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SCHWAZZE

Schwazze Sets Second Quarter 2023 Conference Call for August 9, 2023 at 5:00 p.m. ET

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DENVER, July 26, 2023 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), will host a conference call on Wednesday, August 9, 2023 at 5:00 p.m. Eastern time to discuss its financial and operational results for the second quarter ended June 30, 2023. The Company’s results will be reported in a press release prior to the call.

The Schwazze management team 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, August 9, 2023
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 70252888
Webcast: SHWZ Q2 2023 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: 252888

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) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take 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. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition.

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. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.

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 www.schwazze.com.

Investor Relations Contact: Sean Mansouri, CFA or Aaron D’Souza, Elevate IR, (720) 330-2829, ir@schwazze.com

View original content:https://www.prnewswire.co.uk/news-releases/schwazze-sets-second-quarter-2023-conference-call-for-august-9-2023-at-500-pm-et-301885433.html

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SCHWAZZE

Schwazze Appoints Forrest Hoffmaster as Interim Chief Executive Officer

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DENVER, Feb. 23, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced that Forrest Hoffmaster, the Company’s Chief Financial Officer, has been appointed to the additional role of interim Chief Executive Officer (“CEO”). This follows Nirup Krishnamurthy’s resignation as CEO and as a member of the Board of Directors (“Board”), effective February 20, 2024, due to personal reasons.

Mr. Hoffmaster, who joined the Company in January 2023, brings over 30 years of executive experience in finance and operations for both public and private companies. Prior to Schwazze, Mr. Hoffmaster served as CEO of New Seasons Market, a specialty gourmet food retailer, where he navigated the company through one of the most disruptive periods in the retail grocery industry. Under his leadership, Mr. Hoffmaster implemented a focused growth and cost optimization program, enabling the company to grow EBITDA by over 30% in two years. Prior to New Seasons Market, Forrest held leadership positions with other leading grocers including Whole Foods Market and H-E-B.

“Forrest is well-positioned to seamlessly step in and lead the Company’s day-to-day operations as we conduct our search for a permanent successor,” said Justin Dye, Chairman of the Board. “With Forrest’s proven track record and deep retail expertise, we plan to continue leveraging our operating playbook to drive strong Adjusted EBITDA margins and consistent cash flow generation. On behalf of the Board, I’d like to wish Nirup the best in his future endeavors.”

About Schwazze

Schwazze (OTCQX: SHWZ) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take 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.” 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. 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] 

View original content:https://www.prnewswire.co.uk/news-releases/schwazze-appoints-forrest-hoffmaster-as-interim-chief-executive-officer-302069402.html

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SCHWAZZE

Schwazze Announces Third Quarter 2023 Financial Results

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 Q3 Revenue of $46.7 Million; Income from Operations of $8.9 Million; Adjusted EBITDA of $14.1 Million or 30% of Revenue

 Generated $6.9 Million of Operating Cash Flow

DENVER, Nov. 14, 2023 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced financial and operational results for the third quarter ended September 30, 2023.

Third Quarter 2023 Summary

For the Three Months Ended

$ in Thousands USD

September 30,
2023

June 30,
2023

September 30,
2022

Total Revenue

$46,747

$42,375

$43,191

Gross Profit

$21,438

$24,519

$22,476

Operating Expenses

$12,514

$19,562

$11,361

Income from Operations

$8,924

$4,957

$11,115

Adjusted EBITDA[1]

$14,119

$13,814

$15,860

Operating Cash Flow

$6,946

$2,683

$10,298

Management Commentary

“We continued to increase our retail footprint during the quarter to a total of 63 stores in Colorado and New Mexico, while further integrating our recently-acquired assets in both states,” said Nirup Krishnamurthy, CEO of Schwazze. “We also generated a 41% increase in our wholesale business year-over-year as we are gaining momentum in New Mexico and improved penetration in Colorado. When looking at wholesale penetration, Schwazze now sells into 7 of the 10 largest operators in Colorado and New Mexico with its expanding product portfolio.

_____________________________

1  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.

“In Colorado, we have increased efforts to expand our reach to medical patients through the Standing Akimbo banner with new presence in Colorado Springs and Fort Collins. We also opened a new Starbuds store in Lakewood in August and are seeing promising early results. Alongside new store openings, we are currently remodeling and/or relocating certain stores to further enhance the customer experience.

“In New Mexico, cannabis operators are navigating increased competition as a result of new licenses. While legal cannabis sales in the state were up 19% year-over-year in Q3, total store count was up 76%, leading to lower revenue on a per store basis. In response to these market dynamics, we are strategically investing in the retail experience and remain committed to attracting and retaining our customers and patients there. Our strategy is to first, further integrate the Everest assets while refining assortment, in-stock position and standard costs from a combined integrated supply chain. Second, invest in our leading retail position by bringing new products to our shelves while sharpening pricing and promotional efforts. Third, support the state as it implements cannabis regulation and enforcement to heighten testing and safety standards. And finally, continue to expand our wholesale business in the state.

“As we look to 2024, our strategy remains unchanged: leverage our operating playbook and further integrate our acquired assets to drive customer acquisition and sales across our expanded footprint. We will continue to evaluate opportunities that can enhance our geographic footprint and brand portfolio.”

Recent Highlights

  • Launched Colorado’s first “store-within-a-store” concept, combining a Star Buds recreational dispensary with the Standing Akimbo medical banner.
  • Announced the grand opening of a medical and recreational dispensary under the R. Greenleaf banner in Hobbs, NM, increasing the Company’s New Mexico retail footprint to 33 stores.
  • Third quarter ecommerce transactions in New Mexico and Colorado increased a collective 28% compared to the second quarter of 2023.
  • Third quarter customer loyalty members increased 16% compared to the second quarter of 2023 with New Mexico loyalty member penetration growing to 78% of total customers.
  • Lowell Farms premium pre-roll brand, licensed by the Company, is now in over 130 doors and the #2 pre-roll in Colorado.

Third Quarter 2023 Financial Results

Total revenue in the third quarter of 2023 increased 8% to $46.7 million compared to $43.2 million for the same quarter last year. The increase was primarily due to growth from new stores compared to the prior year period and increased wholesale revenue, partially offset by pricing pressure from the proliferation of new licenses in New Mexico.

Gross profit for the third quarter of 2023 was $21.4 million or 45.9% of total revenue, compared to $22.5 million or 52.0% of total revenue for the same quarter last year. The decrease in gross margin was primarily driven by a year-to-date true-up expense reclassification from SG&A into cost of goods sold, as well as increased lower margin medical sales mix in Colorado and lower initial gross margin from the Company’s acquisition of Everest Apothecary’s inventory. This was partially offset by improvements to product mix across the Company’s retail footprint.

Operating expenses for the third quarter of 2023 were $12.5 million compared to $11.4 million for the same quarter last year. The increase was primarily due to four-wall SG&A increases associated with 28 additional stores in Colorado and New Mexico that are still ramping.

Income from operations for the third quarter of 2023 was $8.9 million compared to $11.1 million in the same quarter last year. Net loss was $0.3 million compared to net income of $1.8 million for the third quarter of 2022.

Adjusted EBITDA for the third quarter of 2023 was $14.1 million or 30.2% of revenue, compared to $15.9 million or 36.7% of revenue for the same quarter last year. The decrease in Adjusted EBITDA margin was primarily driven by lower gross margin and the higher four-wall SG&A associated with new stores that are still ramping.

As of September 30, 2023, cash and cash equivalents were $19.6 million compared to $38.9 million on December 31, 2022, while operating working capital decreased by $3.5 million to $0.6 million during this period. Total debt as of September 30, 2023, was $155.1 million compared to $127.8 million on December 31, 2022.

Schwazze CFO Forrest Hoffmaster added, “As we focus on revenue growth, customer acquisition and generating positive cash flow, we are also making steady progress on integrating our recent acquisitions to drive operational efficiencies and cost synergies at scale. In addition, we are in the process of optimizing our inventory through an ERP implementation across our cultivation and manufacturing facilities, which we expect will lead to one-time inventory valuation adjustments as we close out the year. These initiatives will enable us to recognize further improvements across our business as we continue to deepen our presence in the markets we serve.”

Conference Call

The Company will conduct a conference call today, November 14, 2023, at 5:00 p.m. Eastern time to discuss its results for the third quarter ended September 30, 2023.

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: Tuesday, November 14, 2023
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 64450430
Webcast: SHWZ Q3 2023 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: 450430

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) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take 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.” 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. 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.

MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
For the Periods Ended September 30, 2023 and December 31, 2022

Expressed in U.S. Dollars

September 30,

December 31,

2023

2022

(Unaudited)

(Audited)

ASSETS

Current Assets

Cash & Cash Equivalents

$

19,624,615

$

38,949,253

Accounts Receivable, net of Allowance for Doubtful Accounts

5,049,869

4,471,978

Inventory

32,767,841

22,554,182

Notes Receivable – Current, net

11,944

Marketable Securities, net of Unrealized Loss of $1,816 and Loss of $39,270, respectively

456,099

454,283

Prepaid Expenses & Other Current Assets

6,485,896

5,293,393

Total Current Assets

64,384,320

71,735,033

Non-Current Assets

Fixed Assets, net Accumulated Depreciation of $8,065,794 and $4,899,977, respectively

32,139,192

27,089,026

Investments

2,000,000

2,000,000

Goodwill

76,578,654

94,605,301

Intangible Assets, net Accumulated Amortization of $28,828,713 and $16,290,862, respectively

168,822,669

107,726,718

Note Receivable – Non-Current, net

1,313

Deferred Tax Assets, net

50,467

Other Non-Current Assets

1,298,950

1,527,256

Operating Lease Right of Use Assets

25,315,122

18,199,399

Total Non-Current Assets

306,206,367

251,147,700

Total Assets

$

370,590,687

$

322,882,733

LIABILITIES & STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts Payable

$

11,665,499

$

10,701,281

Accounts Payable – Related Party

22,073

22,380

Accrued Expenses

9,430,875

7,462,290

Derivative Liabilities

2,022,248

16,508,253

Lease Liabilities – Current

4,721,713

3,139,289

Current Portion of Long Term Debt

4,250,000

2,250,000

Income Taxes Payable

18,283,784

7,297,815

Total Current Liabilities

50,396,192

47,381,308

Non-Current Liabilities

Long Term Debt, net of Debt Discount & Issuance Costs

150,878,200

125,521,520

Lease Liabilities – Non-Current

23,525,633

17,314,464

Deferred Income Taxes, net

502,070

Total Non-Current Liabilities

174,403,833

143,338,054

Total Liabilities

$

224,800,025

$

190,719,362

Stockholders’ Equity

Preferred Stock, $0.001 Par Value. 10,000,000 Shares Authorized; 86,494 Shares Issued and

86,994 Shares Outstanding as of September 30, 2023 and 86,994 Shares Issued and 86,994 Shares

Outstanding as of December 31, 2022.

87

87

Common Stock, $0.001 Par Value. 250,000,000 Shares Authorized; 72,607,621 Shares Issued

and 72,591,605 Shares Outstanding as of September 30, 2023 and 56,352,545 Shares Issued

and 55,212,547 Shares Outstanding as of December 31, 2022.

72,607

56,353

Additional Paid-In Capital

199,177,342

180,381,641

Accumulated Deficit

(51,426,247)

(46,241,583)

Common Stock Held in Treasury, at Cost, 920,150 Shares Held as of September 30, 2023 and

920,150 Shares Held as of December 31, 2022.

(2,033,127)

(2,033,127)

Total Stockholders’ Equity

145,790,662

132,163,371

Total Liabilities & Stockholders’ Equity

$

370,590,687

$

322,882,733

 

MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Operating Revenues

Retail

$

41,951,969

$

39,759,734

$

115,871,037

$

104,386,464

Wholesale

4,701,268

3,335,252

13,034,676

14,661,268

Other

93,698

96,000

217,258

184,200

Total Revenue

46,746,935

43,190,986

129,122,971

119,231,932

Total Cost of Goods & Services

25,308,972

20,715,192

60,133,091

60,661,933

Gross Profit

21,437,963

22,475,794

68,989,880

58,569,999

Operating Expenses

Selling, General and Administrative Expenses

9,639,268

6,594,311

28,693,517

20,114,335

Professional Services

767,822

1,507,149

2,443,046

5,609,579

Salaries

4,545,439

3,159,578

17,700,403

15,697,294

Stock Based Compensation

(2,438,073)

99,898

622,162

1,788,823

Total Operating Expenses

12,514,456

11,360,936

49,459,128

43,210,031

Income from Operations

8,923,507

11,114,858

19,530,752

15,359,968

Other Income (Expense)

Interest Expense, net

(8,320,397)

(8,500,235)

(23,956,691)

(23,312,088)

Unrealized Gain (Loss) on Derivative Liabilities

4,516,237

4,816,668

14,486,005

28,104,960

Other Loss

20,400

Unrealized Gain (Loss) on Investments

(28,541)

1,816

(42,353)

Total Other Income (Expense)

(3,804,160)

(3,712,108)

(9,468,870)

4,770,919

Pre-Tax Net Income (Loss)

5,119,347

7,402,750

10,061,882

20,130,887

Provision for Income Taxes

5,441,809

5,593,513

15,246,546

11,259,369

Net Income (Loss)

$

(322,462)

$

1,809,237

$

(5,184,664)

$

8,871,518

Less: Accumulated Preferred Stock Dividends for the Period

(1,547,369)

(1,784,113)

(5,930,646)

(5,294,132)

Net Income (Loss) Attributable to Common Stockholders

$

(1,869,831)

$

25,124

$

(11,115,310)

$

3,577,386

Earnings (Loss) per Share Attributable to Common Stockholders

Basic Earnings (Loss) per Share

$

(0.02)

$

$

(0.14)

$

0.07

Diluted Earnings (Loss) per Share

$

(0.03)

$

$

(0.14)

$

0.03

Weighted Average Number of Shares Outstanding – Basic

87,202,537

51,232,943

78,635,841

50,615,437

Weighted Average Number of Shares Outstanding – Diluted

87,202,537

137,954,532

78,635,841

137,337,027

Comprehensive Income (Loss)

$

(322,462)

$

1,809,237

$

(5,184,664)

$

8,871,518

 

MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars

For the Nine Months Ended

September 30,

2023

2022

(Unaudited)

(Unaudited)

Cash Flows from Operating Activities:

Net Income (Loss) for the Period

$

(5,184,664)

$

8,871,518

Adjustments to Reconcile Net Income (Loss) to Cash for Operating Activities

Depreciation & Amortization

15,703,668

8,329,767

Non-Cash Interest Expense

3,003,386

3,137,021

Non-Cash Lease Expense

5,756,492

3,910,679

Deferred Taxes

(552,537)

Change in Derivative Liabilities

(14,486,005)

(28,104,960)

Amortization of Debt Issuance Costs

1,264,537

1,264,538

Amortization of Debt Discount

6,269,584

5,505,420

(Gain) Loss on Investments, net

(1,816)

42,353

Stock Based Compensation

835,347

811,897

Changes in Operating Assets & Liabilities (net of Acquired Amounts):

Accounts Receivable

206,179

(1,100,055)

Inventory

(4,883,659)

2,898,959

Prepaid Expenses & Other Current Assets

(1,192,503)

(3,377,844)

Other Assets

228,306

(179,072)

Change in Operating Lease Liabilities

(5,078,622)

(11,938,634)

Accounts Payable & Other Liabilities

(4,124,458)

8,802,231

Income Taxes Payable

10,985,969

1,560,630

Net Cash Provided by (Used in) Operating Activities

8,749,202

434,448

Cash Flows from Investing Activities:

Collection of Notes Receivable

10,631

Cash Consideration for Acquisition of Business, net of Cash Acquired

(15,813,028)

(56,875,923)

Purchase of Fixed Assets

(6,766,759)

(12,511,389)

Purchase of Intangible Assets

(2,700,000)

(2,825)

Net Cash Provided by (Used in) Investing Activities

(25,269,156)

(69,390,137)

Cash Flows from Financing Activities:

Payment on Notes Payable

(3,488,302)

Proceeds from Issuance of Common Stock, net of Issuance Costs

683,618

1,280,660

Net Cash Provided by (Used in) Financing Activities

(2,804,684)

1,280,660

Net (Decrease) in Cash & Cash Equivalents

(19,324,638)

(67,675,029)

Cash & Cash Equivalents at Beginning of Period

38,949,253

106,400,216

Cash & Cash Equivalents at End of Period

$

19,624,615

$

38,725,187

Supplemental Disclosure of Cash Flow Information:

Cash Paid for Interest

$

13,271,618

$

13,239,685

Cash Paid for Income Taxes

5,000,000

9,840,000

 

MEDICINE MAN TECHNOLOGIES, INC.
ADJUSTED EBITDA RECONCILIATION (NON-GAAP)
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2023

2022

2023

2022

Net Income (Loss)

$

(322,462)

$

1,809,237

$

(5,184,664)

$

8,871,518

Interest Expense, net

8,320,397

8,500,235

23,956,691

23,312,088

Provision for Income Taxes

5,441,809

5,593,513

15,246,546

11,259,369

Other (Income) Expense, net of Interest Expense

(4,516,237)

(4,788,127)

(14,487,821)

(28,083,007)

Depreciation & Amortization

5,330,529

3,322,150

15,808,535

8,823,549

Earnings Before Interest, Taxes, Depreciation and

Amortization (EBITDA) (non-GAAP)

$

14,254,036

$

14,437,008

$

35,339,287

$

24,183,517

Non-Cash Stock Compensation

(2,438,073)

99,898

622,162

1,788,823

Deal Related Expenses

1,401,795

993,828

3,331,315

4,907,291

Capital Raise Related Expenses

1,712

185,597

36,780

791,229

Inventory Adjustment to Fair Market Value for

Purchase Accounting

34,604

6,541,651

Severance

121,715

22,434

425,832

71,536

Retention Program Expenses

110,023

505,655

Employee Relocation Expenses

12,867

65,042

19,110

Other Non-Recurring Items

655,244

87,097

2,132,272

422,532

Adjusted EBITDA (non-GAAP)

$

14,119,319

$

15,860,466

$

42,458,345

$

38,725,689

Revenue

46,746,935

43,190,986

129,122,971

119,231,932

Adjusted EBITDA Percent

30.2 %

36.7 %

32.9 %

32.5 %

 

MEDICINE MAN TECHNOLOGIES, INC.
OPERATING WORKING CAPITAL RECONCILIATION (NON-GAAP)
For the Periods Ended September 30, 2023 and December 31, 2022
Expressed in U.S. Dollars

September 30,

December 31,

2023

2022

Current Assets

$

64,384,320

$

71,735,033

Less: Cash & Cash Equivalents

(19,624,615)

(38,949,253)

Adjusted Current Assets (non-GAAP)

44,759,705

32,785,780

Current Liabilities

$

50,396,192

$

47,381,308

Less: Derivative Liabilities

(2,022,248)

(16,508,253)

Less: Current Portion of Long Term Debt

(4,250,000)

(2,250,000)

Adjusted Current Liabilities (non-GAAP)

44,123,944

28,623,055

Operating Working Capital (non-GAAP)

$

635,761

$

4,162,725

 

Investor Relations Contact, Sean Mansouri, CFA or Aaron D’Souza, Elevate IR, (720) 330-2829, ir@schwazze.com

View original content:https://www.prnewswire.co.uk/news-releases/schwazze-announces-third-quarter-2023-financial-results-301988067.html

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SCHWAZZE

Schwazze Sets Third Quarter 2023 Conference Call for November 14, 2023 at 5:00 p.m. ET

Published

on

schwazze-sets-third-quarter-2023-conference-call-for-november-14,-2023-at-5:00-pm.-et

DENVER, Oct. 30, 2023 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), will host a conference call on Tuesday, November 14, 2023 at 5:00 p.m. Eastern time to discuss its financial and operational results for the third quarter ended September 30, 2023. The Company’s results will be reported in a press release prior to the call.

The Schwazze management team 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: Tuesday, November 14, 2023
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 64450430
Webcast: SHWZ Q3 2023 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: 450430

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) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take 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 www.schwazze.com.

Investor Relations Contact: Sean Mansouri, CFA or Aaron D’Souza, Elevate IR, (720) 330-2829, [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/schwazze-sets-third-quarter-2023-conference-call-for-november-14-2023-at-500-pm-et-301970754.html

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