Once Upon a Farm (OFRM) Investor update summary

Recall and investigation

• A parent reported a choking incident involving Tractor Wheels; no injuries were known. The FDA later informed the business of three reports total, including the parent’s report and two it had not previously received.

• The investigation reviewed production records, product retains, ingredient inputs and manufacturing and quality specifications; no root cause had been linked to the reports.

• All Tractor Wheels flavors and SKUs were voluntarily recalled as a precaution, given the FDA information and uncertainty about affected flavors and lots.

• A third party was engaged to assess the products; production plans for a market return are being prepared, contingent on review and validation of any necessary safety changes.

Recall response and recovery

• Consumer outreach began after the recall announcement through social media, email, e-commerce, marketing partners and a website Q&A; temporary consumer-relations staff were added.

• Retailers and distributors were contacted to coordinate store pulls, distribution-center holds and online listing removals; notifications, scripts and a hotline were supplied.

• Retail partners expressed interest in returning Tractor Wheels to shelves after resolution; the business cited confidence in rebuilding distribution quickly.

• Inventory disposition is being coordinated with operations, sales and retail partners; updates were planned alongside Q3 results on Nov. 12 after market close.

Financial impact and liquidity

• Tractor Wheels represented approximately 18% of net sales year to date; sales will be affected while products are off market and shipments remain paused.

• Recall costs, including product, retailer and recall-related expenses, were under assessment; a reliable total cost estimate and insurance recovery outlook were not yet available.

• Q3 ended with $106.4 million in cash and no debt, plus up to $95 million available to borrow through existing credit facilities, subject to their terms.

• Potential recovery under recall insurance and any applicable manufacturing-partner coverage were being evaluated; timing and likelihood remained uncertain.