GABY Founder & CEO Margot Micallef provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info Research News and Advanced Market Data on GABLF NobleCon18 Presenting Companies About GABY GABY Inc. is a California-focused retail consolidator and the owner of Mankind Dispensary, one of the oldest licensed dispensaries in California. Mankind is a well-known, and highly respected dispensary with deep roots in the California cannabis community operating in San Diego, California. GABY curates and sells a diverse portfolio of products, including its own proprietary brands, Lulu’s™ and Kind Republic™ through Mankind, manufactures Kind Republic, and distributes all its proprietary brands through its wholly owned subsidiary, GABY Manufacturing. A pioneer in the industry with a multi-vertical retail foundation, and a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition. GABY’s shares trade on the Canadian Securities Exchange (“CSE”) under the symbol “GABY” and on the OTCQB under the symbol “GABLF”. For more information on GABY, visit GABYInc.com.

Schwazze Announces Participation in Upcoming Conferences and Events

Research, News, and Market Data on Schwazze

DENVER, April 11, 2022 /CNW/ – Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), is pleased to announce that Justin Dye, Chairman & CEO and Nancy Huber, CFO will participate in the following conferences and events.

 

Cantor Fitzgerald 2nd Annual Virtual Cannabis Conference –
April 12-14, 2022 
Justin Dye, Chairman & CEO is scheduled to participate in a panel discussion entitled, “Emerging
MSOs” on Tuesday, April 12 at 1:50 pm ET.  Management will also be participating in one-on-one investor meetings throughout the conference. For more information, please contact your Cantor Fitzgerald representative. 

NobleCon 18, Hard Rock
Casino & Hotel – April 19-21, 2022
Justin Dye, Chairman & CEO is scheduled to present at NobleCon18 – Noble Capital Markets’ Eighteenth Annual Investor Conference at the Hard Rock Hotel & Casino, Hollywood, Florida, on Thursday April 21, at 11:00 am ET in the Seminole Ballroom A.  Management will also be participating in one-on-one investor meetings throughout the event. For more information, please contact your Noble Capital representative. 

VID Forum – 11:00 am ET –
Live Town Hall – April 26, 2022
Justin Dye, Chairman & CEO will present to investors in a live VID Forum Town Hall.  Management will field Q&A from investors and interested parties after their presentation. Please sign up here to register.

A.G.P.’s Spring Virtual
Consumer Cannabis Conference – May 3, 2022
Management will be participating in one-on-one investor meetings throughout the Conference. For more information, please contact your A.G.P. representative. 

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.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,”, “predicts,” or similar words. 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) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and * out ability to satisfy the closing conditions for the private finding described in this press release. 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.

 View original content to download multimedia:https://www.prnewswire.com/news-releases/schwazze-announces-participation-in-upcoming-conferences–events-301523054.html

SOURCE Medicine Man Technologies, Inc.

Thursday, April 07, 2022

Stem Holdings (STMH)(STEM:CA)
Appoints New CEO

Stem Holdings Inc is engaged in the purchasing, improving, and leasing of properties and finance assets which are operated by third parties and are used for the cultivation and retail sale of marijuana. Its properties includes 42nd Street, and Mulino Farm which are used for agriculture. The company generates its revenue in the form of rental income from tenants.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New CEO. Stem Holdings announced the appointment of Co-Founder Matthew Cohen as Chief Executive Officer and Chief Financial Officer effective immediately. Although working out of the spotlight, Mr. Cohen played an instrumental part in the organization of Stem and its acquisition of the cannabis cultivation and retail operations. We had an opportunity to speak with Mr. Cohen and following are the highlights.

Rationalization of Assets.  Mr. Cohen already is moving forward with the sale of assets, such as some of the Company’s joint ventures and real estate that can be leased backed. Funds generated by these actions will provide a cushion as the Oregon operations are rebuilt. Ultimately, we expect Stem to rationalize into the Oregon operations and the California dispensary, although in our view if an …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

 

Motorsports Games provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info Research News and Advanced Market Data on MSGM NobleCon18 Presenting Companies About Motorsport Games Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans, rFactor 2, KartKraft and the British Touring Car Championship (“BTCC”). Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.

Friday, April 01, 2022

Bassett Furniture (BSET)
Exceeds Estimates in a Challenging Market

Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high-quality home furnishings. With 96 company- and licensee-owned stores located throughout the United States, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. The Company also has a traditional wholesale business with more than 700 accounts on the open market and a logistics business specializing in the transport and warehousing of home furnishings. In addition, Bassett sells its products through its website at www.bassettfurniture.com. With revenues in excess of $450 million, approximately 75% of its goods are manufactured, assembled and/or finished in factories located in Virginia, North Carolina and Alabama with the remainder primarily sourced from Asia. The Company was founded in 1902 and is based in Bassett, Virginia.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q21 Results. Revenue for the fiscal first quarter ended February 28th was $117.1 million, up 15.9% y-o-y. Wholesale revenue rose 19% to $83.5 million, while Retail revenue rose 3.7% to $64.1 million. Bassett reported net income from continuing operations of $4.3 million, or $0.44 per share, compared to net income from continuing operations of $3.7 million, or $0.37 per share, in the prior year. We had forecast revenue of $110 million and EPS from continuing operations of $0.36.

Orders Remain Strong, Working Off Backlog.  Wholesale orders remained relatively strong during 1Q22, although they declined y-o-y due to the Club Motion segment, where there remains a large backlog and shipping challenges have been most impactful. Wholesale backlog ended the quarter at $78 million, down from $90.1 million at fiscal yearend …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

 

Friday, April 01, 2022

Codere Online (CDRO)
Sticking to Its Expansion Roadmap

Codere Online Luxembourg SA is an operator in online gaming and online sports betting in Latin America. The company offers online casino through its website and mobile application.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid earnings debut. Codere Online released financial results for Q4 and full-year 2021, its first earnings release as a public company. Net gaming revenue was €22.2 million in the quarter compared with €22.3 million in the prior-year period. The lack of growth was due primarily to soft revenue in Spain, adversely affected by recent regulations on marketing and advertising. Adj. EBITDA was negative in the quarter at a €6.5 million loss.

Encouraging metrics.  The company’s average monthly active users in Q4 were 76,365 up 18% from 64,980 in the prior year period. In addition, First Time Deposits (FTDs) increased a significant 48% in the same period to 64,359 from 42,450. We believe these metrics are a positive reflection of management’s strategy to drive engagement in growth markets …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

 

Friday, April 01, 2022

Schwazze (SHWZ)
Poised for a Breakout 2022

Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q21 Results. Revenue for the quarter totaled $26.5 million, up from $7.9 million a year ago, but down from $31.8 million in the third quarter. The sequential drop was due to overall softness in cannabis in Colorado during the quarter, both on the retail and wholesale level. Adjusted EBITDA was $7.5 million in the quarter. Schwazze reported $5.5 million of net income, or $0.13 per share.

Strong Metrics.  Two year stacked IDs for the quarter were 40.4% and one year IDs were 4.9%. Average basket size for 4Q21 was $59.70, up 12.1% y-o-y. Customer visits in the quarter totaled 329,357, down 7.2% y-o-y. Once again, Schwazze outperformed the overall Colorado market making it four quarters in a row, a testament to management’s focus on the operating strategy, in our view …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

 

Schwazze Announces Fourth Quarter & Full Year 2021 Results

Research, News, and Market Data on Schwazze

 

 

DENVER, CO – March 31, 2022 – Schwazze, (OTCQX:SHWZ; NEO:SHWZ) (“Schwazze” or the “Company”), today announced financial results for the fourth quarter (“Q4-2021”) and for the year ended (“Y-E”) December 31, 2021 (“Y-E 2021”). 

 Y-E 2021 Financial Summary:

• Revenues of $108.4 million grew 352% compared to $24.0 million Y-E 2020
• Gross Margin of $49.4 million was 629% better than YE 2020 and 1,730 bps over Y-E 2020
• Net Income Attributed to Common Shareholders was $7.2 million or $0.17 Basic Earnings per share compared to a Net Loss of ($19.4) million in 2020 or ($0.47) Basic Loss per share
• Adjusted EBITDA of $32.2 million was 29.7% of revenue, compared to a loss of ($7.6) million Y-E 2020
• Cash Flow from operations for Y-E 2021 was $57.3 million⁽¹⁾ compared to ($9.8) million Y-E 2020
• Retail Sales were $73.7 million and when compared to last year Retail Sales were up 1,811%
• Two year stacked IDs for same store sales⁽²⁾ were 47.3% and one year IDs were 13.3%
  • Average basket size⁽²⁾ for 2021 was $59.70 up 9.5% compared to Y-E 2020
  • Recorded customer visits⁽²⁾ for 2021 totaled 1,375,589 up 3.8%, compared to Y-E 2020

Q4 2021 Financial Summary:

• Revenues of $26.5 million grew 234% compared to $7.9 million in Q4 2020
• Gross Margin of $12.1 million was 1,856% better than Q4 2020 and 3,798 bps over Q4 2020
• Net Income Attributed to Common Shareholders was $5.5 million compared to a Net Loss of ($8.5) million for the same period last year
• Adjusted EBITDA of $7.5 million for the quarter was 28.3% of revenue, compared to a loss of ($3.4) million for the same period last year
• Cash Flow from operations for the quarter was $52.5 million⁽¹⁾ compared to ($3.5) million for the same period last year
• Retail sales for the quarter were $19.6 million and were up 887% when compared to the same period last year
• Two year stacked IDs for Q4 2021 compared to Q4 2019 for same store sales⁽²⁾ were 40.4% and one year IDs⁽²⁾ were 4.9% comparing Q4 2021 to Q4 2020
  • Average basket size⁽²⁾ for Q4 2021 was $59.70 up 12.1% compared to Q4 2020
  • Recorded customer visits⁽²⁾ for Q4 2021 totaled 329,357 down 7.2%, compared to Q4 2020

Accomplishments for Y-E 2021 and Q1 2022

Since April 2020, Schwazze has acquired or announced the planned acquisition of 33 cannabis dispensaries as well as seven cultivation facilities and two manufacturing assets in Colorado and New Mexico. 

Q1 2022

• Listed Common Shares of Schwazze onto the NEO Exchange
• Signed Definitive Agreement to Acquire Assets of Urban Health & Wellness
• Closed Acquisition of Brow 2 LLC Assets
• Closed Acquisition of Emerald Fields
• Added President of New Mexico Division
• Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
• Added to Key Senior Leadership Team
• Closed Acquisition of Drift Assets

2021

• Closed Acquisition of Smoking Gun Assets
• Announced Convertible Debt Raise
• Announced Home Delivery Services
• Closed Acquisition of Southern Colorado Growers Assets
• Announced R&D Subsidiary, Schwazze BioSciences, LLC
• Completed Acquisition of Final Seven Star Buds

“2021 was a transformational year for Schwazze as we became an MSO with a super-regional focus and a clear strategy to “go deep” in the states we are now operating in.  Our private capital raise of $95 million provided momentum for our M&A and organic growth strategy.  The Company’s stock was listed on the NEO Exchange, earlier this month, providing an additional platform for liquidity and awareness of our stock for retail and institutional investors,” stated Justin Dye, CEO of Schwazze. “To date, Schwazze has acquired or announced the acquisition of 33 dispensaries, of which 14 were closed in the first quarter of 2022.  Revenue for the year was $108.4 million, up 352%, and our retail numbers were $73.7 million, up 1,811%.  Our wholesale business continued to win customers and delivered 85% revenue growth.  We continued our upward trend with an increase in average basket size of 9.5% and customer visits by 3.8% year over year.  I am proud of our entire team, as Schwazze, once again outpaced the state of Colorado by 11.3%.”

Y-E 2021 Revenue

Total revenue was $108.4 million for the year ended March 31, 2021, compared to $24.0 million during the same period in 2020 and represents an increase of approximately 352%.  Retail sales were $73.7 million for 2021 from $3.9 million dollars the previous year representing a 1,811% increase driven primarily by acquisitions of dispensaries in Colorado.  Wholesale operations revenue increased to $34.4 million from $18.6 million compared to the previous year representing an 85% increase, primarily driven by acquisition of cultivation facilities and increase in sales of distillate products to the market. Other sales were $0.3 million from $1.5 million the previous year, primarily driven by the pivoting away consulting sales.  

Total cost of goods and services for the year totaled $59.1 million compared to $17.2 million during the same period in 2020, representing an increase of 243%, due to increased sales of products and growth through acquisition.

Gross profit increased to $49.4 million for the year compared to $6.8 million during the same period in 2020. Gross profit margin rose as a percentage of revenue from 28.2% to 45.5%, continued to be driven by the strength of the Star Buds acquisition, our consolidated purchasing approach, and the implementation of our retail playbook.

The Average basket size for 2021 was $59.70 up 9.5%, compared to 2020⁽²⁾.  Recorded customer visits totaled 1,375,589 up 3.8%, compared to 2020⁽²⁾. 

Total operating expenses were $38.9 million for the year compared to $29.7 million during the same period in 2020. The higher expenses are attributed to increased selling, general and administrative expenses, salaries, benefits, and related employment costs.

Net income attributed to common shareholders for the year was $7.2 million or $0.17 basic earnings per share, compared to a net loss of ($19.4) million or ($0.47) basic earnings per share for the same period last year.

Adjusted EBITDA for the year was $32.2 million representing 29.7% of revenue., compared to a loss of ($7.6) million for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details. 

For the year ended 2021, the Company generated a positive operating cash flow of $57.3 million⁽¹⁾ compared to a loss of ($9.8) million for the same period with $106.4 million in cash and cash equivalents for the year ended 2021.  

Nancy Huber, CFO for Schwazze commented, “we’ve delivered an excellent year with the continued generation of operating cash flows from our acquired businesses.  With funds from operations as well as our recent raise, we will continue to deploy capital in new acquisitions and improve our stores, manufacturing, and cultivation operations.  We expect to deploy approximately $15 million for capital improvements in our businesses this year.”

2022 Guidance

The Company is providing guidance for a fourth-quarter 2022 (“Q4 2022”) annualized run rate, which excludes transactions that are announced but not closed.  Q4 2022 revenue annualized run rate is projected to be approximately $220 Million – $260 Million, and the projected Q4 2022 adjusted EBITDA annualized run rate is projected to be from $70 million to $82 million.  

NOTES:

• $34.9 million of this year’s operating cash flow was derived from the derivative liability associated with the convertible debt issued in December.
• Schwazze did not own all the assets and entities in part of 2021, 2020 and 2019 and is using unaudited numbers for this comparison.

Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition and capital raise related costs, and other one-time expenses, such as severance, retention, and employee relocation. The Company uses adjusted EBITDA as it believes it better explains the results of its core business. The Company has not reconciled guidance for adjusted EBITDA to the corresponding GAAP financial measure because it cannot provide guidance for the various reconciling items. The Company is unable to provide guidance for these reconciling items because it cannot determine their probable significance, as certain items are outside of its control and cannot be reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.

Webcast – March 31, 2022 – 4:30 ET

Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 888-664-6383 or by listening to the webcast from the Company’s website at https://ir.schwazze.com. The webcast will be available on the Company’s website and on replay until April 7, 2022 and accessed by dialing 888-390-0541 / 040354#.

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call through the weblink: https://produceredition.webcasts.com/starthere.jsp?ei=1531076&tp_key=128c98ab58  This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings

About Schwazze

Schwazze (OTCQX: 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. 

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. 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) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. 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.

Investors Joanne Jobin Investor Relations Joanne.jobin@schwazze.com 647 964 0292

Daniel Pabon General Counsel dan@schwazze.com 303-371-0387 x1031

Media Julie Suntrup, Schwazze Vice President | Marketing & Merchandising julie.suntrup@schwazze.com 303 371 0387

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

For the Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars 

		December 31				December 31,
		2021				2020
ASSETS			(Audited)				(Audited)
Current assets
Cash and cash equivalents		$	106,400,216			$	1,231,235
Accounts receivable, net of allowance for doubtful accounts			3,866,828				1,270,380
Accounts receivable – related party			–				80,494
Inventory			11,121,997				2,619,145
Note receivable – current, net			–				–
Note receivable – related party			–				181,911
Prepaid expenses and other current assets			2,523,214				614,200
Total current assets			123,912,255				5,997,365
Non-current assets
Fixed assets, net accumulated depreciation of $1,988,973 and $872,579, respectively			10,253,226				2,584,798
Goodwill			43,316,267				53,046,729
Intangible assets, net accumulated amortization of $7,652,750 and $200,456, respectively			97,582,330				3,082,044
Marketable securities, net of unrealized gain (loss) of $216,771 and $(129,992), respectively			493,553				276,782
Note receivable – noncurrent, net			143,333				–
Accounts receivable – litigation			303,086				3,063,968
Other noncurrent assets			514,962				51,879
Operating lease right of use assets			8,511,780				2,579,036
Total non-current assets			161,118,537				64,685,236
Total assets		$	285,030,792			$	70,682,601
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable		$	2,548,885			$	3,508,478
Accounts payable – related party			36,820				48,982
Accrued expenses			5,592,222				2,705,445
Derivative liabilities			34,923,013				1,047,481
Deferred revenue			–				50,000
Notes payable – related party			134,498				5,000,000
Income taxes payable			2,027,741				–
Total current liabilities			45,263,179				12,360,386
Long term debt			97,482,468				13,901,759
Lease liabilities			8,715,480				2,645,597
Total long-term liabilities			106,197,948				16,547,356
Total liabilities			151,461,127				28,907,742
Stockholders’ equity
Common stock, $0.001 par value. 250,000,000 shares authorized; 45,455,490 shares issued and 44,717,046 shares outstanding at December 31, 2021 and 42,601,773 shares issued and 42,169,041 shares outstanding as of December 31, 2020, respectively			45,485				42,602
Preferred stock, $0.001 par value. 10,000,000 shares authorized; 86,994 shares issued and outstanding at December 31, 2021 and 10,000,000 shares authorized; 19,716 shares issued and outstanding at December 31, 2020			87				20
Additional paid-in capital			162,815,097				85,357,835
Accumulated deficit			(27,773,968	)			(42,293,098	)
Common stock held in treasury, at cost, 517,044 shares held as of December 31, 2021 and 432,732 shares held as of December 31, 2020.			(1,517,036	)			(1,332,500	)
Total stockholders’ equity			133,569,665				41,774,859
Total liabilities and stockholders’ equity		$	285,030,792			$	70,682,601

 

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
		(Un-audited)				(Un-audited)				(Audited)				(Audited)
Operating revenues
Retail	$	19,639,774			$	1,990,334			$	73,723,654			$	3,858,613
Wholesale		6,816,482				5,738,755				34,471,447				18,647,780
Other		59,722				213,926				225,138				1,494,459
Total revenue		26,515,978				7,943,015				108,420,239				24,000,852
Cost of goods and services
Cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Total cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Gross profit		12,142,198				620,660				49,353,694				6,774,366
Operating expenses
Selling, general and administrative expenses		3,035,837				1,469,512				16,616,306				4,523,603
Professional services		880,238				3,155,114				5,346,934				8,545,300
Salaries		3,437,676				2,404,407				11,943,409				8,377,889
Stock based compensation		1,172,291				2,414,705				5,037,879				8,230,513
Total operating expenses		8,526,042				9,443,738				38,944,528				29,677,305
Income (loss) from operations		3,616,156				(8,823,078	)			10,409,166				(22,902,939	)
Other income (expense)
Interest income (expense), net		(2,487,533	)			(88,186	)			(7,014,279	)			(41,460	)
Gain on forfeiture of contingent consideration		–				–				–				1,462,636
Unrealized gain (loss) on derivative liabilities		14,093,391				(264,586	)			15,061,142				1,263,264
Other income (expense)		–				–				–				32,621
Gain (loss) on sale of assets		–				–				242,494				–
Unrealized gain (loss) on investments		6,086				(250,792	)			216,771				(129,992	)
Total other income (expense)		11,611,944				(603,564	)			8,506,128				2,587,069
Provision for income taxes (benefit)		2,398,259				(899,109	)			4,396,164				(899,109	)
Net income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)
Less: Accumulated preferred stock dividends for the period		(7,346,153	)			–				(7,346,153)				–
Net income (loss) attributable to common stockholders	$	5,483,688			$	(8,527,533	)		$	7,172,977			$	(19,416,761	)
Earnings (loss) per share attributable to common shareholders
Basic earnings (loss) per share	$	0.13			$	(0.21)			$	0.17			$	(0.47	)
Diluted earnings (loss) per share									$	(0.06	)		$	(0.47	)
Weighted average number of shares outstanding – basic		43,339,092				41,217,026				43,339,092				41,217,026
Weighted average number of shares outstanding – diluted										101,368,958				41,217,026
Comprehensive income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

STATEMENT OF CASH FLOWS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended					Year Ended				Year Ended
	December 31,				December 31,					December 31,				December 31,
	2021				2020					2021				2020
Cash flows from operating activities
Net income (loss) for the period	$	12,829,841			$	(8,527,533	)			$	14,519,130			$	(19,416,761	)
Adjustments to reconcile net income to cash used in operating activities
Depreciation and amortization		797,037				154,300					8,576,865				476,592
Deferred taxes		–				268,423					–				268,423
(Gain) loss on change in derivative liabilities		34,843,283				264,585					33,875,532				(2,725,901	)
(Gain) loss on investment, net		(6,086	)			250,792					(216,771	)			129,992
(Gain) loss on sale of assets		49,985				–					(242,494	)			–
Stock based compensation		1,172,291				2,414,705					5,037,879				8,230,513
Changes in operating assets and liabilities
Accounts receivable		2,424,575				(417,893	)				244,929				874,616
Inventory		(1,668,940	)			510,207					(4,703,186	)			781,512
Prepaid expenses and other current assets		55,821				(359,598	)				(1,909,014	)			(84,784	)
Other assets		(60,900	)			76,121					(457,083	)			(51,878	)
Operating leases right of use assets and liabilities		23,010				32,673					137,139				59,701
Accrued interest on notes receivable		–				–					–				–
Accounts payable and other liabilities		1,062,106				1,787,521					493,719				1,610,226
Deferred revenue		–				50,000					(50,000	)			50,000
Income taxes payable		998,259				–					2,027,741				(1,940	)
Net cash provided by (used in) operating activities		52,520,282				(3,495,697	)				57,334,386				(9,799,689	)
Cash flows from investing activities:
Collection (issuance) of notes receivable		–				349,210					181,911				827,495
Cash consideration for acquisition of business		(3,750,929	)			(30,668,962	)				(75,678,000	)			(33,278,462	)
Purchase of fixed assets – net		(1,768,427	)			208,512					(5,638,085	)			(768,173	)
Purchase of intangible assets		–				–					(29,580	)			–
Net cash provided by (used in) investing activities		(5,519,356	)			(30,111,240	)				(81,163,754	)			(33,219,140	)
Cash flows from financing activities:
Proceeds from issuance of debt, net		38,236,131				13,901,759					83,580,709				13,901,759
Repayment of notes payable		–				5,000,000					(4,865,502	)			5,000,000
Proceeds from issuance of common stock, net of issuance costs		345				12,583,312					50,283,142				12,625,312
Proceeds from exercise of common stock purchase warrants, net of
issuance costs		–				374,810									374,810
Net cash provided by financing activities		38,236,476				31,859,881					128,998,349				31,901,881
Net increase (decrease) in cash and cash equivalents		85,237,402				(1,747,056	)				105,168,981				(11,116,948	)
Cash and cash equivalents at beginning of period		21,162,814				2,978,291					1,231,235				12,348,183
Cash and cash equivalents at end of period	$	106,400,216			$	1,231,235				$	106,400,216				1,231,235

See accompanying notes to the financial statements

 

MEDICINE MAN TECHNOLOGIES, INC.

Adjusted EBITDA Reconciliation

Non-GAAP measurement

 (UNAUDITED)

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
Net income (loss)		$12,829,841				$(8,527,533)				$14,519,130				$(19,416,761)
Interest income (expense), net		2,487,533				88,186				7,014,279				41,460
Provision for income taxes (benefit)		2,398,259				(899,109)				4,396,164				(899,109)
Other (income) expense		(14,099,477)				515,378				(15,520,407)				(2,628,529)
Depreciation and amortization		797,037				154,300				8,576,865				476,592
Earnings before interest, taxes, depreciation and amortization (EBITDA) (non-GAAP measure)		$4,413,193				$(8,668,778)				$18,986,031				$(22,426,347)
Non-cash stock compensation		1,172,291				2,414,705				5,037,879				8,230,513
Deal related expenses		712,049				831,007				2,779,151				3,684,553
Capital raise related expenses		256,321				797,358				1,512,565				1,337,708
Severance		5,054				702,874				166,557				989,864
Retention program expenses		1,188				–				90,250				–
Employee relocation expenses		2,428				(6,333)				40,819				27,491
Other non-recurring items		939,718				547,523				3,552,836				547,523
Adjusted EBITDA (non-GAAP measure)		$7,502,242				$(3,381,644)				$32,166,088				$(7,608,695)

Schwazze Announces Fourth Quarter & Full Year 2021 Results

Research, News, and Market Data on Schwazze

 

 

DENVER, CO – March 31, 2022 – Schwazze, (OTCQX:SHWZ; NEO:SHWZ) (“Schwazze” or the “Company”), today announced financial results for the fourth quarter (“Q4-2021”) and for the year ended (“Y-E”) December 31, 2021 (“Y-E 2021”). 

 Y-E 2021 Financial Summary:

• Revenues of $108.4 million grew 352% compared to $24.0 million Y-E 2020
• Gross Margin of $49.4 million was 629% better than YE 2020 and 1,730 bps over Y-E 2020
• Net Income Attributed to Common Shareholders was $7.2 million or $0.17 Basic Earnings per share compared to a Net Loss of ($19.4) million in 2020 or ($0.47) Basic Loss per share
• Adjusted EBITDA of $32.2 million was 29.7% of revenue, compared to a loss of ($7.6) million Y-E 2020
• Cash Flow from operations for Y-E 2021 was $57.3 million⁽¹⁾ compared to ($9.8) million Y-E 2020
• Retail Sales were $73.7 million and when compared to last year Retail Sales were up 1,811%
• Two year stacked IDs for same store sales⁽²⁾ were 47.3% and one year IDs were 13.3%
  • Average basket size⁽²⁾ for 2021 was $59.70 up 9.5% compared to Y-E 2020
  • Recorded customer visits⁽²⁾ for 2021 totaled 1,375,589 up 3.8%, compared to Y-E 2020

Q4 2021 Financial Summary:

• Revenues of $26.5 million grew 234% compared to $7.9 million in Q4 2020
• Gross Margin of $12.1 million was 1,856% better than Q4 2020 and 3,798 bps over Q4 2020
• Net Income Attributed to Common Shareholders was $5.5 million compared to a Net Loss of ($8.5) million for the same period last year
• Adjusted EBITDA of $7.5 million for the quarter was 28.3% of revenue, compared to a loss of ($3.4) million for the same period last year
• Cash Flow from operations for the quarter was $52.5 million⁽¹⁾ compared to ($3.5) million for the same period last year
• Retail sales for the quarter were $19.6 million and were up 887% when compared to the same period last year
• Two year stacked IDs for Q4 2021 compared to Q4 2019 for same store sales⁽²⁾ were 40.4% and one year IDs⁽²⁾ were 4.9% comparing Q4 2021 to Q4 2020
  • Average basket size⁽²⁾ for Q4 2021 was $59.70 up 12.1% compared to Q4 2020
  • Recorded customer visits⁽²⁾ for Q4 2021 totaled 329,357 down 7.2%, compared to Q4 2020

Accomplishments for Y-E 2021 and Q1 2022

Since April 2020, Schwazze has acquired or announced the planned acquisition of 33 cannabis dispensaries as well as seven cultivation facilities and two manufacturing assets in Colorado and New Mexico. 

Q1 2022

• Listed Common Shares of Schwazze onto the NEO Exchange
• Signed Definitive Agreement to Acquire Assets of Urban Health & Wellness
• Closed Acquisition of Brow 2 LLC Assets
• Closed Acquisition of Emerald Fields
• Added President of New Mexico Division
• Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
• Added to Key Senior Leadership Team
• Closed Acquisition of Drift Assets

2021

• Closed Acquisition of Smoking Gun Assets
• Announced Convertible Debt Raise
• Announced Home Delivery Services
• Closed Acquisition of Southern Colorado Growers Assets
• Announced R&D Subsidiary, Schwazze BioSciences, LLC
• Completed Acquisition of Final Seven Star Buds

“2021 was a transformational year for Schwazze as we became an MSO with a super-regional focus and a clear strategy to “go deep” in the states we are now operating in.  Our private capital raise of $95 million provided momentum for our M&A and organic growth strategy.  The Company’s stock was listed on the NEO Exchange, earlier this month, providing an additional platform for liquidity and awareness of our stock for retail and institutional investors,” stated Justin Dye, CEO of Schwazze. “To date, Schwazze has acquired or announced the acquisition of 33 dispensaries, of which 14 were closed in the first quarter of 2022.  Revenue for the year was $108.4 million, up 352%, and our retail numbers were $73.7 million, up 1,811%.  Our wholesale business continued to win customers and delivered 85% revenue growth.  We continued our upward trend with an increase in average basket size of 9.5% and customer visits by 3.8% year over year.  I am proud of our entire team, as Schwazze, once again outpaced the state of Colorado by 11.3%.”

Y-E 2021 Revenue

Total revenue was $108.4 million for the year ended March 31, 2021, compared to $24.0 million during the same period in 2020 and represents an increase of approximately 352%.  Retail sales were $73.7 million for 2021 from $3.9 million dollars the previous year representing a 1,811% increase driven primarily by acquisitions of dispensaries in Colorado.  Wholesale operations revenue increased to $34.4 million from $18.6 million compared to the previous year representing an 85% increase, primarily driven by acquisition of cultivation facilities and increase in sales of distillate products to the market. Other sales were $0.3 million from $1.5 million the previous year, primarily driven by the pivoting away consulting sales.  

Total cost of goods and services for the year totaled $59.1 million compared to $17.2 million during the same period in 2020, representing an increase of 243%, due to increased sales of products and growth through acquisition.

Gross profit increased to $49.4 million for the year compared to $6.8 million during the same period in 2020. Gross profit margin rose as a percentage of revenue from 28.2% to 45.5%, continued to be driven by the strength of the Star Buds acquisition, our consolidated purchasing approach, and the implementation of our retail playbook.

The Average basket size for 2021 was $59.70 up 9.5%, compared to 2020⁽²⁾.  Recorded customer visits totaled 1,375,589 up 3.8%, compared to 2020⁽²⁾. 

Total operating expenses were $38.9 million for the year compared to $29.7 million during the same period in 2020. The higher expenses are attributed to increased selling, general and administrative expenses, salaries, benefits, and related employment costs.

Net income attributed to common shareholders for the year was $7.2 million or $0.17 basic earnings per share, compared to a net loss of ($19.4) million or ($0.47) basic earnings per share for the same period last year.

Adjusted EBITDA for the year was $32.2 million representing 29.7% of revenue., compared to a loss of ($7.6) million for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details. 

For the year ended 2021, the Company generated a positive operating cash flow of $57.3 million⁽¹⁾ compared to a loss of ($9.8) million for the same period with $106.4 million in cash and cash equivalents for the year ended 2021.  

Nancy Huber, CFO for Schwazze commented, “we’ve delivered an excellent year with the continued generation of operating cash flows from our acquired businesses.  With funds from operations as well as our recent raise, we will continue to deploy capital in new acquisitions and improve our stores, manufacturing, and cultivation operations.  We expect to deploy approximately $15 million for capital improvements in our businesses this year.”

2022 Guidance

The Company is providing guidance for a fourth-quarter 2022 (“Q4 2022”) annualized run rate, which excludes transactions that are announced but not closed.  Q4 2022 revenue annualized run rate is projected to be approximately $220 Million – $260 Million, and the projected Q4 2022 adjusted EBITDA annualized run rate is projected to be from $70 million to $82 million.  

NOTES:

• $34.9 million of this year’s operating cash flow was derived from the derivative liability associated with the convertible debt issued in December.
• Schwazze did not own all the assets and entities in part of 2021, 2020 and 2019 and is using unaudited numbers for this comparison.

Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition and capital raise related costs, and other one-time expenses, such as severance, retention, and employee relocation. The Company uses adjusted EBITDA as it believes it better explains the results of its core business. The Company has not reconciled guidance for adjusted EBITDA to the corresponding GAAP financial measure because it cannot provide guidance for the various reconciling items. The Company is unable to provide guidance for these reconciling items because it cannot determine their probable significance, as certain items are outside of its control and cannot be reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.

Webcast – March 31, 2022 – 4:30 ET

Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 888-664-6383 or by listening to the webcast from the Company’s website at https://ir.schwazze.com. The webcast will be available on the Company’s website and on replay until April 7, 2022 and accessed by dialing 888-390-0541 / 040354#.

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call through the weblink: https://produceredition.webcasts.com/starthere.jsp?ei=1531076&tp_key=128c98ab58  This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings

About Schwazze

Schwazze (OTCQX: 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. 

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. 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) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. 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.

Investors Joanne Jobin Investor Relations Joanne.jobin@schwazze.com 647 964 0292

Daniel Pabon General Counsel dan@schwazze.com 303-371-0387 x1031

Media Julie Suntrup, Schwazze Vice President | Marketing & Merchandising julie.suntrup@schwazze.com 303 371 0387

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

For the Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars 

		December 31				December 31,
		2021				2020
ASSETS			(Audited)				(Audited)
Current assets
Cash and cash equivalents		$	106,400,216			$	1,231,235
Accounts receivable, net of allowance for doubtful accounts			3,866,828				1,270,380
Accounts receivable – related party			–				80,494
Inventory			11,121,997				2,619,145
Note receivable – current, net			–				–
Note receivable – related party			–				181,911
Prepaid expenses and other current assets			2,523,214				614,200
Total current assets			123,912,255				5,997,365
Non-current assets
Fixed assets, net accumulated depreciation of $1,988,973 and $872,579, respectively			10,253,226				2,584,798
Goodwill			43,316,267				53,046,729
Intangible assets, net accumulated amortization of $7,652,750 and $200,456, respectively			97,582,330				3,082,044
Marketable securities, net of unrealized gain (loss) of $216,771 and $(129,992), respectively			493,553				276,782
Note receivable – noncurrent, net			143,333				–
Accounts receivable – litigation			303,086				3,063,968
Other noncurrent assets			514,962				51,879
Operating lease right of use assets			8,511,780				2,579,036
Total non-current assets			161,118,537				64,685,236
Total assets		$	285,030,792			$	70,682,601
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable		$	2,548,885			$	3,508,478
Accounts payable – related party			36,820				48,982
Accrued expenses			5,592,222				2,705,445
Derivative liabilities			34,923,013				1,047,481
Deferred revenue			–				50,000
Notes payable – related party			134,498				5,000,000
Income taxes payable			2,027,741				–
Total current liabilities			45,263,179				12,360,386
Long term debt			97,482,468				13,901,759
Lease liabilities			8,715,480				2,645,597
Total long-term liabilities			106,197,948				16,547,356
Total liabilities			151,461,127				28,907,742
Stockholders’ equity
Common stock, $0.001 par value. 250,000,000 shares authorized; 45,455,490 shares issued and 44,717,046 shares outstanding at December 31, 2021 and 42,601,773 shares issued and 42,169,041 shares outstanding as of December 31, 2020, respectively			45,485				42,602
Preferred stock, $0.001 par value. 10,000,000 shares authorized; 86,994 shares issued and outstanding at December 31, 2021 and 10,000,000 shares authorized; 19,716 shares issued and outstanding at December 31, 2020			87				20
Additional paid-in capital			162,815,097				85,357,835
Accumulated deficit			(27,773,968	)			(42,293,098	)
Common stock held in treasury, at cost, 517,044 shares held as of December 31, 2021 and 432,732 shares held as of December 31, 2020.			(1,517,036	)			(1,332,500	)
Total stockholders’ equity			133,569,665				41,774,859
Total liabilities and stockholders’ equity		$	285,030,792			$	70,682,601

 

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
		(Un-audited)				(Un-audited)				(Audited)				(Audited)
Operating revenues
Retail	$	19,639,774			$	1,990,334			$	73,723,654			$	3,858,613
Wholesale		6,816,482				5,738,755				34,471,447				18,647,780
Other		59,722				213,926				225,138				1,494,459
Total revenue		26,515,978				7,943,015				108,420,239				24,000,852
Cost of goods and services
Cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Total cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Gross profit		12,142,198				620,660				49,353,694				6,774,366
Operating expenses
Selling, general and administrative expenses		3,035,837				1,469,512				16,616,306				4,523,603
Professional services		880,238				3,155,114				5,346,934				8,545,300
Salaries		3,437,676				2,404,407				11,943,409				8,377,889
Stock based compensation		1,172,291				2,414,705				5,037,879				8,230,513
Total operating expenses		8,526,042				9,443,738				38,944,528				29,677,305
Income (loss) from operations		3,616,156				(8,823,078	)			10,409,166				(22,902,939	)
Other income (expense)
Interest income (expense), net		(2,487,533	)			(88,186	)			(7,014,279	)			(41,460	)
Gain on forfeiture of contingent consideration		–				–				–				1,462,636
Unrealized gain (loss) on derivative liabilities		14,093,391				(264,586	)			15,061,142				1,263,264
Other income (expense)		–				–				–				32,621
Gain (loss) on sale of assets		–				–				242,494				–
Unrealized gain (loss) on investments		6,086				(250,792	)			216,771				(129,992	)
Total other income (expense)		11,611,944				(603,564	)			8,506,128				2,587,069
Provision for income taxes (benefit)		2,398,259				(899,109	)			4,396,164				(899,109	)
Net income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)
Less: Accumulated preferred stock dividends for the period		(7,346,153	)			–				(7,346,153)				–
Net income (loss) attributable to common stockholders	$	5,483,688			$	(8,527,533	)		$	7,172,977			$	(19,416,761	)
Earnings (loss) per share attributable to common shareholders
Basic earnings (loss) per share	$	0.13			$	(0.21)			$	0.17			$	(0.47	)
Diluted earnings (loss) per share									$	(0.06	)		$	(0.47	)
Weighted average number of shares outstanding – basic		43,339,092				41,217,026				43,339,092				41,217,026
Weighted average number of shares outstanding – diluted										101,368,958				41,217,026
Comprehensive income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

STATEMENT OF CASH FLOWS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended					Year Ended				Year Ended
	December 31,				December 31,					December 31,				December 31,
	2021				2020					2021				2020
Cash flows from operating activities
Net income (loss) for the period	$	12,829,841			$	(8,527,533	)			$	14,519,130			$	(19,416,761	)
Adjustments to reconcile net income to cash used in operating activities
Depreciation and amortization		797,037				154,300					8,576,865				476,592
Deferred taxes		–				268,423					–				268,423
(Gain) loss on change in derivative liabilities		34,843,283				264,585					33,875,532				(2,725,901	)
(Gain) loss on investment, net		(6,086	)			250,792					(216,771	)			129,992
(Gain) loss on sale of assets		49,985				–					(242,494	)			–
Stock based compensation		1,172,291				2,414,705					5,037,879				8,230,513
Changes in operating assets and liabilities
Accounts receivable		2,424,575				(417,893	)				244,929				874,616
Inventory		(1,668,940	)			510,207					(4,703,186	)			781,512
Prepaid expenses and other current assets		55,821				(359,598	)				(1,909,014	)			(84,784	)
Other assets		(60,900	)			76,121					(457,083	)			(51,878	)
Operating leases right of use assets and liabilities		23,010				32,673					137,139				59,701
Accrued interest on notes receivable		–				–					–				–
Accounts payable and other liabilities		1,062,106				1,787,521					493,719				1,610,226
Deferred revenue		–				50,000					(50,000	)			50,000
Income taxes payable		998,259				–					2,027,741				(1,940	)
Net cash provided by (used in) operating activities		52,520,282				(3,495,697	)				57,334,386				(9,799,689	)
Cash flows from investing activities:
Collection (issuance) of notes receivable		–				349,210					181,911				827,495
Cash consideration for acquisition of business		(3,750,929	)			(30,668,962	)				(75,678,000	)			(33,278,462	)
Purchase of fixed assets – net		(1,768,427	)			208,512					(5,638,085	)			(768,173	)
Purchase of intangible assets		–				–					(29,580	)			–
Net cash provided by (used in) investing activities		(5,519,356	)			(30,111,240	)				(81,163,754	)			(33,219,140	)
Cash flows from financing activities:
Proceeds from issuance of debt, net		38,236,131				13,901,759					83,580,709				13,901,759
Repayment of notes payable		–				5,000,000					(4,865,502	)			5,000,000
Proceeds from issuance of common stock, net of issuance costs		345				12,583,312					50,283,142				12,625,312
Proceeds from exercise of common stock purchase warrants, net of
issuance costs		–				374,810									374,810
Net cash provided by financing activities		38,236,476				31,859,881					128,998,349				31,901,881
Net increase (decrease) in cash and cash equivalents		85,237,402				(1,747,056	)				105,168,981				(11,116,948	)
Cash and cash equivalents at beginning of period		21,162,814				2,978,291					1,231,235				12,348,183
Cash and cash equivalents at end of period	$	106,400,216			$	1,231,235				$	106,400,216				1,231,235

See accompanying notes to the financial statements

 

MEDICINE MAN TECHNOLOGIES, INC.

Adjusted EBITDA Reconciliation

Non-GAAP measurement

 (UNAUDITED)

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
Net income (loss)		$12,829,841				$(8,527,533)				$14,519,130				$(19,416,761)
Interest income (expense), net		2,487,533				88,186				7,014,279				41,460
Provision for income taxes (benefit)		2,398,259				(899,109)				4,396,164				(899,109)
Other (income) expense		(14,099,477)				515,378				(15,520,407)				(2,628,529)
Depreciation and amortization		797,037				154,300				8,576,865				476,592
Earnings before interest, taxes, depreciation and amortization (EBITDA) (non-GAAP measure)		$4,413,193				$(8,668,778)				$18,986,031				$(22,426,347)
Non-cash stock compensation		1,172,291				2,414,705				5,037,879				8,230,513
Deal related expenses		712,049				831,007				2,779,151				3,684,553
Capital raise related expenses		256,321				797,358				1,512,565				1,337,708
Severance		5,054				702,874				166,557				989,864
Retention program expenses		1,188				–				90,250				–
Employee relocation expenses		2,428				(6,333)				40,819				27,491
Other non-recurring items		939,718				547,523				3,552,836				547,523
Adjusted EBITDA (non-GAAP measure)		$7,502,242				$(3,381,644)				$32,166,088				$(7,608,695)