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More Than 1,000 Enterprises Across the Globe Adopt Red Hat OpenShift Container Platform to Power Business Applications

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From energy to industrial, more organizations are using Red Hat
OpenShift, a leading enterprise Kubernetes solution, to transform their
industries

BOSTON – RED HAT SUMMIT–(BUSINESS WIRE)–Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source
solutions, today announced that more than 1,000 customers are using Red
Hat OpenShift Container Platform, solidifying Red Hat as a hybrid cloud
and enterprise Kubernetes leader. This milestone comes as Red
Hat announces the availability of Red Hat OpenShift 4
, the next
generation of its trusted enterprise
Kubernetes platform
, to deliver cloud-like simplicity with
full-stack automated operations across the hybrid cloud.

451 Research estimates the application container software market should
grow to more than $5.5 billion by 2023 with a compound annual growth
rate of 28%.1 As this technology space expands, a growing
number of businesses have trusted Red Hat to support digital
transformation efforts powered by containers and Kubernetes. In the past
year, Red Hat OpenShift customers have nearly doubled.

Red Hat OpenShift customers represent companies embracing containers and
Kubernetes for their hybrid infrastructures. Red Hat OpenShift is
powering customers across the world and across industries. Industries
such as automotive, financial services, hospitality, insurance,
logistics, retail, travel, telecommunications, government agencies and
more rely on OpenShift as their Kubernetes platform. Customers like ANZ
Bank
, Banco Santander, Cathay
Pacific
, Copel Telecom, GE,
Lufthansa Technik, Macquarie Bank, Miles
and More GmbH
, Paychex, Porsche Informatik, Sabre,
Swisscom AG, Via Varejo, and X by Orange are among those embracing Red
Hat OpenShift, including this
year’s Red Hat Innovation Awards winners
BP, Deutsche Bank, Emirates
NBD, HCA Healthcare and Kohl’s.

Nearly 50% of the top Fortune 100 companies are using Red Hat OpenShift2.
Almost 30% of the top Fortune Global 500 companies use OpenShift,
representing:

  • 2 of the top 3 energy companies
  • 2 of the top 3 hotel companies
  • 2 of the top 3 telecommunications companies
  • 3 of the top 5 aerospace companies
  • 4 of the top 5 industrial companies
  • 3 of the top 10 finance companies
  • 4 of the top 10 retail companies
  • 5 of the top 10 healthcare companies
  • 5 of the top 10 transportation companies

Digital transformation powered by enterprise Kubernetes across the
hybrid cloud

As more companies transform their businesses with new value-creating
applications, Linux containers and Kubernetes have been core
technologies in the multi-billion dollar market for cloud-native
application platforms
. Red Hat OpenShift has emerged as a leading
open hybrid
cloud platform
to bring together these technologies, which enable
and accelerate both enterprise developers and IT operations teams.

Some recent examples of how leading enterprises are benefitting from
enterprise Kubernetes from Red Hat include:

  • Lufthansa
    Technik
    : Lufthansa Technik, one of the world’s leading
    providers of maintenance, repair, and overhaul services for commercial
    airlines, created a digital platform to support digital products for
    its end users in development and operations—helping them better
    predict events and, as a result, save time and money. The solution
    AVIATAR includes Red Hat OpenShift Container Platform, running on
    Microsoft Azure, to support the team’s DevOps and continuous
    improvement approaches, as well as to build, deploy, run, and
    integrate new infrastructure components. Red Hat OpenShift Container
    Storage provides scalable storage for the platform and Red Hat JBoss
    Enterprise Application Platform (JBoss EAP) provides a back-end for
    Lufthansa Technik’s AVIATAR Java applications.
  • Macquarie
    Bank
    : To transform its digital banking infrastructure,
    Macquarie moved to a cloud-based solution using Red Hat
    OpenShift Container Platform. The company is using OpenShift to
    iteratively modernize legacy applications and deploy microservices in
    containers to streamline and automate their lifecycles.
  • Porsche
    Informatik GmbH
    : The automobile industry is undergoing
    one of the biggest transformations in its 100-plus year history. As a
    service provider, Porsche Informatik’s answer to the digital
    transformation of a worldwide automotive trade network is agility by
    design. It is using Red Hat OpenShift Container Platform and Red Hat
    OpenShift Container Storage to orchestrate the end-customer
    applications and support a portable development process. With
    OpenShift, new applications that once took over a week are up and
    running after just a few hours. With help from its Red Hat-based
    solution, the team’s goal is to reduce time-to-market by 90% – from
    weeks to days.
  • X
    by Orange
    : X By Orange, a subsidiary of Orange Spain
    focused on business-to-business (B2B) digital services, selected Red
    Hat as a core technology partner to help create its software-defined
    strategy. Red Hat OpenShift Container Platform helps it more quickly
    create and release new services and give it a “provider agnostic”
    Kubernetes platform on top of multicloud infrastructure.

Red Hat OpenShift is a leading enterprise Kubernetes platform, with
automated operations to manage hybrid cloud and multicloud deployments,
optimized for developer productivity and frictionless innovation. Red
Hat OpenShift runs on Red Hat Enterprise Linux, the most deployed
commercial Linux operating system in the public cloud. More than 90% of
Fortune 500 companies trust Red Hat.3

Press webcast

Red Hat will host a press conference live from Red Hat Summit at 11 a.m.
EDT on Wednesday, May 8. Following remarks, press and analysts are
invited to participate in a live question and answer session.

To register for the press conference or view the replay after the event,
visit https://onlinexperiences.com/Launch/QReg/ShowUUID=45D50AF9-7E2C-4F8C-8606-B85EBDA927AC

Supporting Quotes

Ashesh Badani, senior vice president, Cloud Platforms, Red Hat
“Red
Hat has been leading the industry with enterprise-ready Kubernetes and
Open Hybrid Cloud, making innovation accessible to global enterprises.
Our investments in Kubernetes engineering and community leadership offer
our customers confidence to unleash new application capabilities and
digitally transform their business. With more than 1,000 customers
embracing Red Hat OpenShift in only a few years, we see this as the
first milestone in a much bigger transformation happening across every
industry. We are optimistic about the future.”

Jay Lyman, principal analyst, Cloud Native and DevOps, 451 Research
“Red
Hat was among the first vendors to focus on enterprise use of containers
and Kubernetes. Its OpenShift software, which continues to be a top
Kubernetes product in the market, simplifies central administration of
Kubernetes clusters, environments and users and automates the
installation and update process. Red Hat’s approach to enterprise
Kubernetes is well-aligned with enterprise requirements, making Red Hat
OpenShift Container Platform, with more than 1,000 customers, a leader
in the enterprise Kubernetes market.”

Nilceu Romero Silva, CIO, Copel Telecom
“Red Hat OpenShift
gives us a flexible, automated Kubernetes platform to accelerate the
delivery of applications. It facilitates the tracking of resources used
and the costs related to each department. With Red Hat, we built a
development and production environments that can handle even the most
critical application, with higher availability and lower operational
costs. Now, we currently plan to migrate 100% of our applications and
have all new applications developed on Red Hat OpenShift.”

Dave Wilson, senior director of infrastructure and architecture,
Paychex

“Open source technology gives us the ability to deliver
what our internal and external customers need in a way that
differentiates us from our competitors. Our development teams using Red
Hat OpenShift have, on average, three or four times more product
deployments, equating to more features launching to our end users
faster.”

Cristiano Dianese, manager, IT, Via Varejo
“We manage two
major Brazilian retailers, Casas Bahia and Pontofrio, with almost 1,000
stores and 50,000 employees. With this widely scaled business, Red Hat
OpenShift helps us to drive scalability, resilience, visibility and
agility.”

Additional Resources

Connect with Red Hat

About Red Hat, Inc.

Red
Hat
is the world’s leading provider of enterprise open source
software solutions, using a community-powered approach to deliver
reliable and high-performing Linux, hybrid cloud, container, and
Kubernetes technologies. Red Hat helps customers integrate new and
existing IT applications, develop cloud-native applications, standardize
on our industry-leading operating system, and automate, secure, and
manage complex environments. Award-winning
support, training, and consulting services make Red Hat a trusted
adviser to the Fortune 500
. As a strategic partner to cloud
providers, system integrators, application vendors, customers, and open
source communities, Red Hat can help organizations prepare for the
digital future.

Forward-Looking Statements

Certain statements contained in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Actual results may differ materially
from those indicated by such forward-looking statements as a result of
various important factors, including: risks related to our pending
merger with International Business Machines Corporation, the ability of
the Company to compete effectively; the ability to deliver and stimulate
demand for new products and technological innovations on a timely basis;
delays or reductions in information technology spending; the integration
of acquisitions and the ability to market successfully acquired
technologies and products; risks related to errors or defects in our
offerings and third-party products upon which our offerings depend;
risks related to the security of our offerings and other data security
vulnerabilities; fluctuations in exchange rates; changes in and a
dependence on key personnel; the effects of industry consolidation;
uncertainty and adverse results in litigation and related settlements;
the inability to adequately protect Company intellectual property and
the potential for infringement or breach of license claims of or
relating to third party intellectual property; the ability to meet
financial and operational challenges encountered in our international
operations; and ineffective management of, and control over, the
Company’s growth and international operations, as well as other factors
contained in our most recent Annual Report on Form 10-K (copies of which
may be accessed through the Securities and Exchange Commission’s website
at www.sec.gov),
including those found therein under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations”. In addition to these factors, actual future performance,
outcomes, and results may differ materially because of more general
factors including (without limitation) general industry and market
conditions and growth rates, economic and political conditions,
governmental and public policy changes and the impact of natural
disasters such as earthquakes and floods. The forward-looking statements
included in this press release represent the Company’s views as of the
date of this press release and these views could change. However, while
the Company may elect to update these forward-looking statements at some
point in the future, the Company specifically disclaims any obligation
to do so. These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the date
of this press release.

Red Hat, Red Hat Enterprise Linux, JBoss and OpenShift are trademarks
or registered trademarks of Red Hat, Inc. or its subsidiaries in the
U.S. and other countries. Linux® is the registered trademark of Linus
Torvalds in the U.S. and other countries.

1 451 Research Market
Monitor
, February 2019
2 Red Hat client data and top
Fortune Global 100 list, March 2019
3 Red
Hat client data and Fortune 500 list
, June 2018

Contacts

Kelly Tenn
Red Hat, Inc.
[email protected]
+1-415-364-8366


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Cannabis

Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives

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Cannabis

Rubicon Organics Reports Q1 2024 Financial Results

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SCHWAZZE

Schwazze Announces First Quarter 2024 Financial Results

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schwazze-announces-first-quarter-2024-financial-results

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. 
2  Adjusted EBITDA is a non-GAAP measure as defined by the SEC, and represents earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating costs. The Company uses Adjusted EBITDA as it believes it better explains the results of its core business. See “ADJUSTED EBITDA RECONCILIATION (NON-GAAP)” section herein for an explanation and reconciliations of non-GAAP measure used throughout this release.

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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