Ryan Allway August 19th, 2022 News, Top News SANTA ANA, Calif., Aug. 19, 2022 (GLOBE NEWSWIRE) — Unrivaled Brands, Inc. (OTCQX: UNRV) (“Unrivaled” or... Unrivaled Brands Reports Second Quarter 2022 Financial Results

Ryan Allway

August 19th, 2022

News, Top News


SANTA ANA, Calif., Aug. 19, 2022 (GLOBE NEWSWIRE) — Unrivaled Brands, Inc. (OTCQX: UNRV) (“Unrivaled” or the “Company”), a multi-state vertically integrated company focused on the cannabis sector with operations in California and Oregon, yesterday reported its second quarter 2022 financial results for the quarter ended June 30, 2022.

Financial Update

  • During the three months ended June 30, 2022, the Company generated total revenue of $17.56 million composed of retail revenue of $10.95 million and cultivation/distribution revenue of $6.61 million. This compared to total revenue of $2.87 million for the quarter ended June 30, 2021, which included retail revenue of $2.32 million and cultivation/distribution revenue of $0.55 million. This was an increase of 511.0% in total revenue.
  • The Company’s gross profit for the three months ended June 30, 2022 was $8.27 million, compared to a gross profit of $2.72 million for the three months ended June 30, 2021, an increase of $5.55 million or 204.0%.
  • The merger with UMBRLA and the acquisitions of People’s First Choice and SilverStreak Solutions in 2021 led to more operations with additional facilities, employees, and costs to support them. Selling, general and administrative expenses for the three months ended June 30, 2022 were $19.07 million, compared to $4.70 million for the three months ended June 30, 2021, an increase of $14.37 million or 305.9%. For the three months ended June 30, 2022, amortization and depreciation expenses increased by $2.56 million over the three months ended June 30, 2021, facilities related expenses, such as rent, utilities, repairs and maintenance, security, and insurance, increased by $2.89 million over second quarter of 2021. Taxes, licensing and permitting increased by $1.17 million. Advertising increased by $0.73 million. Employee related expenses increased by $3.93 million or 382%.
  • The Company realized an operating loss of $67.07 million for the three months ended June 30, 2022 compared to an operating loss of $1.97 million for the three months ended June 30, 2021, an increase of $65.09 million or 3,298.5%. This increase was attributed primarily to a $55.73 million charge for impairment of intangible assets and goodwill related to the UMBRLA and People’s acquisitions.

About Unrivaled Brands

Unrivaled Brands is a multi-state vertically integrated company focused on the cannabis sector with operations in California and Oregon. In California, Unrivaled Brands operates dispensaries, direct to consumer delivery, a state-wide distribution network, company-owned brands, and two cultivation facilities. In Oregon, we operate a state-wide distribution network, company-owned brands and outdoor and greenhouse cultivation. Unrivaled Brands is home to Korova, the market leader in high potency products across multiple product categories, currently available in California, Oregon, Arizona, and Oklahoma, as well as Sticks and Cabana.

For more info, please visit: https://unrivaledbrands.com.

Cautionary Language Concerning Forward-Looking Statements

Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.

New factors emerge from time-to-time and it is not possible for us to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as other risks associated with the combination, will be more fully discussed in our reports with the SEC. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.

Contact
Jason Assad
LR Advisors LLC.
[email protected]
678-570-6791

       
UNRIVALED BRANDS, INC. and Subsidiaries Consolidated Balance Sheets June 30,
2022
December 31,
2021
 
  (Unaudited)    
ASSETS      
Current assets:      
Cash $ 7,263   $ 6,891    
Accounts receivable, net   855     4,677    
Inventory, net   6,038     7,179    
Prepaid expenses and other assets   3,084     1,272    
Notes receivable   375     750    
Current assets held for sale   582     4,495    
Total current assets   18,197     25,264    
       
Property, equipment and leasehold improvements, net   21,416     23,728    
Intangible assets, net   102,772     129,637    
Goodwill   14,506     48,132    
Other assets   19,359     26,915    
Investments   1,214     163    
Long-term assets held for sale   2,791     17,984    
TOTAL ASSETS $ 180,255   $ 271,824    
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
LIABILITIES:      
Current liabilities:      
Accounts payable and accrued expenses $ 37,148   $ 31,904    
Short-term debt   26,532     45,749    
Income taxes payable   9,913     7,969    
Current liabilities held for sale   1,851     2,087    
Total current liabilities   75,444     87,708    
       
Long-term liabilities:      
Long-term debt, net of discounts   7,638     10,006    
Deferred tax liabilities   3,986     6,123    
Long-term lease liabilities   14,471     21,316    
Long-term liabilities held for sale   1,465     184    
Total long-term liabilities   27,560     37,629    
Total liabilities   103,004     125,337    
       
STOCKHOLDERS’ EQUITY:      
Common stock, par value $0.001:      
990,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 532,514,803 shares issued and 530,206,383 shares outstanding as of June 30, 2022; 498,546,295 shares issued and 496,237,883 shares outstanding as of December 31, 2021.   554     521    
Additional paid-in capital   401,214     392,930    
Treasury stock   (808 )   (808 )  
Accumulated deficit   (323,710 )   (250,015 )  
Total Unrivaled Brands, Inc. Stockholders’ Equity   77,251     142,628    
Non-controlling interest       3,859    
Total stockholders’ equity   77,251     146,487    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 180,255   $ 271,824    
       
         
UNRIVALED BRANDS, INC. and Subsidiaries Consolidated Statement of Operations Three Months Ended
June 30,
Six Months Ended
June 30,
    2022     2021     2022     2021  
         
Total revenues $ 17,556   $ 2,872   $ 38,280   $ 4,928  
Cost of goods sold   9,286     147     23,578     2,013  
Gross profit   8,270     2,725     14,702     2,915  
         
Selling, general and administrative expenses   19,070     4,698     37,837     17,347  
Impairment of assets   55,726         55,726      
Loss on sale of assets   542         343      
Loss from operations   (67,068 )   (1,973 )   (79,204 )   (14,432 )
         
Other income (expense):        
Gain (loss) on extinguishment of debt           542     (6,161 )
Interest expense, net   (443 )   (39 )   (2,210 )   (112 )
Unrealized gain on investments   963         963      
Other income   443     17     1,477     362  
Gain (loss) on investments       (874 )       5,337  
Total other income (expense)   963     (896 )   773     (574 )
         
Loss from continuing operations, before provision for income taxes   (66,105 )   (2,869 )   (78,432 )   (15,006 )
Provision for income tax benefit for continuing operations   449         2,136      
Net loss from continuing operations   (65,655 )   (2,869 )   (76,295 )   (15,006 )
         
Income (loss) from discontinued operations, before provision for income taxes   1,843     (2,101 )   3,979     (1,663 )
Provision for income tax benefit for discontinued operations   95              
Net income (loss) from discontinued operations   1,938     (2,101 )   3,979     (1,663 )
         
NET LOSS   (63,718 )   (4,970 )   (72,317 )   (16,669 )
         
Less: Loss attributable to non-controlling interest from continuing operations       (868 )       (486 )
Less: Income attributable to non-controlling interest from discontinued operations           275      
NET LOSS ATTRIBUTABLE TO UNRIVALED BRANDS, INC. $ (63,718 ) $ (4,102 ) $ (72,592 ) $ (16,183 )
         
Loss from continuing operations per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted $ (0.11 ) $ (0.01 ) $ (0.13 ) $ (0.06 )
Net Loss per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted $ (0.11 ) $ (0.02 ) $ (0.13 ) $ (0.07 )
         
Weighted-average number of common shares outstanding – basic and diluted   575,973,609     258,897,777     572,176,041     248,066,926  
         

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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