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Aquantia Announces First Quarter 2019 Results
SAN JOSE, Calif.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24AQ&src=ctag” target=”_blank”gt;$AQlt;/agt; lt;a href=”https://twitter.com/hashtag/80211ax?src=hash” target=”_blank”gt;#80211axlt;/agt;–Aquantia Corp., (NYSE: AQ), a leader in high-speed, Multi-Gigabit
Ethernet connectivity solutions, today announced financial results for
its first quarter ended March 31, 2019.
First quarter 2019 Summary:
-
Revenue for the three months ended March 31, 2019 of $17.0 million, a
decrease of 42 percent sequentially and 40 percent year-over-year; -
Gross margin of 53 percent for the three months ended March 31, 2019,
compared to 57 percent for the three months ended December 31, 2018; -
Operating loss of $13.2 million for the three months ended March 31,
2019, and non-GAAP operating loss of $10.8 million for the same
period; and -
Net loss per diluted share of $0.37 for the three months ended March
31, 2019, and non-GAAP net loss per diluted share of $0.31 for the
same period.
First Quarter 2019 Results
Total revenue for the first quarter 2019 was $17.0 million, a decrease
of 42 percent compared to $29.1 million in the prior quarter, and a
decrease of 40 percent compared to $28.4 million in the first quarter
2018.
Gross profit for the first quarter 2019 was $9.0 million, or 53 percent
of revenue, compared to $15.7 million, or 54 percent of revenue, in the
prior quarter, and $16.1 million, or 57 percent of revenue, in the first
quarter 2018. Operating expenses in the first quarter 2019 were $22.2
million, compared to $21.1 million in the prior quarter and $17.9
million in the first quarter 2018.
Loss from operations for the first quarter 2019 was $13.2 million, or 78
percent of revenue, compared to $5.3 million, or 18 percent of revenue,
in the prior quarter, and $1.7 million, or 6 percent of revenue, in the
first quarter 2018. Non-GAAP loss from operations for the first quarter
2019 was $11.0 million, or 64 percent of revenue, compared to $3.1
million, 11 percent of revenue in the prior quarter and $0.8 million, 3
percent of revenue in the first quarter 2018.
First quarter 2019 net loss was $13.1 million, or a loss of $0.37 per
diluted share, compared to fourth quarter 2018 net loss of $5.5 million,
or a loss of $0.16 per diluted share, and first quarter 2018 net loss of
$1.4 million, or $0.04 per diluted share.
Non-GAAP net loss for the first quarter 2019 was $10.8 million, or a
loss of $0.31 per diluted share. This compares to non-GAAP net loss of
$3.2 million, or a loss of $0.09 per diluted share for the fourth
quarter 2018 and non-GAAP net loss of $0.4 million, or $0.01 per diluted
share for the first quarter 2018.
“We experienced weaker demand in the first quarter than we had
anticipated as we saw several customers push out purchase orders,” said
Faraj Aalaei, Chairman and CEO. “Our technical leadership remains strong
and we are encouraged by our customers’ forecast as we see the
deployment of 802.11ax in the Enterprise and our 10G PON design wins
with Asian service providers driving our revenue growth throughout the
year.”
Balance Sheet
Cash, cash equivalents and short-term investments totaled $62.4 million
at March 31, 2019, compared to $67.4 million at December 31, 2018. The
decrease of $5.0 million was primarily for our operating activities.
Non-GAAP Financial Measures
In addition to GAAP reporting, the Company provides non-GAAP financial
measures on loss from operations and net loss. These non-GAAP financial
measures exclude the income statement effects of stock-based
compensation expense, amortization of acquired intangibles resulting
from business combination, change in fair value of convertible preferred
stock warrant liability and collaboration and development expense. The
Company believes that these non-GAAP financial measures help analyze the
Company’s financial results, establish budgets and operational goals for
managing its business and to evaluate performance. The Company also
believe that the presentation of these non-GAAP financial measures
provides an additional tool for investors to use in comparing Aquantia’s
core business and results of operations over multiple periods with other
companies in the industry, many of which present similar non-GAAP
financial measures to investors. However, the non-GAAP financial
measures presented may not be comparable to similarly titled measures
reported by other companies due to differences in the way that these
measures are calculated. The non-GAAP financial measures presented
should not be considered as the sole measure of our performance and
should not be considered in isolation from, or as a substitute for,
comparable financial measures calculated in accordance with GAAP.
About Aquantia
Aquantia is a leader in the design, development and marketing of
advanced, high-speed communications ICs for Ethernet connectivity in the
Data Center, Enterprise Infrastructure, Access and Automotive markets.
Aquantia products are designed to cost-effectively deliver leading-edge
data speeds for use in the latest generation of communications
infrastructure to alleviate network bandwidth bottlenecks caused by the
growth of global IP traffic and in emerging and demanding applications
such as autonomous driving. Aquantia is headquartered in Silicon
Valley. For more information, visit www.aquantia.com.
(AQ-INV)
Forward-Looking Statements
Statements in the press release for the first quarter 2019 regarding the
Company, which are not historical facts, constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements may be identified
by terms such as “outlook,” “believe,” “expect,” “may,” “will,”
“provide,” “continue,” “could,” and “should,” and the negative of these
terms or other similar expressions. These statements include statements
relating to the deployment of the Company’s products and design wins
driving revenue growth throughout the year. These statements are subject
to significant risks and uncertainties and actual results could differ
materially from those projected. The Company cautions investors not to
place undue reliance on the forward-looking statements contained in this
release. These risks and uncertainties include, without limitation,
risks and uncertainties related to: the Company’s ability to achieve or
sustain profitable operations due to its history of losses and
accumulated deficit; the Company’s dependence on a limited number of
customers for a substantial portion of revenue and lack of long-term
purchase commitments therefrom; the Company’s ability to achieve design
wins in competitive selection processes; the Company’s ability to
develop new or enhanced products in a timely manner; the size and growth
potential of the markets that the Company targets and the Company’s
ability to compete therein; market demand for the Company’s products,
including by customers of its direct customers; reliance on third
parties to manufacture, assemble and test our products as well as their
ability to achieve cost and yield improvements; lengthy and expensive
qualification processes; product defects; the Company’s ability to
obtain and maintain intellectual property protection for its technology;
developments in regulation and industry standards in the United States
and other jurisdictions; and other risks inherent to the fabless
semiconductor business. For a discussion of these and other related
risks, please refer to the Company’s recent SEC filings which are
available on the SEC’s website at www.sec.gov.
These forward-looking statements are based on the Company’s expectations
and assumptions as of the date of this press release. Except as required
by law, the Company undertakes no duty or obligation to update any
forward-looking statements contained in this press release as a result
of new information, future events or changes in the Company’s
expectations.
|
AQUANTIA CORP. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(in thousands, except per share amounts) |
||||||||
|
(Unaudited) |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | $ | 17,022 | $ | 28,358 | ||||
| Cost of revenue | 8,056 | 12,241 | ||||||
| Gross profit | 8,966 | 16,117 | ||||||
| Gross Profit Margin | 52.7 | % | 56.8 | % | ||||
| Operating expenses | ||||||||
| Research and development | 16,070 | 12,574 | ||||||
| Sales and marketing | 2,719 | 2,287 | ||||||
| General and administrative | 3,422 | 2,997 | ||||||
| Total operating expenses | 22,211 | 17,858 | ||||||
| Loss from operations | (13,245 | ) | (1,741 | ) | ||||
| Other income (expense) | 368 | 248 | ||||||
| Loss before income tax expenses | (12,877 | ) | (1,493 | ) | ||||
| Provision for (benefit from) income taxes | 190 | (125 | ) | |||||
| Net loss | $ | (13,067 | ) | $ | (1,368 | ) | ||
| Net loss per share | ||||||||
| Basic | $ | (0.37 | ) | $ | (0.04 | ) | ||
| Diluted | $ | (0.37 | ) | $ | (0.04 | ) | ||
| Weighted – average shares used in computing net income per share: | ||||||||
| Basic | 35,158 | 33,495 | ||||||
| Diluted | 35,158 | 33,495 | ||||||
|
AQUANTIA CORP. |
||||||||
|
RECONCILIATION OF GAAP NET LOSS |
||||||||
|
TO NON-GAAP NET LOSS |
||||||||
|
(in thousands, except per share amounts) |
||||||||
|
(Unaudited) |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| GAAP net loss | $ | (13,067 | ) | $ | (1,368 | ) | ||
| Stock-based compensation expense: | ||||||||
| Cost of revenue | 66 | 25 | ||||||
| Research and development | 1,232 | 573 | ||||||
| Sales and marketing | 350 | 111 | ||||||
| General and administrative | 642 | 269 | ||||||
| Total stock-based compensation expense | 2,290 | 978 | ||||||
|
Amortization of acquired intangibles resulting from business |
8 | 8 | ||||||
| Non-GAAP net loss | $ | (10,769 | ) | $ | (382 | ) | ||
| GAAP basic earnings per share | $ | (0.37 | ) | $ | (0.04 | ) | ||
| Effect of non-GAAP adjustments on basic earnings per share | 0.06 | 0.03 | ||||||
| Non-GAAP basic earnings per share | $ | (0.31 | ) | $ | (0.01 | ) | ||
| GAAP diluted earnings per share | $ | (0.37 | ) | $ | (0.04 | ) | ||
| Effect of non-GAAP adjustments on diluted earnings per share | 0.06 | 0.03 | ||||||
| Non-GAAP diluted earnings per share | $ | (0.31 | ) | $ | (0.01 | ) | ||
| Weighted – average shares used in computing net income per share: | ||||||||
| Basic | 35,158 | 33,495 | ||||||
| Diluted | 35,158 | 33,495 | ||||||
| GAAP loss from operations | $ | (13,050 | ) | $ | (1,741 | ) | ||
| Stock-based compensation expense | 2,290 | 978 | ||||||
|
Amortization of acquired intangibles resulting from business |
8 | 8 | ||||||
| Non-GAAP loss from operations | $ | (10,752 | ) | $ | (755 | ) | ||
| AQUANTIA CORP. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2019 | 2018 | |||||||
| (unaudited) | (audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,480 | $ | 6,684 | ||||
| Short-term investments | 53,895 | 60,730 | ||||||
| Accounts receivable, net | 10,350 | 16,927 | ||||||
| Inventories | 17,015 | 14,474 | ||||||
| Prepaid expenses and other current assets | 1,801 | 2,018 | ||||||
| Total current assets | 91,541 | 100,833 | ||||||
| Property and equipment, net | 11,211 | 9,225 | ||||||
| Operating lease assets, net | 5,644 | – | ||||||
| Intangible assets, net | 3,546 | 3,748 | ||||||
| Other assets | 616 | 617 | ||||||
| Total assets | $ | 112,558 | $ | 114,423 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,349 | $ | 5,495 | ||||
| Accrued liabilities | 15,750 | 13,907 | ||||||
| Operating lease liabilities, short-term | 839 | – | ||||||
| Total current liabilities | 22,938 | 19,402 | ||||||
| Operating lease liabilities, long-term | 6,251 | – | ||||||
| Other long-term liabilities | 413 | 1,799 | ||||||
| Total liabilities | 29,602 | 21,201 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | – | – | ||||||
| Additional paid-in capital | 303,473 | 300,791 | ||||||
| Accumulated comprehensive loss | (4 | ) | (123 | ) | ||||
| Accumulated deficit | (220,513 | ) | (207,446 | ) | ||||
| Total stockholders’ equity | 82,956 | 93,222 | ||||||
| Total liabilities and stockholders’ equity | $ | 112,558 | $ | 114,423 | ||||
Contacts
Public Relations Contact:
Diane Vanasse
408-242-0027
[email protected]
Investor Relations Contact:
Deborah Stapleton
650-815-1239
[email protected]
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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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