2022 year end results – MJ Shareholders https://mjshareholders.com The Ultimate Marijuana Business Directory Fri, 31 Mar 2023 17:08:51 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 Delta 9 Reports Year-end Financials for 2022 https://mjshareholders.com/delta-9-reports-year-end-financials-for-2022/ Fri, 31 Mar 2023 17:08:51 +0000 https://cannabisfn.com/?p=2972937

Ryan Allway

March 31st, 2023

News, Top News


WINNIPEG, Manitoba, March 31, 2023 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”) is pleased to announce financial and operating results for the three-month and full year ending December 31, 2022.

Financial Highlights for the Year Ending December 31, 2022

  • Net revenues of $63.2 million in 2022, an increase of 2% compared to $62.3 million in 2021, including the following revenue segmentation highlights:
    • Retail revenues increased 26% to $52.2 million in 2022
    • Wholesale revenues decreased 35% to $12.1 million in 2022
    • Business to business revenues decreased 65% to $1.7 million in 2022
  • Gross profit1 of $12.9 million in 2022 compared to $18.3 million last year.
  • Adjusted EBITDA2 (loss) of $(5.2) million in 2022 compared to an Adjusted EBITDA2 of $2.0 million last year.
  • Loss from Operations of $(20.3) million in 2022 compared to Loss from Operations of $(7.6) million last year.

Financial Highlights for the Three-Month Period Ending December 31, 2022

  • Quarterly net revenues of $17.6 million for the fourth quarter of 2022, an increase of 3% compared to $17.1 million for the same quarter last year.
    • Sequentially net revenues increased 12% for the fourth quarter of 2022 compared to $15.7 million in the third quarter of 2022.
  • Gross profit1 of $3.4 million for the fourth quarter of 2022 compared to $4.9 million for the same quarter last year.
    • Sequentially gross profit increased 76% in the fourth quarter of 2022 compared to $1.9 million in the third quarter of 2022.
  • Sequentially Adjusted EBITDA2 (loss) improved to $(1.5) million in the fourth quarter of 2022 compared to and Adjusted EBITDA2 (loss) of $(1.7) million in the third quarter of 2022.

“We are pleased to report record fourth quarter and year end revenues for 2022 demonstrating the versatility of our business model with measurable improvements versus the third quarter of 2022,” said John Arbuthnot, CEO of Delta 9 Cannabis. “Challenges persist in the Canadian cannabis industry, which continues to struggle with intense competition resulting in margin compression and affecting overall growth. We remain confident that Delta 9 will be able to navigate the industry challenges and return the Company to growth and profitability in the coming quarters.”

4th Quarter Operational and Subsequent Q1 2023 Highlights:

  • Delta 9 installed a new fully-automated pre-roll machine that will produce up to 4 million pre-rolls per year compared to the 1 million produced in 2022 that generated $2.3 million. The new machine will significantly lower manufacturing costs and improve contribution margin for pre-roll sales. We appreciated the contribution from the Provincial Government that covered 25% of the cost of the machine.
  • Delta 9 shipped bulk dried cannabis flower to a customer in Australia, marking the Company’s first export of dried cannabis flower material to an international market. The Company has also received seven additional export permits from Health Canada and intends to complete multiple shipments of dried cannabis flower and cannabis extracts to the Australian market in the first and second quarter of 2023. The shipments are anticipated to include approximately 100 Kg of dried cannabis flower material and 6 Kg of cannabis distillate. This shipment marks a significant milestone for Delta 9 as it enters the global cannabis market.
  • Delta 9 opened two more retail cannabis stores in Western Canada in Q1 2023 quarter that brings the total store count to 41. The companies retail strategy continues to find the best available real estate in high-traffic and high-population density areas. Delta 9’s retail network has expanded by 25 stores in the past twelve months and is expected to continue expansion of the retail portfolio across Canada in 2023.
  • Delta 9 announced various cost cutting measures as a part of the Company’s 2023 strategic plan with the goal of producing positive cash flow from operations. The Company plans to streamline its cultivation operations and right-size capacity at its Winnipeg based cultivation facilities, as well as various other cost cutting measures including reducing public company and investor relations costs. The Board of Directors and executive have also agreed to reduce compensation as part of their commitment to achieving positive cash flows from operations in the current fiscal year. The cost savings are expected to reduce operating costs by $3 Million to $4 Million in 2023. As a part of the plan, cultivation capacity at the Company’s Winnipeg based cultivation facilities were cut by approximately 40%, which included a temporary layoff of approximately 40 staff.
  • Delta 9 received a Cannabis Distributor License from the Liquor Gaming and Cannabis Authority of Manitoba, making the Company the first licensed distributor of cannabis products in the province. Under the License, Delta 9 is authorized to acquire, store, sell and deliver cannabis in accordance with The Liquor, Gaming and Cannabis Control Act. The Company’s distribution services will allow out-of-province suppliers to improve logistics efficiencies and reduce shipping costs into the Manitoba market and will provide Delta 9 with additional diversified revenue streams. Total retail cannabis sales in Manitoba for the twelve months ending August 30, 2022, exceeded $169 Million, according to data from Statistics Canada, with more than 150 licensed retail stores in operation as of September 30, 2022.
  • Delta 9 announced that Mr. Stuart Starkey joined the Company’s board of directors following the previously announced resignation of Joanne Duhoux-Defehr as a director of the Company. Over the past 15 years, Mr. Starkey was an entrepreneur, para-athlete, and non-profit founder. As President of Two Small Men Canada, Mr. Starkey grew a national moving chain to achieve corporate and franchise revenues of $35 Million per year with over 400 employees. As Co-founder of Mighty Moving Mr. Starkey grew a cross-docking and logistics business to service dozens of large chain retailers, with offices across Alberta. He has since successfully exited both Two Small Men Canada and Mighty Moving.
  • Delta 9 established an at-the-market equity program (the “ATM Program”) that allows the Company to issue up to $5,000,000 of common shares in the capital of the Company from treasury to the public from time to time, at the Company’s discretion. Distributions of the Common Shares through the ATM Program will be made between the Company and Haywood Securities Inc.

Summary of Quarterly Results:

Consolidated Statement of Net Income (Loss) Q1 2022 Q2 2022 Q3 2022 Q4 2022
Revenue $ 12,479,577   $ 17,495,078   $ 15,693,969   $ 17,559,647  
Cost of Sales   9,515,096     12,850,777     13,772,202     14,173,693  
Gross Profit Before Unrealized Gain From Changes In Biological Assets1   2,964,481     4,644,301     1,921,767     3,385,954  
Unrealized gain from changes in fair value of biological assets (Net)   874,293     (542,188 )   340,602     (2,710,521 )
Gross Profit $ 3,838,774   $ 4,102,113   $ 2,262,369     675,433  
         
Expenses        
General and Administrative   3,810,316     4,043,257     3,668,708     3,551,472  
Sales and Marketing   2,713,630     3,381,223     3,710,471     4,647,409  
Share Based Compensation   246,944     107,121     1,086,858     169,540  
Total Operating Expenses $ 6,770,890   $ 7,531,601   $ 8,466,037   $ 8,368,421  
         
Adjusted EBITDA (Loss) 2   (1,694,529 )   (391,054 )   (1,683,018 )   (1,479,845 )
Income (Loss) from Operations $ (2,932,116 ) $ (3,429,488 ) $ (6,203,668 ) $ (7,692,988 )
Other Income/ Expenses   (1,189,730 )   (1,402,588 )   (1,470,942 )   (3,515,430 )
Net Income (Loss) $ (4,121,846 ) $ (4,832,076 ) $ (7,674,610 ) $ (11,208,418 )
Basic and Diluted Earnings (Loss) Per Share $ (0.04 ) $ (0.04 ) $ (0.06 ) $ (0.09 )
  1. Gross Profit, before changes in the fair value of biological assets.
  2. Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month and year ending period ending December 31, 2022 filed on SEDAR and can be found at www.sedar.com.

2022 Forth Quarter Results Conference Call

A conference call to discuss the above results is scheduled for April 3, 2023. The conference call will be hosted that day at 10:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

   
DATE: April 3, 2023
TIME: 10:00 am Eastern Time
Dial in # 1-888-886-7786
REPLAY: 1-877-674-6060
Available until 12:00 midnight Eastern Time, December 15, 2023
Replay passcode: 107180 #

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9’s shares trade on the Toronto Stock Exchange under the symbol “DN” and on the OTCQX under the symbol “DLTNF”. For more information, please visit www.delta9.ca.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) the Company’s plans to establish cannabis distribution operations in Manitoba; and (ii) the Company’s plans to continue to expand its retail operations in Canada. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 31, 2023 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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Flora Growth Reports 2022 Year-End Financial Results: $37.2M in Revenue, 314% Growth Year-Over-Year https://mjshareholders.com/flora-growth-reports-2022-year-end-financial-results-37-2m-in-revenue-314-growth-year-over-year/ Fri, 31 Mar 2023 17:05:48 +0000 https://cannabisfn.com/?p=2972935

Ryan Allway

March 31st, 2023

News, Top News, Top Story


  • Flora generated $37.2 million in revenue in FY2022, a 314% increase YoY
  • Record Q4 2022 revenue increased to $11.5 million, a 7% sequential increase from Q3 2022
  • Gross profit for FY2022 increased by 494%, from $2.4 million to $14.4 million YoY
  • Company reaffirms its 2023 revenue guidance to range between $90 million – $105 million
  • Flora management to host a webcast Monday, April 3, at 8:00 am ET

FORT LAUDERDALE, Fla., March 31, 2023–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a leading cultivator, manufacturer and distributor of global cannabis products and brands, reported today its financial and operating results for the fiscal year ended December 31, 2022. All financial information is provided in U.S. dollars unless indicated otherwise.

“In 2022, we not only met our revenue guidance but reported both quarterly and annual record revenue. This accomplishment was thanks to the successful completion and integration of our M&A transactions, the compelling value proposition of our products in our House of Brands and the operational milestones we achieved throughout the year,” said Luis Merchan, Chairman and CEO of Flora. “It is important to note that we have accomplished all this despite having to navigate one of the most hostile business environments to date, especially for the cannabis industry. Nonetheless, we achieved both quarterly and annual record revenue, improved margins and increased our gross profits – all while cutting costs and improving operational efficiencies.”

“Today, I remain more confident than ever in Flora’s opportunity to not only be one of the largest players in the international cannabis industry but to change the global landscape of cannabis. I am proud to reaffirm the 2023 revenue guidance we shared earlier in the year of between $90 million and $105 million,” Merchan added.

FY2022 Financial Highlights

  • For the FY2022, Flora generated $37.2 million in revenue, a 314% increase year-over-year. This was primarily driven by the House of Brands businesses. Additionally, in Q4 2022, revenue was $11.5 million, a 7% sequential increase from Q3 2022, driven primarily by organic growth.
  • Gross profit for FY2022 increased by 494% year-over-year to $14.4 million.
  • Gross margin improved year-over-year from 27% in FY2021 to 39% FY2022.
  • Adjusted EBITDA loss for FY2022 was $18.3 million, up from $16.5 million in FY2021.
  • Adjusted EBITDA margin for FY2022 improved to -49.3% from -184.2% in FY2021.
  • Net loss for FY2022 was $52.6 million as compared to $21.4 million for FY2021 and net loss margin for FY2022 improved to -141.6% from -237.9% in FY2021.
  • FY2022 capex decreased to $1.3 million from $4 million in the prior year. This decrease was primarily driven by the completion of larger projects in 2021, such as the build-out of the Company’s Colombian cannabis production facility, Cosechemos, while 2022 capital expenditures included smaller-scale projects focused on realizing operations at Cosechemos and Flora’s labs.
  • Operating expenses for FY2022 were $67.7 million, of which almost half were due to non-cash charges, including an impairment charge of $26.2 million as well as depreciation and amortization, purchase price allocation, and share-based compensation charges.
  • As a percentage of sales, operating expenses for 2022 decreased from 239% in FY2021 to 182% in FY2022.
  • As of December 31, 2022, the Company had approximately $9.5 million in cash and cash equivalents as compared to $37.6 million as of December 31, 2021.

Adjusted EBITDA loss and Adjusted EBITDA margin are non-U.S. GAAP figures. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures has been provided in the section titled “About Non-GAAP Financial Measures”. Important disclosures regarding the use of non-U.S. GAAP supplemental financial measures are also included below.

2023 Outlook

  • Flora’s 2023 revenue guidance of $90 million to $105 million reflects expected organic growth in the House of Brands division and expansion of the Commercial and Wholesale division’s capabilities.
  • House of Brands and Commercial and Wholesale divisions expect roughly equal contributions to total revenue, while the Pharmaceutical division is expected to contribute up to 10% of total revenue.
  • Flora continues to evaluate future M&A transactions that align with the goal of creating one of the world’s largest end-to-end cannabis supply chains.
  • The Company furthered its commitment to organizational and financial efficiencies, implementing internal cost controls and focusing on high-margin revenue generation.

Recent Operational Highlights

  • Acquired Franchise Global Health (FGH), an international cannabis company with primary operations in Germany.
  • Flora’s House of Brands saw an increase in customer base to approximately 500,000 consumers and expanded distribution to over 14,000 doors.
  • Became a domestic reporter with respect to Securities and Exchange Commission (the “SEC”) filings under the Exchange Act of 1934, as amended (the “Exchange Act”) and transitioned to financial reporting under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”).
  • JustCBD achieved record-breaking sales during the Black Friday Sales Event in 2022, making it the most successful sales event in the Company’s history.
  • Completed construction of Bogota, Colombia-based Flora Lab 4, a laboratory specializing in prescription cannabis formulations.
  • As a result of the FGH acquisition, Flora appointed former FGH CEO Clifford Starke as President of Flora and member of the Board of Directors and former FGH Chief Operating Officer Edward Woo as a member of the Board of Directors.
  • Completed its first extraction of CBD isolate through Flora Lab 1, and successful importation to the United States.
  • Received 2022 export quota from the Colombian government for 43,600kg of high-THC cannabis.
  • Colombian government released regulations allowing for THC export, with export to partners beginning in Q4 2022 – broadening the Company’s opportunity for international export.
  • Awarded best M&A transaction at Benzinga Capital Conference for the acquisition of JustBrands.

Earnings Call: April 3, 2023, at 8:00AM ET

Live Webcast Details

Date: Monday, April 3, 2023

Time: 8:00 a.m. ET

Online Participant Link: https://us02web.zoom.us/webinar/register/WN_Y0I1RwIISN6Y2sn8I5QEYQ

After registering, you will receive a confirmation email containing information about joining the webinar.

The live webcast will be available online through the above participant link and will be archived and available on the investor page of the Company’s website within approximately 24 hours, until April 2024.

About Flora Growth Corp.

Flora Growth Corp. is a global cannabis company dedicated to bringing the benefits of cannabis to people worldwide. Our commitment is to create, master and connect the international cannabis supply chain by setting the standard for world-class cultivation and manufacturing, thoughtful brand development, and rigorous research and development of medical-grade cannabis products that meet the highest standards of quality, safety, and efficacy. Our mission is to create a world where the benefits of cannabis are accessible to everyone, and we are working toward that goal by becoming a leading importer and exporter of cannabis to meet demand in every corner of the market. Visit www.floragrowth.com or follow @floragrowthcorp on social media for more information.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains ‘‘forward-looking statements,’’ as defined by federal securities laws. Forward-looking statements reflect Flora’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in Flora’s Annual Report on Form 10-K for year ended December 31, 2022 filed with the SEC on March 31, 2023, as such factors may be updated from time to time in Flora’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and under the Company’s SEDAR profile at www.sedar.com. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora’s filings with the SEC. While forward-looking statements reflect Flora’s good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Flora (or to third parties making the forward-looking statements).

About NonU.S. GAAP Measures

Adjusted EBITDA is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA as total net loss, plus (minus) income taxes (benefit), plus (minus) interest expense (income), plus depreciation and amortization, plus (minus) non-operating expense (income), plus share based compensation expense, plus goodwill and other asset impairment charges, plus (minus) unrealized loss (gains) from changes in fair value, plus charges related to the flow-through of inventory step-up on business combinations, plus other acquisition and transaction costs. Management believes that Adjusted EBTIDA provides meaningful and useful financial information as this measure demonstrates the operating performance of the business.

Adjusted EBITDA margin % is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA margin % as Adjusted EBITDA, as described above, divided by revenue for the period.

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below:

Management believes that this non-U.S. GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information. Management reviews these non-U.S. GAAP financial measures on a regular basis and uses them, together with financial measures included in the Company’s financial statements, to evaluate and manage the performance of the Company’s operations. These measures should be evaluated in conjunction with the comparable U.S. GAAP financial numbers reported by the Company.

Table 1. Consolidated Statements of Financial Position

Consolidated Statements of Financial Position
(in thousands of United States dollars, except share amounts which are in thousands of shares)
As at: December 31, 2022 December 31, 2021
ASSETS
Current
Cash $ 9,537 $ 37,614
Restricted cash 2
Trade and amounts receivable, net of $2,988 allowance ($1,252 at 2021) 6,851 5,324
Loans receivable and advances 271 273
Prepaid expenses and other current assets 978 1,700
Indemnification receivables 3,429
Inventory 10,089 3,030
Total current assets 31,155 47,943
Non-current
Property, plant and equipment 4,810 3,750
Operating lease right of use assets 2,537 1,229
Intangible assets 18,096 9,736
Goodwill 23,372 20,054
Investments 730 2,670
Other Assets 287 97
Total assets $ 80,987 $ 85,479
LIABILITIES
Current
Trade payables $ 7,748 $ 2,415
Contingencies 5,044 2,033
Current portion of debt 1,086 18
Current portion of operating lease liability 1,188 412
Other accrued liabilities 2,381 1,241
Total current liabilities 17,447 6,119
Non-current
Non-current operating lease liability 1,869 908
Deferred tax 1,712 1,511
Contingent purchase considerations 3,547
Total liabilities 24,575 8,538
SHAREHOLDERS’ EQUITY
Share capital, no par value, unlimited authorized, 135,573 issued and outstanding (65,517 at 2021)
Additional paid-in capital 150,420 116,810
Accumulated other comprehensive loss (2,732) (1,108)
Deficit (90,865) (38,536)
Total Flora Growth Corp. shareholders’ equity 56,823 77,166
Non-controlling interest in subsidiaries (411) (225)
Total Shareholders’ equity 56,412 76,941
Total liabilities and shareholders’ equity $ 80,987 $ 85,479

Table 2. Consolidated Statements of Loss and Comprehensive Loss

Consolidated Statements of Loss and Comprehensive Loss
(in thousands of United States dollars, except per share amounts which are in thousands of shares)
For the year ended December 31, 2022 For the year ended December 31, 2021
Revenue $37,171 $8,980
Cost of sales 22,757 6,555
Gross profit 14,414 2,425
Operating expenses
Consulting and management fees 11,342 7,324
Professional fees 4,398 4,269
General and administrative 4,495 922
Promotion and communication 8,416 3,585
Travel expenses 1,055 603
Share based compensation 3,404 1,340
Research and development 430 132
Operating lease expense 1,221 316
Depreciation and amortization 2,629 501
Bad debt expense 1,607 1,335
Goodwill impairment 25,452 51
Other asset impairments 783
Other expenses (income), net 2,489 1,050
Total operating expenses 67,721 21,428
Operating loss (53,307) (19,003)
Interest (income) expense (56) 32
Foreign exchange loss 323 79
Unrealized loss from changes in fair value 593 2,345
Net loss before income taxes (54,167) (21,459)
Income tax benefit (1,538) (98)
Net loss for the period $(52,629) $(21,361)
Other comprehensive loss
Exchange differences on foreign operations, net of income taxes of $nil ($nil in 2021) $(1,624) $(1,147)
Total comprehensive loss for the period $(54,253) $(22,508)
Net loss attributable to:
Flora Growth Corp. $(52,415) $(21,249)
Non-controlling interests in subsidiaries (214) (112)
Comprehensive loss attributable to:
Flora Growth Corp. $(54,039) $(22,396)
Non-controlling interests in subsidiaries (214) (112)
Basic and diluted loss per share attributable to Flora Growth Corp. $(0.68) $(0.48)
Weighted average number of common shares outstanding – basic and diluted 76,655 43,954

Table 3. Statement of Cash Flows

Consolidated Statement of Cash Flows
(in thousands of United States dollars)
For the year ended December 31, 2022 For the year ended December 31, 2021
Cash flows from operating activities:
Net loss $ (52,629 ) $ (21,361 )
Adjustments to net loss:
Depreciation and amortization 2,629 501
Stock-based compensation 3,404 1,340
Goodwill impairment 25,452 51
Other asset impairments 783
Changes in fair value of investments and liabilities 593 2,345
Bad debt expense 1,607 1,335
Interest (income) expense (56 ) 84
Interest paid (4 ) (78 )
Income tax expense (benefit) (1,538 ) (98 )
(19,759 ) (15,881 )
Net change in non-cash working capital:
Trade and other receivables 143 (5,688 )
Inventory 1,219 (1,213 )
Prepaid expenses and other assets 1,372 (1,204 )
Trade payables and accrued liabilities 1,090 3,047
Net cash used in operating activities (15,935 ) (20,939 )
Cash flows from financing activities:
Common shares issued 4,551 42,617
Warrants issued 449 8,706
Equity issue costs (520 ) (5,475 )
Exercise of warrants and options 187 12,851
Common shares repurchased (255 )
Loan borrowings 197
Loan repayments (196 ) (302 )
Net cash provided by financing activities 4,413 58,397
Cash flows from investing activities:
Loans Provided (273 )
Loan repayments received 302
Purchases of property, plant and equipment and intangible assets (1,294 ) (3,983 )
Purchase of investments (2,509 )
Business and asset acquisitions, net of cash acquired (14,508 ) (8,087 )
Net cash used in investing activities (15,802 ) (14,550 )
Effect of exchange rate on changes on cash (755 ) (815 )
Change in cash during the period (28,079 ) 22,093
Cash and restricted cash at beginning of period 37,616 15,523
Cash and restricted cash at end of period $ 9,537 $ 37,616
Supplemental disclosure of non-cash investing and financing activities
Common shares issued for business combinations $ 24,712 $ 20,654
Common shares issued for other agreements 1,470 2,507
Operating lease additions to right of use assets 2,919 1,233

Table 4. Reconciliation of GAAP to non-U.S.GAAP financial results

Table 4

Reconciliation of GAAP to non-U.S.GAAP financial results

(In thousands of United States dollars) For the year ended December 31, 2022 For the year ended December 31, 2021
Net loss for the period $ (52,629 ) $ (21,361 )
Income tax expense (benefit) (1,538 ) (98 )
Interest (income) expense (56 ) 32
Depreciation and amortization 2,629 501
Non-operating expense (1) 323 79
Share based compensation 3,404 1,340
Goodwill and asset impairments 26,235 51
Unrealized loss from changes in fair value (2) 593 2,345
Charges related to the flow-through of inventory step-up on business combinations 1,676 342
Other acquisition and transaction costs 1,055 229
Adjusted EBITDA $ (18,308 ) $ (16,540 )
Adjusted EBITDA Margin % -49.3 % -184.2 %
(1) Non-operating expense includes foreign exchange gain (loss).
(2) Unrealized loss from changes in fair value includes changes in the value of the Company’s long-term investment in an early-stage European cannabis company and the value of the Company’s contingent consideration associated with its acquisition of JustCBD.

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below: For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures, please see Table 4 under “Reconciliation of GAAP to non-U.S. GAAP financial results” included at the end of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230331005404/en/

Contacts

Investor Relations:
Investor Relations
ir@floragrowth.com

Public Relations:
Cassandra Dowell
+1 (858) 221-8001
flora@cmwmedia.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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