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Espial Reports First Quarter 2019 Results
Reading Time: 7 minutes
OTTAWA, Ontario–(BUSINESS WIRE)–Espial® Group Inc. (“Espial” or the “Company”), (TSX: ESP), today
announced its first quarter financial results for the three-month period
ended March 31, 2019.
Recent Highlights
- First quarter revenue was $6.1 million.
-
Q1 2019 SaaS annualized recurring revenue (ARR) increased 62% to $7.6
million from $4.7 million at the end of Q1 2018. -
First quarter adjusted EBITDA1 was a loss of $0.6 million.
Net loss was $1.5 million. -
Espial announced Alexa certification for 18 service providers using
its Elevate TVaaS platform; an industry-first, bulk certification and
introduction of intelligent voice services for search, discovery and
navigation of the Elevate Pay-TV service. -
Espial was named one of the 20 Most Promising Media and Entertainment
Solution Providers for 2019 by CIO Review. -
Espial and Enghouse Systems Limited, jointly announced that they have
entered into an arrangement agreement pursuant to which Enghouse has
agreed to acquire all of the issued and outstanding common shares of
Espial.
“I’m pleased with the progress we continue to make on our Elevate SaaS
solution. Over the last few quarters, we have introduced a variety of
rich features on our Elevate IPTV and Cable platforms across set-top
boxes and a variety of consumer-owned devices. Recently, we also
announced a bulk certification of Amazon Alexa, a great example of how
multiple customers receive the immediate benefit of scale from the
Elevate SaaS video platform”, said Jaison Dolvane, CEO of Espial. “In
the first quarter, our SaaS revenue grew to $2.2 million. We continued
to add new SaaS wins in Q1, while growing our pipeline through our sales
and demand generation initiatives. We are excited about the combination
of Espial and Enghouse and the value this will bring to our customers
through the increased scale and expertise.”
Financial Summary
For the three-month period ended March 31, 2019, revenue was $6.1
million compared with revenue of $5.9 million for the three months ended
March 31, 2018. Adjusted EBITDA for the first quarter of fiscal 2019 was
a loss of $0.6 million compared to $1.7 million for the first quarter of
fiscal 2018. Net loss for the quarter was $1.5 million, compared to a
loss of $3.7 million in the first quarter of fiscal 2018.
Q1 Financial Results
-
First quarter revenue was $6,079,347 compared with revenue of
$5,932,257 in the same period a year ago. First quarter software
license revenue was $1,938,395 compared to $2,024,498 in the first
quarter of fiscal 2018. Software subscription revenue increased to
$2,194,168 from $1,166,843 in the first quarter of 2018. Professional
services revenue for the first quarters of 2019 and 2018 were $656,702
and $906,072, respectively. Maintenance and support revenue for the
first quarter was $1,290,082 compared to $1,834,844 last year. -
North American revenues were $3,854,130 in the first quarter of 2019
compared to $3,229,789 in 2018. European revenues were $1,960,103 in
the first quarter of 2019 compared to $1,938,810 in 2018. Asia
revenues were $265,114 in the first quarter of 2019 compared to
$763,658 in 2018.
-
Gross margin as a percentage of sales for the first quarter of fiscal
2019 increased to 73% from 71% in the first quarter of fiscal 2018. -
Operating expenses in the first quarter of fiscal 2019 were $5,524,475
compared to $8,468,065 in the first quarter of fiscal 2018. -
Adjusted EBITDA for the first quarter of fiscal 2019 was a loss of
$591,215, compared to a loss of $1,740,749 in fiscal 2018.
-
Net loss in the first quarter was $1,478,584 compared to $3,736,385
last year.
Cash and cash equivalents on March 31, 2019 was $30,718,941.
A complete set of financial statements and management’s discussion and
analysis for the period ended March 31, 2019 will be available at http://www.sedar.com.
Conference Call
The Company will be hosting a conference call to discuss the Q1 2019
financial results on May 2, 2019 at 5:00PM EDT and the phone number to
join the results discussion is:
- Toll Free line (Canada/US) 866-521-4909
- Toll line (International/Local) 647-427-2311
The playback for the call will be available two hours after the call’s
completion and will be available until 11:59PM ET on June 3, 2019, at
the following numbers and passcode:
Toll-free line: +1-800-585-8367 or +1-416-621-4642, Passcode: 8487041
About Espial (www.espial.com)
Espial is transforming viewing experiences worldwide by enabling video
services at web speed and web scale. From immersive user experience and
discovery solutions to advanced cloud-based platforms, Espial solutions
help service providers manage, deliver and monetize video and
entertainment services. Espial’s customers span six continents, have
deployed tens of million devices, and are serviced through Espial’s
global sales, support, and innovation centers across North America,
Europe, and Asia. www.espial.com
Forward Looking Statement
This press release contains information that is forward looking
information with respect to Espial within the meaning of Section
138.4(9) of the Ontario Securities Act (forward looking statements) and
other applicable securities laws. In some cases, forward-looking
information can be identified by the use of terms such as “may”, “will”,
“should”, “expect”, “plan”, “anticipate”, “believe”, “intend”,
“estimate”, “predict”, “potential”, “continue” or the negative of these
terms or other similar expressions concerning matters that are not
historical facts. In particular, statements or assumptions about,
economic conditions, ongoing or future benefits of existing and new
customer, and partner relationships or new board nominees, our position
or ability to capitalize on the move to more open systems by service
providers, existing or future opportunities for the company and products
(including our ability to successfully execute on market opportunities
and secure new customer wins) and any other statements regarding
Espial’s objectives (and strategies to achieve such objectives), future
expectations, beliefs, goals or prospects are or involve forward-looking
information.
Forward-looking information is based on certain factors and assumptions.
While the company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking information, by its nature necessarily involves known
and unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those in the forward-looking
statements or could cause our current objectives and strategies to
change, including but not limited to changing conditions and other risks
associated with the on-demand TV software industry and the market
segments in which Espial operates, competition, Espial’s ability to
continue to supply existing customers and partners with its products and
services and avoid being displaced by competitive offerings, effectively
grow its integration and support capabilities, execute on market
opportunities, develop its distribution channels and generate increased
demand for its products, economic conditions, technological change,
unanticipated changes in our costs, regulatory changes, litigation, the
emergence of new opportunities, many of which are beyond our control and
current expectation or knowledge.
Additional risks and uncertainties affecting Espial can be found in
Management’s Discussion and Analysis of Results of Operations and
Financial Condition and its Annual Information Form for the fiscal years
ended December 31, 2018 and, when filed, 2019 on SEDAR at www.sedar.com.
If any of these risks or uncertainties were to materialize, or if the
factors and assumptions underlying the forward-looking information were
to prove incorrect, actual results could vary materially from those that
are expressed or implied by the forward-looking information contained
herein and our current objectives or strategies may change. Espial
assumes no obligation to update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. Readers are cautioned not to place
undue reliance on these forward-looking statements that speak only as of
the date hereof.
Non-IFRS Financial Measures
Adjusted EBITDA represents net income (loss) adjusted to exclude
shared-based compensation, amortization, depreciation, business
restructuring expenses, interest income, other expense (income), and
income tax expense. We use Adjusted EBITDA to provide investors with a
supplemental measure of our operating performance and thus highlight
trends in our core business that may not otherwise be apparent when
relying solely on IFRS financial measures. We believe that securities
analysts, investors and other interested parties frequently use non-IFRS
measures in the evaluation of issuers. Management also uses non-IFRS
measures in order to facilitate operating performance comparisons from
period to period, prepare annual operating budgets and assess our
ability to meet our capital expenditure and working capital requirements.
Adjusted EBITDA is not a recognized, defined or standardized measure
under IFRS. Our definition of Adjusted EBITDA will likely differ from
that used by other companies and therefore comparability may be limited.
Adjusted EBITDA should not be considered a substitute for or in
isolation from measures prepared in accordance with IFRS. Investors are
encouraged to review our financial statements and disclosures in their
entirety and are cautioned not to put undue reliance on non-IFRS
measures and view them in conjunction with the most comparable IFRS
financial measures. We have reconciled Adjusted EBITDA to the most
comparable IFRS financial measure as follows:
| Three Months Ended March 31 | |||||
| 2019 | 2018 | ||||
| Net income (loss) | $ (1,478,584) | $ (3,736,385) | |||
| Add (less) | |||||
| Share-based compensation | 54,878 | 348,972 | |||
| Amortization of intangibles | 104,829 | 175,267 | |||
| Depreciation | 350,008 | 123,964 | |||
| Business restructuring | – | 1,873,793 | |||
| Interest income | (131,271) | (101,686) | |||
| Other (income) expense | 502,992 | (461,230) | |||
| Income tax | 5,933 | 36,556 | |||
| Adjusted EBITDA | $ (591,215) | $ (1,740,749) | |||
Consolidated Statements of Loss and
Comprehensive Loss
(In
Canadian dollars)
| Three Months Ended | |||||
| March 31, 2019 | March 31, 2018 | ||||
| Revenue | |||||
| Software licenses | $ 1,938,395 | $ 2,024,498 | |||
| Software subscription | 2,194,168 | 1,166,843 | |||
| Professional services | 656,702 | 906,072 | |||
| Support and maintenance | 1,290,082 | 1,834,844 | |||
| Total revenue | 6,079,347 | 5,932,257 | |||
| Cost of revenue | 1,655,802 | 1,726,937 | |||
| Gross margin | 4,423,545 | 4,205,320 | |||
| Expenses | |||||
| Sales and marketing | 1,313,158 | 1,634,894 | |||
| General and administrative | 1,147,372 | 867,934 | |||
| Research and development | 2,959,116 | 3,916,177 | |||
| Amortization of intangible assets | 104,829 | 175,267 | |||
| Business restructuring | – | 1,873,793 | |||
| 5,524,475 | 8,468,065 | ||||
| Loss before other income (expenses) | (1,100,930) | (4,262,745) | |||
| Other income (expenses) | (502,992) | 461,230 | |||
| Interest income | 131,271 | 101,686 | |||
| Loss before taxes | (1,472,651) | (3,699,829) | |||
| Income taxes | (5,933) | (36,556) | |||
| Net loss | (1,478,584) | (3,736,385) | |||
|
Items that are or may be reclassified subsequently to profit or loss: |
|||||
|
Foreign currency translation differences – foreign operations |
178,414 | (235,627) | |||
| Total comprehensive loss | $ (1,300,170) | $ (3,972,012) | |||
| Net loss per common share – basic | $ (0.04) | $ (0.10) | |||
| Weighted average number of common shares outstanding – basic | 35,459,803 | 35,917,607 | |||
| Net loss per common share – diluted | $ (0.04) | $ (0.10) | |||
| Weighted average number of common shares outstanding – diluted | 35,459,803 | 35,917,607 | |||
Consolidated Balance Sheets
(In Canadian Dollars)
| March 31, 2019 | December 31, 2018 | ||||
| CURRENT ASSETS | |||||
| Cash and cash equivalents | $ 30,718,941 | $ 33,405,255 | |||
| Accounts receivable | 6,683,586 | 6,139,944 | |||
| Investment tax credits receivable | 492,988 | 402,208 | |||
| Prepaid expenses and other assets | 874,126 | 1,037,309 | |||
| 38,769,641 | 40,984,716 | ||||
| Property, plant and equipment | 1,545,207 | 1,627,849 | |||
| Right-of-use assets | 4,887,223 | – | |||
| Intangible assets | 644,917 | 721,611 | |||
| Goodwill | 3,632,604 | 3,632,604 | |||
| $ 49,479,592 | $ 46,966,780 | ||||
| CURRENT LIABILITIES | |||||
| Accounts payable and accrued liabilities | $ 2,858,445 | $ 3,068,708 | |||
| Provisions | 248,984 | 252,433 | |||
| Deferred revenue | 1,565,138 | 2,429,314 | |||
| Lease obligations | 1,010,179 | – | |||
| 5,682,746 | 5,750,455 | ||||
| Provisions | 147,166 | 225,689 | |||
| Lease obligations | 3,900,914 | – | |||
| 9,730,826 | 5,976,144 | ||||
| SHAREHOLDERS’ EQUITY | |||||
| Share capital | 122,971,226 | 122,964,572 | |||
| Share based payments reserve | 17,799,028 | 17,747,382 | |||
| Accumulated other comprehensive loss | (538,888) | (717,302) | |||
| Deficit | (100,482,600) | (99,004,016) | |||
| 39,748,766 | 40,990,636 | ||||
| $ 49,479,592 | $ 46,966,780 |
Statements of Cash Flows
(In Canadian Dollars)
| Three Months Ended | |||||
| March 31, 2019 | March 31, 2018 | ||||
| CASH (USED IN) PROVIDED BY | |||||
| OPERATING | |||||
| Net loss | $ (1,478,584) | $ (3,736,385) | |||
| Items not affecting cash | |||||
| Depreciation of property plant and equipment and right-of-use assets | 350,008 | 123,852 | |||
| Amortization of intangible assets | 104,829 | 175,085 | |||
| Share-based compensation expense | 54,878 | 348,972 | |||
| Business restructuring provisions | (81,972) | 920,307 | |||
| (1,050,841) | (2,168,169) | ||||
|
Changes in non-cash operating
|
(1,606,557) | (1,485,261) | |||
| (2,657,398) | (3,653,430) | ||||
| INVESTING | |||||
| Purchase of equipment | (28,905) | (63,980) | |||
| Purchase of intangibles | (30,816) | (185,997) | |||
| (59,721) | (249,977) | ||||
| FINANCING | |||||
| Options exercised | 3,232 | 8,550 | |||
| Share repurchase program | – | (173,573) | |||
| Payment of lease obligations | (227,884) | – | |||
| (224,652) | (165,023) | ||||
| Net cash and cash equivalents outflow | (2,941,771) | (4,068,430) | |||
| Cash and cash equivalents, beginning of period | 33,405,255 | 38,813,911 | |||
| Effects of exchange rates on cash and cash equivalents | 255,457 | 187,534 | |||
| Cash and cash equivalents, end of period | $ 30,718,941 | $ 34,933,015 | |||
| Supplementary information: | |||||
| Taxes paid | $ 5,933 | $ 36,556 | |||
1 Adjusted EBITDA is a non-IFRS measure. This measure is
defined in the “Non-IFRS Financial Measures” of this news release.
Contacts
For inquiries from the financial press or analysts, contact:
Carl
Smith
Chief Financial Officer
Espial Group Inc.
Email: [email protected]
Phone:
+1 613-230-4770
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Cannabis
Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives
Schwazze Management to Host Conference Call Today at 5:00 p.m. Eastern Time
DENVER, May 15, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (Cboe CA: SHWZ) (“Schwazze” or the “Company”), today announced financial and operational results for the first quarter ended March 31, 2024.
“We delivered another period of revenue growth in Q1 as we further refined our retail strategy while contending with the prolonged competitive challenges in Colorado and New Mexico,” said Forrest Hoffmaster, Interim CEO of Schwazze. “Throughout the quarter, we continued to sharpen our pricing and promotional efforts while enhancing the in-store experience, widening assortment, improving in-stock position, and advancing our loyalty program to attract and retain new customers. We also strengthened our wholesale business with quarter-over-quarter growth, while surpassing 30% total door penetration across both states.”
“The Colorado market remains highly competitive with more than 680 active recreational licenses, underscoring the importance of delivering an exceptional customer experience and fully integrated retail support program. Although retail pricing has recently stabilized, Colorado sales in Q1 were down 10% year-over-year due to lower volumes. Nonetheless, we significantly outpaced the market as our sales were up 9%, demonstrating the effectiveness of our operating playbook to compete in challenging environments. We expect to continue driving improvements in customer acquisition, retention, and loyalty as we further increase market share in the state.”
“In New Mexico, the proliferation of new licenses continued to outpace state cannabis sales as store count in Q1 increased 31% year-over-year while the market grew only 13%. In addition to pricing and promotional efforts, we’ve focused on driving traffic into our stores by expanding assortment with high quality flower and delivering an elevated customer experience. The New Mexico regulatory body has also increased its license enforcement efforts in recent months, contributing to more than 70 store closures and a 33% sequential decrease in net new store openings in the first quarter. We will continue to support the New Mexico Cannabis Control Division as it develops its regulatory framework.”
“Over the past four years we have rapidly scaled our footprint through 13 acquisitions, building a leading retail presence in both Colorado and New Mexico. We are beginning to see positive momentum from our pricing and promotional strategy and will remain focused on driving operating efficiencies while further optimizing our assets as we consolidate cultivation facilities and eliminate underperforming stores that do not meet our high-margin thresholds. We believe these initiatives, coupled with our operating playbook and strict cost controls, will enable us to return to stronger levels of profitability moving forward.”
First Quarter 2024 Financial Summary
|
$ in Thousands USD |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
Total Revenue |
$41,601 |
$43,325 |
$40,001 |
|
Gross Profit |
$17,934 |
$7,034[1] |
$21,849 |
|
Operating Expenses |
$20,643 |
$23,276 |
$16,199 |
|
Income (Loss) from Operations |
$(2,709) |
$(16,242) |
$5,650 |
|
Adjusted EBITDA[2] |
$7,341 |
$10,953 |
$14,525 |
|
Operating Cash Flow |
$(3,700) |
$3,452 |
$(880) |
Recent Highlights
- Announced the grand opening of a medical and recreational dispensary in March under the Everest Apothecary banner in Las Cruces, New Mexico, increasing the Company’s retail footprint to 34 stores across the state.
- Increased wholesale penetration in the first quarter to more than 30% of total doors in Colorado and New Mexico.
- Lowell Herb Co. pre-roll sales increased more than 3x quarter-over-quarter in Colorado, where it continues to be the #1 pre-roll in the state.
- Wana gummy sales up more than 2x quarter-over-quarter in New Mexico.
First Quarter 2024 Financial Results
Total revenue in the first quarter of 2024 increased 4% to $41.6 million compared to $40.0 million for the same quarter last year. The increase was primarily due to growth from new stores compared to the prior year period, partially offset by continued pricing pressure and the proliferation of new licenses in New Mexico.
Gross profit for the first quarter of 2024 was $17.9 million or 43.1% of total revenue, compared to $21.8 million or 54.6% of total revenue for the same quarter last year. The decrease in gross margin was primarily driven by the aforementioned pricing pressure in New Mexico, as well as higher medical sales mix in Colorado.
|
____________________________ |
|
1 Q4 2023 Gross Profit includes one-time, non-cash inventory adjustments of approximately $13.1 million comprised of $3.1 million of product consolidation, obsolescence, and shrinkage expenses, $4.3 million of net realizable value adjustments, and $5.8 million of fair value adjustments on acquired inventory in New Mexico in 2023. |
Operating expenses for the first quarter of 2024 were $20.6 million compared to $16.2 million for the same quarter last year. The year-ago period benefitted from a payroll tax credit of $3.9M. The remaining increase was primarily driven by personnel expenses and four-wall SG&A costs associated with 21 additional stores in Colorado and New Mexico that are still ramping.
Loss from operations for the first quarter of 2024 was $2.7 million compared to income from operations of $5.6 million in the same quarter last year. Net loss was $16.1 million for the first quarter of 2024 compared to net income of $1.7 million for the same quarter last year.
Adjusted EBITDA for the first quarter of 2024 was $7.3 million compared to $14.5 million for the same quarter last year. The decrease in Adjusted EBITDA was primarily driven by lower gross margin and higher operating expenses associated with the 21 additional stores that are still ramping.
As of March 31, 2024, cash and cash equivalents were $13.2 million compared to $19.2 million on December 31, 2023. Total debt as of March 31, 2024, was $159.7 million compared to $156.8 million on December 31, 2023.
Conference Call
The Company will conduct a conference call today, May 15, 2024, at 5:00 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2024.
Schwazze management will host the conference call, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing [email protected].
Date: Wednesday, May 15, 2024
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 84167910
Webcast: SHWZ Q1 2024 Earnings Call
The conference call will also be broadcast live and available for replay on the investor relations section of the Company’s website at https://ir.schwazze.com.
Toll-free replay number: (888) 390-0541
International replay number: (416) 764-8677
Replay ID: 167910
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
About Schwazze
Schwazze (OTCQX: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company’s previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management’s current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
[email protected]
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
For the Periods Ended March 31, 2024 and December 31, 2023
Expressed in U.S. Dollars
|
March 31, |
December 31, |
||||
|
2024 |
2023 |
||||
|
ASSETS
|
|||||
|
Current Assets |
|||||
|
Cash & Cash Equivalents |
$ |
13,151,317 |
$ |
19,248,932 |
|
|
Accounts Receivable, net of Allowance for Doubtful Accounts |
3,356,032 |
4,261,159 |
|||
|
Inventory |
26,382,184 |
25,787,793 |
|||
|
Marketable Securities, net of Unrealized Loss of $347,516 and Loss of $1,816, respectively |
108,583 |
456,099 |
|||
|
Prepaid Expenses & Other Current Assets |
3,502,310 |
3,914,064 |
|||
|
Total Current Assets |
46,500,426 |
53,668,047 |
|||
|
Non-Current Assets |
|||||
|
Fixed Assets, net Accumulated Depreciation of $10,061,700 and $8,741,782, respectively |
31,326,000 |
31,113,630 |
|||
|
Investments |
2,000,000 |
2,000,000 |
|||
|
Investments Held for Sale |
– |
202,111 |
|||
|
Goodwill |
67,492,705 |
67,499,199 |
|||
|
Intangible Assets, net Accumulated Amortization of $36,483,160 and $32,706,765, respectively |
162,391,482 |
166,167,877 |
|||
|
Other Non-Current Assets |
1,328,187 |
1,263,837 |
|||
|
Operating Lease Right of Use Assets |
34,575,832 |
34,233,142 |
|||
|
Deferred Tax Assets, net |
992,144 |
1,996,489 |
|||
|
Total Non-Current Assets |
300,106,350 |
304,476,285 |
|||
|
Total Assets |
$ |
346,606,776 |
$ |
358,144,332 |
|
|
LIABILITIES & STOCKHOLDERS’ EQUITY
|
|||||
|
Current Liabilities |
|||||
|
Accounts Payable |
$ |
9,443,233 |
$ |
13,341,561 |
|
|
Accrued Expenses |
8,106,618 |
7,774,691 |
|||
|
Derivative Liabilities |
1,319,845 |
638,020 |
|||
|
Lease Liabilities – Current |
5,186,316 |
4,922,724 |
|||
|
Current Portion of Long Term Debt |
29,579,713 |
3,547,011 |
|||
|
Income Taxes Payable |
28,235,039 |
25,232,782 |
|||
|
Total Current Liabilities |
81,870,764 |
55,456,789 |
|||
|
Non-Current Liabilities |
|||||
|
Long Term Debt, net of Debt Discount & Issuance Costs |
130,120,753 |
153,262,203 |
|||
|
Lease Liabilities – Non-Current |
30,735,072 |
30,133,452 |
|||
|
Total Non-Current Liabilities |
160,855,825 |
183,395,655 |
|||
|
Total Liabilities |
$ |
242,726,589 |
$ |
238,852,444 |
|
|
Stockholders’ Equity |
|||||
|
Preferred Stock, $0.001 Par Value. 10,000,000 Shares Authorized; 82,185 Shares Issued and |
|||||
|
82,185 Outstanding as of March 31, 2024 and 85,534 Shares Issued and 85,534 Outstanding as of |
|||||
|
December 31, 2023. |
82 |
86 |
|||
|
Common Stock, $0.001 Par Value. 250,000,000 Shares Authorized; 79,168,539 Shares Issued |
|||||
|
and 78,248,389 Shares Outstanding as of March 31, 2024 and 74,888,392 Shares Issued |
|||||
|
and 73,968,242 Shares Outstanding as of December 31, 2023. |
79,169 |
74,888 |
|||
|
Additional Paid-In Capital |
202,677,665 |
202,040,968 |
|||
|
Accumulated Deficit |
(96,843,602) |
(80,790,927) |
|||
|
Common Stock Held in Treasury, at Cost, 920,150 Shares Held as of March 31, 2024 and |
|||||
|
920,150 Shares Held as of December 31, 2023. |
(2,033,127) |
(2,033,127) |
|||
|
Total Stockholders’ Equity |
103,880,187 |
119,291,888 |
|||
|
Total Liabilities & Stockholders’ Equity |
$ |
346,606,776 |
$ |
358,144,332 |
|
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
(Unaudited) |
(Unaudited) |
||||
|
Operating Revenues |
|||||
|
Retail |
$ |
37,633,252 |
$ |
35,820,111 |
|
|
Wholesale |
3,898,320 |
4,058,925 |
|||
|
Other |
69,421 |
121,900 |
|||
|
Total Revenue |
41,600,993 |
40,000,936 |
|||
|
Total Cost of Goods & Services |
23,667,319 |
18,152,163 |
|||
|
Gross Profit |
17,933,674 |
21,848,773 |
|||
|
Operating Expenses |
|||||
|
Selling, General and Administrative Expenses |
11,835,818 |
10,100,934 |
|||
|
Professional Services |
1,671,881 |
1,187,364 |
|||
|
Salaries |
6,880,988 |
4,695,971 |
|||
|
Stock Based Compensation |
253,916 |
214,544 |
|||
|
Total Operating Expenses |
20,642,603 |
16,198,813 |
|||
|
Income from Operations |
(2,708,929) |
5,649,960 |
|||
|
Other Income (Expense) |
|||||
|
Interest Expense, net |
(8,307,369) |
(7,745,854) |
|||
|
Unrealized Gain (Loss) on Derivative Liabilities |
(681,825) |
8,501,685 |
|||
|
Other Loss |
10,500 |
– |
|||
|
Loss on Investment |
(33,382) |
– |
|||
|
Unrealized Gain on Investment |
(347,516) |
1,816 |
|||
|
Total Other Income (Expense) |
(9,359,592) |
757,647 |
|||
|
Pre-Tax Net Income (Loss) |
(12,068,521) |
6,407,607 |
|||
|
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
|
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Less: Accumulated Preferred Stock Dividends for the Period |
(2,155,259) |
(2,029,394) |
|||
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
(18,207,934) |
$ |
(283,965) |
|
|
Earnings (Loss) per Share Attributable to Common Stockholders |
|||||
|
Basic Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.01) |
|
|
Diluted Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.06) |
|
|
Weighted Average Number of Shares Outstanding – Basic |
76,006,932 |
55,835,501 |
|||
|
Weighted Average Number of Shares Outstanding – Diluted |
76,006,932 |
101,608,278 |
|||
|
Comprehensive Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
(Unaudited) |
(Unaudited) |
||||
|
Cash Flows from Operating Activities: |
|||||
|
Net Income (Loss) for the Period |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Adjustments to Reconcile Net Income (Loss) to Cash for Operating Activities |
|||||
|
Depreciation & Amortization |
5,096,314 |
6,151,395 |
|||
|
Non-Cash Interest Expense |
1,031,431 |
991,184 |
|||
|
Non-Cash Lease Expense |
2,871,226 |
2,251,459 |
|||
|
Deferred Taxes |
1,004,345 |
(637,225) |
|||
|
Loss on Investment |
202,111 |
– |
|||
|
Change in Derivative Liabilities |
681,825 |
(8,501,685) |
|||
|
Amortization of Debt Issuance Costs |
421,512 |
421,513 |
|||
|
Amortization of Debt Discount |
2,303,246 |
1,999,933 |
|||
|
(Gain) Loss on Investments, net |
347,516 |
(1,816) |
|||
|
Stock Based Compensation |
640,974 |
214,544 |
|||
|
Changes in Operating Assets & Liabilities (net of Acquired Amounts): |
|||||
|
Accounts Receivable |
905,127 |
(118,181) |
|||
|
Inventory |
(587,900) |
(3,023,251) |
|||
|
Prepaid Expenses & Other Current Assets |
411,754 |
(3,036,801) |
|||
|
Other Assets |
(64,350) |
360,674 |
|||
|
Change in Operating Lease Liabilities |
(2,348,703) |
(1,531,765) |
|||
|
Accounts Payable & Other Liabilities |
(3,566,401) |
(3,464,671) |
|||
|
Income Taxes Payable |
3,002,257 |
5,299,403 |
|||
|
Net Cash Provided by (Used in) Operating Activities |
(3,700,390) |
(879,861) |
|||
|
Cash Flows from Investing Activities: |
|||||
|
Collection of Notes Receivable |
– |
10,631 |
|||
|
Purchase of Fixed Assets |
(1,532,287) |
(2,913,394) |
|||
|
Net Cash Provided by (Used in) Investing Activities |
(1,532,287) |
(2,902,763) |
|||
|
Cash Flows from Financing Activities: |
|||||
|
Payment on Notes Payable |
(864,938) |
– |
|||
|
Net Cash Provided by (Used in) Financing Activities |
(864,938) |
– |
|||
|
Net (Decrease) in Cash & Cash Equivalents |
(6,097,615) |
(3,782,624) |
|||
|
Cash & Cash Equivalents at Beginning of Period |
19,248,932 |
38,949,253 |
|||
|
Cash & Cash Equivalents at End of Period |
$ |
13,151,317 |
$ |
35,166,628 |
|
|
Supplemental Disclosure of Cash Flow Information: |
|||||
|
Cash Paid for Interest |
$ |
4,515,205 |
$ |
6,540,748 |
|
MEDICINE MAN TECHNOLOGIES, INC.
ADJUSTED EBITDA RECONCILIATION (NON-GAAP)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Interest Expense, net |
8,307,369 |
7,745,854 |
|||
|
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
|
Other (Income) Expense, net of Interest Expense |
1,052,223 |
(8,503,501) |
|||
|
Depreciation & Amortization |
5,618,834 |
6,612,814 |
|||
|
Earnings Before Interest, Taxes, Depreciation and |
|||||
|
Amortization (EBITDA) (non-GAAP) |
$ |
2,909,905 |
$ |
12,262,774 |
|
|
Non-Cash Stock Compensation |
253,916 |
214,544 |
|||
|
Deal Related Expenses |
637,761 |
1,195,802 |
|||
|
Capital Raise Related Expenses |
20,760 |
35,068 |
|||
|
Severance |
484,561 |
118,436 |
|||
|
Retention Program Expenses |
807,500 |
280,632 |
|||
|
Pre-Operating & Dark Carry Expenses |
1,053,837 |
391,917 |
|||
|
One-Time Legal Settlements |
417,653 |
– |
|||
|
Other Non-Recurring Items |
754,751 |
25,707 |
|||
|
Adjusted EBITDA (non-GAAP) |
$ |
7,340,644 |
$ |
14,524,880 |
|
|
Revenue |
41,600,993 |
40,000,936 |
|||
|
Adjusted EBITDA Percent |
17.6 % |
36.3 % |
|||
View original content:https://www.prnewswire.co.uk/news-releases/schwazze-announces-first-quarter-2024-financial-results-302146858.html
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