directly sell products to customers.

As of December 31, 2025, the Company's business consists primarily of earning commission-based revenue from its distribution arrangement related to freeze-dried candy products.

**Note 2** – **Summary of Significant Accounting Policies**

These financial statements are presented in accordance with United States generally accepted accounting principles ("GAAP") and stated in US dollars, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). These statements reflect all adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. Except as otherwise disclosed, all such adjustments are of a normal recurring nature.

<u>Segment Reporting</u>

FASB ASC 280-10-50 requires annual and interim reporting for an enterprise's operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and expenses, and about which separate financial information is regularly evaluated by the chief operating decision maker in deciding how to allocate resources. The Company operates as a single segment. For further details on segment reporting, refer to Note 15 – Segment Reporting.

<u>Use of Estimates</u>

The preparation of financial statements in conformity with U.S. 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>Reclassifications</u>

Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.

<u>Environmental Liabilities</u>

The Company was formerly a direct owner of assets in the oil and gas industry. The oil and gas industry is subject, by its nature, to environmental hazards and clean-up costs. At this time, management knows of no substantial losses from environmental accidents or events which would have a material effect on the Company.

<u>Cash and Cash Equivalents</u>

Cash equivalents include money market accounts which have maturities of three months or less. Cash equivalents are stated at cost plus accrued interest, which approximates market value.

*Cash in Excess of FDIC Insured Limits*

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") and the Securities Investor Protection Corporation ("SIPC") up to $250,000 and $500,000, respectively, under current regulations. The Company had cash in excess of FDIC and SIPC insured limits of $1,189,975 at December 31, 2025. The Company had cash in excess of FDIC and SIPC insured limits of $1,837,840 at December 31, 2024. The Company has not experienced any losses in such accounts.

<u>Accounts Receivable</u>

Accounts receivable are carried at their estimated collectible amounts. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. The Company had an allowance for doubtful accounts of $0, and $33,549 at December 31, 2025 and 2024.

The Company estimates its reserve based on historical loss information. The Company believes that historical loss information is a reasonable base on which to determine expected credit losses for trade receivables held at the reporting date because the composition of the trade receivables at the reporting date is consistent with that used in developing the historical credit-loss percentages. However, the Company will continue to monitor and adjust the historical loss rates to reflect the effects of current conditions and forecasted changes.

<u>Accounts Receivable - Related Party</u>

Related party receivables are $1,651,471 for the year ended December 31, 2025 and $0 for the year ended December 31, 2024. These receivables consisted of the $1,500,000 purchase price of the assets of Sow Good under the Asset Purchase Agreement, which was with Trea Grove, a company owned by Ira Goldfarb, and approximately $151,472 in withholding taxes due from Claudia and Ira Goldfarb related to fully vested shares granted as employee compensation.

<u>Other Receivables</u>

Other accounts receivable of $93,198 and $0 for the years ended December 31, 2025 and 2024 respectively, consisted primarily of a tax refund receivable from the State of Delaware for franchise taxes and interest receivable from investments, respectively.

<u>Divestiture</u>

On December 30, 2025, the Company entered into an Asset Purchase Agreement with Trea Grove LLC, an entity controlled by the Goldfarbs, a related party under common ownership (see Note 5 — Related Party Transactions). The Company evaluated the transferred set of assets, processes, and employees under ASC 805-10-55 and determined that the disposition of the manufacturing and omnichannel distribution business constituted a sale of a business. The transaction included the transfer of an assembled workforce, operational processes, manufacturing equipment, and leasehold improvements. In connection with the transaction, Trea Grove LLC

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**SOW GOOD INC.**

**Notes to Financial Statements**

also assumed the lease of the Union Bower facility, a facility owned by the Goldfarbs. Accordingly, the transaction was accounted for as a sale of a business and the loss on divestiture was recognized upon closing in accordance with ASC 810-40. The results of operations of the disposed business have been reclassified as discontinued operations for all periods presented in the accompanying consolidated financial statements in accordance with ASC 205-20.

The table below summarizes the components of the transaction and the resulting gain on divestiture recognized in the Consolidated Statements of Operations:

---

| | |
|:---|:---|
| Cash received | $1500000 |
| &nbsp;&nbsp;Liabilities assumed by Trea Grove LLC | 635380 |
| Less: |  |
| Assets sold: |  |
| Assets held for sale | (713256) |
| Construction in process - freeze dryers | (2768908) |
| Freeze dryers, net | (6744473) |
| Leasehold improvements, net | (1459067) |
| Other property plant and equipment, net | (1778534) |
| Accumulated depreciation | 2670261 |
| Net loss on disposition of assets | (8658598) |
| &nbsp;&nbsp;Severance expense | (2442500) |
| &nbsp;&nbsp;Deal costs | (230742) |
| &nbsp;&nbsp;Loss on sale of assets | $(11331840) |

---

<u>Inventory</u>

On December 30 and December 31, 2025, the Company entered into an Asset Purchase Agreement and a Distribution Agreement, respectively. As a result of these transactions, the Company transitioned from operating as a manufacturer and omnichannel seller of freeze-dried candy to operating as a commission-based distribution agent, earning a fixed percentage of distributor gross receipts from sales of Sow Good-branded products. In addition, the Company retained certain SKUs to market independently of the Distribution Agreement.

Inventory is stated at the lower of average cost or net realizable value, with cost determined using the first-in, first-out ("FIFO") method. The Company evaluates inventory for potential obsolescence and excess quantities on a periodic basis.

In connection with the exit of its manufacturing and omnichannel distribution business, the Company recorded an impairment and write-off of inventory of $13,737,675 during the year ended December 31, 2025. Because the impaired inventory related entirely to the former manufacturing and direct-sales business, the impairment expense has been included in loss from discontinued operations for all periods presented.

As of December 31, 2025, the Company retained approximately $22,871 of inventory related to certain SKUs that were not transferred in the Asset Purchase Agreement. This inventory has been recorded at the lower of cost or net realizable value. Based on our Distribution Agreement with the Distributor, the net realizable value for units the Company expects to sell through its Distributor is 10% of the expected selling price of the Distributor.

<u>Property and Equipment</u>

Property and equipment are stated at the lower of cost or estimated net recoverable amount. The cost of property, plant and equipment is depreciated using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based on the following life expectancy:

---

| | |
|:---|:---|
| Software | 3 years, or over the life of the agreement |
| Website (years) | 3 |
| Office equipment (years) | 5 |
| Furniture and fixtures (years) | 5 |
| Machinery and equipment (years) | 7 - 10 |
| Leasehold improvements | Lease-term or useful life |

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**SOW GOOD INC.**

**Notes to Financial Statements**

Construction in progress was included as assets sold under the Asset Purchase Agreement with Trea Grove on December 30, 2025. Construction in progress for the year ended December 31, 2024 was stated at cost and no depreciation expense was recorded on construction-in-progress until such time as the relevant assets were completed and put into use.

Repairs and maintenance expenditures are charged to operations as incurred. Major improvements and replacements, which extend the useful life of an asset, are capitalized and depreciated over the remaining estimated useful life of the asset. When assets are retired or sold, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in operations.

Depreciation expense included in continuing operations was $33,101 and $31,644, for the twelve months ended December 31, 2025 and 2024, respectively. Depreciation related to the assets used in the manufacture and sale of freeze-dried candy was reclassified to cost of goods sold, and has been included in the loss on discontinued operations.

<u>Revenue Recognition</u>

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). Following the sale of substantially all manufacturing and operating assets and the entry into a long-term Distribution Agreement effective December 31, 2025, the Company no longer manufactures products or sells goods to customers. Instead, the Company operates as a commission-based distribution agent and earns a fixed percentage of distributor gross receipts from sales of Sow Good-branded products.

For the year ended December 31, 2025, the Company recognized no revenue from continuing operations, as the Distribution Agreement became effective at year end and no commission revenue was earned during the period. Revenue recognized in prior periods under the Company's former manufacturing and direct-sales business model has been reclassified to loss from discontinued operations for all periods presented and is not comparable to revenue that may be recognized under the Company's current commission-based distribution model.

Under ASC 606, the Company has concluded that it acts as an agent in these arrangements because it does not control the underlying products prior to transfer to end customers, does not have primary responsibility for fulfillment, and does not bear inventory or credit risk. Accordingly, for the units of inventory sold under the Distribution Agreement, the Company recognizes revenue on a net basis in an amount equal to the commission to which it is entitled.

The Company's performance obligation under the Distribution Agreement is to provide ongoing brand support and access to the Sow Good brand to its distribution partner. This performance obligation is satisfied over time. Commission revenue is recognized in the period in which the related underlying product sales occur and the distributor's gross receipts are generated, as this corresponds to when the Company's right to consideration becomes fixed and determinable.

The Company does not record revenue related to gross product sales, shipping, or handling activities, that are performed by the Distributor and third-party manufacturers. The Company also does not record provisions for product returns, discounts, or allowances, for items which are sold by our Distributor.

<u>Advertising Costs</u> 

Amounts related to the Company's former manufacturing and direct-sales business model have been reclassified to loss from discontinued operations for all periods presented.

The Company did not recognize any advertising costs under our commission-based distribution model.

<u>Customer Concentration</u>

Following the sale of substantially all manufacturing and operating assets and the transition to a capital light sales through a distributor model, the Company earns revenue mainly from a single distribution partner pursuant to a long-term Distribution Agreement. Trea Grove LLC, a related party, is expected to be the Company's sole distributor of Sow Good-branded products going forward. The Company may also sell inventory independently from time to time.

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**SOW GOOD INC.**

**Notes to Financial Statements**

For the year ended December 31, 2025, the Company recognized no revenue from continuing operations.

<u>Supplier Concentration</u>

Following the sale of substantially all manufacturing and operating assets and the transition to a capital light sales through a distributor model, the Company earns revenue mainly from a single distribution partner pursuant to a long-term Distribution Agreement. Trea Grove LLC, a related party, is expected to be the Company's sole distributor of Sow Good-branded products going forward. The Company may also sell inventory independently from time to time.

Purchases from vendors relate primarily to corporate overhead, professional services, and other administrative costs. Amounts related to the Company's former manufacturing and direct-sales business model have been reclassified to loss from discontinued operations for all periods presented.

<u>Basic and Diluted Earnings (Loss) Per Share</u>

The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing the net income (loss) adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the periods where potential dilutive securities would have an anti-dilutive effect and they were not included in the calculation of diluted net loss per common share.

<u>Stock-Based Compensation</u>

The Company accounts for stock-based compensation in accordance with ASC 718, *Compensation—Stock Compensation*. Stock-based compensation for equity instruments issued to employees and non-employees is measured at fair value on the grant date and recognized as compensation expense over the requisite service period.

All transactions in which the consideration for goods or services is settled in equity instruments are accounted for based on the fair value of the equity instruments issued. The measurement date is the date at which the key terms and conditions of the award is reached.

The Company accounts for forfeitures as they occur. When an award is forfeited prior to completion of the requisite service period, any previously recognized compensation cost related to the unvested portion of the award is reversed in the period of forfeiture.

The fair value of service-based stock options is estimated using the Black-Scholes option-pricing model, with expected terms ranging from 2.3 to 7.3 years, determined based on either the weighted-average vesting period and contractual term or as calculated under the valuation model. The risk-free interest rate is based on U.S. Treasury securities with maturities commensurate with the expected term of the awards at the grant date.

The Company uses a Monte Carlo simulation model to estimate the fair value of performance-based and market-based stock options. Stock option expense is recognized on a straight-line basis over the requisite service period or the implied service period, as applicable. Amortization of options granted to members of the Board of Directors is included in other general and administrative expense. Amortization of options granted to officers and employees is included in salaries and benefits.

Stock-based compensation related to the issuance of shares of common stock to members of the Board of Directors for their services was $280,000 and $295,648 for the years ended December 31, 2025 and 2024, respectively, and is included in other general and administrative expense.

Stock-based compensation related to the issuance of shares of common stock to Officers of the Company for their services was $689,288 and $0 for the years ended December 31, 2025 and 2024, respectively, and is included in salaries and benefits.

Stock-based compensation related to the amortization of stock option grants was $1,427,945 and $4,511,657 for the years ended December 31, 2025 and 2024, respectively.

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**SOW GOOD INC.**

**Notes to Financial Statements**

As of December 31, 2025, the Company had $2,762,546 of total unrecognized stock-based compensation cost related to unvested awards, which is expected to be recognized over a weighted-average period of 1.4 years.

<u>Income Taxes</u>

The Company recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

<u>Uncertain Tax Positions</u>

In accordance with ASC 740 – *Income Taxes* ("Topic 740"), the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. These standards also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

Various taxing authorities can periodically audit the Company's income tax returns. These audits include questions regarding the Company's tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and fully resolved. The Company has not yet undergone an examination by any taxing authorities.

The assessment of the Company's tax position relies on the judgment of management to estimate the exposures associated with the Company's various filing positions.

<u>Recent Accounting Pronouncements</u>

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. The ASU's amendments are effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company adopted this standard during the current year.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires disclosures about specific types of expenses, including purchases of inventory, employee compensation, depreciation and amortization. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its Consolidated Financial Statements and related disclosures.

No other new accounting pronouncements, issued or effective during the year ended December 31, 2025, have had or are expected to have a significant impact on the Company's financial statements.

**Note 3** – **Going Concern**

As of December 31, 2025*,* the Company had an accumulated retained deficit of $103,083,717 and net losses from continuing operations of $6,823,265 and net losses from discontinued operations of $33,818,241, respectively, for the twelve months ended December 31, 2025. The Company had $1,474,445 cash on hand and working capital deficit of $2,794,664 at the twelve month period ended twelve months ended December 31, 2025. These conditions, combined with the Company's history of operating losses, indicate that the Company may not have sufficient funds to sustain operations for the twelve months following the issuance of these financial statements. Accordingly, these factors raise substantial doubt about the Company's ability to continue as a going concern.

During December 2025, the Company completed the sale of substantially all manufacturing assets and transitioned to a

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**SOW GOOD INC.**

**Notes to Financial Statements**

commission-based, asset-light distribution model under a long-term Distribution Agreement. The transaction generated cash proceeds and significantly reduced the Company's capital requirements and working capital needs by eliminating manufacturing operations and inventory ownership. While this transition is expected to lower ongoing operating and capital expenditures, the resulting reduction in cash requirements is not expected, by itself, to be sufficient to overcome the Company's existing liquidity shortfall without additional capital contributions or debt financing.

Management has implemented and continues to evaluate plans intended to improve the Company's financial position and liquidity. These actions include the sale of manufacturing assets to a related party, ongoing strategic cost reductions and headcount rationalization, finalizing exits for leases associated with unused facilities, which were completed as of January 31, 2026, and pursuing additional capital-raising transactions.

In addition, management is evaluating potential partnership arrangements and capital-raising transactions, including debt and/or equity financings and sales of shares under the Company's at-the-market equity program. There can be no assurance that these plans will be successfully implemented or will generate sufficient liquidity to allow the Company to continue operations.

The accompanying financial statements have been prepared on a going concern basis and do not include any adjustments that might result from the outcome of this uncertainty. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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**SOW GOOD INC.**

**Notes to Financial Statements**

**Note 4** – **Discontinued Operations**

On December 30, 2025, the Company sold substantially all of its manufacturing and operating assets to its former Executive Chairman and former Chief Executive Officer and exited its legacy manufacturing and direct-sales business. In connection with this transaction, the Company entered into a long-term Distribution Agreement pursuant to which the Company now operates as a commission-based distribution agent and no longer manufactures products, owns significant inventory, or incurs costs related to product sourcing, production, warehousing, or distribution.

The sale of substantially all manufacturing and operating assets and the related exit of the legacy business represent a strategic shift that has a major effect on the Company's operations and financial results. Accordingly, the results of the former manufacturing and direct-sales business have been classified as discontinued operations for all periods presented.

The assets and liabilities of the discontinued operations were disposed of or otherwise derecognized as of December 31, 2025, and no assets or liabilities of discontinued operations remain on the Company's consolidated balance sheet as of that date.

<u>Results of Discontinued Operations</u>

The following table presents components of discontinued operations, net of tax for the years ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Revenues | $6190179 | $31992511 |
| Cost of goods sold | 26197708 | 19017498 |
| Gross profit | (20007529) | 12975013 |
| Operating expenses: |  |  |
| General and administrative expenses: |  |  |
| Salaries and benefits | 2423687 | 209815 |
| Other general and administrative expenses | 4044848 | 3231563 |
| Total general and administrative expenses | 6468535 | 3441378 |
| Total operating expenses | 6468535 | 3441378 |
| Net operating income (loss) | (26476064) | 9533635 |
| Other income (expense): |  |  |
| Interest income | 27266 | 138795 |
| Interest expense | (607121) | (723436) |
| Loss on early extinguishment of debt | - | (696502) |
| Gain on termination of leases | 1896276 | - |
| Loss on disposition of assets | (8658598) | - |
| Total other expense | (7342177) | (1281143) |
| Income (loss) of discontinued operations before income tax | (33818241) | 8252492 |
| Income tax provision | - | (123579) |
| Net income (loss) | $(33818241) | $8128913 |

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**SOW GOOD INC.**

**Notes to Financial Statements**

---

| | |
|:---|:---|
| Cash received | $1500000 |
| &nbsp;&nbsp;Liabilities assumed by Trea Grove LLC | 635380 |
| Less: |  |
| Assets sold: |  |
| Assets held for sale | (713256) |
| Construction in process - freeze dryers | (2768908) |
| Freeze dryers, net | (6744473) |
| Leasehold improvements, net | (1459067) |
| Other property plant and equipment, net | (1778534) |
| Accumulated depreciation | 2670261 |
| Net loss on disposition of assets | (8658598) |
| &nbsp;&nbsp;Severance expense | (2442500) |
| &nbsp;&nbsp;Deal costs | (230742) |
| &nbsp;&nbsp;Loss on sale of assets | $(11331840) |

---

<u>Balance Sheet</u>

The asset and related liabilities related to the discontinued operations were disposed or derecognized prior to December 31, 2025, therefore the assets and liabilities for the year ended December 31, 2025 represent those of the ongoing operation. Balance sheet amounts from the year ended December 31, 2024 have been reclassified as assets and liabilities related to discontinued operations. The following table represents the assets and liabilities reclassified from their December 31, 2024 presentation.

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| <u>Assets of discontinued operation</u> |  |  |
| Accounts receivable, net | $60333 | $460147 |
| Inventory, net | - | 20369112 |
| Current assets of discontinued operation | 60333 | 20829259 |
| Total property and equipment, net | - | 11673520 |
| Right of use assets | - | 16258505 |
| Security deposits | - | 1057586 |
| &nbsp;&nbsp; Total assets of discontinued operation | $60333 | $49818870 |
| <u>Liabilities of discontinued operation</u> | December 31, 2024 | December 31, 2024 |
| Current portion of operating lease liabilities | $2599102 | $2473115 |
| Long term portion of operating lease liabilities | - | 15113554 |
| &nbsp;&nbsp; Total liabilities of discontinued operation | $2599102 | $17586669 |

---

During the year ended December 31, 2025, the Company recorded an impairment and write-off of approximately $13,737,675 of inventory that was determined to have no recoverable value. The write-off was initially recorded within cost of goods sold under the Company's former manufacturing and direct-sales business model, and is included in the net income (loss) of discontinued operations on the Company's Statement of Operations.

During 2025, the Company exited multiple manufacturing and industrial facility leases associated with the discontinued business. As a result of lease termination and modification agreements, the Company recorded noncash gains of $1,896,276 related to the facility lease exits.

<u>Revenue Reclassification</u>

Revenue recognized in prior periods under the Company's former manufacturing and direct-sales business model has been reclassified to loss from discontinued operations for all periods presented. For the year ended December 31, 2025, the Company recognized no revenue from continuing operations, as the Distribution Agreement became effective at year end and no commission

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**SOW GOOD INC.**

**Notes to Financial Statements**

revenue was earned during the period.

<u>Continuing Involvement</u>

Following the disposition, the Company's continuing involvement with the former business is limited to our role as an agent who receives commissions from Trea Grove in their role as a Distributor under the Distribution Agreement.

**Note 5** – **Related Party**

During the year ended December 31, 2025, the Company entered into a series of transactions with related parties in connection with a strategic restructuring of its operations and capitalization.

<u>Severance Payment to Related Party</u>

On December 31, 2025, the Company entered into a settlement agreement and general and mutual release (the "Officer Settlement Agreement") with Ira Goldfarb, the Company's former executive chairman. Pursuant to the terms of the Officer Settlement Agreement, Mr. Goldfarb was entitled to receive from the Company a cash settlement payment, upon the Stockholder Meeting, of $1,250,000, less all applicable taxes and withholdings (the "Officer Settlement Payment"), in exchange for waiving his rights to contractual severance pursuant to his employment agreement. Payment of $1,250,000 was made to Mr. Goldfarb on January 5, 2026. Mr. Goldfarb continues to serve as a member of the Board of Directors.

On December 31, 2025, the Company entered into a settlement agreement and general and mutual release (the "Officer Settlement Agreement") with Claudia Goldfarb, the Company's former chief executive officer. Pursuant to the terms of the Officer Settlement Agreement, Mrs. Goldfarb is entitled to receive from the Company a cash settlement payment, upon the Stockholder Meeting, of $1,150,000, less all applicable taxes and withholdings (the "Officer Settlement Payment"), in exchange for waiving her rights to contractual severance pursuant to her employment agreement. Mrs. Goldfarb continued to be employed by the Company as its Chief Operations Officer and continues to serve on the Board of Directors.

<u>Asset Sale to Related Party</u>

On December 30, 2025, the Company entered into an Asset Purchase Agreement with Trea Grove, LLC ("Trea Grove"), a related party, pursuant to which the Company sold a significant portion of the assets related to its freeze-dried snacks and candy business, including real property improvements, proprietary and intellectual property rights, transferable governmental licenses and permits, and other specified assets. Trea Grove also assumed certain specified liabilities. Total cash consideration for the transaction was $1,500,000, payable in installments through March 31, 2026, the entire amount was recorded as a related party receivable at December 31, 2025. Subsequently, on January 5, 2026, $900,000 was netted from Mr. Goldfarb's severance payment of $1,250,000.

<u>Distribution Agreement with Related Party</u>

On December 31, 2025, the Company entered into a Distribution Agreement with Trea Grove, LLC ("Trea Grove"), an entity owned by Ira Goldfarb and Claudia Goldfarb, pursuant to which Trea Grove was appointed the exclusive distributor of certain Company products, including fruits, snacks, and candy, through July 31, 2026, unless extended. Under the Distribution Agreement, Trea Grove is responsible for customer communications, order management, billing, collections, shipping, logistics, and fulfillment. Trea Grove will remit to the Company ten percent (10%) of gross receipts from product sales. The agreement provides Trea Grove with a limited license to use the Company's trademarks for distribution and marketing purposes.

Based on the terms of this exclusive Distribution Agreement, the Company has determined that it acts as an agent for purposes of revenue recognition under ASC 606, as the Company does not control the underlying products prior to transfer to end customers, does not have primary responsibility for fulfillment, and does not bear inventory or credit risk. Accordingly, the Company recognizes revenues related to the Distribution Agreement with Trea Gove on a net basis equal to the commission to which it is entitled. Subsequently, on March 18, 2026, the Company amended the Distribution Agreement to allow Sow Good to sell inventory independently as long as Trea Grove remained as the sole distributor.

<u>Private Placement of Preferred Stock</u>

On December 31, 2025, the Company entered into a Securities Purchase Agreement with David Lazar pursuant to which the Company agreed to issue and sell, in a private placement, shares of Series AA Convertible Non-Redeemable Preferred Stock and Series AAA Convertible Non-Redeemable Preferred Stock in two closings for aggregate gross proceeds of $6,000,000. The first closing occurred on December 31, 2025 for gross proceeds of $3,000,000. Mr. Lazar was appointed Chief Executive Officer and Chairman of the Board in connection with the transaction.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>Convertible Notes Held by Related Parties Amended</u>

During 2025, Claudia Goldfarb and Ira Goldfarb (the "Goldfarbs") held Convertible Notes issued by the Company. In connection with the Securities Purchase Agreement executed on December 31, 2025, the Company and the Ira and Claudia Goldfarb agreed to amend the conversion terms of the notes to provide for a conversion price of $0.35 per share, replacing prior conversion price ranges of approximately $0.62 to $0.63 per share.

An aggregate principal amount of $1,404,914 of notes held by the Ira and Claudia Goldfarb will remain outstanding as a backstop for the Company's operations (the "Backstop Loan"). The Backstop Loan remains a bona fide debt obligation of the Company and is not reduced or otherwise affected by operating losses, restructuring costs, or transaction expenses. On April 15, 2026, the Company and the Ira and Claudia Goldfarb are required to determine, in good faith, what portion of the outstanding balance, if any, will be repaid in cash and what portion, if any, will convert into shares of common stock at the agreed conversion price of $0.35 per share.

On February 12, 2026, the Ira and Claudia exercised the option to convert $289,483 of the outstanding Convertible Notes to 827,095 shares.

<u>Use of Proceeds to Pay Related Party Debt and Settlement with an Officer</u>

A portion of the net proceeds from the preferred stock issuance was used to repay $943,868 of principal and $70,365 in interest outstanding under notes payable to Lyle Berman, a related party.

On December 31, 2025, the Company entered into a settlement agreement and mutual release with Ira Goldfarb, the Company's former Executive Chairman, pursuant to which Mr. Goldfarb is entitled to receive a cash settlement payment of $1,250,000, less applicable taxes and withholdings, upon the Company's stockholder meeting, in exchange for waiving his contractual severance rights. Of this amount, $900,000 was retained by the Company and applied as Mr. Goldfarb's down payment toward the purchase price of the manufacturing assets acquired by Trea Grove, LLC, an entity owned by Mr. Goldfarb. Mr. Goldfarb received the remaining $350,000.

<u>Settlement Agreements with Directors</u>

On December 31, 2025, the Company entered into settlement agreements and mutual releases with Joe Mueller and Chris Ludeman, former members of the Board of Directors.

<u>Voting Agreements</u>

On December 31, 2025, the Company entered into voting agreements with Ira Goldfarb, Claudia Goldfarb, and Lyle Berman, pursuant to which such parties agreed, for a two-year period, to vote their shares in favor of proposals recommended by the Company's Board of Directors.

All related-party transactions were approved and authorized by a special committee consisting of disinterested members of the Company's Board of Directors.

<u>Related Party Debt Exchange</u>

On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with Lyle Berman, Claudia Goldfarb and Ira Goldfarb, as holders of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2,500,000, maturing August 23, 2025 at an interest rates of 8%. Pursuant to the Exchange Agreement, holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an amount equal to $2,563,890, the aggregate principal amount of the Outstanding Notes, plus accrued and unpaid interest thereunder. In addition, the Company issued Convertible Notes of $239,928 at an interest rate of 6%, for the repayment of the Notes which matured on April 8, 2025. The combined $2,803,818 of Convertible Notes have a maturity date of April 30, 2030 and will pay interest semiannually in arrears on May 1 and November 1 beginning on November 1, 2025. At the Company's election, interest payable on an interest payment date may be added to the principal amount of the Convertible Notes on the applicable interest payment date and will no longer be owed to holders of the Convertible Notes. The Convertible Notes are convertible at the election of the holders, in whole or in part, into shares of common stock based on a price per share equal to the average closing price of such common stock for the five trading days immediately prior to the execution of and entry into the Convertible Notes, with such conversion prices ranging from $0.62 to $0.63. The Convertible Notes are senior in right of payment to all existing and future debt obligations of the Company and will be secured by all existing and future assets of the Company. The Convertible Notes are redeemable by the Company at any time upon ten days' notice and at the option the holders for the principal amount thereof plus interest, beginning on January 1, 2025. The

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**SOW GOOD INC.**

**Notes to Financial Statements**

entry into the Exchange Agreement, and the transactions contemplated therein, including entering into the Convertible Notes, was approved unanimously by the disinterested members of the Company's board of directors, as well as the disinterested members of the Company's audit committee, pursuant to the Company's related party transaction policy.

On December 31, 2025, as part of the Securities Purchase Agreement, Ira and Claudia Goldfarb's Convertible Notes were amended to change the conversion price to $0.35 per share, and Mr. Berman was repaid $943,868 of principal and $70,365 in interest outstanding related to his Convertible Notes. Ira and Claudia Goldfarb converted 827,095 shares at a price of $0.35 per share on February 12, 2026.

<u>Common Stock Issued</u> 

<u>Common Stock Issued to Officers and Directors for Services</u>

On January 15, 2026, the Company issued 138,888 shares of common stock to each of Lyle Berman and Ira Goldfarb for annual Director services to be rendered. The aggregate fair value of the common stock was $222,221, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On August 1, 2025, the Company issued an aggregate 57,471 shares of common stock to Jeffery Rubin for annual Director services to be rendered. The aggregate fair value of the common stock was $50,000, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On February 6, 2025, the Company issued an aggregate 82,436 shares of common stock amongst its four non-employee Directors and two advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $230,000, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On June 5, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, as Company's Chief Executive Officer, and Ira Goldfarb, the Company's former Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on June 4, 2025. Ms. Goldfarb received 167,362 shares valued at $128,869. Mr. Goldfarb received 259,070 shares valued at $199,638. Mrs. Goldfarb continues to be employed by the Company as its Chief Operations Officer.

On March 31, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, the former Company's Chief Executive Officer, and Ira Goldfarb, the Company's former Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on March 31, 2025. Ms. Goldfarb received 158,416 shares valued at $160,000. Mr. Goldfarb received 198,202 shares valued at $200,000. Mrs. Goldfarb continues to be employed by the Company as its Chief Operations Officer.

On February 9, 2024, the Company issued an aggregate 23,534 shares of common stock amongst its five non-employee Directors and three advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $519,280, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On January 11, 2024, the Company issued an aggregate 7,060 shares of common stock amongst its five non-employee Directors for annual services to be rendered. The aggregate fair value of the common stock was $56,480, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>Common Stock Sold for Cash</u>

On March 28, 2024, the Company raised $3,738,000 of capital from the sale of 515,597 newly issued shares of common stock at a share price of $7.25 in a private placement exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 4(a)(2) thereof. The stock sales included purchases by the following related parties:

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| | | |
|:---|:---|:---|
|  | Shares | Amount |
| Ira and Claudia Goldfarb, former Executive Chairman and Chief Operating Officer, respectively | 17242 | $125000 |
| Lyle A. Berman Revocable Trust, former Director | 68966 | 500000 |
| Bradley Berman, former Director | 30000 | 217500 |
| Edward Shensky, Director | 13794 | 100000 |
| Brendon Fischer, former Chief Financial Officer | 8000 | 58000 |
| Cesar J. Gutierrez | 10345 | 75000 |
| Alexandria Gutierrez | 3449 | 25000 |
| Ava Gutierrez | 3449 | 25000 |
| Brett Goldfarb | 3449 | 25000 |
|  | 158694 | $1150500 |

---

On December 31, 2024, Ira and Claudia Goldfarb purchased 12,374 shares of common stock jointly, at a share price of $2.05 pursuant to a Stock Purchase Agreement.

<u>Common Stock Options Awarded to Officers and Directors</u>

On June 3, 2025, the Company granted Donna Guy, Chief Financial Officer, options to purchase 7,500 shares of the Company's stock at an exercise price of $0.77 per share. Options vest 60% on the third anniversary of the grant, and 20% on each anniversary thereafter.

On January 29, 2025, the Company granted Brendon Fischer, former Interim Chief Financial Officer, options to purchase 11,250 shares of the Company's common stock at an exercise price of $2.78 per share. On June 6, 2025, Mr. Fischer resigned from the Company and his options were forfeited. The reduction in share compensation related to Mr. Fischer's total forfeited options expensed through June 30, 2025 was $37,517.

<u>Debt Financing and Related Warrants Granted</u>

On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with Lyle Berman, Claudia Goldfarb and Ira Goldfarb, as holders of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2,500,000, maturing August 23, 2025 at an interest rates of 8%. Pursuant to the Exchange Agreement, holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an amount equal to $2,563,890, the aggregate principal amount of the Outstanding Notes, plus accrued and unpaid interest thereunder. In addition, the Company issued Convertible Notes of $239,928 at an interest rate of 6%, for the repayment of the Notes which matured on April 8, 2025. The combined $2,803,818 of Convertible Notes have a maturity date of April 30, 2030 and will pay interest semiannually in arrears on May 1 and November 1 beginning on November 1, 2025. At the Company's election, interest payable on an interest payment date may be added to the principal amount of the Convertible Notes on the applicable interest payment date and will no longer be owed to holders of the Convertible Notes. The Convertible Notes are convertible at the election of the holders, in whole or in part, into shares of common stock based on a price per share equal to the average closing price of such common stock for the five trading days immediately prior to the execution of and entry into the Convertible Notes, with such conversion prices ranging from $0.62 to $0.63. The Convertible Notes are senior in right of payment to all existing and future debt obligations of the Company and will be secured by all existing and future assets of the Company. The Convertible Notes are redeemable by the Company at any time upon ten days' notice and at the option the holders for the principal amount thereof plus interest, beginning on January 1, 2025. The entry into the Exchange Agreement, and the transactions contemplated therein, including entering into the Convertible Notes, was approved unanimously by the disinterested members of the Company's board of directors, as well as the disinterested members of the Company's audit committee, pursuant to the Company's related party transaction policy.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>Leases</u>

Prior to the December 30, 2025 sale of the Company's manufacturing business, the Company leased a 20,945 square foot facility in Irving, Texas, for which an entity owned entirely by Ira Goldfarb, our former Executive Chairman is the landlord. The lease term was through September 15, 2025, with two five-year options to extend, with a current monthly lease rate of $12,425, with approximately 3% annual escalation of lease payments, however the Company exited the lease concurrently with the asset sale.

At December 31, 2025 and December 31, 2024, $0 and $1,241,860 are included in liabilities of discontinued operations on our balance sheets in connection with this lease. For the twelve months ended December 31, 2025 and 2024 the Company expensed $146,896 in each of the periods and paid cash of $143,356 and $132,917, respectively.

**Note 6** – **Fair Value of Financial Instruments** 

The Company's financial statements are prepared in accordance with ASC 820, "*Fair Value Measurement*," which requires the measurement of certain financial instruments at fair value. The Company's financial instruments primarily consist of cash and cash equivalents, and accounts receivable, which approximate fair value due to their short-term nature, and Term Loans issued in connection with detachable warrants, which are carried on the balance sheet net of the unamortized portion of the related discounts. For financial instruments or investments that are required to be reported at fair value on a recurring or nonrecurring basis under GAAP, the applicable guidance for fair value measurement requires the Company to include the determination of the appropriate fair value hierarchy level for each instrument. The fair value hierarchy levels consist of the following:

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| | |
|:---|:---|
| Level 1: | Quoted Prices in Active Markets for Identical Assets or Liabilities - This level represents the highest degree of observability, where fair values are based on quoted market prices for identical assets or liabilities in active markets. |
| Level 2: | Inputs Other Than Quoted Prices Included within Level 1 - Fair values in this level are based on inputs other than quoted market prices but are still observable, such as quoted market prices for similar assets or liabilities, or inputs derived from market data. |
| Level 3: | Unobservable Inputs - This level includes fair values for which there are no observable inputs and relies on the reporting entity's own assumptions and estimates. These fair values are considered the least reliable and most subjective. |

---

Detachable common stock warrants issued in connection with debt may be recorded as either liabilities or equity depending on the applicable accounting guidance. The Company determined that warrants issued in connection with our notes payable met the definition of a freestanding financial instrument and qualified for treatment as permanent equity. Warrants recorded as equity are recorded at the fair market value determined at issuance date, and are not remeasured after that. We utilized the Black-Scholes valuation model to estimate the fair value of warrants granted at issuance date. The initial measurement of the fair value of the notes considers the present value of future cash flows, discounted at the current market rate of interest at the issuance date, and time to liquidity. The Company allocated the value of warrants between the relative fair value of the notes payable without the warrants, and the warrants themselves at the time of issuance. The allocated portion of the warrants was treated as a debt discount, and amortized over the term of the note. The amortization of the debt discount is recognized as interest expense. When a notes payable are issued at a discount, wherein a significant portion of the issuance is between related parties, the valuation of the notes and the discount involve significant judgment and the use of unobservable inputs, classifying it into Level 3 of the fair value hierarchy, requiring a nonrecurring fair value measurement. Changes other than additions, settlements, or discount amortization, in the fair value of the notes payable, net of discounts do not impact net income or cash flows.

On April 15, 2024, the Company issued 2,186,250 shares of its common stock in connection with the exercise of warrants that were issued between December 2021 and May 2023 (the "Warrants"), with exercise prices varying from $2.21 to $2.60 (the "Warrant Exercise"). None of the Warrants were amended prior to or in connection with the Warrant Exercise. As a result of the Warrant Exercise Transaction, excluding the impact of deferred debt costs, the Company's debt was reduced by $5,200,363, accrued interest payable was reduced by $98,750, common equity was increased by $5,299,112 and the Company issued an aggregate of 2,186,250 shares of common stock.

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**SOW GOOD INC.**

**Notes to Financial Statements**

The following schedule summarizes the valuation of financial instruments at fair value on a nonrecurring basis in the balances sheet as of December 31, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Carrying<br>Value | Estimated<br>Fair Value | Carrying<br>Value | Estimated<br>Fair Value |
| Liabilities |  |  |  |  |
| Notes payable, related parties, net of debt discounts | $- | $- | $2195500 | $2469531 |
| Convertible notes payable, related parties, net of discounts | 1341420 | 1341420 | - | - |
| Notes payable | 150000 | 150000 | 375780 | 237841 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $1491420 | $1491420 | $2571280 | $2707372 |

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**Note 7** – **Inventory**

<u>Inventory</u>

On December 30 and December 31, 2025, the Company entered into an Asset Purchase Agreement and a Distribution Agreement, respectively. As a result of these transactions, the Company transitioned from operating as a manufacturer and omnichannel seller of freeze-dried candy to operating as a commission-based distribution agent, earning a fixed percentage of distributor gross receipts from sales of Sow Good-branded products. Pursuant to the Asset Purchase Agreement, the Company retained certain SKUs to market independently of the Distribution Agreement.

Inventory is stated at the lower of average cost or net realizable value, with cost determined using the first-in, first-out ("FIFO") method. The Company evaluates inventory for potential obsolescence and excess quantities on a periodic basis.

In connection with the exit of its manufacturing and omnichannel distribution business, the Company recorded an impairment and write-off of finished goods and work in process materials of $13,737,675 during the year ended December 31, 2025. Because the impaired inventory related entirely to the former manufacturing and direct-sales business, the impairment expense has been included in loss from discontinued operations for all periods presented.

As of December 31, 2025, the Company retained approximately $22,871 of inventory related to certain SKUs that were not transferred in the Asset Purchase Agreement. Inventory of $20,313,315 was included in the current assets of discontinued operations on the balance sheet for the year ended December 31, 2024.

Inventory at respective period ends is was follows:

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| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Finished goods | $22871 | $- |
| Total inventory from continuing operations | $22871 | $- |
| Total inventory from discontinued operations | $- | $20313315 |

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**Note 8** – **Property and Equipment**

Following the sale of substantially all manufacturing and operating assets and the transition to a commission-based distribution model, the Company no longer owns manufacturing facilities, production equipment, or construction-in-progress assets. Property and equipment as of December 31, 2025 consists primarily of office equipment and software.

For the years ended December 31, 2025 and 2024, substantially all depreciation expense related to assets of the former manufacturing and direct-sales business has been reclassified to loss from discontinued operations. Depreciation expense related to continuing operations, consisting primarily of office equipment, was $33,101 and $31,644 for the years ended December 31, 2025 and 2024, respectively, and is included in operating expenses. Depreciation related to the disposed assets is included in net gain or loss on discontinued operations. The Company determined that there were impairment indicators present, and tested the remaining assets for impairment as of December 31, 2025 and recorded an impairment of $57,602. This was determined based on the Company's assessment that the expected future cash flows of the assets did not exceed the net book value on an undiscounted basis.

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**SOW GOOD INC.**

**Notes to Financial Statements**

Property and equipment at consist of the following at December 31, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Machinery | $- | $15831 |
| Software | 70000 | 70000 |
| Office equipment | - | 138434 |
|  | 70000 | 224265 |
| Less: Accumulated depreciation and amortization | (48333) | (95365) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment, net | $21667 | $128900 |

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**Note 9** – **Leases**

The Company determines if an arrangement is a finance lease or operating lease at inception and recognizes right-of-use ("ROU") assets and lease liabilities at commencement date based on the present value of the lease payments over the lease term. For operating leases, our right-of-use assets are amortized on a straight-line basis over the lease term with rent expense recorded to operating expenses. The Company has elected the practical expedient of not separating lease components from nonlease components. The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term.

The Company previously leased a 20,945 square foot facility under a non-cancelable real property lease agreement with an entity owned entirely by Ira Goldfarb, the Company's former Executive Chairman. The lease required monthly base rent of $11,296, subject to annual escalations of approximately 3%, and included payment of property taxes, utilities, insurance, maintenance, and other occupancy costs. The lease expired on August 31, 2025, and was not renewed. The incremental borrowing rate at commencement was 5.75%. The lease was derecognized as of December 31, 2025, the Company recognized a $120,773 gain upon exit of the lease, this amount is included in net gain or loss on discontinued operations.

On May 22, 2024, the Company entered into an industrial lease with USCIF Pinnacle Building B LLC. The Company leased approximately 324,000 rentable square feet from the Lessor at 4024 Rock Quarry Road, Dallas, Texas for a term of approximately 62 months. The term of the lease commenced on May 22, 2024. The incremental borrowing rate for the lease at the time of commencement was 10.84%. Effective September 30, 2025, the Company agreed with Pinnacle to exit the facility on January 31, 2026. As a result of reducing the lease term by 42 months, the company reduced the related right-of-use asset by $10,397,922 and the lease liability by $11,829,536, resulting in a noncash gain $1,427,649, this amount is included in net gain or loss on discontinued operations.

On October 26, 2023, the Company entered into a lease agreement with Prologis, Inc., a Maryland corporation. The Company leased approximately 51,264 square feet in Dallas, Texas for an initial term of approximately five years and two months. The lease commenced on November 1, 2023. The base rent payments started at approximately $42,500 per month in the first year, and increase each year, up to approximately $51,700 per month during the last year of the initial term. Effective September 30, 2025, the Company agreed with Prologis to exit the lease as of September 30, 2025. As a result of reducing the lease term by 39 months, the company derecognized the related right-of-use asset $2,325,675 and the lease liability of $2,673,619, resulting in a noncash gain of $347,853, this amount is included in net gain or loss on discontinued operations.

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**SOW GOOD INC.**

**Notes to Financial Statements**

In July 1, 2023, the Company entered into a lease for a warehouse space in Irving, Texas, of approximately 9,000 feet under a 37-month lease at a rate of $8,456 per month, with approximately a 4% annual escalation of lease payments. The facility lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. The incremental borrowing rate for the lease at the time of commencement was 8%. The lease expires July 31, 2026. this is the Company's only remaining lease obligation.

The components of lease expense were as follows:

---

| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Right-of-Use lease cost: |  |  |
| &nbsp;&nbsp;Amortization of right-of-use asset related to continuing operations | $123721 | $114281 |

---

Supplemental balance sheet information related to leases was as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Operating lease: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease assets | $76971 | $200710 |
| Current portion of operating lease liability | $78171 | $125987 |
| Current portion of operating lease liability related to discontinued assets | 346861 | $2473115 |
| Noncurrent operating lease liability | - | 79575 |
| Noncurrent operating lease liability related to discontinued operations | - | 15113554 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating lease liability | $425032 | $17792231 |
| Weighted average remaining lease term: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases (in years) | 0.6 | 4.8 |
| Weighted average discount rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease | 8.00% | 10.25% |

---

Supplemental cash flow and other information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows used for operating leases - continuing operations | $142326 | $133282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows used for operating leases - discontinued operations | 2656231 | 1420471 |

---

The future minimum lease payments due under operating leases as of December 31, 2025 is as follows:

---

| | |
|:---|:---|
| Fiscal Year Ending | Minimum Lease |
| December 31, | Commitments |
| 2026 | $432159 |
| &nbsp;&nbsp;Total | $432159 |
| Less effects of discounting | (7127) |
| Lease liability recognized | $425032 |

---

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**SOW GOOD INC.**

**Notes to Financial Statements**

**Note 10**– **Notes Payable, Related Parties** 

On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with Lyle Berman, Claudia Goldfarb and Ira Goldfarb, as holders of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2,500,000, maturing August 23, 2025 and bearing interest at 8% per annum. Pursuant to the Exchange Agreement, the holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an aggregate principal amount of $2,563,890, representing the principal amount of the Outstanding Notes plus accrued and unpaid interest thereon. In addition, the Company issued Convertible Notes with an aggregate principal amount of $239,928 bearing interest at 6% per annum in connection with notes that matured on April 8, 2025. Convertible Notes were convertible, at the election of the holders, in whole or in part, into shares of the Company's common stock at the fixed conversion prices specified in the applicable notes (ranging from $0.62 to $0.63 per share), subject to customary anti-dilution adjustments.

The combined $2,803,818 of Convertible Notes mature on April 30, 2030 and accrue simple interest at rates ranging from 6% to 8% per annum, payable semi-annually in arrears on May 1 and November 1, beginning November 1, 2025. At the Company's election, accrued and unpaid interest on an interest payment date may be added to the principal amount of the applicable Convertible Note in lieu of cash payment.

The Convertible Notes are senior in right of payment to all existing and future indebtedness of the Company and are secured by a security interest in all existing and future assets of the Company. The Convertible Notes may be prepaid by the Company at any time upon ten days' prior written notice.

The entry into the Exchange Agreement and the transactions contemplated thereby, including the issuance of the Convertible Notes, were approved unanimously by the disinterested members of the Company's board of directors and the disinterested members of the Company's audit committee in accordance with the Company's related-party transaction policy.

Pursuant to Appendix C of the Securities Purchase Agreement entered into on December 31, 2025, $1,404,914 aggregate principal amount of notes held by Claudia and Ira Goldfarb will remain outstanding as a backstop for the Company's operations (the "Backstop Loan"). The Backstop Loan will remain outstanding as a bona fide debt obligation of the Company and will not be reduced, impaired or otherwise affected by operating losses, restructuring costs or transaction expenses. On April 15, 2026, the Company and the Ira and Claudia Golfarb will determine, in good faith, what portion of the outstanding Backstop Loan balance, if any, will be repaid in cash and what portion, if any, will convert into shares of the Company's common stock at an agreed conversion price of $0.35 per share.

On December 31, 2025, a portion of the net proceeds from the preferred stock issuance was used to repay $943,868 of principal and $70,365 in interest outstanding under notes payable to Lyle Berman, a related party.

Notes payable, related parties consists of the following at December 31, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Convertible Notes payable, bearing interest at 8% per annum, maturing on April 30, 2030 | $1620022 | $2500000 |
| Convertible Notes payable, bearing interest at 6% per annum, maturing on April 30, 2030 | 239928 | - |
| Total notes payable, related parties | 1859950 | 2500000 |
| Less unamortized debt discounts: | 518530 | 304500 |
| Notes payable | 1341420 | 2195500 |
| Less current maturities | 1341420 | 2195500 |
| Notes payable, related parties, less current maturities | $- | $- |

---

During the twelve months ended December 31, 2024, the Company recorded $696,502 of loss on the early extinguishments of debt related to the accelerated amortization of debt discounts related to the Warrant Exercise Transaction, this amount is included in net gain or loss on discontinued operations.

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**SOW GOOD INC.**

**Notes to Financial Statements**

**Note 11** – **Notes Payable**

Notes payable consists of the following at December 31, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Notes payable, bearing interest of 6% per annum, matured April 8, 2025 | $- | $239250 |
| EIDL Note | 150000 | 150000 |
| Total notes payable | 150000 | 389250 |
| Less unamortized debt discounts: | - | 13470 |
| Notes payable | 150000 | 375780 |
| Less: current maturities | - | 225780 |
| Notes payable, less current maturities | $150000 | $150000 |

---

The Company used proceeds from the sale of manufacturing assets to pay down certain notes payable. Interest related to notes payable which were paid down as part of the sale of assets and discontinued operations were reclassified to loss from discontinued operations. Interest expenses related to notes payable, related parties, which were retained as part of the continued operations of the company for the twelve months ended December 31, 2025 and 2024, are as follows:

---

| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Interest on notes payable, related parties | $88872 | $338651 |
| Interest on notes payable | 10234 | 30415 |
| Amortization of debt discounts on notes payable | 60847 | 372138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | $159953 | $741204 |

---

**Note 12** – **Stockholders**' **Equity**

<u>Preferred Stock</u>

The Company has 20,000,000 authorized shares of $0.001 par value preferred stock. The Company is authorized to issue shares of preferred stock, par value $0.001 per share, in one or more series, with such rights, preferences, privileges and restrictions as may be determined by the Company's Board of Directors.

On December 31, 2025, in connection with a Securities Purchase Agreement with an investor, the Company filed a Certificate of Designations, Preferences and Rights creating 1,500,000 shares of Series AA Convertible Non-Redeemable Preferred Stock (the "Series AA Preferred Stock") and issued 1,500,000 shares of Series AA Preferred Stock at a stated value of $2.00 per share for aggregate gross proceeds of $3,000,000. A second closing for the issuance of 1,500,000 shares of Series AAA Convertible Non-Redeemable Preferred Stock at a stated value of $2.00 per share for aggregate gross proceeds of $3,000,000 is expected to occur following receipt of required stockholder approvals and satisfaction of other customary closing conditions. The terms of the Series AAA Preferred Stock are substantially similar to those of the Series AA Preferred Stock, except that each share of Series AAA Preferred Stock is initially convertible into a greater number of shares of common stock.

The Series AA Preferred Stock ranks senior to the Company's common stock and any junior securities with respect to dividends and distributions upon liquidation, dissolution or winding up of the Company, and on parity with any series of preferred stock expressly designated as ranking on parity with the Series AA Preferred Stock.

The Series AA Preferred Stock does not bear a stated dividend rate. However, if the Company declares a dividend on its common stock, holders of Series AA Preferred Stock are entitled to receive dividends on an as-converted basis in the same form and manner as holders of common stock.

Subject to receipt of stockholder approvals and the filing of an amendment to the Company's certificate of incorporation, each share of Series AA Preferred Stock is initially convertible, at the option of the holder, into 14 shares of common stock

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**SOW GOOD INC.**

**Notes to Financial Statements**

(equivalent to a conversion price of $0.14286 per share), subject to customary anti-dilution adjustments for stock splits, stock dividends, combinations, and similar events.

In the event of a liquidation, dissolution or winding up of the Company, holders of Series AA Preferred Stock are entitled to receive, prior and in preference to any distributions to holders of common stock, an amount per share equal to the greater of (i) the stated value of $2.00 per share plus any declared but unpaid dividends or (ii) the amount per share that would have been payable had such shares been converted into common stock immediately prior to such event.

The Series AA Preferred Stock generally has no voting rights, except as required by Delaware law and for certain protective provisions requiring the consent of holders of a majority of the outstanding Series AA Preferred Stock.

<u>Common Stock Sold for Cash</u>

On December 31, 2024, Ira and Claudia Goldfarb purchased 12,374 shares of common stock jointly, at a share price of $2.05 pursuant to a Stock Purchase Agreement.

On November 14, 2024 the Company filed a shelf registration to offer and sell from time to time in one or more offerings, up to $50.0 million in aggregate of common stock, preferred stock, debt securities, warrants, and units. As of December 31, 2025, 1,042,862 shares of our common stock have been issued under the registration netting aggregate proceeds of .

On May 2, 2024, the Company priced its registered underwritten public offering of 1,200,000 shares of the Company's common stock, par value $0.001 at a price of $10.00 per share. In addition, the Company granted the underwriters a 30-day overallotment option to purchase up to 180,000 additional shares of common stock and issued to the underwriters warrants to purchase 120,000 shares of Common Stock. On May 1, 2024, the Company received approval to list its common stock on the Nasdaq Capital Market stock exchange ("Nasdaq"). Trading on Nasdaq commenced on May 2, 2024. On May 9, 2024, the underwriters purchased all of the Additional Shares pursuant to the full exercise of their overallotment option. Including proceeds from the Additional Shares, the proceeds from the public offering were approximately $11,974,976 net of offering expenses and underwriting discounts and commissions.

On March 28, 2024, the Company raised $3,738,000 of capital from the sale of 515,597 newly issued shares of common stock at a share price of $7.25 in a private placement exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 4(a)(2) thereof. A total of 158,694 of these shares, or proceeds of $1,150,500 were purchased by officers, directors, and related parties.

<u>Common Stock Issued to Officers for Services</u>

On June 5, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, the Company's former Chief Executive Officer, and Ira Goldfarb, the Company's Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on June 4, 2025. Ms. Goldfarb received 167,362 shares valued at $128,869. Mr. Goldfarb received 198,202 shares valued at $199,638. Mrs. Goldfarb continues to be employed by the Company as its Chief Operations Officer.

On March 31, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, the Company's former Chief Executive Officer, and Ira Goldfarb, the Company's Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on March 31, 2025. Ms. Goldfarb received 158,416 shares valued at $160,000. Mr. Goldfarb received 198,202 shares valued at $200,000. Mrs. Goldfarb continues to be employed by the Company as its Chief Operations Officer.

<u>Common Stock Issued to Directors for Services</u>

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**SOW GOOD INC.**

**Notes to Financial Statements**

On August 1, 2025, the Company issued an aggregate 64,614 shares of common stock to Jeffery Rubin for annual Director services to be rendered. The aggregate fair value of the common stock was $57,471, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On February 6, 2025, the Company issued an aggregate 82,436 shares of common stock amongst its four non-employee Directors and two advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $230,000, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On February 9, 2024, the Company issued an aggregate 23,534 shares of common stock amongst its five non-employee Directors and three advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $519,280, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On January 11, 2024, the Company issued an aggregate 7,060 shares of common stock amongst its five non-employee Directors for annual services to be rendered. The aggregate fair value of the common stock was $56,480, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On January 5, 2024, the Company appointed Edward Shensky as a member of the Board of Directors of the Company effective immediately. Pursuant to the Company's Non-Employee Director Compensation Plan, Mr. Shensky received annualized compensation of $25,000, paid in common stock.

<u>Warrant Exercise Transaction</u>

On April 15, 2024, the Company issued 2,186,250 shares of its common stock in connection with the exercise of warrants that were issued between December 2021 and May 2023 (the "Warrants"), with exercise prices varying from $2.21 to $2.60 (the "Warrant Exercise"). None of the Warrants were amended prior to or in connection with the Warrant Exercise. Each of the exercising holders of warrants (collectively, the "Holders"), received its warrants in connection with the incurrence by the Company of indebtedness pursuant to various tranches of promissory notes issued between December 2021 and May 2023 (collectively, the "Notes"). The Warrants were classified as permanent equity at inception. Due to a redemption feature in the Warrants allowing the Company to redeem the Warrants for $0.001 per Warrant if the daily volume weighted average price per share over thirty consecutive trading days is above $9.00, the Company received indications of intent to exercise Warrants from various Holders given the recent increase in trading price of the Company's common stock. With authorization from the Company's Board of Directors, each of the Holders was provided an opportunity to, and agreed to, amend certain of such Holder's Notes (the "Notes Amendment") to allow for the partial prepayment of principal in an aggregate amount equal to the exercise price of such Holder's Warrants. As a result of the Warrant Exercise Transaction, excluding the impact of deferred debt costs, the Company's debt was reduced by $5,200,363, accrued interest payable was reduced by $98,750, common equity was increased by $5,299,112 and the Company issued an aggregate of 2,186,250 shares of common stock.

**Note 13** – **Options**

The 2020 Equity Plan was approved by written consent of a majority of shareholders of record as of November 12, 2019 and adopted by the Board of Directors on December 5, 2019, as provided in the definitive information statement filed with Securities and Exchange Commission on January 10, 2020 (the "DEF 14C"). The description of the 2020 Equity Plan is qualified in its entirety by the text of the 2020 Equity Plan, a copy of which was attached as Annex C to the DEF 14C.

<u>Amendment to the 2020 Stock Incentive Plan</u>

On January 8, 2024, our stockholders took action by written consent to ratify the amendment to the 2020 Stock Incentive Plan (the "2020 Plan") approved by the Board of Directors on December 15, 2023. On December 15, 2023, our Board approved an amendment to the 2020 Plan to effect an increase in the number of shares that remain available for issuance under the 2020 Plan by an additional 2,150,000 shares up to an aggregate of 2,964,150 shares available for issuance under the 2020 Plan (the "2020 Plan Amendment"). Before the 2020 Plan Amendment, the number of shares available for issuance under the 2020 Plan would be too limited to effectively operate as an incentive and retention tool for employees, officers, directors, non-employee directors and consultants of the Company and its affiliates (as defined in the 2020 Plan). The 2020 Plan and the approved increase enabled us to continue our policy of equity ownership by employees, officers, directors, non-employee directors and consultants of the Company and its affiliates as an incentive to contribute to the creation of long-term value for our stockholders.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>2024 Stock Incentive Plan</u> 

Effective February 15, 2024, the Board of Directors adopted the 2024 Stock Incentive Plan (the "2024 Plan") under which a total of 3,000,000 share of our common stock have been reserved for issuance of Incentive Stock Options, or ISOs, Non-Qualified Stock Options, or NSOs, restricted share awards, stock unit awards, SARs, other stock-based awards, performance-based stock awards, (collectively, "stock awards") and cash-based awards (stock awards and cash-based awards are collectively referred to as "awards"). ISOs may be granted only to our employees, including officers, and the employees of our parent or subsidiaries. All other awards may be granted to our employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates.

On February 12, 2026, the Majority Stockholders approved the Stockholder Consent approving, among other things, an amendment to our 2024 Plan to increase the number of shares of Common Stock of the Corporation reserved for issuance of new grants under the 2024 Plan to 10,000,000 shares, resulting in an aggregate maximum number of 9,959,789 shares available for issuance as of such date.

As of February 23, 2026, 2,959,789 shares of Common Stock remained available for grant under the 2024 Plan. The Board believed that additional Shares were necessary to meet the Corporation's anticipated equity compensation needs.

Following the amendment, the total number of Shares that are available for future awards under the 2024 Plan is equal to 9,959,789, including the 2,959,789 shares that remained available for grants as of February 23, 2026, less shares subject to awards made after February 23, 2026, and subject to adjustment as provided in the 2024 Plan and as described below.

***General***

The 2024 Plan enables our Board to provide equity-based incentives through grants of awards to the Corporation's present and future employees, directors, consultants and other third-party service providers.

The 2024 Plan authorizes the grant of Incentive Stock Options, ("ISOs"), Non-Qualified Stock Options, restricted share awards, stock unit awards, stock appreciation rights ("SARs"), other stock-based awards, performance-based stock awards, (collectively, "stock awards") and cash-based awards (stock awards and cash-based awards are collectively referred to as "awards"). ISOs may be granted only to our employees, including officers, and the employees of our parent or subsidiaries. All other awards may be granted to our employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates.

The following table sets forth shares authorized and available under our incentive plans at December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Options Authorized | Options Granted | Options Exercised | Options Cancelled or Expired | Options Outstanding | Options Available to be Issued |
| 2016 Plan | 12712 | 3333 | - | 2000 | 1333 | 11379 |
| 2020 Plan | 2964150 | 2443599 | 50459 | 869493 | 1523647 | 1440503 |
| 2024 Plan | 3000000 | 170033 | - | 129822 | 40211 | 2959789 |

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<u>Outstanding Options</u>

The following is a summary of information about the Stock Options outstanding at December 31, 2025:

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**SOW GOOD INC.**

**Notes to Financial Statements**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | Shares Underlying | Shares Underlying |
|  | Shares Underlying Options Outstanding | Shares Underlying Options Outstanding | Shares Underlying Options Outstanding | Shares Underlying Options Outstanding | Options Exercisable | Options Exercisable |
|  |  |  | Weighted |  |  |  |
|  | Shares |  | Average | Weighted | Shares | Weighted |
|  | Underlying |  | Remaining | Average | Underlying | Average |
|  | Options | Range of | Contractual | Exercise | Options | Exercise |
|  | Outstanding | Exercise Prices | Life (in years) | Price | Exercisable | Price |
| December 31, 2024 | 2584791 | $2.35 - $40.00 | 8.35 | $20.06 | 552856 | $6.56 |
| December 31, 2025 | 1777024 | $0.67 - $40.00 | 7.52 | $20.44 | 782537 | $7.04 |

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The following is a summary of activity of outstanding stock options at December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  |  | Weighted |  |
|  |  | Average | Average |
|  | Number | Exercise | Intrinsic |
|  | of Shares | Prices | Value |
| Balance, December 31, 2023 | 2620813 | $19.38 | $50802052 |
| Options granted | 118111 | 15.37 |  |
| Options exercised | (50459) | (3.25) |  |
| Options cancelled | (88850) | (6.84) |  |
| Options expired | (14824) | (9.67) |  |
| Balance, December 31, 2024 | 2584791 | $20.06 | $51844122 |
| Options granted | 113469 | 2.64 |  |
| Options exercised | - | - |  |
| Options cancelled | (921236) | (25.74) |  |
| Options expired | - | - |  |
| Balance, December 31, 2024 | 1777024 | $20.06 | $35647101 |
| Exercisable, December 31, 2025 | 782537 | $7.04 | $5509060 |

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<u>Options Granted</u>

During the twelve months ended December 31, 2025, 25 employees were granted options to purchase an aggregate of 118,111 shares of the Company's common stock, having a weighted average exercise price of $2.64, exercisable over a 10-year term. The options will vest 60% on the third anniversary, and 20% each anniversary thereafter until fully vested. The Company uses the Black-Scholes Pricing Model to determine the fair value of options at the grant date. Inputs to this model include, expected term, risk-free interest rate, volatility, and the dividend rate. Due to a limited exercise history, the Company uses the simplified method of calculating expected term, which results in expected term of 6.8 years options granted in 2025. The Company uses an interest rate from the U.S. Department of the Treasury's published yield curve which corresponds to the expected term. The options will vest 60% on the third anniversary, and 20% each anniversary thereafter until fully vested. The estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 102% and an average call option fair value of $2.23, was $253,491. The options are being expensed over the vesting period.

<u>Options Cancelled or Forfeited</u>

Approximately 921,236 options with a weighted average strike price of $25.74 per share were forfeited by former employees during the twelve months ended December 31, 2025. Reductions to share compensation expense are recognized at the time of forfeiture.

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**SOW GOOD INC.**

**Notes to Financial Statements**

<u>Options Expired</u>

During the twelve months ended December 31, 2025, no options expired.

<u>Options Exercised</u>

No options were exercised during the twelve months ended December 31, 2025 and 50,459 options were exercised during the twelve months ended December 31, 2024. Proceeds from options exercises during the twelve months ended December 31, 2024 amounted to $163,854.

<u>Options Exercisable</u>

There were 782,537 options exercisable as of December 31, 2025.

<u>Options Expense</u>

The Company recognized compensation expense net of forfeitures related to common stock options that are being amortized over the implied service term, or vesting period, of the options during the twelve months ended December 31, 2025 and 2023, as follows:

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| | | |
|:---|:---|:---|
|  | For the Year Ended | For the Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Directors | $17581 | $86892 |
| Officers and employees | 1410364 | 4424765 |
| Total amortized options expense | $1427945 | $4511657 |

---

As of December 31, 2025, the remaining unamortized balance to be expensed over the next five years is $2,762,545 and the weighted-average period over which these awards are expected to be recognized is approximately 1.4 years.

**Note 14** – **Warrants**

<u>Warrants Exercised</u>

No warrants were exercised during the twelve months ended December 31, 2025. During the twelve months ended December 31, 2024, a total of 2,186,250 warrants related to the issuance of debt were fully exercised at an average price of $2.50, and the proceeds were used to repay certain Notes Payable. The debt discounts relating to the warrants were either written off as a loss on early extinguishment of debt, to the extent that the related Notes Payable were fully retired, or amortized to interest expense for those Notes which were partially extinguished. The Company realized a loss on early extinguishment of debt of $696,502, this amount is included in net income from discontinued operations for twelve months ended December 31, 2024. Another 52,500 warrants were exercised at an exercise price of $4.00 during the period.

<u>Warrants Granted</u>

In connection with the Company's underwritten public offering in May 2024, the Company issued to the underwriters warrants to purchase 138,000 shares of Common Stock. The grant was equal to 10% of the number of shares sold in this offering by Roth, (a total of 1,380,000 shares). The Representative's Warrants will be exercisable upon issuance, will have an exercise price equal to 120%, (or $12.00) of the initial public offering price and will terminate fifth anniversary of the effective date of the registration statement. The Representative's Warrants and the underlying shares of common stock are deemed compensation by the Financial Industry Regulatory Authority, Inc. ("FINRA") and will therefore be subject to FINRA Rule 5110(g)(1). In accordance with FINRA Rule 5110(g)(1), neither the Representative's Warrants nor any shares issued upon exercise of the Representative's Warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that

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**SOW GOOD INC.**

**Notes to Financial Statements**

would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which the Representative's Warrants are being issued, subject to certain exceptions. The fair value of the warrants, was determined using the Black-Scholes option pricing model, and was recorded through additional paid in capital as an offset of the offering proceeds.

<u>Outstanding Warrants</u>

Warrants to purchase an aggregate total of 190,500 shares of common stock at a weighted average strike price of $9.80, exercisable over a weighted average life of 5 years, were outstanding as of December 31, 2025.

No warrants were cancelled or expired during the twelve months ended December 31, 2025.

**Note 15** - **Segment Reporting**

The Company operates as one reportable segment, reflecting its capital-light business model under which it earns proceeds from the sale of freeze-dried candy products. The Chief Operating Decision Maker ("CODM"), the Company's Chief Executive Officer, evaluates performance and allocates resources based on the consolidated Statement of Operations. The CODM does not review asset-level information in assessing segment performance; accordingly, such information is not presented. The accounting policies for this segment are consistent with those described in Note 2 – Summary of Significant Accounting Policies.

On December 30, 2025, the Company sold substantially all of its manufacturing assets to Trea Grove, a related party. In connection with this transaction, the Company entered into an exclusive Distribution Agreement under which Trea Grove serves as the exclusive distributor of the Company's finished goods inventory, and the Company receives 10% of gross receipts from customer sales. Following these transactions, the Company continues to operate as a single reportable segment.

As a result, the Company no longer operates manufacturing facilities and has transitioned to a capital-light model for the term of the Distribution Agreement. The results of the former manufacturing and omnichannel sales operations have been reclassified to net income (loss) from discontinued operations in the consolidated Statement of Operations for all periods presented. The segment information presented below reflects only continuing operations.

The following table provides the operating financial results of our freeze-dried candy segment for the twelve months ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | Year Ended | Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Revenues | $- | $- |
| &nbsp;&nbsp; Salaries and benefits | 4410288 | 7614215 |
| &nbsp;&nbsp; Professional services | 838654 | 1589287 |
| &nbsp;&nbsp; Other general and administrative expenses | 1323667 | 1854779 |
| &nbsp;&nbsp; Depreciation and amortization | 33101 | 31644 |
| &nbsp;&nbsp; Interest expense, net | 159953 | 741204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Segment net income (loss) | $(6765663) | $(11831129) |

---

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**SOW GOOD INC.**

**Notes to Financial Statements**

**Note 16** - **Earnings Per Share** 

Basic and diluted earnings per share for the three and nine months ended December 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | Year Ended | Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Net loss from continuing operations | $(6823265) | $(11831129) |
| Income (loss) of discontinued operations, net of tax | (33818241) | 8128913 |
| Net loss | $(40641506) | $(3702216) |
| Basic weighted average shares | 11838442 | 9238233 |
| Basic and dilutive loss per share - continuing operations | $(0.58) | $(1.28) |
| Basic and dilutive income (loss) per share - discontinued operations | $(2.86) | $0.88 |
| &nbsp;&nbsp;Per basic share | $(3.44) | $(0.40) |

---

The table below includes information related to stock options and warrants that were outstanding at the end the twelve months ended December 31, 2025 and December 31, 2024*.* There were 5,555,947 shares underlying senior convertible notes payable exercisable at the option of the holder in whole or in part at any time prior to maturity on April 30, 2030 at the end of the twelve month period ended December 31, 2025. For periods in which the Company incurred a net loss, these amounts are not included in weighted average dilutive shares because their impact would be anti-dilutive.

---

| | | |
|:---|:---|:---|
|  | Year Ended | Year Ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Weighted average stock options | 2638861 | 2520374 |
| Weighted average price of exercisable stock options | $6.20 | $20.06 |
| Weighted average warrants | 190500 | 779813 |
| Weighted average price of warrants | $9.80 | $4.56 |
| Average price of common stock | $1.10 | $12.01 |

---

**Note 17** – **Income Taxes** 

We account for income taxes under the provisions of ASC Topic 740, *Income taxes,* which provides for an asset and liability approach for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributable to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

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**SOW GOOD INC.**

**Notes to Financial Statements**

The Company recognized income tax expense of $0 and $0 for the periods ended December 31, 2025 and 2024, respectively.

A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate, as provided in the consolidated statements of operations, is as follows for the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| Statutory rate | 21.00% | 21.00% |
| State income taxes, net of federal benefit\* | 0.00% | 0.00% |
| Change in valuation allowance | (20.08)% | (0.11)% |
| Nontaxable or nondeductible items |  |  |
| &nbsp;&nbsp;Transferable tax credits, net |  |  |
| &nbsp;&nbsp;Stock-based compensation |  |  |
| &nbsp;&nbsp;Nondeductible items | (0.01)% | -0.16% |
| Change in unrecognized tax benefits |  |  |
| Other adjustments |  |  |
| &nbsp;&nbsp;Capital loss expiration |  |  |
| &nbsp;&nbsp;Deferred true up adjustments |  |  |
| &nbsp;&nbsp;Other | (0.91)% | 0.05% |
| &nbsp;&nbsp;Effective rate | 0.00% | 20.78% |

---

Deferred income taxes are provided using the asset and liability method to reflect temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates and laws. The components of deferred income taxes included in the consolidated balance sheets were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;Net operating loss carryforwards | 15799998 | 8835743 |
| &nbsp;&nbsp;Net property and equipment | 64978 |  |
| &nbsp;&nbsp;Stock compensations | 4090849 | 3587594 |
| &nbsp;&nbsp;Stock based debt discounts | 686553 | 669499 |
| &nbsp;&nbsp;Goodwill and intangibles | 916880 | 1012214 |
| &nbsp;&nbsp;Other Assets - Reorganization Costs | 28135 | 28135 |
| &nbsp;&nbsp;Allowance for credit losses and other assets | 256411 | 237044 |
| Total gross deferred tax assets | 21843804 | 14370229 |
| Less: valuation allowance | (21843804) | (13698081) |
| Total deferred tax assets, net of valuation allowance | - | 672148 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;Property and equipment | - | (672148) |
| Total deferred tax liabilities | - | (672148) |
| Net deferred tax liabilities, included in other liabilities | $- | $- |

---

A portion of the Company's net operating loss carryforwards is subject to provisions of the tax law that limit the use of losses incurred by a corporation prior to the date certain ownership changes occur. These limitations also apply to certain depreciation deductions associated with assets on hand at the time of the ownership change and otherwise allowable during the five-year period following the ownership change. As the five-year limitation period lapsed in 2019, these disallowed deductions are reflected in property and equipment in the schedule above but continue to be subject to the annual limitation that applies to the pre-change net operating losses. Due to the limitation on the use of net operating losses and depreciation deductions, a significant portion of these carryforwards will expire regardless of whether the Company generates future taxable income. After reducing these net operating loss

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**SOW GOOD INC.**

**Notes to Financial Statements**

carryforwards for the amount which will expire due to this limitation, the Company had remaining federal net operating loss carryforwards of approximately $75,119,367 and state net operating loss carryforwards of approximately $0 at December 31, 2025. These net operating loss carryforwards expire as follows:

---

| | | |
|:---|:---|:---|
| **Tax Years** | Federal | State |
| 2026–2030 | $- | $- |
| 2031–2035 | 22530746 | - |
| 2036–2040 | 2940525 | - |
| 2041 and after\* | 49648096 | - |
| Total NOLs | $75119367 | $- |

---

---

| |
|:---|
| \*Includes indefinite life federal net operating losses of $49,648,096 generated after 2017. |
| Approximately $46,162,842 is available to utilize against federal taxable income for 2026. |

---

In assessing whether the deferred tax assets are realizable, a more likely than not standard is applied. If it is determined that it is more likely than not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

A valuation allowance was established in the amount of $21,843,804 and $13,698,081 as of December 31, 2025 and 2024, respectively, based on the Company's assessment of the future realizability of certain deferred tax assets. The valuation allowance on deferred tax assets is related to future deductible temporary differences and net operating loss carryforwards for which the Company has concluded it is more likely than not that these items will not be realized in the ordinary course of operations.

For the year ended December 31, 2025, the Company recorded an increase in valuation allowance of $8,145,723. This was primarily related to net operating losses generated by the Company in the current tax year. For the year ended December 31, 2024, the Company recorded an increase in valuation allowance of $713,972. This was primarily related to additional net operating losses accumulated for the year.

*Unrecognized Tax Benefits*

A reconciliation of the beginning balance and the ending balance of gross unrecognized tax benefits, before interest and penalties, for the period presented is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Unrecognized tax benefits at beginning of year | $- | $- |
| Increases related to current-year tax positions | - | - |
| Decreases related to current-year tax positions | - | - |
| Increases related to prior year tax positions | - | - |
| Decreases related to prior year tax positions | - | - |
| Decreases related to expiration of prior year tax positions | - | - |
| Decreases related to settlements of prior year tax positions | - | - |
| Unrecognized tax benefits at end of year | $- | $- |

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**SOW GOOD INC.**

**Notes to Financial Statements**

The Company recorded unrecognized tax benefits for uncertain tax positions of approximately $0 and $0 as of December 31, 2025 and 2024, of which $0 impacted the effective tax rate as it was reversed.

The Company is subject to income tax in the United States federal jurisdiction and various state jurisdictions and has identified its federal tax return and tax returns in state jurisdictions below as "major" tax filings. These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows:

---

| | |
|:---|:---|
| Jurisdiction | Tax Years |
| Federal | 2022 – 2025 |
| Texas | 2021 – 2025 |

---

**Note 18** – **Subsequent Events**

Management has evaluated events and transactions subsequent to the balance sheet date through the date of this report (the day the financial statements were available to be issued) for potential recognition or disclosure in the financial statements. Management has not identified any items requiring recognition or disclosure.

On January 6, 2026, the Company issued a press release announcing a private placement and strategic asset sale to support continued candy operations and future growth, while assessing other strategic alternatives, including potential partnerships, acquisitions, or additional corporate transactions, with the goal of strengthening its financial position and creating long-term stockholder value. Further the press release announced the previously disclosed leadership transition with (i) Claudia Goldfarb stepping down as Chief Executive Officer while remaining with the Company as Chief Operating Officer and a member of the Company's board of directors (ii) members of the Board Chris Ludeman and Joe Mueller resigning from the Board in connection with the private placement and strategic asset sale, (iii) David Lazar being appointed Chief Executive Officer and elected to the Board, serving as the Board's Chairman and (iv) David Natan being elected to the Board and serving as Audit Committee Chairman following Mr. Ludeman's resignation.

On January 15, 2026 the Company issued an aggregate 277,776 shares of common stock amongst two non-employee Directors for annual services to be rendered. The aggregate fair value of the common stock was $100,000, based on the closing price of the Company's common stock on the December 29, 2025. The shares were expensed upon issuance.

On February 12, 2026 the Company issued an aggregate 827,095 shares of common stock to Claudia and Ira Goldfarb upon the conversion of $289,483 of their Convertible Notes, at a conversion prices of $0.35 per share.

On February 18, 2026, the Company amended the previously disclosed Securities Purchase Agreement (the "Amendment") by and between the Corporation and David Lazar (the "Purchaser") (the "Securities Purchase Agreement"), dated as of December 31, 2025, pursuant to which the Corporation agreed to, among other things and subject to approval of the stockholders of the Corporation, sell and issue to the Purchaser or a permitted designee(s) or transferee(s) 1,500,000 Series AAA preferred shares of the Corporation (the "Series AAA Preferred Stock"), convertible into 375,000,000 shares of Common Stock, pursuant to a Certificate of Designation (the "Old CoD") in the form of Exhibit B to the Securities Purchase Agreement. The Amendment replaces the Old CoD with a new Certificate of Designation (the "New CoD"), pursuant to which the Series AAA Preferred Stock would be redeemable by the Company at price of $200.00 per share of Series AAA Preferred Stock, plus any declared but unpaid dividends, and is subject to certain conversion limitations.

The Amendment to the Securities Purchase Agreement is filed herewith as Exhibit 10.1 and the description above is qualified in its entirety by the text of the Amendment.

On February 13, 2026, the Board appointed Yisroel Goldberg as Chief Commercial Officer, effective immediately.

On February 13, 2026, the Board approved an amendment to the Company's by-laws (the "By-Laws Amendment") to permit the removal of any director or the entire Board with or without cause by a majority of the voting power of the Company's capital stock, in line with Section 141(k) of the Delaware General Corporation Law. The amendment is reflected in the Amended and Restated Bylaws of the Company, which became effective on February 18, 2026 ("Amended and Restated Bylaws").

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**SOW GOOD INC.**

**Notes to Financial Statements**

On February 23, 2026, the Company filed Form 14-C to provide notice and information to the holders of shares of common stock, par value $0.001 per share of the Company, in connection with actions taken by the holders of a majority of the issued and outstanding Common Stock (the "Majority Stockholders"), which actions were approved by written consent on February 12, 2026 (the "Stockholder Consent") to:

(i) approve the issuance of shares of Common Stock upon conversion of our Series AA Convertible Non-Redeemable Preferred Stock, par value $0.001 per share (the "Series AA Preferred Stock") and Series AAA Convertible Redeemable Preferred Stock, par value $0.001 per share (the "Series AAA Preferred Stock" and, together with the Series AA Preferred Stock, the "Preferred Stock") in accordance with Nasdaq Listing Rules 5635(b) and 5635(d);

(ii) approve an amendment to our Amended and Restated Certificate of Incorporation of the Corporation (the "Certificate of Incorporation") to increase the number of authorized shares of Common Stock to 1,000,000,000 ;

(iii) approve a reverse stock split in the range of 1 for 2 to 1 for 99 (the "Reverse Stock Split"); and

(iv) approve amendments to the 2024 Stock Incentive Plan ("2024 Plan") to, among other items, increase the shares authorized for issuance under the 2024 Plan to 10,000,000 shares.

On March, 30, 2026, the Company filed a Certificate of Amendment of the Certificate of Incorporation of Sow Good Inc. with the Secretary of State of the State of Delaware, amending the Certificate of Incorporation to increase the authorized number of shares of Common Stock to 1,000,000,000.

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**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.**

The Company conducted an evaluation to determine the Company's independent registered public accounting firm for the fiscal year ending December 31, 2023. Following the evaluation, on August 23, 2023, the Audit Committee approved the appointment of Urish Popeck & Co., LLC ("UPCO") as the Company's independent public accounting firm to audit the Company's consolidated financial statements for the fiscal year ending December 31, 2024 and to review the Company's quarterly consolidated financial statements beginning with the third quarter of the 2023 fiscal year.

During the years ended December 31, 2025 and 2024 there were no disagreements with UPCO.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

We maintain a system of disclosure controls and procedures that is designed to ensure that information required to be disclosed by us in the reports we file or furnish to the SEC under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Interim Chief Financial Officer, who is one and the same, to allow timely decisions regarding required disclosures.

As of December 31, 2025, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Interim Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined) in Exchange Act Rules 13a –15(e). Based upon that evaluation, our Chief Executive Officer and Interim Chief Financial Officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our Chief Executive Officer and Interim Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Our Chief Executive Officer and Interim Chief Financial Officer do not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our Chief Executive Officer and Interim Chief Financial Officer have determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

**Management**'**s Annual Report on Internal Control over Financial Reporting.**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. All internal control systems, no matter how well designed, have inherent limitations. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

We maintain disclosure controls and procedures that are designed to ensure the information we are required to disclose in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based on their evaluation as of December 31, 2025, our Chief Executive Officer, David Lazar, and our Chief Financial Officer, Donna Guy, concluded that our disclosure controls and procedures are effective to accomplish their objectives and to ensure the information required to be disclosed in the reports that we file or submit

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under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

*Changes in Internal Control over Financial Reporting*

There have been no changes in the Company's internal control over financial reporting through the date of this report or during the quarter ended December 31, 2025, that materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

*Independent Registered Accountant*'*s Internal Control Attestation*

This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to applicable law.

**ITEM 9B. OTHER INFORMATION**

None.

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**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE**

The following table lists our executive officers and directors as of March 31, 2026:

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| | | |
|:---|:---|:---|
| Name | Age | Position |
| David Lazar | 35 | Chief Executive Officer; Director |
| Claudia Goldfarb | 51 | Chief Operating Officer; Director |
| Donna Guy | 53 | Chief Financial Officer |
| Yisroel Goldberg | 42 | Chief Commercial Officer |
| Lyle Berman | 85 | Director |
| Ira Goldfarb | 69 | Director |
| David Natan | 72 | Director, Audit Committee Chair |
| Jeffery Rubin | 62 | Director |

---

**Executive Officers**

**David Lazar.** David Lazar has served as Chief Executive Officer and Director since December 31, 2025. Mr. Lazar also serves as the CEO and Chairman of Kala Bio Inc. (NASDAQ: KALA) since December 2025. David previously served as Chief Executive Officer of Novabay Pharmaceuticals, Inc. (NASDAQ: NBY) from August to November 2025. Prior to that, Mr. Lazar previously served as director on the board of directors of FiEE, Inc. (NASDAQ: FIEE) (formerly Minim, Inc.) where he also previously served as the Chief Executive Officer and Chief Financial Officer from December 2023 to February 2025. Mr. Lazar served as interim Chief Executive Officer and principal financial officer of Bio Green Med Solution Inc. (NASDAQ: BGMS) (formerly Cyclacel Pharmaceuticals, Inc.), from January 2, 2025 through February 26, 2025. Mr. Lazar served as the Chief Executive Officer of Black Titan Corporation listed on Nasdaq (NASDAQ: BTTC) (formerly Titan Pharmaceuticals, Inc.) from August 2022 to April 2024, where he also served as a director and board chairman from August 2022 until October 2023. Mr. Lazar also served as the chief executive officer and chairman of the board of directors of OpGen, Inc. (OTC: OPGN) from March 2024 to August 2024. Mr. Lazar also served as the president and a member of the board of directors of LQR House Inc. (NASDAQ: YHC) from October 2024 to April 2025. Mr. Lazar served as the Chief Executive Officer of Activist Investing from March 2018 to April 2022.

**Donna Guy**. Donna Guy has served as our Chief Financial Officer since June 5, 2025. Donna Guy has served as Chief Financial Officer since June 5, 2025. A CPA, she is the founder and Principal Consultant of Elevation Accounting & Finance, LLC (est. 2021), providing financial consulting to public and private companies in areas including accounting operations, SEC reporting, and process optimization. Prior to founding her firm, she held senior finance and accounting roles at ADDvantage Technologies Group, Basic Energy Services, and Enduro Resource Partners. Ms. Guy holds a BBA in Accounting from the University of Texas at Arlington and is an active member of the AICPA and Texas Society of CPAs. She previously served six years on the board of the Women's Center of Tarrant County and is a U.S. Air Force veteran.

**Yisroel Goldberg.** Yisroel Goldberg has served as our Chief Commercial Officer since February 13, 2026. Mr. Goldberg is a real estate asset manager and fiduciary with over 15 years of hands-on experience driving performance across portfolio operations, value-add execution, and financial discipline. He is the asset manager at YSG Capital since 2020, where he oversees the day-to-day management of multi-state U.S. portfolio consisting of residential apartment communities and land development projects. He is responsible for overall operating performance, including leasing strategy, expense control, staffing, capital improvements, and asset-level reporting. Previously, Mr. Goldberg served as asset manager at Braham Capital between 2011 and 2020. Between 2013 and 2017, Mr. Goldberg was property manager at Park Management, where he managed a portfolio of HUD and Mitchell-Lama affordable housing units. In addition, Mr. Goldberg has served for many years as a trustee for numerous trusts. Mr. Goldberg received a B.S. degree in business, with primary emphasis on accounting from Excelsior College and holds a Certificate of Accounting from Daemen College.

**Claudia Goldfarb**. Claudia Goldfarb has served as our Chief Operating Officer since December 31, 2025 and member of the Board of Directors since October 2020. Prior to that, Ms. Goldfarb served as the Company's Chief Executive Officer since October 2020, and served as our interim Chief Financial Officer from April 2022 until November 2023, and from March 2024 until April 2024. Prior to that, Mrs. Goldfarb served as President and Chief Operating Officer of Prairie Dog Pet Products, LLC between January 2010 and July 2020. From 2010 until 2012, Mrs. Goldfarb also served as Chief Operating Officer of PGT Holdings. Mrs. Goldfarb attended St. Mary's University in San Antonio, Texas to pursue an accounting degree. Mr. Ira Goldfarb, who is our Executive Chairman and Chairman of the Board of Directors, is Mrs. Claudia Goldfarb's husband. Mrs. Goldfarb was selected to serve on our Board of Directors due to her history with the Company and extensive product development, manufacturing and implementation experience in

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the consumer-packaged goods industry.

**Directors**

**Lyle Berman**. Lyle Berman has served as a Director on the Board of Sow Good Inc. since October 2020 and has served as chair of the Compensation Committee since April 2024. From 1999 until 2015, Mr. Berman served as Chairman of the Board and Chief Executive Officer of Lakes Entertainment Inc. From 1993 until 2000, Mr. Berman served as Chief Executive Officer of Rainforest Café, Inc., and from 1991 until 1998, Mr. Berman served as the Chairman of the Board of Directors of Grand Casinos, Inc. Mr. Berman holds a degree in Business Administration from the University of Minnesota. Mr. Lyle Berman is the father of one of our former directors, Mr. Bradley Berman. Mr. Berman was selected to serve on our Board of Directors because of his experience as a chief executive officer and his knowledge of public and private companies. With a proven track record of success and a wealth of experience, Lyle Berman brings invaluable insights and leadership qualities that can significantly benefit any company's board of directors.

**Ira Goldfarb**. Ira Goldfarb has served as a Director on the Board since December 31, 2025. Prior to that, he served as the Executive Chairman and Chairman of the Board of Directors since October 2020. Prior to that, from January 2012 until July 2020, Mr. Goldfarb founded and served as Chief Executive Officer of Prairie Dog Pet Products, LLC. Mr. Goldfarb also served as Chief Executive Officer of PGT Holdings from 2010 until 2012, and served as Chief Executive Officer of DS Retail Holdings, LLC, from 2006 until 2009. In 2009, Mr. Goldfarb co-founded Operation Ava Inc., one of the largest cat and dog rescue groups in Pennsylvania. Mr. Goldfarb attended the Fashion Institute of Technology in New York, New York. Mr. Goldfarb is the husband of Mrs. Claudia Goldfarb, who is the Chief Operations Officer and former CEO. Mr. Goldfarb was selected to serve on our Board of Directors due to his history with the Company and extensive business, operational and management experience in the consumer-packaged goods industry.

**David Natan.** David Natan has served as a Director on the Board, and Chairman of the Audit Committee since December 31, 2025. He currently serves as President and Chief Executive Officer of Natan & Associates, LLC, a consulting firm offering chief financial officer services to public and private companies in a variety of industries, both domestically and internationally, since 2007. From 2010 to May 2020, Mr. Natan served as Chief Executive Officer of Forcefield Energy, Inc., a company focused on the solar industry and LED lighting products. From February 2002 to November 2007, Mr. Natan served as Executive Vice President of Reporting and Chief Financial Officer of PharmaNet Development Group, Inc., a drug development services and clinical trials company, and, from June 1995 to February 2002, as Chief Financial Officer and Vice President of Global Technovations, Inc., a manufacturer and marketer of oil analysis instruments and speakers and speaker components. Before that, Mr. Natan served various roles in increasing responsibility with Deloitte & Touche LLP, a global accounting and consulting firm. Mr. Natan currently serves as a member of the Board of Directors and Chair of the Audit Committee of Sunshine Biopharma, Inc. (Nasdaq: SBFM), a pharmaceutical and nutritional supplement company, since February 2022. Additionally, since April 2024, Mr. Natan has served as a member of the Board of Directors and Audit Committee Chair of FIEE, Inc. (formerly Minim, Inc.), a technology company specializing in SAAS solutions and AI software development. Previously, Mr. Natan has served as a director for the following public companies: Global Technovations, ForceField Energy, Black Titan (Nasdaq: BTTC) (formerly Titan Pharmarceuticals, Inc.), Vivakor Inc. (Nasdaq: VIVK), NetBrands Corp. (OTC: NBND), OpGen Inc. (OTC: OPGN), and Bio Green Med Solutions (Nasdaq: BGMS) (formerly Cyclacel Pharmaceuticals, Inc.). Mr. Natan is a CPA (inactive), holds a B.A. in Economics from Boston University, and was appointed to Omicron Delta Epsilon, an international honor society in the field of Economics.

**Jeffery Rubin**. Jeffery Rubin has served as a Director on the Board, since August 2025. The Company believes Mr. Rubin's appointment is in the best interest of the Company and its stockholders due to his extensive experience in the candy business. Mr. Rubin is a leader in the confectionery industry who brings with him 35 years of experience. Prior to joining the Board, Mr. Rubin founded IT'SUGAR in 2006 and served as its Chief Executive Officer until July 2023. He was also the founder of Dylan's Candy Bar and FAO Schweetz. Mr. Rubin was recognized for his leadership by the Candy Hall of Fame in 2018 and was awarded the Professional Candy Buyer of the Year Award by the Professional Candy Buyer magazine in 1996. Mr. Rubin has a Bachelor of Arts in Economics from the University of Michigan and a Master of Business Administration from the University of Miami.

**Edward Shensky**. Edward Shensky has served as a Director since January 2024 and as chair of the Nominating and Corporate Governance Committee since April 2024. Mr. Shensky has been a senior shareholder at Stark & Stark full-service law firm providing legal services across more than 30 practice areas since 2017. Prior to that, Mr. Shensky was an equity holder at Stark & Stark from 2007 until 2017. Mr. Shensky headed the medical malpractice and personal injury group in Yardley, Pennsylvania and was instrumental in expanding the firm's litigation team in those practice areas. Mr. Shensky received his juris doctorate degree from Temple University Law School in 1978. Mr. Shensky was selected to serve on our Board of Directors because of his legal experience and prior experience serving on the risk management board for a UK-based manufacturing company and the Strategic Planning Committee for a major charitable organization headquartered in Pennsylvania.

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**Composition of our Board of Directors**

Our business and affairs are managed under the direction of our board of directors. We currently have seven directors, who are elected annually. Our current directors will continue to serve as directors until their resignation, removal or successor is duly elected. No director is required to make any specific amount or percentage of his business time available to us. Each of our officers intends to devote such amount of his or her time to our affairs as is required or deemed appropriate.

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**CORPORATE GOVERNANCE**

**Director Independence**

Our board of directors has undertaken a review of the independence of each director. Based on information provided by each director concerning her or his background, employment and affiliations, our board of directors has determined that none of our directors, other than David Lazar, Claudia Goldfarb and Ira Goldfarb, has any relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the listing standards. In making these determinations, our board of directors considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership of our shares by each non-employee director, as described in Certain Relationships and Related Party Transactions, and Director Independence.

**Committees of Our Board of Directors**

Our board of directors has established an audit committee. The composition and responsibilities of the audit committee of our board of directors are described below. Members serve on this committee until their resignation or until otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

**Audit Committee**

Our audit committee consists of David Natan as Chairman, Lyle Berman and Edward Shensky. Our board of directors has determined that each satisfies the independence requirements under listing standards and Rule 10A-3(b)(1) of the Exchange Act. The chair of our audit committee is David Natan, who our board of directors has determined is an "audit committee financial expert" within the meaning of SEC regulations. Each member of our audit committee can read and understand fundamental financial statements in accordance with applicable requirements. In arriving at these determinations, our board of directors has examined each audit committee member's scope of experience and the nature of their employment in the corporate finance sector.

The principal duties and responsibilities of our audit committee include, among other things:

• selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;

• helping to ensure the independence and performance of the independent registered public accounting firm;

• helping to maintain and foster an open avenue of communication between management and the independent registered public accounting firm;

• discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent registered public accounting firm, our interim and full fiscal year operating results;

• developing "whistle-blower" procedures for employees to submit concerns anonymously about questionable accounting or audit matters;

• reviewing our policies on risk assessment and risk management;

• reviewing related party transactions;

• obtaining and reviewing a report by the independent registered public accounting firm at least annually, that describes its internal controls environment and procedures, any material issues with such procedures, and any steps taken to deal with such issues when required by applicable law; and

• approving (or, as permitted, pre-approving) all audit and all permissible non-audit services to be performed by the independent registered public accounting firm.

**Insider Trading Policy**

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We have adopted an Insider Trading and Communications Policy, attached as Exhibit 19.1 hereto, which governs the purchase, sale, and other dispositions of our securities by directors, officers and employees that are reasonably designed to promote compliance with insider trading laws, rules and regulations, and Nasdaq listing standards.

**Board Leadership Structure**

Our Board of Directors has no formal policy with respect to separation of the positions of Executive Chairman and Chief Executive Officer or with respect to whether the Executive Chairman should be a member of management or an independent director, and believes that these are matters that should be discussed and determined by the Board from time to time based on the position and direction of the Company and the membership of the Board.

**Advisory Panel** 

The Company has an Advisory Panel consisting of three members in experience in finance, manufacturing and sales that provide guidance to the Company in these areas.

**Code of Ethics and Conduct**

Our board of directors has adopted a code of ethics and conduct for all employees, including our executive and senior financial officers. The code of ethics and conduct is available on the investors portion of our websites at *www.thisissowgood.com* and *www.sowginc.com*. Our website and the contents therein or connected thereto are not intended to be incorporated into this Annual Report on Form 10-K.

**Annual Meeting Attendance**

Each of the Directors attended the annual meeting held in 2025 and 2024. The Board of Directors will encourage Directors to attend annual meetings in the future.

**Risk Management**

Our Board of Directors believes that risk management is an important component of the Company's corporate strategy. The Board, as a whole, oversees our risk management process, and discusses and reviews with management major policies with respect to risk assessment and risk management. The Board is regularly informed through its interactions with management and committee reports about risks we currently face, as well as the most likely areas of future risk, in the course of our business including economic, financial, operational, legal and regulatory risks.

**Communications with the Board of Directors**

Stockholders and other interested persons seeking to communicate directly with the Board of Directors, the independent directors as a group or the Audit Committee of the Board of Directors, should submit their written comments c/o Corporate Secretary at our principal executive offices at 1440 N Union Bower Rd, Irving, TX 75061 and should indicate in the address whether the communication is intended for the Chairman of the Board, the Independent Directors or a Committee Chair. The Chairman of the Board will review any such communication at the next regularly scheduled Board of Directors meeting unless, in his or her judgment, earlier communication to the Board of Directors is warranted. At the direction of the Board of Directors, we reserve the right to screen all materials sent to its directors for potential security risks, harassment purposes or routine solicitations.

**Delinquent Section 16(a) Reports**

For the fiscal year ended December 31, 2025, we believe that, under the SEC's rules and based solely upon our review of the copies of the Forms 3, 4 and 5 furnished to us, or written representations from certain reporting persons, any such reports have been filed in a timely manner with the following exceptions:

• the Form 3 filed by Jeffrey Rubin on August 28, 2025;

• the Form 5 filed by Chris Ludeman on June 23, 2025;

• the Form 5 filed by Lyle Berman on June 17, 2025;

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• the Form 5 filed by Edward Shensky on June 17, 2025;

• the Form 5 filed by Joe Mueller on June 17, 2025;

• the Form 4 filed by Ira Goldfarb on April 7, 2025; and

• the Form 4 filed by Claudia Goldfarb on April 4, 2025.

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**ITEM 11. EXECUTIVE COMPENSATION**

**Compensation Overview**

We currently qualify as a "smaller reporting company" as such term is defined in Rule 405 of the Securities Act and Item 10 of Regulation S-K. Accordingly, and in accordance with relevant SEC rules and guidance, we have elected, with respect to the disclosures required by Item 402 (Executive Compensation) of Regulation S-K, to comply with the disclosure requirements applicable to smaller reporting companies. The following Compensation Overview is not comparable to the "Compensation Discussion and Analysis" that is required of SEC reporting companies that are not smaller reporting companies.

The following Compensation Overview describes the material elements of compensation for our executive officers identified in the Summary Compensation Table ("Named Executive Officers"), and executive officers that we may hire in the future. As more fully described below, our board of directors reviews and recommends policies, practices, and procedures relating to the total direct compensation of our executive officers, including the Named Executive Officers, and the establishment and administration of certain of our employee benefit plans to our board of directors.

**Compensation Program Objectives and Rewards**

Our compensation philosophy is based on the premise of attracting, retaining, and motivating exceptional leaders, setting high goals, working toward the common objectives of meeting the expectations of customers and stockholders, and rewarding outstanding performance. Following this philosophy, we consider all relevant factors in determining executive compensation, including the competition for talent, our desire to link pay with performance, the use of equity to align executive interests with those of our stockholders, individual contributions, teamwork, and each executive's total compensation package. We strive to accomplish these objectives by compensating all executives with compensation packages consisting of a combination of competitive base salary and incentive compensation.

The compensation received by our Named Executive Officers is based primarily on the levels at which we can afford to retain them and their responsibilities and individual contributions. Our compensation policy also reflects our strategy of minimizing general and administration expenses and utilizing independent professional consultants. Our board of directors apply the compensation philosophy and policies described below to determine the compensation of Named Executive Officers.

The primary purpose of the compensation and benefits we consider is to attract, retain, and motivate highly talented individuals who will engage in the behavior necessary to enable us to succeed in our mission, while upholding our values in a highly competitive marketplace. Different elements are designed to engender different behaviors, and the actual incentive amounts which may be awarded to each Named Executive Officer are subject to the annual review of our board of directors who will make recommendations regarding compensation to our board of directors. The following is a brief description of the key elements of our planned executive compensation structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Base salary and benefits are designed to attract and retain employees over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Incentive compensation awards are designed to focus employees on the business objectives for a particular year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Equity incentive awards, such as stock options and non-vested stock, focus executives' efforts on the behaviors within the recipients' control that they believe are designed to ensure our long-term success as reflected in increases to our stock prices over a period of several years, growth in our profitability and other elements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Severance and change in control plans are designed to facilitate a company's ability to attract and retain executives as we compete for talented employees in a marketplace where such protections are commonly offered.

**Benchmarking**

We have not yet adopted benchmarking but may do so in the future. When making compensation decisions, our board of directors may compare each element of compensation paid to our Named Executive Officers against a report showing comparable compensation metrics from a group that includes both publicly-traded and privately-held companies. Our board believes that while such peer group benchmarks are a point of reference for measurement, they are not necessarily a determining factor in setting executive compensation. Each executive officer's compensation relative to the benchmark varies based on the scope of responsibility and time in the position. We have not yet formally established our peer group for this purpose.

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**Executive Compensation Program**

For the years ended December 31, 2025 and 2024, the compensation for our named executive officers generally consisted of a base salary and equity bonuses. These elements (and the amounts of compensation and benefits under each element) were selected because we believe they are necessary to help us attract and retain executive talent which is fundamental to our success.

Below is a more detailed summary of the current executive compensation program as it relates to our named executive officers.

***Base Salaries***

Executive officer base salaries are based on job responsibilities and individual contribution. The board of directors review the base salaries of our executive officers, including our named executive officers, considering factors such as corporate progress toward achieving objectives (without reference to any specific performance-related targets) and individual performance experience and expertise. Claudia Goldfarb is the only named executive officer that had an employment agreement with the Company as of December 31, 2025.

On December 15, 2023, the Company entered into an Amended Executive Employment Agreement with Chief Executive Officer and member of the Board of Directors Claudia Goldfarb (the "Employment Agreement of Claudia Goldfarb"). The Employment Agreement of Claudia Goldfarb amended and restated Mrs. Goldfarb's employment agreement with the Company dated, October 1, 2020. The Employment Agreement of Claudia Goldfarb provides that Mrs. Goldfarb will be entitled to receive an annual base salary of $575,000. Additionally, beginning with the fiscal year 2024, Mrs. Goldfarb is entitled to a discretionary cash bonus of up to 100% of this then-current base salary, based on revenue and EBITDA targets set forth in the Employment Agreement of Claudia Goldfarb.

On December 15, 2023, the Company entered into an Amended Executive Employment Agreement with Executive Chairman and Chairman of the Board of Directors Ira Goldfarb (the "Employment Agreement of Ira Goldfarb"). The Employment Agreement of Ira Goldfarb amended and restated Mr. Goldfarb's employment agreement with the Company dated, October 1, 2020. The Employment Agreement of Ira Goldfarb provides that Mr. Goldfarb will be entitled to receive an annual base salary of $625,000. Additionally, beginning with the fiscal year 2024, Mr. Goldfarb is entitled to a discretionary cash bonus of up to 100% of this then-current base salary, based on revenue and EBITDA targets set forth in the Employment Agreement of Ira Goldfarb.

On December 31, 2025, the Company and Mr. Goldfarb and Mrs. Goldfarb entered into Settlement Agreements and General Mutual Releases, replacing their employment agreements, and providing for severance payments of $1,250,000 and $1,150,000, net of the applicable employment taxes, respectively, upon termination. Mr. Goldfarb resigned as an Officer on December 31, 2025, and irrevocably and unconditionally released, acquitted and forever discharged the Company and any principals of any and any successors and assigns (and any officers, directors, shareholders, managers, members, employees, representatives, attorneys, consultants, and agents of such entities) (hereinafter referred to for purposes of this section as the "Clients"), from any and all claims, demands, rights, causes of action, liens, actions, suits, attorneys' fees, costs, damages, losses, expenses and contractual obligations of whatever kind or nature, whether absolute or contingent, liquidated or unliquidated, direct or indirect, in law or in equity, fully accrued or not fully accrued, matured or unmatured, known or unknown, foreseen or unforeseen, suspected or unsuspected, relating to any matter whatsoever (collectively, "Claims") which Mr. Goldfarb had, currently has, shall or may have; provided that such release shall not apply to any Claims relating to Company indemnification obligations to the Officer in connection with actions in his capacity as officer of the Company.

Mr. Goldfarb was paid $350,000 on January 5, 2026, net of $900,000 as the downpayment on the assets under the Asset Purchase Agreement, in settlement of his agreed $1,250,000 of final severance.

Prior to this, on March 31, 2025 and June 5, 2025, the Board of Directors unanimously approved revisions to the annual compensation of Claudia Goldfarb, the Company's former Chief Executive Officer, and Ira Goldfarb, the Company's former Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive a certain percentage of their annual cash salaries in shares of the Company's common stock in lieu of cash payments. The aggregate number of shares issued was 783,068, at an aggregate value of $668,507, which was amortized over the service period. Mrs. Goldfarb continues to be employed by the Company as its Chief Operations Officer.

On April 15, 2024, the Board authorized and entered into an Employment Agreement with Brendon Fischer, the Company's Interim Chief Financial Officer. The Employment Agreement provides for Mr. Fischer's entitlement to receive an annual base salary of $225,000. Additionally, the Employment Agreement provides for Mr. Fischer's entitlement to a grant of 22,500 stock options, representing the right to purchase shares of the Company's common stock, subject to Mr. Fischer's continuous service to the

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Company through each vesting date. On June 6, 2025, Mr. Fischer resigned from the Company and his options were forfeited. The reduction in share compensation related to Mr. Fischer's total forfeited options expensed through June 30, 2025 was $37,517.

Additional factors reviewed by our board of directors in determining appropriate base salary levels and raises include subjective factors related to corporate and individual performance. For the years ended December 31, 2025 and 2024, all executive officer base salary decisions were approved by the board of directors.

The 2025 annual base salaries for our named executive officers were as follows: (1) $625,000 for Ira Goldfarb, (2) $575,000 for Claudia Goldfarb and (3) $244,000 for Brendon Fischer, our former chief financial officer. Donna Guy, our chief financial officer beginning June 2025, was compensated on a part-time basis, compensation was $12,000 per month. The 2024 annual base salaries for our named executive officers were as follows: (1) $625,000 for Ira Goldfarb, (2) $575,000 for Claudia Goldfarb and (3) $219,231 for Brendon Fischer and (4) $58,154 for Keith Terreri, our former chief financial officer.

***Incentive Compensation Awards***

No bonuses were awarded for the years ended December 31, 2025 and 2024.

In the Employment Agreement of Claudia Goldfarb and the Employment Agreement of Ira Goldfarb, each of Claudia and Ira Goldfarb have bonus targets based on (i) revenue and (ii) Adjusted EBITDA. See "—*Base Salaries*" for more information regarding their bonus targets. For the year ended December 31, 2023, the Company awarded Claudia Goldfarb a discretionary cash bonus of $125,000 pursuant to the terms of the Employment Agreement of Claudia Goldfarb and the Company awarded Ira Goldfarb a discretionary cash bonus of $125,000 pursuant to the terms of the Employment Agreement of Ira Goldfarb.

We evaluate whether bonuses will be paid each year using the following parameters in justifying and quantifying bonuses for our named executive officers and other officers of the Company: (1) the growth in our revenue, (2) the growth in our earnings before Adjusted EBITDA, and (3) our stock price.

***Equity Incentive Awards***

<u>2016 Stock Incentive Plan</u>

Effective December 12, 2016, our board of directors adopted the 2016 Non-Qualified Stock Option Plan (the "2016 Plan") under which a total of 12,712 shares of our common stock have been reserved for issuance pursuant to the grant and exercise of non-qualified stock options.

<u>2018 Stock Incentive Plan</u>

On March 1, 2018, the Board of the Company approved and adopted the Black Ridge Oil & Gas, Inc. 2018 Management Incentive Plan (the "2018 Plan") and the form of 2018 Management Incentive Plan Award Agreement (the "2018 Award Agreement"). The purpose of the 2018 Plan is to provide a means by which eligible employees and directors may have the opportunity to be granted awards of the Company's equity in Black Ridge Acquisition Corp. ("BRAC").

<u>2020 Stock Incentive Plan</u> 

Effective December 5, 2019, as amended September 29, 2020, January 4, 2021 and March 19, 2021 our board of directors adopted the 2020 Stock Incentive Plan (the "2020 Plan") under which a total of 814,150 shares of authorized common stock have been reserved for issuance as restricted stock or pursuant to the grant and exercise of stock options. Our 2020 Plan has been approved by a majority of the stockholders of record. We believe the use of stock-based long-term incentive compensation is vital to maintain a competitive position in attracting, retaining and motivating key personnel. The board considers several factors in determining whether awards are granted to an executive officer, including corporate progress towards achieving objectives, individual experience and expertise, subjective factors related to corporate and individual performance, the executive's position, his or her performance and responsibilities, and the amount of options or other awards, if any, currently held by the officer and their vesting schedule.

<u>Amendment to the 2020 Stock Incentive Plan</u>

On January 8, 2024, our stockholders took action by written consent to ratify the amendment to the 2020 Stock Incentive Plan (the "2020 Plan") approved by the board of directors of the Company on December 15, 2023. On December 15, 2023, our Board approved an amendment to the 2020 Plan to effect an increase in the number of shares that remain available for issuance under the

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2020 Plan by an additional 2,150,000 shares up to an aggregate of 2,964,150 shares available for issuance under the 2020 Plan (the "2020 Plan Amendment"). Before the 2020 Plan Amendment, the number of shares available for issuance under the 2020 Plan would be too limited to effectively operate as an incentive and retention tool for employees, officers, directors, non-employee directors and consultants of the Company and its affiliates (as defined in the 2020 Plan). The 2020 Plan and the approved increase enabled us to continue our policy of equity ownership by employees, officers, directors, non-employee directors and consultants of the Company and its affiliates as an incentive to contribute to the creation of long-term value for our stockholders.

The 2020 Plan enables our board of directors to provide equity-based incentives through grants of awards to the Company's present and future employees, directors, consultants and other third-party service providers. The 2020 Plan is generally administered by the board of directors. Subject to the provisions of the 2020 Plan, the board of directors determines in its discretion the persons to whom and the times at which awards are granted, the sizes of such awards and all of their terms and conditions. The board of directors has the authority and discretion to determine the terms of awards under the 2020 Plan.

In the event of a change of control as described in the 2020 Plan, the acquiring or successor entity may (i) accelerate the vesting of any or all awards, (ii) assume or substitute all or any awards outstanding under the 2020 Plan or substitute substantially equivalent awards or (iii) cash out any or all outstanding awards.

<u>2024 Stock Incentive Plan</u>

Effective February 15, 2024, the board of directors of the Company adopted the 2024 Plan (the "2024 Plan") under which a total of 3,000,000 share of our common stock have been reserved for issuance of Incentive Stock Options, or ISOs, Non-Qualified Stock Options, or NSOs, restricted share awards, stock unit awards, SARs, other stock-based awards, performance-based stock awards, (collectively, "stock awards") and cash-based awards (stock awards and cash-based awards are collectively referred to as "awards"). ISOs may be granted only to our employees, including officers, and the employees of our parent or subsidiaries. All other awards may be granted to our employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates. Our 2024 Plan has been approved by stockholder holding a majority of the aggregate issued and outstanding shares of the Company's voting stock. The initial aggregate number of shares of the Company's common stock available for issuance under the 2024 Plan is equal to 3,000,000 shares of common stock including the number of reserved shares not issued or subject to outstanding grants under each of the prior incentive plans as of the effective date.

On February 12, 2026, the a majority of the Company's stockholders approved an increase of 7,000,000 additional shares available under the Plan, ,to be effective on or about March 26, 2025.

***Health and Welfare Benefits and Perquisites*** 

At this stage of our business, we have benefits that are generally comparable to those offered by other small private and public companies and no prerequisites for our employees. Other than a 401(k) plan, we do not have any other retirement plan for our named executive officers. We may adopt these plans and confer other fringe benefits for our executive officers in the future.

**Executive Officer Compensation**

The following table sets forth the total compensation paid in all forms to our named executive officers of the Company during the periods indicated:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** | **Summary Compensation Table** |
| Name and Principal Position | Year | Salary | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Non-Qualified Deferred Compensation Earnings | All Other Compensation | Total |
| David Lazar | 2025 | $— | $— | $— | $— | $— | $— | $— |
| Chief Executive Officer, Director | 2024 | $— | $— | $— | $— | $— | $— | $— |
| Ira Goldfarb,<sup>(1)</sup> | 2025 | $264932 | $399638 | $— | $— | $— | $1250000 | $1914570 |
| Director, Former Executive Chairman | 2024 | $625000 | $— | $— | $125000 | $— | $— | $750000 |
| Claudia Goldfarb,<sup>(2)</sup> | 2025 | $246561 | $288869 | $— | $— | $— | $— | $535430 |
| Chief Operating Officer | 2024 | $575000 | $— | $— | $125000 | $— | $— | $700000 |
| Donna Guy,<sup>(3)</sup> | 2025 | $74769 | $— | $— | $— | $— | $— | $74769 |
| Chief Financial Officer | 2024 | $— | $— | $— | $— | $— | $— | $— |
| Brendon Fischer,<sup>(4)</sup> | 2025 | $108173 | $— | $— | $— | $— | $— | $108173 |
| Former Interim Chief Financial Officer | 2024 | $219231 | $— | $28900 | $— | $— | $— | $248131 |
| Keith Terreri,<sup>(5)</sup> | 2024 | $58154 | $— | $— | $— | $— | $— | $58154 |
| Former Chief Financial Officer |  |  |  |  |  |  |  |  |

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<sup>(1)</sup> Mr. Goldfarb was appointed Executive Chairman of the Board of Directors on October 1, 2020. We have agreed to compensate Mr. Goldfarb a total of $330,000 in cash per year commencing on January 1, 2022, and a total of $625,000 in cash per year commencing on December 15, 2023. Mr. Goldfarb received a severance payment of $1,250,000 on January 5, 2026, pursuant to the officer settlement agreement which was executed and became effective on December 31, 2025.

<sup>(2)</sup> Mrs. Goldfarb was appointed Chief Executive Officer on October 1, 2020. We have agreed to compensate Mrs. Goldfarb a total of $292,500 in cash per year commencing on January 1, 2022, and $575,000 in cash per year commencing on December 15, 2023.

<sup>(3)</sup> Ms. Guy provided financial and accounting consulting services to the Company from January 1 through June 30, 2025, prior to being appointed Chief Financial Officer, and received $54,493 in consulting compensation for those services. Effective July 1, 2025, Ms. Guy was appointed Chief Financial Officer on a part-time basis with an annualized salary of $144,000, and she earned $74,769 in salary during 2025. On June 3, 2025, the Company granted Donna Guy, Chief Financial Officers, options to purchase 7,500 shares of the Company's stock at an exercise price of $0.77 per share. Options vest 60% on the third anniversary of the grant, and 20% on each anniversary thereafter.

<sup>(4)</sup> Mr. Fischer was appointed Interim Chief Financial Officer on April 15, 2024. The Company agreed to compensate Mr. Fischer a base salary of $225,000. Additionally, the Company provided a grant of to purchase 22,500 shares of common stock, subject to Mr. Fischer's continuous service to the Company through each vesting date. The estimated value using the Black-Scholes Pricing Model, based on an annualized monthly volatility rate of 96.2% and a call option value of $5.28, was $118,500. On June 6, 2025, Mr. Fischer resigned from the Company and his options were forfeited. The reduction in share compensation related to Mr. Fischer's total forfeited options expensed through June 30, 2025 was $37,517.

<sup>(5)</sup> Mr. Terreri was appointed Chief Financial Officer on November 20, 2023. We have agreed to compensate Mr. Terreri a total of $270,000 in cash per year. On November 13, 2023, we granted Mr. Terreri an option to purchase 27,000 shares of common stock at an exercise price of $6.19 per share, subject to Mr. Terreri's continuous service to the Company through each vesting date. The estimated value using the Black-Scholes Pricing Model, based on an annualized monthly volatility rate of 97.121% and a call option value of $5.11, was $138,240. Effective March 4, 2024, Mr. Terreri resigned from employment with the Company, forfeiting his stock options.

The board of directors of the Company grants equity awards based on performance during regularly scheduled annual performance reviews. The board of directors of the Company has not established policies and practices (whether written or otherwise) regarding the timing of option grants or other awards in relation to the release of material nonpublic information ("MNPI") and does not take MNPI into account when determining the timing and terms of stock option or other equity awards to executive officers. The Company does not time the disclosure of MNPI, whether positive or negative, for the purpose of affecting the value of executive compensation.

**Employment Agreements**

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Other than as described above, we have not entered into any employment agreements with our executive officers to date. We may enter into employment agreements with them in the future.

**Outstanding Equity Awards**

The following table sets forth information with respect to unexercised stock options, stock that has not vested, and equity incentive plan awards held by our executive officers at December 31, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Outstanding Option Awards at Fiscal Year-End** | **Outstanding Option Awards at Fiscal Year-End** | **Outstanding Option Awards at Fiscal Year-End** | **Outstanding Option Awards at Fiscal Year-End** | **Outstanding Option Awards at Fiscal Year-End** |
|  | Number of Securities | Number of Securities |  |  |
|  | Underlying | Underlying |  |  |
|  | Unexercised Options (#) | Unexercised Options (#) | Option Exercise | Option Expiration |
| Name | Exercisable | Unexercisable | Price | Date |
| Ira Goldfarb, Director, Former Executive Chairman \* | 200000 | —<br><sup>(1)</sup> | $9.75 | December 14, 2033 |
|  | 75000 | —<br><sup>(3)</sup> | $3.70 | January 3, 2031 |
|  | 16500 | —<br><sup>(4)</sup> | $4.00 | December 27, 2030 |
|  | 40000 | —<br><sup>(5)</sup> | $5.25 | October 1, 2030 |
| Claudia Goldfarb, Chief Operations Officer, Director | 180000 | 270000<br><sup>(1)</sup> | $9.75 | December 14, 2033 |
|  |  | 450000<br><sup>(2)</sup> | $40.00 | December 14, 2033 |
|  | 75000 | —<br><sup>(3)</sup> | $3.70 | October 1, 2030 |
|  | 16500 | —<br><sup>(4)</sup> | $4.00 | December 27, 2030 |
|  | 50000 | —<br><sup>(5)</sup> | $5.25 | October 1, 2030 |
| Donna Guy, Chief Financial Officer |  | 7500<br><sup>(6)</sup> | $0.64 | June 6, 2035 |

---

<sup>(1)</sup> Options granted on December 15, 2023, vest in five equal annual installments on anniversary of grant.

<sup>(2)</sup> Options granted on December 15, 2023, vest in full, after 20 consecutive trading days on which the closing prices exceeds $40.00 per share.

<sup>(3)</sup> Options granted on January 4, 2021, vests annually over three years.

<sup>(4)</sup> Options granted on December 28, 2020, vests 60% on third anniversary, 20% on fourth, and 20% on fifth anniversary.

<sup>(5)</sup> Options granted on October 2, 2020, vests 60% on third anniversary, 20% on fourth, and 20% on fifth anniversary.

<sup>(6)</sup> Options granted on June 6, 2025, vests 60% on third anniversary, 20% on fourth, and 20% on fifth anniversary.

**Option Exercises and Stock Vested**

None of our executive officers exercised any stock options or acquired stock through vesting of an equity award during the year ended December 31, 2025.

**2025 Director Compensation**

The following table summarizes the compensation paid or accrued by us to our directors that are not Named Executive Officers for the year ended December 31, 2025.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name | Fees Earned or Paid in Cash | Stock Award | Option Awards | Non-Equity Incentive Compensation | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All other Compensation | Total |
| Lyle Berman | $— | $50000 | $— | $— | $— | $— | $50000 |
| David Lazar | $— | $— | $— | $— | $— | $— | $— |
| Chris Ludeman (former Director) | $— | $60000 | $— | $— | $— | $— | $60000 |
| Joe Mueller (former Director) | $— | $50000 | $— | $— | $— | $— | $50000 |
| David Natan | $— | $— | $— | $— | $— | $— | $— |
| Jeffery Rubin | $— | $67471 | $— | $— | $— | $— | $67471 |
| Edward Shensky | $— | $50000 | $— | $— | $— | $— | $50000 |

---

Our non-employee directors did not receive any cash compensation for their service as a non-employee director during the year ended December 31, 2025.

On February 6, 2025, we issued Mr. Lyle Berman 1,267 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Lyle Berman 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Lyle Berman's stock compensation totaled $50,000 for the year ended December 31, 2024.

On February 6, 2025, we issued Mr. Chris Ludeman 1,267 shares of common stock for annual director services and an additional 759 shares of common stock for his service as the audit committee chair. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $16,613. On February 9, 2024, we issued Mr. Ludeman 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Ludeman's stock compensation totaled $56,224 for the year ended December 31, 2024.

On February 6, 2025, we issued Mr. Joe Mueller 1,267 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Mueller 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Mueller's stock compensation totaled $50,000 for the year ended December 31, 2024.

On February 6, 2025, we issued Mr. Edward Shensky 1,233 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Shensky 4,112 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Shensky's stock compensation totaled $50,000 for the year ended December 31, 2024.

On February 6, 2025, we issued Mr. Benno Fisher 1,233 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Shensky 4,112 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Shensky's stock compensation totaled $50,000 for the year ended December 31, 2024.

On February 6, 2025, we issued Mr. Edward Shensky 1,233 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Shensky 4,112 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Shensky's stock compensation totaled $50,000 for the year ended December 31, 2024.

On August 1, 2025, the Company issued an aggregate 64,614 shares of common stock to Jeffery Rubin for annual Director services to be rendered. The aggregate fair value of the common stock was $57,471, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

***2024 Director Compensation***

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On January 10, 2024 we issued Mr. Bradley Berman 1,267 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Bradley Berman 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Bradley Berman's stock compensation totaled $50,000 for the year ended December 31, 2024.

On January 10, 2024 we issued Mr. Lyle Berman 1,267 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Lyle Berman 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Lyle Berman's stock compensation totaled $50,000 for the year ended December 31, 2024.

On January 10, 2024 we issued Mr. Chris Ludeman 1,267 shares of common stock for annual director services and an additional 759 shares of common stock for his service as the audit committee chair. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $16,613. On February 9, 2024, we issued Mr. Ludeman 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Ludeman's stock compensation totaled $56,224 for the year ended December 31, 2024.

On January 10, 2024 we issued Mr. Joe Mueller 1,267 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Mueller 4,083 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Mueller's stock compensation totaled $50,000 for the year ended December 31, 2024.

On January 10, 2024 we issued Mr. Edward Shensky 1,233 shares of common stock for annual director services. The fair value of the common stock based on the closing price of the Company's common stock on the date of grant was $10,389. On February 9, 2024, we issued Mr. Shensky 4,112 shares of common stock for annual director services. The fair value of the common stock was $39,611 based on the closing price of the Company's common stock on the date of grant. Mr. Shensky's stock compensation totaled $50,000 for the year ended December 31, 2024.

Directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our board of directors.

Our Board has not yet recommended policy for board compensation, however stock grants and option awards have been granted to independent directors upon joining the board. The Company has not paid cash fees to directors and has no formal compensation arrangements with its directors. While there is no set policy regarding board compensation, this may be subject to change by the directors or a compensation committee of the Board, if any.

No compensation was recovered for erroneously awarded compensation during the year ended December 31, 2025.

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**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

**Equity Compensation Plan Information**

Effective February 15, 2024, the 2024 Stock Incentive Plan (the "2024 Plan") was approved by the Board and certain stockholders who hold a majority of the aggregate issued and outstanding shares of the Company's voting stock took action by written consent to approve the 2024 Plan. The initial aggregate number of shares of the Company's common stock available for issuance under the 2024 Plan is equal to 3,000,000 shares of common stock including the number of reserved shares not issued or subject to outstanding grants under each of the prior incentive plans as of the effective date.

Effective December 5, 2019, the 2020 Stock Incentive Plan (the "2020 Plan") was approved by our Board. Amongst other things, the 2020 Plan authorized a total of 320,000 shares of our common stock. Subsequently, on October 1, 2020, January 4, 2021 and again on March 19, 2021, the Board approved an increase in the number of shares of common stock reserved under the 2020 Plan, from 320,000 shares to a total of 814,150 shares. On December 15, 2023, our Board approved an amendment to the 2020 Plan (the "2020 Plan Amendment") to effect an increase in the number of shares that remain available for issuance under the 2020 Plan by an additional 2,150,000 shares up to an aggregate of 2,964,150 shares available for issuance under the 2020 Plan.

For the fiscal year ended December 31, 2025, we issued 113,469 stock options pursuant to the 2024 Plan. There were 66,052 options forfeited pursuant to the 2024 Plan during the year ended December 31, 2025, respectively. For the fiscal year ended December 31, 2024, we issued 96,861 stock options pursuant to the 2024 Plan. There were 8,000 options forfeited pursuant to the 2024 Plan during the year ended December 31, 2024, respectively. The following table sets forth certain information regarding our 2024 Plan as of December 31, 2025:

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| | | |
|:---|:---|:---|
| Number of securities to be issued upon exercise of outstanding stock options | Weighted-average exercise price of outstanding stock options | Number of securities remaining available for future issuance under the 2024 Plan |
| 47417 | $7.33 | 2952583 |

---

For the fiscal years ended December 31, 2025 and 2024, we issued 0 and 21,250 stock options pursuant to the 2020 Plan. There were 1,371,640 and 145,467 options cancelled or forfeited pursuant to the 2020 Plan during the years ended December 31, 2025 and 2024, respectively. The following table sets forth certain information regarding our 2020 Plan as of December 31, 2025:

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| | | |
|:---|:---|:---|
| Number of securities to be issued upon exercise of outstanding stock options | Weighted-average exercise price of outstanding stock options | Number of securities remaining available for future issuance under the 2020 Plan |
| 1121957 | $21.00 | 1842193 |

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Effective December 12, 2016, the 2016 Non-Qualified Stock Option Plan (the "2016 Plan") was approved by our Board. Amongst other things, the 2016 Plan authorized a total of 12,712 shares of our common stock. For the fiscal years ended December 31, 2025 and 2024, we issued no stock options pursuant to the 2016 Plan. There were no options cancelled or forfeited pursuant to the 2016 Plan during the years ended December 31, 2025 and 2024. The following table sets forth certain information regarding our 2016 Plan as of December 31, 2025:

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| | | |
|:---|:---|:---|
| Number of securities to be issued upon exercise of outstanding stock options | Weighted-average exercise price of outstanding stock options | Number of securities remaining available for future issuance under the 2016 Plan |
| 1333 | $12.75 | 11379 |

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**Beneficial Ownership Table**

The following table sets forth certain information regarding beneficial ownership of our common stock as of March 26, 2026, based on information obtained from the persons named below or as filed with the SEC, with respect to the beneficial ownership of shares of our common stock by: (i) each person who is known by us to own beneficially more than 5% of our common stock; (ii) each director; (iii) each named executive officer; and (iv) all of our directors and executive officers as a group. March 26, 2026, we had 13,328,469 shares of common stock outstanding.

As used in the table below and elsewhere in this form, the term "beneficial ownership" with respect to a security consists of sole or shared voting power, including the power to vote or direct the vote and/or sole or shared investment power, including the power to dispose or direct the disposition, with respect to the security through any contract, arrangement, understanding, relationship, or otherwise, including a right to acquire such power(s) during the next 60 days following March 26, 2026. Inclusion of shares in the

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table does not, however, constitute an admission that the named stockholder is a direct or indirect beneficial owner of those shares. Unless otherwise indicated, (i) each person or entity named in the table has sole voting power and investment power (or shares that power with that person's spouse) with respect to all shares of capital stock listed as owned by that person or entity, and (ii) the address of each person or entity named in the table is c/o Sow Good Inc., 1440 N Union Bower Rd, Irving, TX 75061.

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| | | |
|:---|:---|:---|
| Name, Title and Address of Beneficial Owner | Number of Shares Beneficially Owned<sup>(1)</sup> | Percentage of Ownership |
| David Lazar, Chief Executive Officer, Director<sup>(2)</sup> | 21000000 | 56.6% |
| Claudia Goldfarb, Chief Operating Officer, Director<sup>(3)</sup> | 3502124 | 25.0% |
| Donna Guy, Chief Financial Officer |  | \* |
| Yisroel Goldberg, Chief Commerical Officer |  | \* |
| Ira Goldfarb, Director<sup>(4)</sup> | 7983733 | 58.1% |
| Lyle Berman, Director<sup>(5)</sup> | 3420360 | 22.2% |
| David Natan, Director |  |  |
| Jeffery Rubin, Director | 122085 | \* |
| Edward Shensky, Director | 59269 | \* |
| **All Directors and Executive Officers as a Group (9 persons)** | 34195572 | 84.2% |
| Benno Fisher<sup>(6)</sup> | 879584 | 6.6% |

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\* Represents beneficial ownership of less than 1%.

<sup>(1)</sup> Except as pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all shares of common stock beneficially owned. The total number of issued and outstanding shares and the total number of shares owned by each person does not include unexercised warrants and stock options owned by parties other than for whom the calculation is presented, and is calculated as of March 26, 2026.

<sup>(2)</sup> Includes 21,000,000 shares underlying the Series AA Preferred Stock.

<sup>(3)</sup> Includes 1,620,973 shares held in the name of S-FDF, LLC, which is an entity that Claudia owns with her spouse, Ira Goldfarb, 556,071 shares held in joint tenancy with her spouse, Ira Goldfarb and 321,500 shares which may be purchased pursuant to stock options exercisable within 60 days of March 26, 2026. Also includes 590,954 shares underlying convertible notes held in the name of Ira and Claudia Goldfarb.

<sup>(4)</sup> Includes 1,620,973 shares held in the name of S-FDF, LLC, which is an entity that Ira owns with his spouse, Claudia Goldfarb, 556,071 shares held in joint tenancy with his spouse, Claudia Goldfarb and 331,500 shares which may be purchased pursuant to stock options exercisable within 60 days of March 26, 2026. Also includes 2,930,160 shares underlying convertible notes held in his name and 590,954 shares underlying convertible notes held in the name of Ira and Claudia Goldfarb. Also includes 25,000 shares which are held by IG Union Bower, for which Mr. Goldfarb is the beneficial owner. Also includes 1,040,000 shares held by the Ira Goldfarb Irrevocable Trust, for which Mr. Goldfarb is a trustee and holds a pecuniary interest, and 17,646 shares held by trusts for the children of Mr. Goldfarb, for which Mr. Goldfarb is trustee.

<sup>(5)</sup> Includes 2,034,833 shares underlying senior convertible promissory notes exercisable at the option of the holder in whole or in part at any time prior to maturity on April 30, 2030. Also includes 25,484 shares which may be purchased pursuant to stock options exercisable within 60 days of March 26, 2026 and 26,250 shares which may be purchased pursuant to warrants exercisable within 60 days of March 26, 2026. Also includes 1,154,782 shares held by the Lyle A. Berman Revocable Trust, and 6,751 shares held by Berman Consulting Corporation, in which Mr. Lyle Berman holds a pecuniary interest. Does not include 124,742 shares held by trusts for the children of Mr. Lyle Berman, for which Mr. Gary Raimist is trustee.

<sup>(6)</sup> Includes 175,000 shares held by Ben J. Fischer JTWROS Laree P. Hulshoff JTWROS.

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

In addition to the compensation arrangements, including employment, termination of employment and change in control arrangements, discussed in the sections titled "Management" and "Executive Compensation," the following is a description of each transaction since January 1, 2023 and each currently proposed transaction in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we have been or are to be a participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount involved exceeded or exceeds $120,000; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any of our directors, executive officers or holders of more than 5% of our outstanding capital stock, or any immediate family member of, or person sharing the household with, any of these individuals or entities, had or will have a direct or indirect material interest.

**Related Party Transactions** 

<u>Asset Sale to Related Party</u>

On December 30, 2025, the Company entered into an Asset Purchase Agreement with Trea Grove, LLC ("Trea Grove"), a related party, pursuant to which the Company sold a significant portion of the assets related to its freeze-dried snacks and candy business, including real property improvements, proprietary and intellectual property rights, transferable governmental licenses and permits, and other specified assets. Trea Grove also assumed certain specified liabilities. Total cash consideration for the transaction was $1,500,000, payable in installments through March 31, 2026, the first $900,000 of which was netted from Mr. Goldfarb's settlement payment, the remaining $600,000 was recorded as a related party receivable. The results of the disposed business have been classified as discontinued operations for all periods presented and in Note 4 - Discontinued Operations.

<u>Distribution Agreement with Related Party</u>

On December 31, 2025, the Company entered into a Distribution Agreement with Trea Grove, LLC ("Trea Grove"), an entity owned by Ira Goldfarb and Claudia Goldfarb, pursuant to which Trea Grove was appointed the exclusive distributor of certain Company products, including fruits, snacks, and candy, through July 31, 2026, unless extended. Under the Distribution Agreement, Trea Grove is responsible for customer communications, order management, billing, collections, shipping, logistics, and fulfillment. Trea Grove will remit to the Company ten percent (10%) of gross receipts from product sales. The agreement provides Trea Grove with a limited license to use the Company's trademarks for distribution and marketing purposes.

Based on the terms of this exclusive Distribution Agreement, the Company has determined that it acts as an agent for purposes of revenue recognition under ASC 606, as the Company does not control the underlying products prior to transfer to end customers, does not have primary responsibility for fulfillment, and does not bear inventory or credit risk. Accordingly, the Company recognizes revenue on a net basis equal to the commission to which it is entitled.

<u>Private Placement of Preferred Stock</u>

On December 31, 2025, the Company entered into a Securities Purchase Agreement with David Lazar pursuant to which the Company agreed to issue and sell, in a private placement, shares of Series AA Convertible Non-Redeemable Preferred Stock and Series AAA Convertible Non-Redeemable Preferred Stock in two closings for aggregate gross proceeds of $6,000,000. The first closing occurred on December 31, 2025 for gross proceeds of $3,000,000. Mr. Lazar was appointed Chief Executive Officer and Chairman of the Board in connection with the transaction.

<u>Convertible Notes Held by Related Parties Amended</u>

During 2025, Claudia Goldfarb and Ira Goldfarb (the "Goldfarbs") held Convertible Notes issued by the Company. In connection with the Securities Purchase Agreement executed on December 31, 2025, the Company and the Ira and Claudia Goldfarb agreed to amend the conversion terms of the notes to provide for a conversion price of $0.35 per share, replacing prior conversion price ranges of approximately $0.62 to $0.63 per share.

An aggregate principal amount of $1,404,914 of notes held by the Ira and Claudia Goldfarb will remain outstanding as a backstop for the Company's operations (the "Backstop Loan"). The Backstop Loan remains a bona fide debt obligation of the Company and is not reduced or otherwise affected by operating losses, restructuring costs, or transaction expenses. On April 15, 2026, the Company and the Ira and Claudia Goldfarb are required to determine, in good faith, what portion of the outstanding balance, if any, will be repaid in cash and what portion, if any, will convert into shares of common stock at the agreed conversion price of $0.35 per share.

On February 12, 2026, the Ira and Claudia exercised the option to convert $289,483 of the outstanding Convertible Notes to 827,095 shares.

<u>Use of Proceeds to Pay Related Party Debt and Settlement with an Officer</u>

A portion of the net proceeds from the preferred stock issuance was used to repay $943,868 of principal and $70,365 in interest outstanding under notes payable to Lyle Berman, a related party.

On December 31, 2025, the Company entered into a settlement agreement and mutual release with Ira Goldfarb, the

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Company's former Executive Chairman, pursuant to which Mr. Goldfarb is entitled to receive a cash settlement payment of $1,250,000, less applicable taxes and withholdings, upon the Company's stockholder meeting, in exchange for waiving his contractual severance rights. Of this amount, $900,000 was retained by the Company and applied as Mr. Goldfarb's down payment toward the purchase price of the manufacturing assets acquired by Trea Grove, LLC, an entity owned by Mr. Goldfarb. Mr. Goldfarb received the remaining $350,000.

<u>Settlement Agreements with Directors</u>

On December 31, 2025, the Company entered into settlement agreements and mutual releases with Joe Mueller and Chris Ludeman, former members of the Board of Directors.

<u>Voting Agreements</u>

On December 31, 2025, the Company entered into voting agreements with Ira Goldfarb, Claudia Goldfarb, and Lyle Berman, pursuant to which such parties agreed, for a two-year period, to vote their shares in favor of proposals recommended by the Company's Board of Directors.

All related-party transactions were approved and authorized by a special committee consisting of disinterested members of the Company's Board of Directors.

<u>Related Party Debt Exchange</u>

On April 28, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with Lyle Berman, Claudia Goldfarb and Ira Goldfarb, as holders of the Company's outstanding promissory notes (the "Outstanding Notes") with an aggregate principal amount of $2,500,000, maturing August 23, 2025 at an interest rates of 8%. Pursuant to the Exchange Agreement, holders exchanged their Outstanding Notes for new senior convertible promissory notes (the "Convertible Notes") in an amount equal to $2,563,890, the aggregate principal amount of the Outstanding Notes, plus accrued and unpaid interest thereunder. In addition, the Company issued Convertible Notes of $239,928 at an interest rate of 6%, for the repayment of the Notes which matured on April 8, 2025. The combined $2,803,818 of Convertible Notes have a maturity date of April 30, 2030 and will pay interest semiannually in arrears on May 1 and November 1 beginning on November 1, 2025. At the Company's election, interest payable on an interest payment date may be added to the principal amount of the Convertible Notes on the applicable interest payment date and will no longer be owed to holders of the Convertible Notes. The Convertible Notes are convertible at the election of the holders, in whole or in part, into shares of common stock based on a price per share equal to the average closing price of such common stock for the five trading days immediately prior to the execution of and entry into the Convertible Notes, with such conversion prices ranging from $0.62 to $0.63. The Convertible Notes are senior in right of payment to all existing and future debt obligations of the Company and will be secured by all existing and future assets of the Company. The Convertible Notes are redeemable by the Company at any time upon ten days' notice and at the option the holders for the principal amount thereof plus interest, beginning on January 1, 2025. The entry into the Exchange Agreement, and the transactions contemplated therein, including entering into the Convertible Notes, was approved unanimously by the disinterested members of the Company's board of directors, as well as the disinterested members of the Company's audit committee, pursuant to the Company's related party transaction policy.

On December 31, 2025, as part of the Securities Purchase Agreement, Ira and Claudia Golfarb's Convertible Notes were amended to change the conversion price to $0.35 per share, and Mr. Berman was repaid $943,868 of principal and $70,365 in interest outstanding related to his Convertible Notes. Ira and Claudia Goldfarb converted 827,095 shares at a price of $0.35 per share on February 12, 2026.

On January 15, 2026, the Company issued 138,888 shares of common stock to each of Lyle Berman and Ira Goldfarb for annual Director services to be rendered. The aggregate fair value of the common stock was $222,221, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On August 1, 2025, the Company issued an aggregate 64,614 shares of common stock to Jeffery Rubin for annual Director services to be rendered. The aggregate fair value of the common stock was $57,471, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On June 5, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, the Company's former Chief Executive Officer and a director and current Chief Operating Officer, and Ira Goldfarb, the Company's former Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on June 4, 2025. Ms. Goldfarb received 167,362 shares valued at $128,868.65. Mr. Goldfarb received 259,070 shares valued at $199,637.89.

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On March 31, 2025, the Board of Directors unanimously approved a revision to the annual compensation of Claudia Goldfarb, the Company's former Chief Executive Officer and a director and current Chief Operating Officer, and Ira Goldfarb, the Company's former Executive Chairman, whereby Ms. Goldfarb and Mr. Goldfarb would receive approximately 28% and 32%, respectively, of their annual cash salary in shares of the Company's common stock under the Sow Good 2024 Stock Incentive Plan in lieu of cash payments. The number of shares issued in each case is calculated with a stock price equal to the most recent closing price of the Company's common stock, on March 31, 2025. Ms. Goldfarb received 158,416 shares valued at $160,000. Mr. Goldfarb received 198,202 shares valued at $200,000.20.

On February 6, 2025, the Company issued an aggregate 82,436 shares of common stock amongst its four non-employee Directors and two advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $230,000, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On February 9, 2024, the Company issued an aggregate 23,534 shares of common stock amongst its five non-employee Directors and three advisory Directors for annual services to be rendered. The aggregate fair value of the common stock was $519,280, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

On January 11, 2024, the Company issued an aggregate 7,060 shares of common stock amongst its five non-employee Directors for annual services to be rendered. The aggregate fair value of the common stock was $56,480, based on the closing price of the Company's common stock on the date of grant. The shares were expensed upon issuance.

<u>Common Stock Sold for Cash</u>

On March 28, 2024, the Company raised $3,738,000 of capital from the sale of 515,597 newly issued shares of common stock at a share price of $7.25 in a private placement exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 4(a)(2) thereof. The stock sales included purchases by the following related parties:

---

| | | |
|:---|:---|:---|
|  | Shares | Amount |
| Ira and Claudia Goldfarb, former Executive Chairman and Chief Operating Officer, respectively | 17242 | $125000 |
| Lyle A. Berman Revocable Trust, former Director | 68966 | 500000 |
| Bradley Berman, former Director | 30000 | 217500 |
| Edward Shensky, Director | 13794 | 100000 |
| Brendon Fischer, former Chief Financial Officer | 8000 | 58000 |
| Cesar J. Gutierrez | 10345 | 75000 |
| Alexandria Gutierrez | 3449 | 25000 |
| Ava Gutierrez | 3449 | 25000 |
| Brett Goldfarb | 3449 | 25000 |
|  | 158694 | $1150500 |

---

*Private Placement Transactions*

<u>Private Placement of Preferred Stock</u>

On December 31, 2025, the Company entered into a Securities Purchase Agreement with David Lazar pursuant to which the Company agreed to issue and sell, in a private placement, shares of Series AA Convertible Non-Redeemable Preferred Stock and Series AAA Convertible Non-Redeemable Preferred Stock in two closings for aggregate gross proceeds of $6,000,000. The first closing occurred on December 31, 2025 for gross proceeds of $3,000,000. Mr. Lazar was appointed Chief Executive Officer and Chairman of the Board in connection with the transaction.

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**ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES**

The Company appointed Urish Popeck & Co., LLC ("UPCO") as the Company's independent public accounting firm to audit the Company's consolidated financial statements for the fiscal years ending December 31, 2025 and 2024, and to review the Company's quarterly consolidated financial statements beginning with the third quarter of the 2023 fiscal year.

*Audit and Non-Audit Fees*

The following table presents fees for professional services rendered by UPCO for the audit of the Company's annual financial statements for the December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | Year Ended December 31, | Year Ended December 31, |
|  | 2025 | 2024 |
| Audit fees<sup>(1)</sup> | $115000 | $107500 |
| Audit related fees | - | - |
| Tax fees | - | - |
| All other fees<sup>(2)</sup> | - | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $115000 | $117500 |

---

<sup>(1)</sup> Audit fees were principally for audit services and work performed in the review of the financial statements included in the Company's quarterly reports on Form 10-Q and the preparation, review and audit of the financial statements included in the Company's annual report on Form 10-K.

<sup>(2)</sup> Support for Form S-1 and S-1/A filings and related services.

*Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of the Independent Registered Public Accounting Firm*

The Audit Committee is responsible for appointing, setting compensation for, and overseeing the work of the Company's independent registered public accounting firm. The Audit Committee has established a policy regarding pre-approval of all audit and permissible non-audit services provided by the independent registered public accounting firm, and all such services were approved by the Audit Committee in the twelve months ended December 31, 2025 and 2024.

The Audit Committee assesses requests for services by the independent registered public accounting firm using several factors. The Audit Committee will consider whether such services are consistent with the Public Company Accounting Oversight Board's and SEC's rules on auditor independence. In addition, the Audit Committee will determine whether the independent registered public accounting firm is best positioned to provide the most effective and efficient service based upon the members' familiarity with the Company's business, people, culture, accounting systems, risk profile and whether the service might enhance the Company's ability to manage or control risk or improve audit quality.

*Report of the Audit Committee*

The primary purpose of the Audit Committee is to assist the Board of Directors in its general oversight of the Company's financial reporting process. The Audit Committee's function is more fully described in its charter, which can be found on the Company's website at www.sowginc.com. The Committee reviews the charter on an annual basis. The Board of Directors has determined that each member of the Committee is independent in accordance with the Nasdaq Capital Market's requirements for independent directors. The Board of Directors has also determined that Chris Ludeman qualifies as an "audit committee financial expert" within the meaning of Item 407(d)(5) of Regulation S-K. Management has the primary responsibility for the financial statements and reporting process. The independent registered public accounting firm is responsible for auditing those financial statements and expressing an opinion on the fairness of the audited financial statements based on the audit conducted in accordance with the standards of the Public Company Accounting Oversight Board.

In connection with the Audit Committee's responsibilities set forth in its charter, the Audit Committee has:

Reviewed and discussed the audited financial statements for the year ended December 31, 2025 with management and UPCO, the Company's independent auditors;

Discussed with UPCO the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board ("PCAOB") and the SEC; and

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Received the written disclosures and the letter from UPCO required by the applicable requirements of the PCAOB regarding UPCO's communications with the audit committee concerning independence, and has discussed with UPCO its independence.

The Audit Committee also considered, as it determined appropriate, tax matters and other areas of financial reporting and the audit process over which the Audit Committee has oversight.

Based on the Audit Committee's review and discussions described above, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for filing with the SEC.

THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

David Natan, *Chairman of the Audit Committee*

Edward Shensky, *Audit Committee Member*

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**PART IV**

**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES**

Exhibits

---

| | |
|:---|:---|
| Exhibit No | Description |
| 2.1 | [<u>Agreement and Plan of Merger by and between Sow Good Inc. and Black Ridge Oil & Gas, Inc., dated January 20, 2021</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821000223/brog_ex0201.htm) (incorporated by reference to Exhibit 2.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 22, 2021) |
| 2.2 | [<u>Articles of Merger by and between Sow Good Inc. and Black Ridge Oil & Gas, Inc., dated January 20, 2021</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821000223/brog_ex0301.htm) (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 22, 2021) |
| 3.1 | [<u>Certificate of Incorporation</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629502.htm) (incorporated by reference to Exhibit 3.3 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 3.1.1 | [<u>Certificate of Amendment of Certificate of Incorporation of Sow Good Inc.</u>](https://www.sec.gov/Archives/edgar/data/1490161/000182912626002845/sowgood_ex3-1.htm) (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 30, 2026) |
| 3.2 | [<u>Amended and Restated Bylaws</u>](https://www.sec.gov/Archives/edgar/data/1490161/000182912626001486/sowgood_ex3-1.htm) (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 19, 2026) |
| 3.3 | [<u>Articles of Conversion</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629500.htm) (incorporated by reference to Exhibit 3.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 3.4 | [<u>Certificate of Conversion</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629501.htm) (incorporated by reference to Exhibit 3.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 3.5 | [<u>Certificate of Designations</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex3_1.htm), Preferences and Rights of Series AA Convertible Non-Redeemable Preferred Stock (incorporated by reference to Exhibit 3.1 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 4.1 | [<u>Form of Common Stock Certificate of Sow Good Inc.</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924009065/ex_643473.htm) (incorporated by reference to Exhibit 4.1 of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 22, 2024) |
| 4.2\* | [<u>Description of Securities</u>](sowg-ex4_2.htm) |
| 4.3 | [<u>Form of Common Stock Warrant</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316823002807/sowgood_ex0401.htm) (incorporated by reference to Exhibit 4.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on May 1, 2023) |
| 4.4 | [<u>Form of Common Stock Warrant</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316823003415/sowgood_ex0401.htm) (incorporated by reference to Exhibit 4.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on May 15, 2023) |
| 4.5 | [<u>Form of Series AA Preferred Stock Certificate</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex4_1.htm) (incorporated by reference to Exhibit 4.1 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |

---

10.1 [<u>Form of Indemnification Agreement with Officers and Directors</u>](https://www.sec.gov/Archives/edgar/data/1490161/000101968713001019/blackridge_10k-ex1016.htm) (incorporated by reference to Exhibit 10.16 of the Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 28, 2013)

10.2 [<u>Amended Executive Employment Agreement, dated December 15, 2023, between Claudia Goldfarb and Sow Good Inc.</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774923035001/ex_609001.htm) (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on December 20, 2023)

10.3 [<u>Amended Executive Employment Agreement, dated December 15, 2023, between Ira Goldfarb and Sow Good Inc.</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774923035001/ex_609002.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on December 20, 2023)

10.4 [<u>Employment Agreement, dated December 1, 2023, between Keith Terreri and Sow Good Inc.</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924001221/ex_614396.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 11, 2024)

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| | |
|:---|:---|
| 10.5 | [<u>Stock Purchase Agreement, dated July 2, 2021, by and among the Company and the Purchasers named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821002849/sowgood_ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on July 7, 2021) |
| 10.6 | [<u>Form of Note and Warrant Purchase Agreement, dated April 8, 2022, by and among Sow Good Inc. and the Purchasers named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316822002665/sowgood_ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on April 14, 2022) |
| 10.7 | [<u>Form of April 2022 Promissory Note</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316822002665/sowgood_ex1002.htm) (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on April 14, 2022) |
| 10.8 | [<u>First Amendment to April 2022 Promissory Note, dated August 23, 2022, by and among Sow Good Inc. and the Required Note Holders named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316822006061/sowgood_ex1003.htm) (incorporated by reference to Exhibit 10.3 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on August 25, 2022) |
| 10.9 | [<u>Form of Note and Warrant Purchase Agreement, dated August 23, 2022, by and among Sow Good Inc. and the Purchasers named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316822006061/sowgood_ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on August 25, 2022) |
| 10.10 | [<u>Form of August 2022 Promissory Note</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316822006061/sowgood_ex1002.htm) (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on August 25, 2022) |
| 10.11 | [<u>Note and Warrant Purchase Agreement, dated April 25, 2023, by and among the Company and the Purchasers named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316823002807/sowgood_ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on May 1, 2023) |
| 10.12 | [<u>Note and Warrant Purchase Agreement, dated May 11, 2023, by and among the Company and the Purchasers named therein</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316823003415/sowgood_ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on May 15, 2023) |
| 10.13# | [<u>2016 Non-Qualified Stock Option Plan</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316816000942/blackridge_ex9901.htm) (incorporated by reference to Exhibit 99.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on December 14, 2016) |
| 10.14# | [<u>Form of Non-Qualified Stock Option Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316816000942/blackridge_ex9902.htm) (incorporated by reference to Exhibit 99.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on December 14, 2016) |
| 10.15# | [<u>2018 Stock Management Incentive Plan</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316818000595/blackridge_8k-ex1001.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 6, 2018) |
| 10.16# | [<u>Form of 2018 Management Incentive Award Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316818000595/blackridge_8k-ex1002.htm) (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 6, 2018) |
| 10.17# | [<u>2020 Stock Incentive Plan</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316820000079/brog_def14c.htm) (incorporated by reference to Annex C of the DEF 14C filed with the Securities and Exchange Commission by Sow Good Inc. on January 10, 2020) |
| 10.18# | [<u>Amendment to 2020 Stock Incentive Plan, dated October 1, 2020</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821001122/sowgood_ex0409.htm) (incorporated by reference to Exhibit 4.9 of the Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 31, 2021) |
| 10.19# | [<u>Amendment to 2020 Stock Incentive Plan, dated January 4, 2021</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821001122/sowgood_ex0410.htm) (incorporated by reference to Exhibit 4.10 of the Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 31, 2021) |
| 10.20# | [<u>Amendment to 2020 Stock Incentive Plan, dated March 19, 2021</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316821001122/sowgood_ex0411.htm) (incorporated by reference to Exhibit 4.11 of the Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 31, 2021) |
| 10.21# | [<u>Amendment to 2020 Stock Incentive Plan, dated January 9, 2023</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924002183/sowg20240124_defr14c.htm) (incorporated by reference from Schedule 14C filed with the Securities and Exchange Commission by Sow Good Inc. on January 25, 2024) |
| 10.22# | [<u>Form of 2020 Incentive Stock Option Grant Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316820000590/blackridge_8k-ex9901.htm) (incorporated by reference to Exhibit 99.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 26, 2020) |

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| | |
|:---|:---|
| 10.23# | [<u>Form of 2020 Non-Qualified Stock Option Grant Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000168316820000590/blackridge_8k-ex9902.htm) (incorporated by reference to Exhibit 99.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 26, 2020) |
| 10.24# | [<u>Sow Good Inc. 2024 Stock Incentive Plan, dated February 14, 2024</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629504.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 10.25# | [<u>Form of 2024 Stock Option Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629505.htm) (incorporated by reference to Exhibit 10.2 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 10.26# | [<u>Form of 2024 Restricted Stock Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629506.htm) (incorporated by reference to Exhibit 10.3 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 10.27# | [<u>Form of 2024 RSU Agreement</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924005227/ex_629507.htm) (incorporated by reference to Exhibit 10.4 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 22, 2024) |
| 10.28 | [<u>Lease Agreement by and between Prologis, Inc. and the Company, dated October 26, 2023</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774923029521/ex_588606.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on October 31, 2023) |
| 10.29 | [<u>Sublease Agreement by and between Papsa Merx S. de R.S. de C.V. and the Company, dated January 19, 2024</u>](https://www.sec.gov/Archives/edgar/data/1490161/000143774924002198/ex_618891.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 25, 2024) |
| 10.30 | [<u>Employment Agreement of Brendon Fischer, dated April 15, 2024</u>](https://www.sec.gov/Archives/edgar/data/1490161/000095017024044509/sowg-ex10_1.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on April 15, 2024) |
| 10.31 | [<u>Industrial Lease by and between the Company and USCIF Pinnacle Building B LLC, dated May 22, 2024</u>](https://www.sec.gov/Archives/edgar/data/1490161/000095017024066060/sowg-ex10_1.htm) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on May 29, 2024 |
| 10.32 | [<u>Securities Purchase Agreement, between Sow Good Inc. and David Lazar, dated December 31, 2025</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_1.htm) (incorporated by reference to Exhibit 10.1 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 10.33 | [<u>Amendment Agreement relating to the Securities Purchase Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000182912626001486/sowgood_ex10-1.htm) (incorporated by reference to Exhibit 10.1 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on February 19, 2026) |
| 10.34 | [<u>Asset Purchase Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_2.htm) (incorporated by reference to Exhibit 10.2 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 10.35 | [<u>Distribution Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_3.htm), by and between Sow Good Inc. and Trea Grove, LLC (incorporated by reference to Exhibit 10.3 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 10.36 | [<u>Form of Voting Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_4.htm) (incorporated by reference to Exhibit 10.4 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 10.37 | [<u>Form of Settlement Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_5.htm) and General and Mutual Release (incorporated by reference to Exhibit 10.5 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 10.38 | [<u>Form of Settlement Agreement</u>](https://www.sec.gov/Archives/edgar/data/0001490161/000119312526001510/sowg-ex10_6.htm) and General and Mutual Release (incorporated by reference to Exhibit 10.6 of Form 8-K filed with the Securities and Exchange Commission by Sow Good Inc. on January 5, 2026) |
| 19.1\* | [<u>Sow Good Insider Trading Policy</u>](https://www.sec.gov/Archives/edgar/data/1490161/000095017025045749/sowg-ex19_1.htm) (incorporated by reference to Exhibit 19.1 of the Form 10-K filed with the Securities and Exchange Commission by Sow Good Inc. on March 27, 2025) |
| 23.1\* | [<u>Consent of Urish Popeck & Co., LLC Independent Registered Public Accounting Firm</u>](sowg-ex23_1.htm) |
| 24.1\* | [<u>Powers of Attorney</u>](#power_of_attorney) |

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| | |
|:---|:---|
| 31.1\* | [<u>Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)</u>](sowg-ex31_1.htm) |
| 31.2\* | [<u>Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)</u>](sowg-ex31_2.htm) |
| 32.1\*\* | [<u>Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](sowg-ex32_1.htm) |
| 32.2\*\* | [<u>Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](sowg-ex32_2.htm) |
| 97.1\* | [<u>Policy for Recovery of Erroneously Awarded Incentive Compensation</u>](sowg-ex97_1.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL Document and included in Exhibit 101) |

---

\* Filed herewith.

\*\* The certifications attached as Exhibit 32.1 accompanying this Annual Report on Form 10-K, are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of the Registrant under the <u>Securities Act of 1933</u>, as amended, or the <u>Securities Exchange Act of 1934</u>, as amended, whether made before or after the date of this Annual Report on Form 10-K, irrespective of any general incorporation language contained in such filing

# Indicates management contract or compensatory plan.

**ITEM 16. Form 10**–**K Summary.**

None.

------

[**<u>**Table of Contents**</u>**](#toc_page)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | SOW GOOD INC. | SOW GOOD INC. |
| Date: March 31, 2026 | By: | */s/ David Lazar* |
|  |  | David Lazar, Chief Executive Officer (Principal Executive Officer) |
| Date: March 31, 2026 | By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*/s/ Donna Guy* |
|  |  | Donna Guy, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |

---

------

[**<u>**Table of Contents**</u>**](#toc_page)

**Exhibit 24.1**

POWER OF ATTORNEY

Each of the undersigned members of the Board of Directors of SOW GOOD INC., whose signature appears below hereby constitutes and appoints Claudia Goldfarb, such person's true and lawful attorney-in-fact and agent with full power of substitution and resubstitution for such person and in such name, place and stead, in any and all capacities, to sign the Form 10-K for the year ended December 31, 2025 (the "Annual Report") of SOW GOOD INC. and any or all amendments to such Annual Report, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as such person might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, and Exchange Act of 1934, as amended, this Annual Report on Form 10-K has been signed by the following persons in the capacities indicated on the dates indicated.

---

| | | |
|:---|:---|:---|
| By: | */s/ David Lazar* | Dated: March 31, 2026 |
|  | David Lazar, Chief Executive Officer, Director |  |
|  | (Principal Executive Officer) |  |
| By: | */s/ Donna Guy* | Dated: March 31, 2026 |
|  | Donna Guy, Chief Financial Officer |  |
|  | (Principal Financial Officer and Principal Accounting Officer) |  |
| By: | */s/ Claudia Goldfarb* | Dated: March 31, 2026 |
|  | Claudia Goldfarb, Chief Operating Officer, Director |  |
| By: | /s/ *Yisroel Goldberg* | Dated: March 31, 2026 |
|  | Yisroel Goldberg, Chief Commercial Officer  |  |
| By: | */s/ Lyle Berman* | Dated: March 31, 2026 |
|  | Lyle Berman, Director |  |
| By: | /*s/ Ira Goldfarb* | Dated: March 31, 2026 |
|  | Ira Goldfarb, Director |  |
| By: | */s/ David Natan* | Dated: March 31, 2026 |
|  | David Natan, Director |  |
| By: | */s/ Jeffery Edward Rubin* | Dated: March 31, 2026 |
|  | Jeffery Edward Rubin, Director |  |
| By: | */s/ Edward Shensky* | Dated: March 31, 2026 |
|  | Edward Shensky, Director |  |

---

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## Exhibit 4.2

**Exhibit 4.2**

**DESCRIPTION OF SECURITIES**

**General**

Our Articles of Incorporation, as amended on March 30, 2026, authorize us to issue up to 1,020,000,000 shares of capital stock, consisting of 1,000,000,000 shares of common stock, par value $0.001 per share, and 20,000,000 shares of preferred stock, par value $0.001 per share. We had 12,223,599 shares of common stock and 1,500,000 shares of preferred stock were issued and outstanding as of December 31, 2025. Our Articles of Incorporation provide that the affirmative vote of the holders of a majority of the then-outstanding shares of common stock is required to increase or decrease number of authorized shares, as described below.

**Common Stock** 

Holders of common stock are entitled to one vote per share on all matters submitted to a vote of the stockholders. Our holders of common stock do not have cumulative voting rights. Holders of common stock are entitled to receive ratably such dividends as may be declared by our Board of Directors (the "Board") out of funds legally available therefor, which may be paid in cash, property, or in shares of the Company's capital stock. Upon liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, the holders of common stock are entitled to receive their ratable share of the net assets of the Company legally available for distribution after payment of all debts and other liabilities. There are no conversion, preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable to the common stock.

**Dividends**

We have not declared or paid any dividends on our common stock since our inception and do not anticipate paying dividends for the foreseeable future. The payment of dividends will be subject to the discretion of our Board and will depend, among other things, upon our earnings, our capital requirements, our financial condition, and other relevant factors. We intend to reinvest any earnings in the development and expansion of our business. Any cash dividends in the future to common stockholders will be payable when, as and if declared by our Board, based upon the board's assessment of our financial condition and performance, earnings, need for funds, capital requirements, prior claims of preferred stock to the extent issued and outstanding, and other factors, including income tax consequences, restrictions and applicable laws. There can be no assurance, therefore, that any dividends on our common stock will ever be paid.

**Preferred Stock**

**<u>Series AA Convertible Non-Redeemable Preferred Stock</u>**

*Designation and Authorized Shares*

The Series AA Convertible Non-Redeemable Preferred Stock (the "Series AA Preferred Stock") consists of 1,500,000 authorized shares, par value $0.001 per share. As of March 30, 2026, there are 1,500,000 shares of Series AA Preferred Stock outstanding. Each share has a stated value of $2.00 (the "Stated Value"), subject to adjustment in the event of any stock dividend, stock split, combination, reorganization, recapitalization, reclassification, or other similar event.

Any shares of Series AA Preferred Stock converted, redeemed, purchased, or otherwise acquired by the Company shall automatically be retired and canceled promptly after acquisition, become authorized but unissued shares of Preferred Stock, and may not be reissued as shares of Series AA Preferred Stock. Such shares may, however, be reissued as part of a new series of any class or series of Preferred Stock in accordance with the Certificate of Incorporation.

------

*Dividend Rights*

Holders of the Series AA Preferred Stock are entitled to receive "Participating Dividends" if the Board declares a dividend or other distribution payable upon the outstanding shares of common stock (whether in cash, in kind, or in other securities or property, other than dividends payable in shares of common stock), holders of outstanding Series AA Preferred Stock shall be entitled to receive the amount of dividends as would be payable in respect of the number of shares of common stock into which the Series AA Preferred Stock could be converted, without regard to any restrictions on conversion, with such number determined as of the record date for the common stock dividend (or, if no such record date is established, as of the date of such dividend). Participating Dividends are payable at the same time as and when dividends on the common stock are paid to common stock holders.

There are no stated fixed or cumulative dividend rights. Dividends on the Series AA Preferred Stock are contingent on the Board declaring dividends on the common stock.

*Voting Rights*

Until the Series AA Preferred Stock becomes convertible pursuant to Section 6 of the Certificate of Designations, or except as otherwise required by the DGCL or other applicable law or as provided in the Certificate of Designations, holders of Series AA Preferred Stock are not entitled to vote (or render written consents) on any matter submitted to a vote of the holders of common stock.

However, so long as any shares of Series AA Preferred Stock are outstanding, the Company may not, without first obtaining the approval of the holders of a majority of the then-outstanding shares of Series AA Preferred Stock (the "Requisite Holders"): (i) alter, repeal, or change the powers, preferences, or rights of the Series AA Preferred Stock, or amend the Certificate of Designations in a manner that adversely affects the Series AA Preferred Stock; (ii) supplement, amend, restate, repeal, or waive any provision of the Certificate of Incorporation or Bylaws, or file any certificate of amendment or certificate of designation, if such action would adversely alter or change the preferences, rights, privileges, or powers of the Series AA Preferred Stock (whether by amendment, merger, consolidation, recapitalization, reclassification, conversion, or otherwise); (iii) increase or decrease (other than by conversion) the number of authorized shares of Series AA Preferred Stock; or (iv) enter into any agreement with respect to any of the foregoing.

*Liquidation Rights*

The Series AA Preferred Stock ranks (i) senior to all common stock; (ii) senior to any class or series of capital stock hereafter created and expressly ranking junior to the Series AA Preferred Stock ("Junior Securities"); and (iii) on parity with any class or series of capital stock hereafter created and expressly ranking on parity with the Series AA Preferred Stock ("Parity Securities"), in each case as to distributions of assets upon liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary (each, a "Dissolution").

Upon a Dissolution, each holder of Series AA Preferred Stock is entitled to receive, prior and in preference to any distributions to holders of common stock and Junior Securities, and pari passu with any distribution to holders of Parity Securities, an amount per share equal to the greater of: (i) the Stated Value, plus any dividends declared but unpaid on such share, or (ii) such amount per share as would have been payable had all shares of Series AA Preferred Stock been converted into common stock (without regard to any restrictions on conversion) immediately prior to such Dissolution. If the Company's assets are insufficient to pay such amounts in full, holders of Series AA Preferred Stock and Parity Securities shall share in the available assets pro rata in proportion to the respective amounts otherwise payable on their shares.

For the avoidance of doubt, a change in control, merger, consolidation, or sale of all or substantially all of the Company's assets shall not, in and of itself, constitute a Dissolution.

*Conversion Rights*

------

Each holder of Series AA Preferred Stock has the right, at its option, at any time and from time to time, after (A) stockholder approval of an increase in the number of authorized shares of common stock sufficient to permit full conversion of the Series AA Preferred Stock and any outstanding Series AAA Preferred Stock and (B) stockholder approval of the conversion itself in accordance with Nasdaq listing rules (collectively, the "Stockholder Approvals"), and after the Company files a corresponding amendment to its Certificate of Incorporation (the "Charter Amendment"), to convert all or any portion of its shares of Series AA Preferred Stock into fully paid and non-assessable shares of common stock. The number of shares of common stock issuable upon conversion equals the Stated Value divided by the Conversion Price in effect at the time of conversion. The initial Conversion Price is $0.14286 per share, subject to adjustment.

Fractional shares of common stock will not be issued upon conversion. In lieu of any fractional share, the Company shall pay a cash adjustment equal to such fraction multiplied by the Conversion Price.

*<u>Conversion Price Adjustments</u>*: The Conversion Price is subject to adjustment in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock subdivisions: If the number of shares of common stock outstanding is increased by a stock split or subdivision, the Conversion Price shall be proportionately decreased so that the number of shares issuable upon conversion increases proportionately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock combinations: If the number of outstanding shares of common stock is decreased by a combination, the Conversion Price shall be proportionately increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock dividends: If the Company pays a dividend in additional shares of common stock, the Conversion Price shall be decreased by multiplying it by a fraction, the numerator of which is the number of shares outstanding before such event and the denominator of which is the number of shares outstanding after giving effect to such dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reorganization, reclassification, merger, or consolidation: Provision shall be made so that holders of Series AA Preferred Stock receive upon conversion the kind and amount of stock, cash, or other property they would have received had they converted immediately prior to such event.

Following receipt of the Stockholder Approvals and filing of the Charter Amendment, the Company is required to reserve and keep available, free from preemptive rights, sufficient authorized but unissued shares of common stock (or common stock held in treasury) to permit conversion of all outstanding shares of Series AA Preferred Stock.

The Company is responsible for paying all original issuance, transfer, stamp, and similar taxes arising on conversion, except for any taxes payable by reason of a transfer of the common stock to a person other than the holder of the Series AA Preferred Stock being converted.

*Redemption Rights*

The Series AA Preferred Stock is designated as non-redeemable. The Certificate of Designations does not provide for any optional or mandatory redemption by the Company, nor any holder retraction right.

*Preemptive Rights*

The Company is required to reserve shares of common stock for issuance upon conversion free from preemptive rights. The Certificate of Designations does not otherwise provide any preemptive rights to holders of the Series AA Preferred Stock.

*Waiver*

------

Any provision of the Certificate of Designations may be waived on behalf of all holders of Series AA Preferred Stock by the affirmative written consent or vote of the Requisite Holders (i.e., holders of a majority of the then-outstanding shares of Series AA Preferred Stock).

**<u>Series AAA Convertible Redeemable Preferred Stock</u>**

*Designation and Authorized Shares*

The Series AAA Convertible Redeemable Preferred Stock (the "Series AAA Preferred Stock") has a par value of $0.001 per share and consists of 1,500,000 authorized shares, par value $0.001 per share. As of March 30, 2026, there are 0 shares of Series AAA Preferred Stock outstanding.

Each share has a stated value of $2.00 per share (the "Stated Value"), subject to adjustment in the event of any stock dividend, stock split, combination, reorganization, recapitalization, reclassification, or other similar event.

Any shares of Series AAA Preferred Stock converted, redeemed, purchased, or otherwise acquired by the Company shall automatically be retired and canceled promptly after acquisition, become authorized but unissued shares of Preferred Stock, and may not be reissued as shares of Series AAA Preferred Stock. Such shares may, however, be reissued as part of a new series of any class or series of Preferred Stock in accordance with the Certificate of Incorporation.

*Dividend Rights*

Holders of the Series AAA Preferred Stock are entitled to receive "Participating Dividends" — that is, if the Board declares a dividend or other distribution payable upon the outstanding shares of common stock (whether in cash, in kind, or in other securities or property, other than dividends payable in shares of common stock), holders of the then-outstanding shares of Series AAA Preferred Stock shall be entitled to receive the amount of dividends as would be payable in respect of the number of shares of common stock into which the Series AAA Preferred Stock could be converted, without regard to any restrictions on conversion, with such number determined as of the record date for the common stock dividend (or, if no such record date is established, as of the date of such dividend). Participating Dividends are payable at the same time as and when dividends on the common stock are paid.

There are no stated fixed or cumulative dividend rights. Dividends on the Series AAA Preferred Stock are contingent on the Board declaring dividends on the common stock.

*Voting Rights*

Until the Series AAA Preferred Stock becomes convertible pursuant to Section 6 of the Certificate of Designations, or except as otherwise required by the DGCL or other applicable law or as provided in the Certificate of Designations, holders of Series AAA Preferred Stock are not entitled to vote (or render written consents) on any matter submitted to a vote of the holders of common stock.

However, so long as any shares of Series AAA Preferred Stock are outstanding, the Company may not, without first obtaining the approval of the holders of a majority of the then-outstanding shares of Series AAA Preferred Stock (the "Requisite Holders"): (i) alter, repeal, or change the powers, preferences, or rights of the Series AAA Preferred Stock, or amend the Certificate of Designations in a manner that adversely affects the Series AAA Preferred Stock; (ii) supplement, amend, restate, repeal, or waive any provision of the Certificate of Incorporation or Bylaws, or file any certificate of amendment or certificate of designation, if such action would adversely alter or change the preferences, rights, privileges, or powers of the Series AAA Preferred Stock (whether by amendment, merger, consolidation, recapitalization, reclassification, conversion, or otherwise); (iii) increase or decrease (other than by conversion) the number of authorized shares of Series AAA Preferred Stock; or (iv) enter into any agreement with respect to any of the foregoing.

*Liquidation Rights*

------

The Series AAA Preferred Stock ranks (i) senior to all common stock; (ii) senior to any class or series of capital stock hereafter created and expressly ranking junior to the Series AAA Preferred Stock ("Junior Securities"); and (iii) on parity with any class or series of capital stock hereafter created and expressly ranking on parity with the Series AAA Preferred Stock ("Parity Securities"), in each case as to distributions of assets upon liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary (each, a "Dissolution").

Upon a Dissolution, each holder of Series AAA Preferred Stock is entitled to receive, prior and in preference to any distributions to holders of common stock and Junior Securities, and pari passu with any distribution to holders of Parity Securities, an amount per share equal to the greater of: (i) the Stated Value, plus any dividends declared but unpaid on such share, or (ii) such amount per share as would have been payable had all shares of Series AAA Preferred Stock been converted into common stock (without regard to any restrictions on conversion) immediately prior to such Dissolution. If the Company's assets are insufficient to pay such amounts in full, holders of Series AAA Preferred Stock and Parity Securities shall share in the available assets pro rata in proportion to the respective amounts otherwise payable on their shares.

For the avoidance of doubt, a change in control, merger, consolidation, or sale of all or substantially all of the Company's assets shall not, in and of itself, constitute a Dissolution.

*Conversion Rights*

Each holder of Series AAA Preferred Stock has the right, at its option, at any time and from time to time, after (A) stockholder approval of an increase in the number of authorized shares of common stock sufficient to permit full conversion of the Series AAA Preferred Stock and any outstanding Series AA Preferred Stock and (B) stockholder approval of the conversion itself in accordance with Nasdaq listing rules (collectively, the "Stockholder Approvals"), and after the Company files a corresponding Charter Amendment, to convert all or any portion of its shares of Series AAA Preferred Stock into fully paid and non-assessable shares of common stock. The number of shares of common stock issuable upon conversion equals the Stated Value divided by the Conversion Price in effect at the time of conversion.

The Conversion Price is subject to adjustment from time to time in accordance with the Certificate of Designations. The initial Conversion Price is The initial Conversion Price is $0.008 per share, subject to adjustment.

Fractional shares of common stock will not be issued upon conversion. In lieu of any fractional share, the Company shall pay a cash adjustment equal to such fraction multiplied by the Conversion Price.

*<u>Beneficial Ownership Limitation</u>*: Notwithstanding the general conversion right, the Company shall not effect, and no holder shall have the right to effect, any conversion of Series AAA Preferred Stock to the extent that, after giving effect to such conversion, the holder (together with any affiliate and any other person acting as a group with the holder or its affiliates) would beneficially own in excess of 4.99% of the number of shares of common stock outstanding immediately after giving effect to such conversion (the "Beneficial Ownership Limitation"). The Board may waive or increase the Beneficial Ownership Limitation with respect to any holder at any time in its sole discretion.

*<u>Conversion Price Adjustments</u>*: The Conversion Price is subject to adjustment in the following circumstances:

Stock subdivisions: If the number of shares of common stock outstanding is increased by a stock split or subdivision, the Conversion Price shall be proportionately decreased so that the number of shares issuable upon conversion increases proportionately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock combinations: If the number of outstanding shares of common stock is decreased by a combination, the Conversion Price shall be proportionately increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock dividends: If the Company pays a dividend in additional shares of common stock, the Conversion Price shall be decreased by multiplying it by a fraction, the numerator of which is the number of shares outstanding before such event and the denominator of which is the number of shares outstanding after giving effect to such dividend.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reorganization, reclassification, merger, or consolidation: Provision shall be made so that holders of Series AAA Preferred Stock receive upon conversion the kind and amount of stock, cash, or other property they would have received had they converted immediately prior to such event.

Following receipt of the Stockholder Approvals and filing of the Charter Amendment, the Company is required to reserve and keep available, free from preemptive rights, sufficient authorized but unissued shares of common stock (or common stock held in treasury) to permit conversion of all outstanding shares of Series AAA Preferred Stock.

The Company is responsible for paying all original issuance, transfer, stamp, and similar taxes arising on conversion, except for any taxes payable by reason of a transfer of the common stock to a person other than the holder of the Series AAA Preferred Stock being converted.

*Redemption Rights*

The Series AAA Preferred Stock is subject to both optional Company redemption and a holder retraction right.

*<u>Company's Optional Redemption</u>*: The "Redemption Price" is defined as $200.00 per share of Series AAA Preferred Stock (subject to adjustment for stock dividends, stock splits, combinations, reorganizations, recapitalizations, reclassifications, or similar events), plus any declared but unpaid dividends. Subject to Section 160 of the DGCL and the availability of legally available funds, the Company may, at any time, redeem all or any portion of the outstanding shares of Series AAA Preferred Stock at the Redemption Price upon not less than ten (10) Business Days' prior written notice to the holders.

*<u>Holder Retraction Right</u>*: At any time on or after the issuance date of the Series AAA Preferred Stock, any holder may require the Company to redeem all or any portion of such holder's shares of Series AAA Preferred Stock at the Redemption Price by delivering written notice to the Company.

*<u>Payment Mechanics</u>*: The Redemption Price is payable in cash; provided that the holder may elect, to the extent permitted by the DGCL and applicable stock exchange rules, to satisfy the Redemption Price in shares of common stock valued at the volume-weighted average price over the sixty (60) Trading Days immediately preceding the redemption date.

*<u>Effect of Redemption</u>*: Upon payment of the Redemption Price, the redeemed shares shall be cancelled, retired, and shall not be reissued.

As noted above, the Redemption Price is $200.00 per share (subject to adjustment for stock dividends, splits, combinations, and similar events), plus any declared but unpaid dividends.

*Preemptive Rights*

The Company is required to reserve shares of common stock for issuance upon conversion free from preemptive rights. The Certificate of Designations does not otherwise provide any preemptive rights to holders of the Series AAA Preferred Stock.

*Waiver*

Any provision of the Certificate of Designations may be waived on behalf of all holders of Series AAA Preferred Stock by the affirmative written consent or vote of the Requisite Holders (i.e., holders of a majority of the then-outstanding shares of Series AAA Preferred Stock).

**Number of Directors; Vacancies; Removal**

------

Our Amended and Restated Bylaws (the "Bylaws") provide that only our Board may increase or decrease the number of directors. Any vacancy on the Board may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum of the Board. A director elected to fill a vacancy shall be elected for the unexpired term of his predecessor in office, and shall hold such office until the next annual election and until his successor is duly elected and qualified. Any directorship to be filled by reason of an increase in the number of directors shall be filled by the affirmative vote of a majority of the directors then in office or by an election at an annual meeting, or at a special meeting of stockholders called for that purpose. A director chosen to fill a position resulting from an increase in the number of directors shall hold office only until the next election of directors by the stockholder.

Our Bylaws provide that any director or directors of the corporation may be removed from office at any time, but only for cause and by the vote or written consent of stockholders representing not less than a majority of the issued and outstanding capital stock entitled to voting power.

**Authorized Shares**

The affirmative vote of the holders of a majority of the then-outstanding shares of common stock is required to increase or decrease the aggregate number of shares or the number of shares of any class we have authority to issue. Issuance of such a new class or series could, depending upon the terms of the class or series, delay, defer, or prevent a change of control of the Company.

**Advance Notice Requirements for Stockholder Proposals and Director Nominations**

Our Bylaws contain advance notice provisions that a stockholder must follow if it intends to bring business proposals or director nominations, as applicable, before a meeting of stockholders. These provisions may preclude our stockholders from bringing matters before the annual meeting of stockholders or from making nominations at the annual meeting of stockholders.

**No Cumulative Voting**

Holders of our common shares do not have cumulative voting rights in the election of directors. The absence of cumulative voting may make it more difficult for stockholders owning less than a majority of our common shares to elect any directors to our Board.

**Anti-Takeover Provisions**

Because our stockholders do not have cumulative voting rights, stockholders holding a majority of the voting power of our shares of common stock will be able to elect all of our directors. A special meeting of stockholders may only be called by the Chairman of the Board, the Chief Executive Officer or the Executive Chairman of the Company or a majority of our Board. Our Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our board of directors. Our Certificate of Incorporation and Bylaws grant the Board the power to adopt, amend or repeal the Bylaws.

The foregoing provisions will make it more difficult for another party to obtain control of us by replacing our board of directors. Since our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.

These provisions are intended to: facilitate our continued product innovation and the risk-taking that it requires; permit us to continue to prioritize our long-term goals rather than short-term results; and enhance the likelihood of continued stability in the composition of our board of directors and its policies. These provisions are also designed to reduce our vulnerability to an unsolicited acquisition attempt and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making

------

tender offers for our shares and may have the effect of deterring hostile takeovers or delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts.

**Choice of Forum**

Our Articles of Incorporation provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware is the sole and exclusive forum for any stockholder (including a beneficial owner of stock) to bring: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of, or claim based on, breach of a fiduciary duty owed by any of our directors, officers, employees, agents or stockholders to us or to our stockholders; (iii) any action asserting a claim against us arising pursuant to any provision of the DGCL, the Charter or the Bylaws; (iv) any action to interpret, apply, enforce or determine the validity of the Charter or Bylaws; or (v) any action asserting a claim against us governed by the internal affairs doctrine. Our Charter also provides the, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and any claims for which federal courts have exclusive jurisdiction.

**Limitations on Liability and Indemnification of Officers and Directors**

Our Articles of Incorporation provide that no director or officer will be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director or officer, except as required by applicable law, as in effect from time to time. Currently, Delaware law requires that liability be imposed for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any breach of the director's duty of loyalty to our company or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any act or omission not in good faith or which involved intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any transaction from which the director derived an improper personal benefit.

As a result, neither we nor our stockholders have the right, through stockholders' derivative suits on our behalf, to recover monetary damages against a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior, except in the situations described above.

Our Bylaws provide that, to the fullest extent permitted by law, we will indemnify any officer or director of our company against all damages, claims and liabilities arising out of the fact that the person is or was our director or officer, or served any other enterprise at our request as a director, officer or trustee. We will reimburse the expenses, including attorneys' fees, incurred by a person indemnified by this provision. Amending this provision will not reduce our indemnification obligations relating to actions taken before an amendment.

**Transfer Agent and Registrar**

The transfer agent and registrar for our common stock is Empire Stock Transfer.

**Trading Symbol and Market**

Our common stock is quoted on the Nasdaq Capital Market under the symbol "SOWG."

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## Exhibit 19.1

![img262141121_0.jpg](img262141121_0.jpg)

<br>INSIDER TRADING POLICY

Effective as of May 1, 2024

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**Table of Contents**

Page

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. | All Employees, Officers, Directors and their Family Members and Affiliates Are Subject to this Policy | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2. | Trading in Company Securities While in Possession of Material Nonpublic Information is Prohibited | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. | Trades May Occur Only During Open Trading Windows | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4. | Trading in Other Public Companies' Securities While in Possession of Material Nonpublic Information is Prohibited | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5. | Certain Types of Transactions Are Prohibited. | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6. | Sharing Material Nonpublic Information is Prohibited. | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7. | Recommendations Regarding Trading in Company Securities are Prohibited | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8. | Only Designated Company Spokespersons Are Authorized to Disclose Material Nonpublic Information | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9. | Other Transactions in Company Securities. | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10. | Directors, Officers and Certain Named Employees Are Subject to Additional Restrictions. | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11. | Policy Violations Must Be Reported | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12. | Insider Trading Compliance Officers | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13. | Definition of "Material Nonpublic Information" | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14. | The Company May Suspend All Trading Activities by Employees | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15. | Violations of Insider Trading Laws or This Policy Can Result in Severe Consequences. | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16. | This Policy Is Subject to Revision. | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 17. | All Persons Must Acknowledge Their Agreement to Comply with This Policy | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APPENDIX I Special Restrictions on Transactions in Company Securities by Insiders** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APPENDIX I Special Restrictions on Transactions in Company Securities by Insiders** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APPENDIX I Special Restrictions on Transactions in Company Securities by Insiders** |

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**Section 1. All Employees, Officers, Directors and their Family Members and Affiliates Are Subject to this Policy**. This Insider Trading Policy ("***Policy***") applies to all employees, directors, officers, and consultants of Sow Good Inc., a Delaware corporation (the "***Company***"), their family members and entities over which such individuals have or share voting or investment control. This Policy also applies to any other person who receives material nonpublic information from any Company insider or is otherwise designated by the Compliance Officer. For purposes of this Policy, "***family members***" include people who live with you, or are financially dependent on you, and also include those whose transactions in securities are directed by you or are subject to your influence or control.

This Policy continues to apply following termination of employment or other relationship with the Company until after the second trading day that any material non-public information in your possession has become public or is no longer material. Each employee, officer, consultant and director is *<u>personally responsible</u>* for the actions of their family members and other persons with whom they have a relationship who are subject to this Policy, including any pre-clearances required.

**Section 2. Trading in Company Securities While in Possession of Material Nonpublic Information is Prohibited**. The purchase or sale of securities by any person who possesses material nonpublic information is a violation of U.S. federal and state securities laws. It is important to avoid the *appearance*, as well as the fact, of trading based on material nonpublic information.

No person subject to this Policy who is aware of material nonpublic information relating to the Company may, directly or indirectly (through family members, other persons, entities or otherwise):

 buy, sell, or otherwise trade in the securities of the Company,

 advise anyone else to buy, sell, or otherwise trade in the securities of the Company; or

 otherwise engage in any action to take personal advantage of that information.

For purposes of this Policy, the term "***trade***" includes any transaction in Company securities, including gifts and pledges or any hedging or derivative transactions.

Each person subject to this Policy may, from time to time, be required to forego a proposed transaction even if he or she planned to make the transaction before learning material nonpublic information and even though the person may suffer economic loss or forego anticipated profit by waiting.

**Section 3. Trades May Occur Only During Open Trading Windows**. Directors, officers and employees of the Company are only permitted to sell Company securities during an open "***trading window***." The trading window generally opens following the close of trading on the second full trading day following the public issuance of the Company's earnings release for the most recent fiscal quarter and closes at the close of trading on the last day of the second month of a fiscal quarter. The Compliance Officer may advise directors, officers and employees of the

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Company when the trading window opens and closes; provided that directors, officers and employees of the Company are charged with the knowledge of and responsible for their own compliance with this Policy in every situation. In addition to these regularly scheduled "closed" window periods, the Company may impose a special "blackout" period at its discretion due to the existence of material nonpublic information, as provided below. Even during an otherwise open trading window, directors, officers and employees of the Company are prohibited from trading in Company securities while in possession of material nonpublic information. Because this prohibition applies to actual trades, please note that merely placing a standing, limit or similar order at a time when you do not have material nonpublic information will not excuse a subsequent trade pursuant to that order fulfilled at a time when you do have material nonpublic information (unless the trade occurs pursuant to a Rule 10b5-1 trading plan).

**Section 4. Trading in Other Public Companies' Securities While in Possession of Material Nonpublic Information is Prohibited**. No person subject to this Policy who possesses material nonpublic information relating to other publicly traded companies, including our vendors, customers and partners, as a result of employment with the Company or the performance of services on our behalf, may, directly or indirectly (through family members, other persons, entities or otherwise) buy or sell securities of such companies, or advise anyone else to do so, or otherwise engage in any action to take personal advantage of that information.

**Section 5. Certain Types of Transactions Are Prohibited.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***Short Sales***. Short sales of Company securities are prohibited, as short sales evidence the seller's expectation that Company securities will decline in value, signal to the market that the seller has no confidence in the Company or its short-term prospects, and may reduce the seller's incentive to improve Company performance. In addition, Section 16(c) of the Securities Exchange Act of 1934, as amended (the "***Exchange Act***"), prohibits directors and officers from engaging in short sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ***Publicly Traded Options***. Transactions in puts, calls or other derivative securities involving Company stock are prohibited, as any such transaction is, in effect, a bet on the short-term movement of the Company's stock, creates the appearance of trading based on inside information, and may focus attention on short-term performance at the expense of Company long-term objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. ***Hedging Transactions***. Hedging or monetization transactions (including but not limited to zero-cost collars, prepaid variable forwards, equity swaps, puts, calls, collars, forwards and other derivative instruments) are prohibited, as such transactions allow you to continue to own Company securities without the full risks and rewards of ownership and as a result, you may not have the same objectives as other stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. ***Margin Accounts and Pledges***. Directors, officers and other employees are prohibited from holding Company securities in a margin account or pledging Company securities as collateral for a loan, as such securities may be traded without your consent (for failing to meet a margin call or if you default on the loan) at a time when you possess material nonpublic information or otherwise are not permitted to trade. However, in the case of a pledge to collateralize a loan unrelated to securities trading, such as a home loan,

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the Compliance Officer may pre-clear the proposed pledge in limited circumstances upon concluding the transaction does not misuse material nonpublic information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. ***Short-Term Trading***. Executive officers and directors who purchase Company securities in the open market may not sell any Company securities of the same class during the six months following the purchase (or vice versa), as short-term trading of the Company's securities is not permitted under the Exchange Act, may be distracting and may unduly focus the person on short-term stock market performance, instead of the Company's long-term business objectives, and may result in the disgorgement of any short swing profits.

**Section 6. Sharing Material Nonpublic Information is Prohibited**. No person subject to this Policy who possesses material nonpublic information relating to the Company or any other publicly traded companies may directly or indirectly (through family members, other persons, entities or otherwise) pass that information on to others outside the Company, including friends, family, or other acquaintances (referred to as *"****tipping****"*) until such information has been disseminated to the public. You must treat material nonpublic information about our business partners with the same care required with respect to such information related directly to the Company.

Tipping includes passing information under circumstances that could suggest that you were trying to help another profit or avoid a loss. Exercise care when speaking with others who do not "***need to know***", even if they are subject to this Policy, as well as when communicating with family, friends and others not associated with the Company. To avoid the appearance of impropriety, refrain from discussing our business or prospects or making recommendations about buying or selling our securities or the securities of other companies with which we have a relationship. Inquiries about the Company should be directed to our investor relations teams.

**Section 7. Recommendations Regarding Trading in Company Securities are Prohibited**. No person subject to this Policy may make recommendations or express opinions on trading in Company securities while in possession of material nonpublic information, except to advise others not to trade in Company securities if doing so might violate the law or this Policy.

**Section 8. Only Designated Company Spokespersons Are Authorized to Disclose Material Nonpublic Information**. U.S. federal securities laws prohibit the Company from selectively disclosing material nonpublic information. The Company has established a Regulation FD and Compliance Policy, which includes procedures for releasing material information in a manner that is designed to achieve broad dissemination of the information immediately upon its release. Employees must follow the Company's Regulation FD and Compliance Policy, which among other things prohibits employees from in any manner disclosing material nonpublic information to anyone outside the Company, including family members and friends, and including social media or electronic communications. Any inquiries about the Company should be directed to our Corporate Communications and Investor Relations teams.

**Section 9. Other Transactions in Company Securities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***General Rule***. This Policy applies to all transactions in Company securities, including any securities the Company may issue from time to time, such as preferred stock,

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warrants and convertible debentures, as well as to derivative securities relating to the Company's stock, whether or not issued by Company, such as exchange-traded options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ***Employee Benefit Plans***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Equity Incentive Plans</u>*. The trading restrictions set forth in this Policy do not apply to the exercise of stock options or other equity awards, but do apply to all sales of securities to pay the exercise price or associated tax withholding, including a "***same-day sale***" of shares received on exercise of options to pay the exercise price (sometimes called a "cashless exercise") or applicable tax withholding. These restrictions also apply to the same-day sale of shares received on the settlement of restricted stock units or similar awards to cover applicable tax withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Employee Stock Purchase Plans</u>*. The trading restrictions set forth in this Policy do not apply to purchases of Company securities pursuant to the employee's advance instructions under any employee stock purchase plans or employee benefit plans (e.g., a pension or 401(k) plan). However, no alteration to instructions regarding the level of withholding or the purchase of Company securities in such plans is permitted while in the possession of material nonpublic information. Any sale of securities acquired under such plans remains subject to the prohibitions and restrictions of this Policy.

**Section 10. Directors, Officers and Certain Named Employees Are Subject to Additional Restrictions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***Section 16 Insiders***. The Company's directors and officers ("***Section 16 Insiders***") are subject to the reporting provisions and trading restrictions of Section 16 of the Exchange Act and the underlying rules and regulations promulgated by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ***Insider Employees***. The Company has designated the persons with the roles/titles listed on <u>Exhibit A</u> as employees who have frequent access to material nonpublic information concerning the Company ("***Insider Employees***"). The Company will amend <u>Exhibit A</u> from time to time as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. ***Additional Restrictions***. Because Section 16 Insiders and Insider Employees regularly possess material nonpublic information about the Company, and in light of the reporting requirements to which Section 16 Insiders are subject under Section 16 of the Exchange Act, Section 16 Insiders and Insider Employees are subject to the additional restrictions set forth in <u>Appendix I</u> hereto. For purposes of this Policy, Section 16 Insiders and Insider Employees are each referred to as "***Insiders.***"

**Section 11. Policy Violations Must Be Reported**. Any person who violates this Policy, the Company's Regulation FD and Compliance Policy or any federal or state laws governing insider trading, or knows of any such violation by any other person, must report the violation immediately to the Compliance Officer. Upon learning of any such violation, the Compliance Officer will determine whether the Company should release any material nonpublic information

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or whether the Company should report the violation to the SEC or other appropriate governmental authority.

**Section 12. Insider Trading Compliance Officers**. The Company's legal function shall act as the Company's Insider Trading Compliance Officer (the "***Compliance Officer***"); <u>provided</u>, however, that if the legal function is a party to a proposed trade or such position is not filled, transaction or inquiry relating to this Policy, the Company's Chief Financial Officer shall act as the Compliance Officer with respect to such proposed trade, transaction or inquiry. The Compliance Officer may delegate his or her authority to act as the Compliance Officer as he or she deem necessary or appropriate in his or her sole discretion. The duties and powers of the Compliance Officer and his or her delegees may include the following:

 Administering, monitoring and enforcing compliance with this Policy.

 Responding to all inquiries relating to this Policy.

 Designating and announcing special trading blackout periods during which specified persons may trade in Company securities.

 Providing copies of this Policy and other appropriate materials to all current and new directors, officers and employees, and such other persons as the Compliance Officer determines have access to material nonpublic information concerning the Company.

 Administering, monitoring and enforcing compliance with federal and state insider trading laws and regulations.

 Assisting in the preparation and filing of all required SEC reports filed by Section 16 Insiders relating to their trading in Company securities, including Forms 3, 4, 5 and 144 and Schedules 13D and 13G.

 Maintaining as Company records originals or copies of all documents required by the provisions of this Policy, and copies of all required SEC reports relating to insider trading, including Forms 3, 4, 5 and 144 and Schedules 13D and 13G.

 Proposing revisions to this Policy as necessary to reflect changes in applicable insider trading laws and regulations (to be considered by the Nominating and Corporate Governance Committee (the "***Governance Committee***") of the Board of Directors (the "***Board***") of the Company at its next meeting.

 Maintaining the accuracy of the list of roles/titles as set forth on <u>Exhibit A</u>, and updating such list periodically as necessary to reflect additions or deletions.

 Designing and requiring training about the obligations of this Policy as the Compliance Officer considers appropriate.

The Compliance Officer may designate one or more individuals who may perform the Compliance Officer's duties under this Policy in the event that a Compliance Officer is unable or unavailable to perform such duties.

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**Section 13. Definition of "Material Nonpublic Information"**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***"Material"***. Information about the Company is "***material***" if there is a substantial likelihood it would affect the investment or voting decisions of a reasonable investor, or if the disclosure of the information would be expected to significantly alter the total mix of the information in the marketplace about the Company. Any type of information that could reasonably be expected to affect the market price of Company securities or an investor's decision to buy or sell Company securities is material. Both positive and negative information may be material. While it is not possible to identify all information that would be deemed material, the following information ordinarily would be considered material:

 Financial performance, especially quarterly and year-end operating results, including significant changes in performance or liquidity.

 Projections of future earnings or losses, or other earnings guidance, and any changes to previously announced earnings guidance.

 Company projections and strategic plans.

 New major contracts, suppliers, or finance sources or the loss thereof.

 Significant changes or developments in products or services or delays in new product or service introduction or development.

 Significant pricing or cost changes.

 Potential mergers or acquisitions, the sale of Company assets or subsidiaries or major partnering agreements.

 Changes in senior management or the Board.

 Significant labor disputes or negotiations.

 Stock splits, public or private securities/debt offerings, or changes in Company dividend policies or amounts.

 A significant cybersecurity incident, such as a data breach or a significant disruption or unauthorized access to information technology infrastructure.

 Actual or threatened major litigation, or the resolution of such litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ***"Nonpublic"***. Material information is "***nonpublic***" if it has not been widely disseminated to the general public through a report filed with the SEC or through major newswire services, national news services or financial news services. For purposes of this Policy, information will be considered public after the close of trading on the second full trading day following the Company's widespread public release of the information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. ***Consult Compliance Officer When in Doubt***. Any employees who are unsure whether the information that they possess is material or nonpublic must consult the Compliance Officer for guidance before trading in any Company securities.

**Section 14. The Company May Suspend All Trading Activities by Employees**. In order to avoid any questions and to protect both the Company and its personnel from any potential liability, from time to time the Company may impose a "***blackout***" period during which some or all directors, officers and employees may not buy or sell Company securities. The Compliance Officer will impose such a blackout period if, in their judgment, there exists nonpublic information that would make trades by the specified group of persons inappropriate in light of the risk that such trades could be viewed as violating applicable securities laws. If you are made aware of such a blackout period, you may not disclose its existence to anyone.

**Section 15. Violations of Insider Trading Laws or This Policy Can Result in Severe Consequences.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***Civil and Criminal Penalties***. The consequences of prohibited insider trading or tipping can be severe. Persons violating insider trading or tipping rules may be required to disgorge profit made or loss avoided, pay civil penalties up to three times the profit made or loss avoided, face private action for damages, as well as be subject to criminal penalties, including up to 20 years in prison and fines of up to $5 million. The Company and/or the supervisors of the person violating the rules may also be required to pay major civil or criminal penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. ***Company Discipline***. Violation of this Policy or federal or state insider trading laws by any director, officer or employee may subject the director to removal proceedings and the officer or employee to disciplinary action by the Company, including termination for cause.

**Section 16. This Policy Is Subject to Revision**. The Company may change the terms of this Policy from time to time to respond to developments in law and practice, and will take steps to inform all affected persons of any material changes.

**Section 17. All Persons Must Acknowledge Their Agreement to Comply with This Policy**. This Policy will be available on the Company's internal website and delivered to all persons subject to this Policy upon adoption or the commencement of their employment or other service relationship with the Company. Upon first receiving a copy of this Policy, each such person must sign an acknowledgment that he or she has received a copy of and agrees to comply with this Policy. The Compliance Officer may periodically require written certifications by those subject to this Policy, including as to their compliance with this Policy or to refresh their acknowledgement of and agreement to comply with this Policy. Any acknowledgment and agreement hereunder will constitute consent for the Company to impose sanctions for violation of this Policy and to issue any necessary stop-transfer orders to the Company's transfer agent to enforce compliance with this Policy.

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**APPENDIX I**

**Special Restrictions on Transactions in <br>Company Securities by Insiders**

To minimize the risk of apparent or actual violations of the rules governing insider trading, we have adopted these special restrictions relating to transactions in our securities by Insiders. Insiders are responsible for ensuring compliance with this <u>Appendix I</u>, including restrictions on all trading during certain periods, by family members and members of their households and by entities over which they exercise voting or investment control. Insiders should provide each of these persons or entities with a copy of this Policy.

**Section 1. Trade Pre-Clearance Required**. As part of this Policy, all purchases and sales of equity securities of the Company by Insiders, other than transactions that are not subject to this Policy or transactions pursuant to a Rule 10b5-1 trading plan authorized by the Compliance Officer, must be pre-cleared by the Compliance Officer. This requirement is intended to prevent inadvertent Policy violations, avoid trades involving the appearance of improper insider trading, facilitate timely Form 4 reporting by Section 16 Insiders and avoid transactions that are subject to disgorgement under Section 16(b) of the Exchange Act.

Requests for pre-clearance must be submitted via email to the Compliance Officer at least **two** business days in advance of each proposed transaction. If the Insider does not receive a response from the Compliance Officer within **24** hours, the Insider must follow up to ensure that the message was received. Each Insider's request for pre-clearance should include the following information:

 The nature of the proposed transaction.

 The expected date of the transaction.

 The number of shares involved.

 If the transaction involves a stock option exercise, the specific option to be exercised.

 Contact information for the broker who will execute the transaction.

 A confirmation that the Insider has carefully considered whether he or she may be aware of any material nonpublic information relating to the Company (describing any borderline matters or items of potential concern) and has concluded that he or she does not.

 Whether the transaction complies with all rules and regulations, including Rule 144, Rule 701, Form S-8, and Section 16 of the Exchange Act, applicable to securities transactions by the Insider.

 Any other information that is material to the Compliance Officer's consideration of the proposed transaction.

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The Compliance Officer may withhold or condition pre-clearance in his or her sole discretion. If the proposed transaction is pre-cleared, the Insider may proceed with it on the approved terms within three days of the pre-clearance, provided that he or she complies with all other securities law and Company requirements, such as Rule 144 and Section 16 reporting obligations, prohibitions regarding trading on the basis of inside information, and compliance with any special trading blackout imposed by the Company prior to the completion of the trade.

**Section 2. Pre-Clearance of Rule 10b5-1 Plans Required**. Pre-clearance by the Compliance Officer is required for an Insider to enter into or modify a Rule 10b5-1 trading plan (a "***10b5-1 Plan***"). Plans that are not pre-cleared may not be used by an Insider. Pre-clearance must be requested at least **five** full trading days prior to entry into or modification of the 10b5-1 Plan and be accompanied by a copy of the plan. However, pre-clearance will not be required for individual transactions effected pursuant to a pre-cleared 10b5-1 Plan. All Section 16 Insiders must immediately report the results of transactions effected under a trading plan to the Compliance Officer since they will be reportable on Form 4 within two business days following the execution of the trade.

**Section 3. Hardship Exemptions**. The Compliance Officer may, on a case-by-case basis, exempt a transaction by an Insider from this Policy due to financial or other hardship. Any request for a hardship exemption must be in writing and must describe the amount and nature of the proposed transaction and the circumstances of the hardship. The Insider requesting the hardship exemption must also certify to the Compliance Officer that he or she is not in possession of material nonpublic information concerning the Company or (such as in the case of a gift or other non-monetization transaction to a party who promises not to sell the securities received for some time or to a party subject to this Policy) that the transaction does not misuse the Company's information. The existence of this process does not in any way obligate the Compliance Officer to approve any hardship exemption requested by an Insider, and all Insiders are cautioned that this exemption is intended to address limited and unusual circumstances.

**Section 4. Brokers**. All Insiders must ensure that their broker does not execute any transaction for the Insider (other than under a pre-cleared Rule 10b5-1 Plan) until the broker has verified with the Compliance Officer that the transaction has been pre-cleared.

**Section 5. Reporting of Transactions Required**. To facilitate timely reporting under Section 16 of the Exchange Act, Section 16 Insiders are required to ***on the same day as the trade date***, or, with respect to transactions effected pursuant to a 10b5-1 Plan, on the day the Insider is advised of the terms of the transaction, (a) report the details of each transaction to the Compliance Officer and (b) arrange with persons whose trades must be reported by the Insider under Section 16 (such as immediate family members living in the Insider's household) to immediately report directly to the Company and to the Insider the following transaction details:

 Transaction date (trade date)

 Number of shares involved.

 Price per share at which the transaction was executed (before addition or deduction of brokerage commission and other transaction fees).

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 For stock option exercises, the specific option exercised.

 Contact information for the broker who executed the transaction.

 Specific representation that the Insider is not in possession of material non-public information.

 For a Section 16 Insider, a specific representation whether the transaction was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

The transaction details must be reported to the Compliance Officer, with copies to Company personnel (if any) who assist the Section 16 Insider in preparing his or her Form 4.

**Section 6. Named Employees Considered Insiders**. The Governance Committee of the Board will review, at least annually, those individuals deemed to be "***Insiders***" for purposes of this <u>Appendix I</u>. Insiders shall include persons subject to Section 16 and such other persons as the Governance Committee deems to be Insiders. Generally, Insiders shall be any person who by function of their employment is *consistently* in possession of material nonpublic information *or* performs an operational role, such as head of a division or business unit, that is material to the Company as a whole.

**Section 7. Special Guidelines for 10b5-1 Trading Plans**. Notwithstanding the foregoing, an Insider will not be deemed to have violated this Policy for transactions pursuant to a 10b5-1 Plan that has been pre-cleared by the Compliance Officer. The Compliance Officer may withhold or condition pre-clearance of any proposed 10b5-1 Plan (each, a "***Proposed Plan***") for any reason, in his or her sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Compliance Officer will not pre-clear a Proposed Plan if he or she concludes that the Proposed Plan:

 Fails to comply with the requirements of Rule 10b5-1 and the SEC's rules thereon, as amended from time to time;

 Would permit a transaction to occur before the <u>later</u> of (i) 90 days after adoption (including deemed adoption) of the Proposed Plan or (ii) two business days after disclosure of the issuer's financial results in a Form 10-Q or Form 10-K for the quarter in which the Proposed Plan was adopted (subject to a maximum of 120 days after adoption of the Proposed Plan)*.*

 Is established during a "closed" window period or a special "blackout" period, or the Insider is unable to represent to the satisfaction of the Compliance Officer that the Insider is not in possession of material nonpublic information regarding the Company.

 Lacks appropriate mechanisms to ensure that the Insider complies with all rules and regulations, including Rule 144, Rule 701, Form S-8, and Section 16 of the Exchange Act, applicable to securities transactions by the Insider.

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 Does not provide the Company the right to suspend all transactions under the Proposed Plan if the Compliance Officer, in his or her sole discretion, deems such suspension necessary or advisable, including suspensions to comply with any "lock-up" agreement the Company agrees to in connection with a financing or other similar events.

 Exposes the Company to liability under any other applicable state or federal rule, regulation or law;

 Creates any appearance of impropriety;

 Fails to meet guidelines established by the Company; or

 Otherwise fails to satisfy the Compliance Officer for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Any modifications to or deviations from a 10b5-1 Plan are deemed to be the Insider entering into a new 10b5-1 Plan and, accordingly, require pre-clearance of such modification or deviation pursuant to Section 2 of this <u>Appendix I</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Any termination of a 10b5-1 Plan must be immediately reported to the Compliance Officer. If an Insider has pre-cleared a new 10b5-1 Plan (the "***Second Plan***") intended to succeed an earlier pre-cleared 10b5-1 Plan (the "***First Plan***"), the Insider may not affirmatively terminate the First Plan without pre-clearance pursuant to Section 2 of this <u>Appendix I</u>, because such termination is deemed to be entering into the Second Plan. Under no circumstances may multiple 10b5-1 plans exist simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. None of the Company, the Compliance Officer, nor any of the Company's officers, employees or other representatives shall be deemed, solely by their pre-clearance of a Proposed Plan, to have represented that it complies with Rule 10b5-1 or to have assumed any liability or responsibility to the Insider or any other party if the 10b5-1 Plan fails to comply with Rule 10b5-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Upon entering into or amending a 10b5-1 Plan, the director or officer must promptly provide a copy of the plan to the Company and, upon request, confirm the Company's planned disclosure regarding the entry into or termination of a plan (including the date of adoption or termination of the plan, duration of the plan, and aggregate number of securities to be sold or purchased under the plan).

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**EXHIBIT A<br>INSIDER EMPLOYEES<br>(as of May 1, 2024)**

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| |
|:---|
| &nbsp;&nbsp;All Company officers <br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Company employees on the Management Team<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Company employees in the finance department<br>|

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## Exhibit 23.1

<u>Consent of Independent Registered Public Accounting Firm</u>

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-283240) and Form S-8 (No. 333-282930) of Sow Good, Inc. (the Company) of our report dated March 31, 2026, relating to the financial statements, which appear in this Annual Report on Form 10-K. Our report contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

/s/ URISH POPECK & CO., LLC

Pittsburgh, PA

March 31, 2026

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## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATION

I, David Lazar, certify that:

1. I have reviewed this Quarterly Report on Form 10-K of SOW GOOD INC.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. I have disclosed, based on Sow Good's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (of persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: March 31, 2026

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| | |
|:---|:---|
| By: | /s/ *David Lazar* |
|  | David Lazar, Chief Executive Officer |
|  | (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATION

I, Donna Guy, certify that:

1. I have reviewed this Quarterly Report on Form 10-K of SOW GOOD INC.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. I have disclosed, based on Sow Good's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (of persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: March 31, 2026

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| | |
|:---|:---|
| By: | /s/ *Donna Guy* |
|  | Donna Guy, Chief Financial Officer |
|  | (Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1** 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SOW GOOD INC. (the "Company") on Form 10-K for the period ending December 31, 2025 (the "Report"), I, David Lazar, Chief Executive Officer, certify, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 31, 2026

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| | |
|:---|:---|
| By: | /s/ *David Lazar* |
|  | David Lazar, Chief Executive Officer |
|  | (Principal Executive Officer) |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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## Exhibit 32.2

**Exhibit 32.2** 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quartelry Report of SOW GOOD INC. (the "Company") on Form 10-K for the period ending December 31, 2025 (the "Report"), I, Donna Guy, Interim Chief Financial Officer, certify, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 31, 2026

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| | |
|:---|:---|
| By: | /s/ *Donna Guy* |
|  | Donna Guy, Chief Financial Officer |
|  | (Principal Financial Officer) |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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## Exhibit 97.1

**SOW GOOD INC.**

**Policy for RECOVERY OF ERRONEOUSLY AWARDED Incentive Compensation**

**(Adopted March 8, 2024)**

**1. INTRODUCTION**

Sow Good Inc. (the "***Company***") is adopting this policy (this "***Policy***") to provide for the Company's recovery of certain Incentive Compensation (as defined below) erroneously awarded to Affected Officers (as defined below) under certain circumstances.

This Policy is administered by the Compensation Committee (the "***Committee***") of the Company's Board of Directors (the "***Board***"). The Committee shall have full and final authority to make any and all determinations required or permitted under this Policy. Any determination by the Committee with respect to this Policy shall be final, conclusive and binding on all parties. The Board may amend or terminate this Policy at any time.

This Policy is intended to comply with Section 10D of the Securities and Exchange Act of 1934, as amended (the "***Exchange Act***"), Rule 10D-1 thereunder and the applicable rules of any national securities exchange on which the Company's securities are listed (the "***Exchange***") and will be interpreted and administered consistent with that intent.

**2. EFFECTIVE DATE**

This Policy shall apply to all Incentive Compensation paid or awarded on or after the date of adoption of this Policy, and to the extent permitted or required by applicable law.

**3. DEFINITIONS**

For purposes of this Policy, the following terms shall have the meanings set forth below:

"***Affected Officer***" means any current or former "officer" as defined in Exchange Act Rule 16a-1, and any other senior executives as determined by the Committee.

"***Erroneously Awarded Compensation***" means the amount of Incentive Compensation received that exceeds the amount of Incentive Compensation that otherwise would have been received had it been determined based on the Restatement, computed without regard to any taxes paid. In the case of Incentive Compensation based on stock price or total shareholder return, where the amount of Erroneously Awarded Compensation is not subject to mathematical recalculation directly from the information in the Restatement, the amount shall reflect a reasonable estimate of the effect of the Restatement on the stock price or total shareholder return upon which the Incentive Compensation was received, as determined by the Committee in its sole discretion. The Committee may determine the form and amount of Erroneously Awarded Compensation in its sole discretion.

"***Financial Reporting Measure***" means any measure (including measures calculated not in accordance with generally accepted accounting principles in the United States) that is determined and presented in accordance with the accounting principles used in preparing the Company's financial statements, and any measures that are derived wholly or in part from such measures, whether or not such measure is presented within the financial statements or included in a filing with the Securities and Exchange Commission. Stock price and total shareholder return are Financial Reporting Measures.

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"***Incentive Compensation***" means any compensation that is granted, earned or vested based in whole or in part on the attainment of a Financial Reporting Measure. For purposes of clarity, base salaries, bonuses or equity awards paid solely upon satisfying one or more subjective standards, strategic or operational measures, or continued employment are not considered Incentive Compensation, unless such awards were granted, paid or vested based in part on a Financial Reporting Measure.

"***Restatement***" means an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements (i.e., a "Big R" restatement), or that would result in a material misstatement if the error was corrected in the current period or left uncorrected in the current period (i.e., a "little r" restatement).

**4**. **RECOVERY** 

If the Company is required to prepare a Restatement, the Company shall seek to recover and "claw back" from any Affected Officer reasonably promptly the Erroneously Awarded Compensation that is received by the Affected Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)after the person begins service as an Affected Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)who serves as an Affected Officer at any time during the performance period for that Incentive Compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)while the Company has a class of securities listed on the Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)during the three completed fiscal years immediately preceding the date on which the Company was required to prepare the Restatement (including any transition period within or immediately following those years that results from a change in the Company's fiscal year, provided that a transition period of nine to twelve months will be deemed to be a completed fiscal year).

If, after the release of earnings for any period for which a Restatement subsequently occurs and prior to the announcement of the Restatement for such period, the Affected Officer sold any securities constituting, or any securities issuable on exercise, settlement or exchange of any equity award constituting, Incentive Compensation, the excess of (a) the actual aggregate sales proceeds from the Affected Officer's sale of those shares, over (b) the aggregate sales proceeds the Affected Officer would have received from the sale of those shares at a price per share determined appropriate by the Committee in its discretion to reflect what the Company's common stock price would have been if the Restatement had occurred prior to such sales, shall be deemed to be Erroneously Awarded Compensation; provided, however, that the aggregate sales proceeds determined by the Committee under this clause (b) with respect to shares acquired upon exercise of an option shall not be less than the aggregate exercise price paid for those shares.

For purposes of this Policy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Erroneously Awarded Compensation is deemed to be received in the Company's fiscal year during which the Financial Reporting Measure specified in the Incentive Compensation is attained, even if the payment or grant of the Incentive Compensation occurs after the end of that period; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the date the Company is required to prepare a Restatement is the earlier of (x) the date the Board, the Committee or any officer of the Company authorized to take such action concludes, or reasonably should have concluded, that the Company is required to prepare the Restatement, or (y) the date a court, regulator, or other legally authorized body directs the Company to prepare the Restatement.

For purposes of clarity, in no event shall the Company be required to award any Affected Officers an additional payment or other compensation if the Restatement would have resulted in the grant, payment or vesting of Incentive Compensation that is greater than the Incentive Compensation actually received by the Affected Officer. The recovery of Erroneously Awarded Compensation is not dependent on if or when the Restatement is filed.

**5. SOURCES OF RECOUPMENT**

To the extent permitted by applicable law, the Committee may, in its discretion, seek recoupment from the Affected Officer(s) through any means it determines, which may include any of the following sources: (i) prior Incentive Compensation payments; (ii) future payments of Incentive Compensation; (iii) cancellation of outstanding Incentive Compensation; (iv) direct repayment; and (v) non-Incentive Compensation or securities held by the Affected Officer. To the extent permitted by applicable law, the Company may offset such amount against any compensation or other amounts owed by the Company to the Affected Officer.

**6. LIMITED EXCEPTIONS TO RECOVERY**

Notwithstanding the foregoing, the Committee, in its discretion, may choose to forgo recovery of Erroneously Awarded Compensation under the following circumstances, provided that the Committee (or a majority of the independent members of the Board) has made a determination that recovery would be impracticable because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The direct expense paid to a third party to assist in enforcing this Policy would exceed the recoverable amounts; provided that the Company has made a reasonable attempt to recover such Erroneously Awarded Compensation, has documented such attempt and has (to the extent required) provided that documentation to the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Recovery would violate home country law where the law was adopted prior to November 28, 2022, and the Company provides an opinion of home country counsel to that effect to the Exchange that is acceptable to the Exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Recovery would likely cause an otherwise tax-qualified retirement plan to fail to meet the requirements of the Internal Revenue Code of 1986, as amended.

**7. NO INDEMNIFICATION OR INSURANCE**

The Company will not indemnify, insure or otherwise reimburse any Affected Officer against the recovery of Erroneously Awarded Compensation.

**8. NO IMPAIRMENT OF OTHER REMEDIES**

This Policy does not preclude the Company from taking any other action to enforce an Affected Officer's obligations to the Company, including termination of employment, institution of civil proceedings, or reporting of any misconduct to appropriate government authorities. This Policy is in

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addition to the requirements of Section 304 of the Sarbanes-Oxley Act of 2002 that are applicable to the Company's Chief Executive Officer and Chief Financial Officer.

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