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Viacom Expands Digital Footprint at 2019 NewFront

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Viacom’s Flagship Brands Join Pluto TV’s Channel Lineup on May 1

Viacom Digital Studios to Produce Premium Original Series Across
Awesomeness, BET, Comedy Central, MTV and Nickelodeon for Facebook,
Snap, Twitter, YouTube, Hulu and Netflix

VidCon Celebrates 10th Anniversary with New Partnerships and All-Star
Line-up of Featured Creators

Special Appearances by David Spade, Annie LeBlanc, Jayden Bartels, Marc
Lamont Hill, Eva Gutowski, Brent Rivera, Nala Cat and more…

*Click HERE
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NEW YORK–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24VIAB&src=ctag” target=”_blank”gt;$VIABlt;/agt; lt;a href=”https://twitter.com/hashtag/ViacomNewFront?src=hash” target=”_blank”gt;#ViacomNewFrontlt;/agt;–Viacom Inc. (NASDAQ: VIAB, VIA), home to the world’s premiere
entertainment brands, today announced the introduction of Viacom’s
flagship networks to Pluto TV’s channel lineup and a new slate of
original digital programming during its second-annual NewFront event at
the PlayStation Theater.

“We’re excited to return to the NewFronts after a year of rapid digital
acceleration and momentum across the leading social and online video
platforms,” said Kelly Day, President of Viacom Digital Studios. “Our
remarkable growth continues to be driven by an investment in premium
original programming and experiences that engage our young, diverse
audiences on the platforms they love most, presenting an unprecedented
opportunity for our advertising partners to join the conversation.”

Viacom Digital Studios shared its plans to produce new and returning
original series around major tentpole events, linear franchises and the
most popular digital shows from Awesomeness, BET, Comedy Central, MTV
and Nickelodeon. Viacom is also teaming up with big-name stars and
fan-favorite digital talent to deliver entirely new programming across
Facebook, Snap, Twitter and YouTube for Viacom’s more than 880 million
fans — the largest social footprint among entertainment companies.

The new content slate includes: “How to Survive: A Break-Up,” Eva
Gutowski stars in this AwesomenessTV scripted romantic comedy series
about the heartbreaking, and sometimes hilarious, steps to getting over
a messy break-up and maybe finding new love along the way; “Black
Coffee,”
BET’s daily morning talk show starring Marc Lamont Hill
that catches up with Black Twitter’s liveliest conversations and
features news-making interviews with top celebrities, athletes, and
social media stars; untitled late-night show from David Spade, Comedy
Central’s new late-night show hosted by David Spade will launch
show channels and publish content across YouTube, Facebook, Instagram
and Twitter; “MTV No Filter: Tana Turns 21,” follows Tana
Mongeau and her crazy crew for a behind-the-scenes look as they navigate
vlog life, studio time, partying and the occasional controversy; “SpongeBob
Smarty Pants Game Show,”
a digital game show from Nickelodeon where
two SpongeBob superfans compete to win The Golden Pineapple by answering
trivia questions, completing messy stunts and competing in
SpongeBob-themed games.

Viacom also announced that its flagship networks will launch on Pluto
TV, the leading free streaming television service in the U.S. with more
than 15 million monthly active users. BET, Comedy Central, MTV and
Nickelodeon will debut channels on May 1, with content from Viacom’s
extensive library of iconic IP through three categories of branded
channels: Co-Branded Flagship Channels that are curated versions of
Viacom’s leading networks; Signature Channels with the most celebrated
and diversified programming from each brand; and Pop-Up Channels that
deliver binge-worthy series in marathon-style airings, starting with
MTV’s “The Hills” — just in time for the highly anticipated revival
series “The Hills: New Beginnings” premiering Monday, June 24.

“We are thrilled to expand the Pluto TV offering with the addition of
Viacom’s world-class channel brands and iconic programming. This is a
major step forward in our mission of entertaining the planet,” states
Tom Ryan, CEO & Co-Founder of Pluto TV. “Viacom has been entertaining
audiences for decades with evergreen content that is bold, daring and
inspires worldwide fandom. These channels are guaranteed to provide
endless entertainment to both new and existing Pluto TV viewers.”

VidCon will welcome 75,000 attendees at its 10th anniversary flagship
event in Anaheim, California this July. In partnership with the IAB,
VidCon announced the addition of The Direct Brand Summit at VidCon, an
Industry Track programming block that will explore how direct brands are
using the power of online video to build relationships with consumers.
Additionally, an all-star lineup of featured creators will be joining
the celebration, including Annie LeBlanc, Simmi Singh, Rhett and Link,
Tessa Violet, The Bramfam and more.

Since the launch of Viacom Digital Studios, Viacom brands have seen
year-over-year domestic increases in social video views and watch time
by 83% and 119%, respectively, with a global average of 4 billion views
and over 6 billion minutes watched each month.

“We have made incredible strides over the past year due to our
acquisitions and expansion to grow our digital reach significantly to
the direct benefit of our advertising partners,” said Sean Moran, Head
of Ad Solutions, Viacom. “With more touch points than ever before, we
look forward to leveraging the full scale and power of Viacom to help
our clients create real, authentic connections with our highly coveted
and hard-to-reach young audiences wherever they are.”

With the addition of Pluto TV, Viacom’s digital video impressions will
grow to 5 billion impressions per month by next year.

Additional announcements included the following across Awesomeness, BET,
Comedy Central, MTV, Nickelodeon, Pluto TV and VidCon.

Pluto TV to Add All-New Viacom Brand Channels to its Offering

Beginning May 1, Viacom will premiere new channels from its flagship
brands and library of iconic IP for Pluto TV:

  • Co-Branded Flagship Channels:
    Specially curated versions of Viacom’s most iconic networks.

    • BET Pluto TV: Kick back and enjoy the best of Black
      Hollywood through all of your favorite urban movies! Featuring
      hundreds of hours of classic films and box office hits, this
      channel is guaranteed to have everything you’ve been waiting for
      in one place. Grab a snack and get comfortable. You’re going to be
      stuck here for a while.
    • Comedy Central Pluto TV: Comedy Central Pluto TV is the
      destination for the best in iconic original comedy series, late
      night, sketch, animation and a whole lot more. It features
      specials from “The Daily Show with Trevor Noah” and a nonstop
      stash of classic episodes of “Tosh.0,” “Another Period,” “Ugly
      Americans,” among plenty of others. In short, if you’re looking
      for something funny, we have good news: you just found it.
    • MTV Pluto TV: Looking to escape the everyday? Get your
      party started and take a dive into the most iconic reality and
      dating shows that only MTV can deliver, including hits like “16 &
      Pregnant,” “MTV Cribs,” “Are You the One?” and “Punk’d.” You want
      your MTV Pluto!
    • Nick Pluto TV: Welcome to Nick Pluto TV where you can watch
      your favorite classic shows from “All That,” “Teenage Mutant Ninja
      Turtles,” “The Fairly Odd Parents,” “iCarly” and more! It’s all on
      Nick Pluto TV.
    • Nick Jr. Pluto TV: Welcome to Nick Jr. Pluto TV where
      you’ll find your preschooler’s favorite friends from classic
      “Blue’s Clues,” “Dora the Explorer,” “Wallykazam” and many more
      hit Nick Jr. Pluto TV shows.
    • Spike Pluto TV: The first network for men is on Pluto TV!
      Spike features series like “Duck Dynasty,” “Pit Boss” and “Cajun
      Pawn Stars,” starring people who play by their own set of rules.
      It’s your one stop shop for bold, unapologetic entertainment.
  • Signature Channels: These channels
    hone in on the most celebrated and differentiated programming from the
    flagships – spinning them into dedicated, themed channels.

    • CMT Westerns: Saddle up with CMT Westerns, the best place
      to kick off your boots and find your favorite country movies.
    • Comedy Central Stand-Up: Are you looking for groundbreaking
      stand-up comedy? Well, you just hit the jackpot. Comedy Central is
      the ultimate stand-up source, opening its iconic vault for Pluto
      TV by featuring content from the world’s best comedians. Whether
      you’re revisiting classic stand-up series from Dave Attell and
      John Oliver or discovering early performances from John Mulaney
      and Amy Schumer, Comedy Central Stand-Up is a gold mine of series
      and specials that’ll keep you up all night laughing until your
      parents, spouse or roommates beg you to turn it off.
    • MTV Dating: Get cozy with some of the most buzzed about
      reality dating show hits like “NEXT” and “Parental Control.” Do
      the romantic hopefuls ever find true love? Maybe, maybe not — but
      we sure don’t mind watching them try and try again!
    • MTV Guy Code: Consider this your man cave, an escape to
      catch favorite episodes of “Beavis & Butthead,” “MTV Guy Code,”
      “Rob & Big” and “Rob Dyrdek’s Fantasy Factory.”
    • MTV Teen: Is the one-stop shop for teen content, including
      shows like “Made” and “My Super Sweet 16,” with an abundance of
      OMGs, LOLs and cringe-worthy moments.
    • Paramount Movie Channel: The most storied movie studio in
      Hollywood is throwing open its gates with the Paramount Movie
      Channel, featuring the greatest movies of the past century all in
      one place, 24 hours a day.
    • Spike Outdoors: The first network for outdoors-men! Spike
      Outdoors goes all out with a full slate of shows featuring guys
      making their living off the land. Man up with the modern day
      adventurers in “Tougher in Alaska,” “River Monsters,” “Bering Sea
      Gold” and more! If it’s high octane outdoor shows you crave,
      journey no further than Spike Outdoors!
  • Pop-Up Channels: Channels present
    binge-worthy series, in marathon-style airings.

    • MTV’s The Hills: Just in time for the highly-anticipated
      revival series, “The Hills: New Beginnings,” premiering on Monday,
      June 24th, viewers can catch up on the series that changed the
      reality TV landscape and look back at the most unforgettable and
      iconic moments from the past seasons of “Laguna Beach” and “The
      Hills.”

Viacom Digital Studios to Develop Even More Premium Original Series

In addition to bringing back many of its popular digital series for new
seasons and spinoffs, Viacom also announced new original programming and
talent partnerships on stage — including new Snap Originals made
exclusively for Snapchat and the first Viacom shows out of our
partnership with Facebook’s digital publisher and creator video
incubation program for Facebook Watch:

Awesomeness:

  • Brent Rivera’s Dream Vacation (AwesomenessTV YouTube Channel;
    Summer 2019):
    Join Brent Rivera and his friends as they ditch the
    LA grind for the vacation of a lifetime.
  • How to Survive: A Break-Up (AwesomenessTV YouTube Channel; Summer
    2019):
    YouTuber Eva Gutowski stars in this scripted romantic
    comedy series about all the heartbreaking, and at times hilarious,
    steps to getting over a messy break-up and maybe finding new love
    along the way.
  • Light as a Feather Season Two (Hulu; July 26 & Oct. 4, 2019): Having
    inherited the curse brought on by the lethal game of “Light As A
    Feather,” McKenna finds herself plagued by the mysterious chrysalis on
    her back, a ticking clock compelling her to play a new round of the
    game… But McKenna refuses, unwilling to put anyone else in harm’s way.
    However, as the curse begins to destroy her from the inside out, she’s
    forced to turn to the only person who can possibly help her — Violet.

BET:

  • Black Coffee (YouTube, Facebook Watch, Twitter, O&O Coming 2019):
    Black Coffee is an original digital talk series starring Marc
    Lamont Hill. This daily morning show promises to make sure viewers
    “stay woke” by catching up with Black Twitter’s liveliest
    conversations. Marc will be joined by guests representing some of this
    generation’s most influential voices and the show will feature daily
    Twitter exclusive discussions around some of social media’s trendiest
    topics. These segments will provoke passionate conversations from
    viewers on engaging and relevant topics.
  • De’Arra & Ken’s Prank Show (Snap Original; Coming 2019): YouTube
    stars De’Arra and Ken team up with couples who want to prank their
    significant other, and challenge each other to see who can pull off
    the same prank best.
  • Two Grown (YouTube, Facebook Watch, O&O May 1, 2019): Two
    twenty-something women recently move to New York and hilariously
    struggle with growing up and pursuing their dreams. Jourdan Guyton and
    Alana Johnson star in this smart comedy full of wit and charm.

Comedy Central:

  • Comedy Central Creators Program – Sydnee Washington (YouTube,
    Facebook Watch, Twitter and Instagram; April 2019):
    The Comedy
    Central Creators Program welcomes Sydnee Washington, whose humor and
    takes on topics like vanity, bisexuality, and partying safely as a
    woman are both unique and refreshing.
  • untitled late-night show from David Spade (YouTube, Facebook Watch,
    Twitter, Instagram, O&O Summer 2019):
    Our new late-night
    series hosted by David Spade will be launching show channels and
    publishing content across YouTube, Facebook, Instagram and Twitter.
  • Gus Johnson Overall Talent Deal (YouTube; Summer 2019): Gus
    Johnson has signed an overall deal with Viacom Digital Studios to
    create monthly original videos for Comedy Central, in addition to more
    episodes of his “Low Budget” series. He will also star in a number of
    Comedy Central’s existing social series, including “That’s an App” and
    “As Seen on CC.”
  • Second Chances with Jason Nash (YouTube; Summer 2019): Forty-something
    comedian and digital star, Jason Nash, takes a shot at all the life
    experiences he missed out on in his youth.
  • The Daily Show Digital Expansion (YouTube, Facebook Watch, Twitter,
    Instagram, O&O April 2019):
    Viacom Digital Studios has
    invested in the expansion of The Daily Show’s digital presence with
    several new digital exclusive formats and series in development.

MTV:

  • 3 Days With… (YouTube; Coming 2019): Told through our unique
    MTV lens, this new docu-series will provide unfiltered access to both
    up-and-coming and established artists.
  • Drag My Dad (Facebook Watch; Summer 2019): Hosted by Bob the
    Drag Queen, this makeover show with a heart showcases dads who choose
    to get closer to their children by, believe it or not, turning
    themselves into fabulous divas.
  • MTV No Filter: Tana Turns 21 (YouTube; Summer 2019): The first
    installment of MTV’s new “No Filter” reality series will follow social
    media wild child Tana Mongeau and her crazy crew as they navigate vlog
    life, studio time, partying and finally becoming adults.
  • Next Big Dance Move (YouTube; July 2019): Three contestants
    will perform what they think is the next big dance move in front of an
    esteemed panel of judges.
  • Wild ‘N Out (Twitch; Summer 2019): Since “Wild ’N Out” fans
    love video games, we’re launching a dedicated Twitch channel for show
    personalities to play alongside fans.
  • Wrong Distance Relationship (Snap Original; June 4, 2019): “Wrong
    Distance Relationship” is a docu-drama series following the evolution
    of three couples around the country trying to keep their romance alive
    in the most dire of circumstances.

Nickelodeon:

  • Annie vs. Hayley Season 2 (YouTube; Coming 2019): After their
    LeBake Battle, your favorite competitive sisters are back for more.
    Annie and Hayley LeBlanc will put their design and style skills to the
    test in a series of DIY challenges in new episodes of Annie vs. Hayley.
  • Jayden’s Dance Throwdown (YouTube; Coming 2019): Dancers from
    every corner of the Internet are stepping up against Internet
    sensation Jayden Bartels in a series of epic head-to-head dance-offs.
    The challengers may be masters of their craft, but they’ll have to
    adapt and overcome when Nickelodeon throws some serious curveballs
    into their routines. Who will Nickelodeon fans crown the winner? Find
    out on “Jayden’s Dance Throwdown.”
  • JoJo and BowBow Show Show Season 2 (YouTube; Coming 2019): JoJo
    Siwa & Bow Bow are back! Join this pair as they go on brand new
    animated adventures with a pack of new pals and their furry friends.
  • SpongeBob Smarty Pants Game Show (SpongeBob YouTube Channel,
    Facebook; Coming 2019): “
    SpongeBob Smarty Pants” is a digital game
    show where two SpongeBob superfans compete to win The Golden Pineapple
    by answering trivia questions, completing messy stunts and competing
    in SpongeBob-themed games! There will be special live episodes of the
    show broadcast across Nickelodeon’s social accounts.
  • Throw Back with Nickelodeon (Facebook Watch; Summer 2019): Digital
    star Anthony Padilla sits down and waxes nostalgic with some of your
    favorite Nick stars from the past.

VidCon Celebrates its 10th Anniversary

VidCon made a series of announcements ahead of the 10th anniversary of
VidCon US, taking place July 10-13 in Anaheim, CA:

  • Fan-Favorite Featured Creators: Some of the world’s top digital
    talent are confirmed to participate at VidCon this summer as Featured
    Creators, including Annie LeBlanc, Simmi Singh, Rhett and Link, Tessa
    Violet, The Bramfam, Paula Galindo, Joana Ceddia, the Dobre Brothers,
    and Sean Evans.
  • Industry Track Partnership with the IAB: Announced as part of
    the Industry Track, The Direct Brand Summit will take place on Friday,
    July 12th. The summit will feature a keynote from IAB’s CEO Randall
    Rothenberg and curated programming specific to building direct brands
    in the online video space, with a special focus on core themes like
    brand safety, compliance, working with digital talent and more.
  • Community Track Partnership with The Dodo: VidCon is partnering
    with The Dodo to bring the first ever co-branded programming section,
    “The Dodo Pet Zone,” to the Community Track this July. The Dodo will
    program sessions featuring the Internet’s most beloved pets, including
    Manny the Frenchie, Nala Cat, Walter Geoffrey the Frenchie, Venus the
    Two Face Cat and Norbert the Dog among others. Nala Cat also makes a
    special guest appearance at the NewFront.

About Viacom

Viacom creates entertainment experiences that drive conversation and
culture around the world. Through television, film, digital media, live
events, merchandise and solutions, our brands connect with diverse,
young and young at heart audiences in more than 180 countries.

For more information on Viacom and its businesses, visit www.viacom.com.
Keep up with Viacom news by following us on Twitter (twitter.com/viacom),
Facebook (facebook.com/viacom)
and LinkedIn (linkedin.com/company/viacom).

Contacts

Viacom
Karen Shosfy
[email protected]

Viacom
Casey
Moynagh
[email protected]


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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 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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