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Lifeloc Reports First Quarter 2019 and Shareholder Vote Results
Reading Time: 6 minutes
WHEAT RIDGE, Colo.–(BUSINESS WIRE)–Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the
development and manufacturing of breath alcohol and drug testing
devices, has announced financial results for the first quarter ended
March 31, 2019, as well as the results for the 2019 annual shareholder
meeting.
First Quarter Financial Highlights
We posted quarterly net revenue of $2.07 million resulting in quarterly
net income after taxes of $31 thousand, or $0.01 per diluted share.
These results compare to net revenue of $2.20 million and quarterly net
income of $11 thousand, or $0.00 per diluted share in the first quarter
of 2018. Revenue for the quarter declined 6% versus the first quarter
last year. This decline appears to have coincided with the federal
government shutdown which adversely affected buying in regulated testing
areas as well as local law enforcement purchases. Even though revenue
declined, earnings improved through lower operating expenses. Gross
margin on total revenue remained unchanged in the current quarter 45%
versus 45% in the same quarter last year.
Shareholder Meeting
Lifeloc conducted its annual shareholder meeting May 6th at
the company’s headquarters in Wheat Ridge, CO. The proposed slate of
directors was elected with over 99% of the votes cast and the
appointment of auditors was ratified, also by more than 99% of the votes
cast. Following the business portion of the meeting, a brief company
status report was presented, and these slides are available on our
website, www.lifeloc.com/shareholderMeeting.
Product Pipeline
Our vision is that Lifeloc becomes the world’s leading company in
real-time alcohol and drug abuse detection and monitoring. We have been
investing aggressively in product development to achieve this vision,
focusing on a few major product developments that are expected to have a
significant impact on our performance. We are now at the point where we
will start to reap the benefit of these investments.
The premier breathalyzer model of our new platform, the Lifeloc LX9,
went into production during the quarter. The LX9 satisfies many market
needs for performance and connectivity and combines these features in
one easy to use package. To support the new platform, our patented
Easycal® calibration station has been upgraded to the Easycal
G2 second generation calibration station. This model is compatible with
our existing installed base of professional breathalyzers as well as the
new platform. The G2 model includes RFID (Radio Frequency
Identification) reading of calibration standard data, which further
automates the calibration process.
Likewise, the new model of the R.A.D.A.R.® (Real-time Alcohol
Detection and Reporting) device is moving forward. Prototype devices are
in testing, with production expected later this year. R.A.D.A.R. devices
are alcohol monitoring units which can be used as a tool to supervise
offenders as an alternative to incarceration. Onboard biometrics
automatically verify the identity of the test subject. R.A.D.A.R.
devices are a critical step in moving our business towards a recurring
revenue model.
Our marijuana breathalyzer remains a key target for product development.
The continued broader legalization of marijuana only increases the need
for a rapid, quantitative roadside test to identify drivers under the
influence of marijuana. The completion of other projects will allow
resources to be redirected towards accelerating this effort. The ability
of our technology to detect delta-9-THC down to a concentration of 5
nanograms per milliliter and to collect a testable sample from a vapor
stream has already been demonstrated in our laboratories. Detection of
THC is accomplished through the SpinDx technology, licensed exclusively
by Lifeloc Technologies for drugs of abuse from Sandia National
Laboratory. More work is needed to convert this technology into a
simple-to-operate device suitable for roadside testing.
About Lifeloc Technologies
Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of
evidential breath alcohol testers and related training and supplies for
Workplace, Law Enforcement, Corrections and International customers.
Lifeloc stock trades over-the-counter under the symbol LCTC. We are a
fully reporting Company with our SEC filings available on our web site, www.lifeloc.com/investor.
Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
involve substantial risks and uncertainties that may cause actual
results to differ materially from those indicated by the forward-looking
statements. All forward-looking statements expressed or implied in this
press release, including statements about our strategies, expectations
about new and existing products, market demand, acceptance of new and
existing products, technologies and opportunities, market size and
growth, and return on investments in products and market, are based on
information available to us on the date of this document, and we assume
no obligation to update such forward-looking statements. Investors are
strongly encouraged to review the section titled “Risk Factors” in our SEC
filings.
Easycal® and R.A.D.A.R.® are registered trademarks
of Lifeloc Technologies, Inc.
SpinDx
is a trademark of Sandia Corporation.
| LIFELOC TECHNOLOGIES, INC. | ||||||||
|
Condensed Balance Sheets ASSETS |
||||||||
| March 31, | ||||||||
| 2019 | December 31, | |||||||
| CURRENT ASSETS: | (Unaudited) | 2018 | ||||||
| Cash | $ | 2,799,153 | $ | 2,788,327 | ||||
| Accounts receivable, net | 548,008 | 675,136 | ||||||
| Inventories, net | 1,673,740 | 1,290,607 | ||||||
| Income taxes receivable | 35,522 | 90,629 | ||||||
| Prepaid expenses and other | 135,144 | 35,155 | ||||||
| Total current assets | 5,191,567 | 4,879,854 | ||||||
| PROPERTY AND EQUIPMENT, at cost: | ||||||||
| Land | 317,932 | 317,932 | ||||||
| Building | 1,941,414 | 1,928,795 | ||||||
| Real-time Alcohol Detection And Recognition equipment and software | 569,448 | 569,448 | ||||||
| Production equipment and software | 911,454 | 800,569 | ||||||
| Training courses | 432,375 | 432,375 | ||||||
| Office equipment and software | 246,946 | 241,836 | ||||||
| Sales and marketing equipment | 219,797 | 219,797 | ||||||
| Research and development equipment and software | 159,810 | 159,810 | ||||||
| Less accumulated depreciation | (1,748,775 | ) | (1,649,203 |
) |
||||
| Total property and equipment, net | 3,050,401 | 3,021,359 | ||||||
| OTHER ASSETS: | ||||||||
| Patents, net | 154,943 | 158,147 | ||||||
| Deposits and other | 53,967 | 140,452 | ||||||
| Deferred taxes | 134,477 | 79,869 | ||||||
| Total other assets | 343,387 | 378,468 | ||||||
| Total assets | $ | 8,585,355 | $ | 8,279,681 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 654,623 | $ | 343,783 | ||||
| Term loan payable, current portion | 43,498 | 43,207 | ||||||
| Customer deposits | 21,513 | 19,265 | ||||||
| Accrued expenses | 216,658 | 250,912 | ||||||
| Deferred revenue, current portion | 49,047 | 44,218 | ||||||
| Reserve for warranty expense | 40,000 | 40,000 | ||||||
| Total current liabilities | 1,025,339 | 741,385 | ||||||
| TERM LOAN PAYABLE, net of current portion and | ||||||||
| debt issuance costs | 1,358,226 | 1,369,347 | ||||||
| DEFERRED REVENUE, net of current portion | 7,927 | 8,212 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, no par value; 50,000,000 shares | ||||||||
| authorized, 2,454,116 shares outstanding | 4,599,808 | 4,597,646 | ||||||
| Retained earnings | 1,594,055 | 1,563,091 | ||||||
| Total stockholders’ equity | 6,193,863 | 6,160,737 | ||||||
| Total liabilities and stockholders’ equity | $ | 8,585,355 | $ | 8,279,681 | ||||
|
LIFELOC TECHNOLOGIES, INC. |
||||||||
| Condensed Statements of Income (Unaudited) | ||||||||
| Three Months Ended September 30, | ||||||||
| REVENUES: | 2018 | 2017 | ||||||
| Product sales | $ | 1,970,101 | $ | 2,122,243 | ||||
| Royalties | 72,838 | 65,065 | ||||||
| Rental income | 25,822 | 14,601 | ||||||
| Total | 2,068,761 | 2,201,909 | ||||||
| COST OF SALES | 1,136,559 | 1,201,746 | ||||||
| GROSS PROFIT | 932,202 | 1,000,163 | ||||||
| OPERATING EXPENSES: | ||||||||
| Research and development | 245,799 | 338,326 | ||||||
| Sales and marketing | 316,383 | 335,401 | ||||||
| General and administrative | 325,175 | 297,333 | ||||||
| Total | 887,357 | 971,060 | ||||||
| OPERATING INCOME | 44,845 | 29,103 | ||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest income | 9,422 | 2,184 | ||||||
| Interest expense | (14,423 | ) | (14,714 | ) | ||||
| Total | (5,001 | ) | (12,530 | ) | ||||
| NET INCOME (LOSS) BEFORE PROVISION FOR TAXES | 39,844 | 16,573 | ||||||
| (PROVISION FOR) BENEFIT FROM FEDERAL AND STATE INCOME TAXES | (8,880 | ) | (5,373 | ) | ||||
| NET INCOME | $ | 30,964 | $ | 11,200 | ||||
| NET INCOME PER SHARE, BASIC | $ | 0.01 | $ | – | ||||
| NET INCOME PER SHARE, DILUTED | $ | 0.01 | $ | – | ||||
| WEIGHTED AVERAGE SHARES, BASIC | 2,454,116 | 2,454,116 | ||||||
| WEIGHTED AVERAGE SHARES, DILUTED | 2,504,116 | 2,510,699 | ||||||
|
Lifeloc Technologies, Inc. Condensed Statement of Stockholders’ Equity (Unaudited) |
|||||||||||||||||
| Common Stock |
|
Retained |
|||||||||||||||
| Shares | Amount |
Earnings |
Total | ||||||||||||||
| BALANCES, DECEMBER 31, 2018 | 2,454,116 | $ | 4,597,646 |
|
$ |
1,563,091 | $ | 6,160,737 | |||||||||
| Net income | – | – | 30,964 | 30,964 | |||||||||||||
| Stock based compensation expense | |||||||||||||||||
| related to stock options | – | 2,162 | – | 2,162 | |||||||||||||
| BALANCES, MARCH 31, 2019 | 2,454,116 | $ | 4,599,808 |
|
$ |
1,594,055 | $ | 6,193,863 | |||||||||
| Common Stock |
|
Retained |
|||||||||||||||
| Shares | Amount |
Earnings |
Total | ||||||||||||||
| BALANCES, DECEMBER 31, 2017 | 2,454,116 | $ | 4,580,177 |
|
$ |
1,345,927 | $ | 5,926,104 | |||||||||
| Net income | – | – | 11,200 | 11,200 | |||||||||||||
| Stock based compensation expense | |||||||||||||||||
| related to stock options | – | 5,714 | – | 5,714 | |||||||||||||
| BALANCES, MARCH 31, 2018 | 2,454,116 | $ | 4,585,891 |
|
$ |
1,357,127 | $ | 5,943,018 | |||||||||
|
LIFELOC TECHNOLOGIES, INC. Condensed Statements of Cash Flows (Unaudited) |
|||||||||
| Three Months Ended March 31, | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | 2019 | 2018 | |||||||
| Net income | $ | 30,964 | $ | 11,200 | |||||
| Adjustments to reconcile net income to net cash | |||||||||
| provided from (used in) operating activities- | |||||||||
| Depreciation and amortization | 103,047 | 107,878 | |||||||
| Provision for doubtful accounts, net change | – | 1,500 | |||||||
| Provision for inventory obsolescence, net change | – | 27,500 | |||||||
| Deferred taxes, net change | (54,608 | ) | 935 | ||||||
| Reserve for warranty expense, net change | – | 1,500 | |||||||
| Stock based compensation expense related to | |||||||||
| stock options | 2,162 | 5,714 | |||||||
| Changes in operating assets and liabilities- | |||||||||
| Accounts receivable | 127,128 | (165,780 | ) | ||||||
| Inventories | (383,133 | ) | (34,908 | ) | |||||
| Income taxes receivable | 55,107 | 4,438 | |||||||
| Prepaid expenses and other | (99,989 | ) | (82,032 | ) | |||||
| Deposits and other | 86.485 | 256,853 | |||||||
| Accounts payable | 310,840 | 242,673 | |||||||
| Customer deposits | 2,248 | (4,144 | ) | ||||||
| Accrued expenses | (34,254 | ) | 36,406 | ||||||
| Deferred revenue | 4,544 | (6,648 | ) | ||||||
| Net cash provided from (used in) operating activities | 150,541 | 403,085 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Purchases of property and equipment | (128,614 | ) | (355,512 | ) | |||||
| Net cash (used in) investing activities | (128,614 | ) | (355,512 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Principal payments made on term loan | (11,101 | ) | (10,673 | ) | |||||
| Net cash (used in) financing activities | (11,101 | ) | (10,673 | ) | |||||
| NET (DECREASE) IN CASH | 10,826 | 36,900 | |||||||
| CASH, BEGINNING OF PERIOD | 2,788,327 | 2,669,455 | |||||||
| CASH, END OF PERIOD | 2,799,153 | $ | 2,706,355 | ||||||
| SUPPLEMENTAL INFORMATION: | |||||||||
| Cash paid for interest | $ | 14,152 | $ | 14,579 | |||||
| Cash paid for income tax | $ | – | $ | – | |||||
Contacts
Sarah Struble
Lifeloc Technologies, Inc.
http://www.lifeloc.com
(303)
431-9500
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Cannabis
Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives
Schwazze Management to Host Conference Call Today at 5:00 p.m. Eastern Time
DENVER, May 15, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (Cboe CA: SHWZ) (“Schwazze” or the “Company”), today announced financial and operational results for the first quarter ended March 31, 2024.
“We delivered another period of revenue growth in Q1 as we further refined our retail strategy while contending with the prolonged competitive challenges in Colorado and New Mexico,” said Forrest Hoffmaster, Interim CEO of Schwazze. “Throughout the quarter, we continued to sharpen our pricing and promotional efforts while enhancing the in-store experience, widening assortment, improving in-stock position, and advancing our loyalty program to attract and retain new customers. We also strengthened our wholesale business with quarter-over-quarter growth, while surpassing 30% total door penetration across both states.”
“The Colorado market remains highly competitive with more than 680 active recreational licenses, underscoring the importance of delivering an exceptional customer experience and fully integrated retail support program. Although retail pricing has recently stabilized, Colorado sales in Q1 were down 10% year-over-year due to lower volumes. Nonetheless, we significantly outpaced the market as our sales were up 9%, demonstrating the effectiveness of our operating playbook to compete in challenging environments. We expect to continue driving improvements in customer acquisition, retention, and loyalty as we further increase market share in the state.”
“In New Mexico, the proliferation of new licenses continued to outpace state cannabis sales as store count in Q1 increased 31% year-over-year while the market grew only 13%. In addition to pricing and promotional efforts, we’ve focused on driving traffic into our stores by expanding assortment with high quality flower and delivering an elevated customer experience. The New Mexico regulatory body has also increased its license enforcement efforts in recent months, contributing to more than 70 store closures and a 33% sequential decrease in net new store openings in the first quarter. We will continue to support the New Mexico Cannabis Control Division as it develops its regulatory framework.”
“Over the past four years we have rapidly scaled our footprint through 13 acquisitions, building a leading retail presence in both Colorado and New Mexico. We are beginning to see positive momentum from our pricing and promotional strategy and will remain focused on driving operating efficiencies while further optimizing our assets as we consolidate cultivation facilities and eliminate underperforming stores that do not meet our high-margin thresholds. We believe these initiatives, coupled with our operating playbook and strict cost controls, will enable us to return to stronger levels of profitability moving forward.”
First Quarter 2024 Financial Summary
|
$ in Thousands USD |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
Total Revenue |
$41,601 |
$43,325 |
$40,001 |
|
Gross Profit |
$17,934 |
$7,034[1] |
$21,849 |
|
Operating Expenses |
$20,643 |
$23,276 |
$16,199 |
|
Income (Loss) from Operations |
$(2,709) |
$(16,242) |
$5,650 |
|
Adjusted EBITDA[2] |
$7,341 |
$10,953 |
$14,525 |
|
Operating Cash Flow |
$(3,700) |
$3,452 |
$(880) |
Recent Highlights
- Announced the grand opening of a medical and recreational dispensary in March under the Everest Apothecary banner in Las Cruces, New Mexico, increasing the Company’s retail footprint to 34 stores across the state.
- Increased wholesale penetration in the first quarter to more than 30% of total doors in Colorado and New Mexico.
- Lowell Herb Co. pre-roll sales increased more than 3x quarter-over-quarter in Colorado, where it continues to be the #1 pre-roll in the state.
- Wana gummy sales up more than 2x quarter-over-quarter in New Mexico.
First Quarter 2024 Financial Results
Total revenue in the first quarter of 2024 increased 4% to $41.6 million compared to $40.0 million for the same quarter last year. The increase was primarily due to growth from new stores compared to the prior year period, partially offset by continued pricing pressure and the proliferation of new licenses in New Mexico.
Gross profit for the first quarter of 2024 was $17.9 million or 43.1% of total revenue, compared to $21.8 million or 54.6% of total revenue for the same quarter last year. The decrease in gross margin was primarily driven by the aforementioned pricing pressure in New Mexico, as well as higher medical sales mix in Colorado.
|
____________________________ |
|
1 Q4 2023 Gross Profit includes one-time, non-cash inventory adjustments of approximately $13.1 million comprised of $3.1 million of product consolidation, obsolescence, and shrinkage expenses, $4.3 million of net realizable value adjustments, and $5.8 million of fair value adjustments on acquired inventory in New Mexico in 2023. |
Operating expenses for the first quarter of 2024 were $20.6 million compared to $16.2 million for the same quarter last year. The year-ago period benefitted from a payroll tax credit of $3.9M. The remaining increase was primarily driven by personnel expenses and four-wall SG&A costs associated with 21 additional stores in Colorado and New Mexico that are still ramping.
Loss from operations for the first quarter of 2024 was $2.7 million compared to income from operations of $5.6 million in the same quarter last year. Net loss was $16.1 million for the first quarter of 2024 compared to net income of $1.7 million for the same quarter last year.
Adjusted EBITDA for the first quarter of 2024 was $7.3 million compared to $14.5 million for the same quarter last year. The decrease in Adjusted EBITDA was primarily driven by lower gross margin and higher operating expenses associated with the 21 additional stores that are still ramping.
As of March 31, 2024, cash and cash equivalents were $13.2 million compared to $19.2 million on December 31, 2023. Total debt as of March 31, 2024, was $159.7 million compared to $156.8 million on December 31, 2023.
Conference Call
The Company will conduct a conference call today, May 15, 2024, at 5:00 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2024.
Schwazze management will host the conference call, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing [email protected].
Date: Wednesday, May 15, 2024
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 84167910
Webcast: SHWZ Q1 2024 Earnings Call
The conference call will also be broadcast live and available for replay on the investor relations section of the Company’s website at https://ir.schwazze.com.
Toll-free replay number: (888) 390-0541
International replay number: (416) 764-8677
Replay ID: 167910
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
About Schwazze
Schwazze (OTCQX: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company’s previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management’s current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
[email protected]
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
For the Periods Ended March 31, 2024 and December 31, 2023
Expressed in U.S. Dollars
|
March 31, |
December 31, |
||||
|
2024 |
2023 |
||||
|
ASSETS
|
|||||
|
Current Assets |
|||||
|
Cash & Cash Equivalents |
$ |
13,151,317 |
$ |
19,248,932 |
|
|
Accounts Receivable, net of Allowance for Doubtful Accounts |
3,356,032 |
4,261,159 |
|||
|
Inventory |
26,382,184 |
25,787,793 |
|||
|
Marketable Securities, net of Unrealized Loss of $347,516 and Loss of $1,816, respectively |
108,583 |
456,099 |
|||
|
Prepaid Expenses & Other Current Assets |
3,502,310 |
3,914,064 |
|||
|
Total Current Assets |
46,500,426 |
53,668,047 |
|||
|
Non-Current Assets |
|||||
|
Fixed Assets, net Accumulated Depreciation of $10,061,700 and $8,741,782, respectively |
31,326,000 |
31,113,630 |
|||
|
Investments |
2,000,000 |
2,000,000 |
|||
|
Investments Held for Sale |
– |
202,111 |
|||
|
Goodwill |
67,492,705 |
67,499,199 |
|||
|
Intangible Assets, net Accumulated Amortization of $36,483,160 and $32,706,765, respectively |
162,391,482 |
166,167,877 |
|||
|
Other Non-Current Assets |
1,328,187 |
1,263,837 |
|||
|
Operating Lease Right of Use Assets |
34,575,832 |
34,233,142 |
|||
|
Deferred Tax Assets, net |
992,144 |
1,996,489 |
|||
|
Total Non-Current Assets |
300,106,350 |
304,476,285 |
|||
|
Total Assets |
$ |
346,606,776 |
$ |
358,144,332 |
|
|
LIABILITIES & STOCKHOLDERS’ EQUITY
|
|||||
|
Current Liabilities |
|||||
|
Accounts Payable |
$ |
9,443,233 |
$ |
13,341,561 |
|
|
Accrued Expenses |
8,106,618 |
7,774,691 |
|||
|
Derivative Liabilities |
1,319,845 |
638,020 |
|||
|
Lease Liabilities – Current |
5,186,316 |
4,922,724 |
|||
|
Current Portion of Long Term Debt |
29,579,713 |
3,547,011 |
|||
|
Income Taxes Payable |
28,235,039 |
25,232,782 |
|||
|
Total Current Liabilities |
81,870,764 |
55,456,789 |
|||
|
Non-Current Liabilities |
|||||
|
Long Term Debt, net of Debt Discount & Issuance Costs |
130,120,753 |
153,262,203 |
|||
|
Lease Liabilities – Non-Current |
30,735,072 |
30,133,452 |
|||
|
Total Non-Current Liabilities |
160,855,825 |
183,395,655 |
|||
|
Total Liabilities |
$ |
242,726,589 |
$ |
238,852,444 |
|
|
Stockholders’ Equity |
|||||
|
Preferred Stock, $0.001 Par Value. 10,000,000 Shares Authorized; 82,185 Shares Issued and |
|||||
|
82,185 Outstanding as of March 31, 2024 and 85,534 Shares Issued and 85,534 Outstanding as of |
|||||
|
December 31, 2023. |
82 |
86 |
|||
|
Common Stock, $0.001 Par Value. 250,000,000 Shares Authorized; 79,168,539 Shares Issued |
|||||
|
and 78,248,389 Shares Outstanding as of March 31, 2024 and 74,888,392 Shares Issued |
|||||
|
and 73,968,242 Shares Outstanding as of December 31, 2023. |
79,169 |
74,888 |
|||
|
Additional Paid-In Capital |
202,677,665 |
202,040,968 |
|||
|
Accumulated Deficit |
(96,843,602) |
(80,790,927) |
|||
|
Common Stock Held in Treasury, at Cost, 920,150 Shares Held as of March 31, 2024 and |
|||||
|
920,150 Shares Held as of December 31, 2023. |
(2,033,127) |
(2,033,127) |
|||
|
Total Stockholders’ Equity |
103,880,187 |
119,291,888 |
|||
|
Total Liabilities & Stockholders’ Equity |
$ |
346,606,776 |
$ |
358,144,332 |
|
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
(Unaudited) |
(Unaudited) |
||||
|
Operating Revenues |
|||||
|
Retail |
$ |
37,633,252 |
$ |
35,820,111 |
|
|
Wholesale |
3,898,320 |
4,058,925 |
|||
|
Other |
69,421 |
121,900 |
|||
|
Total Revenue |
41,600,993 |
40,000,936 |
|||
|
Total Cost of Goods & Services |
23,667,319 |
18,152,163 |
|||
|
Gross Profit |
17,933,674 |
21,848,773 |
|||
|
Operating Expenses |
|||||
|
Selling, General and Administrative Expenses |
11,835,818 |
10,100,934 |
|||
|
Professional Services |
1,671,881 |
1,187,364 |
|||
|
Salaries |
6,880,988 |
4,695,971 |
|||
|
Stock Based Compensation |
253,916 |
214,544 |
|||
|
Total Operating Expenses |
20,642,603 |
16,198,813 |
|||
|
Income from Operations |
(2,708,929) |
5,649,960 |
|||
|
Other Income (Expense) |
|||||
|
Interest Expense, net |
(8,307,369) |
(7,745,854) |
|||
|
Unrealized Gain (Loss) on Derivative Liabilities |
(681,825) |
8,501,685 |
|||
|
Other Loss |
10,500 |
– |
|||
|
Loss on Investment |
(33,382) |
– |
|||
|
Unrealized Gain on Investment |
(347,516) |
1,816 |
|||
|
Total Other Income (Expense) |
(9,359,592) |
757,647 |
|||
|
Pre-Tax Net Income (Loss) |
(12,068,521) |
6,407,607 |
|||
|
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
|
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Less: Accumulated Preferred Stock Dividends for the Period |
(2,155,259) |
(2,029,394) |
|||
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
(18,207,934) |
$ |
(283,965) |
|
|
Earnings (Loss) per Share Attributable to Common Stockholders |
|||||
|
Basic Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.01) |
|
|
Diluted Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.06) |
|
|
Weighted Average Number of Shares Outstanding – Basic |
76,006,932 |
55,835,501 |
|||
|
Weighted Average Number of Shares Outstanding – Diluted |
76,006,932 |
101,608,278 |
|||
|
Comprehensive Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
(Unaudited) |
(Unaudited) |
||||
|
Cash Flows from Operating Activities: |
|||||
|
Net Income (Loss) for the Period |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Adjustments to Reconcile Net Income (Loss) to Cash for Operating Activities |
|||||
|
Depreciation & Amortization |
5,096,314 |
6,151,395 |
|||
|
Non-Cash Interest Expense |
1,031,431 |
991,184 |
|||
|
Non-Cash Lease Expense |
2,871,226 |
2,251,459 |
|||
|
Deferred Taxes |
1,004,345 |
(637,225) |
|||
|
Loss on Investment |
202,111 |
– |
|||
|
Change in Derivative Liabilities |
681,825 |
(8,501,685) |
|||
|
Amortization of Debt Issuance Costs |
421,512 |
421,513 |
|||
|
Amortization of Debt Discount |
2,303,246 |
1,999,933 |
|||
|
(Gain) Loss on Investments, net |
347,516 |
(1,816) |
|||
|
Stock Based Compensation |
640,974 |
214,544 |
|||
|
Changes in Operating Assets & Liabilities (net of Acquired Amounts): |
|||||
|
Accounts Receivable |
905,127 |
(118,181) |
|||
|
Inventory |
(587,900) |
(3,023,251) |
|||
|
Prepaid Expenses & Other Current Assets |
411,754 |
(3,036,801) |
|||
|
Other Assets |
(64,350) |
360,674 |
|||
|
Change in Operating Lease Liabilities |
(2,348,703) |
(1,531,765) |
|||
|
Accounts Payable & Other Liabilities |
(3,566,401) |
(3,464,671) |
|||
|
Income Taxes Payable |
3,002,257 |
5,299,403 |
|||
|
Net Cash Provided by (Used in) Operating Activities |
(3,700,390) |
(879,861) |
|||
|
Cash Flows from Investing Activities: |
|||||
|
Collection of Notes Receivable |
– |
10,631 |
|||
|
Purchase of Fixed Assets |
(1,532,287) |
(2,913,394) |
|||
|
Net Cash Provided by (Used in) Investing Activities |
(1,532,287) |
(2,902,763) |
|||
|
Cash Flows from Financing Activities: |
|||||
|
Payment on Notes Payable |
(864,938) |
– |
|||
|
Net Cash Provided by (Used in) Financing Activities |
(864,938) |
– |
|||
|
Net (Decrease) in Cash & Cash Equivalents |
(6,097,615) |
(3,782,624) |
|||
|
Cash & Cash Equivalents at Beginning of Period |
19,248,932 |
38,949,253 |
|||
|
Cash & Cash Equivalents at End of Period |
$ |
13,151,317 |
$ |
35,166,628 |
|
|
Supplemental Disclosure of Cash Flow Information: |
|||||
|
Cash Paid for Interest |
$ |
4,515,205 |
$ |
6,540,748 |
|
MEDICINE MAN TECHNOLOGIES, INC.
ADJUSTED EBITDA RECONCILIATION (NON-GAAP)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
|
For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2024 |
2023 |
||||
|
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
|
Interest Expense, net |
8,307,369 |
7,745,854 |
|||
|
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
|
Other (Income) Expense, net of Interest Expense |
1,052,223 |
(8,503,501) |
|||
|
Depreciation & Amortization |
5,618,834 |
6,612,814 |
|||
|
Earnings Before Interest, Taxes, Depreciation and |
|||||
|
Amortization (EBITDA) (non-GAAP) |
$ |
2,909,905 |
$ |
12,262,774 |
|
|
Non-Cash Stock Compensation |
253,916 |
214,544 |
|||
|
Deal Related Expenses |
637,761 |
1,195,802 |
|||
|
Capital Raise Related Expenses |
20,760 |
35,068 |
|||
|
Severance |
484,561 |
118,436 |
|||
|
Retention Program Expenses |
807,500 |
280,632 |
|||
|
Pre-Operating & Dark Carry Expenses |
1,053,837 |
391,917 |
|||
|
One-Time Legal Settlements |
417,653 |
– |
|||
|
Other Non-Recurring Items |
754,751 |
25,707 |
|||
|
Adjusted EBITDA (non-GAAP) |
$ |
7,340,644 |
$ |
14,524,880 |
|
|
Revenue |
41,600,993 |
40,000,936 |
|||
|
Adjusted EBITDA Percent |
17.6 % |
36.3 % |
|||
View original content:https://www.prnewswire.co.uk/news-releases/schwazze-announces-first-quarter-2024-financial-results-302146858.html
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