- 2023 Revenue Increased 6% Year-Over-Year, with a 39% Increase in Full-Year Cannabinoid Revenue -
- Drove Year-over-Year General and Administrative Expense Reductions of 26% in Q4 2023 and 24% for the Full Year -
- Completed Sale of Non-Cannabinoid Herbal Brands Business on
TOCANCIPÁ,
“Throughout 2023, we executed on our strategic initiatives to refine our commercial and production operations, as well as optimize our capital efficiency and cost structure,” said
“Reflecting our continued cost optimization efforts, we drove year-over-year general and administrative expense reductions of 26% for the fourth quarter and 24% for the full year. Our year-end cash balance also improved to
Fourth Quarter 2023 Summary vs.
- Revenue in the fourth quarter of 2023 increased 5% to
$4.6 million compared to$4.4 million for the same period in 2022. The increase was driven by an improvement in cannabinoid segment revenues, which increased 29% to$2.0 million compared to$1.6 million for the same period in 2022. The year-over-year growth in cannabinoid segment revenues was largely due to continued sales strength inBrazil andAustralia . Non-cannabinoid revenues were$2.6 million compared to$2.8 million for the same period in 2022. - All-in cost per gram of dry flower was
$0.55 , compared to$6.76 for the same period in 2022. All-in cost per gram in the year-ago period reflects the Company’s significantly reduced agricultural output, along with ongoing extraction and processing costs, at its Colombian operations. In the fourth quarter of 2023, the Company increased its harvest to 1,693 kilograms of dry flower compared to 89 kilograms in the year-ago quarter, with crops comprising both CBD and hemp inventory for extraction and THC flower for export. - Gross loss, including
$4.2 million in cost of sales (before inventory provision) and a$0.8 million inventory provision, was$(0.3) million , compared to a$0.8 million gross profit for the same period in 2022, which included$2.6 million in cost of sales (before inventory provision) and a$0.9 million inventory provision. Adjusted gross profit (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, was$0.4 million compared to$1.8 million for the same period in 2022. - Gross margin, which included such inventory provisions, was (7.5)% compared to 19.2% for the same period in 2022. Adjusted gross margin (a non-GAAP financial measure defined and reconciled herein), which excluded inventory provisions, was 9.1% compared to 40.0% for the same period in 2022.
- Operating expenses in the fourth quarter of 2023 improved to
$4.6 million compared to$8.4 million for the same period in 2022 driven by cost-cutting measures and$2.7 million of non-recurring restructuring expenses incurred in the same period in 2022. - Net loss was
$5.1 million compared to a net loss of$28.8 million for the same period in 2022. Net loss in the fourth quarter of 2022 included a$21.2 million loss from discontinued operations related to the Company’s wind-down process inPortugal , along with the aforementioned$2.7 million non-recurring restructuring expenses. - Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) was flat year-over-year at
$(4.6) million . - Cash, cash equivalents and restricted cash were
$6.9 million atDecember 31, 2023 , compared to$12.9 million atDecember 31, 2022 . The decrease was primarily due to continued working capital needs and operating losses. The Company’s year-end cash balance reflects the$1.9 million in proceeds received from the sale of its remaining stake in Cansativa inOctober 2023 . For the year endedDecember 31, 2023 , the Company issued and sold 253,898 shares (on a post-Reverse Share Split basis) pursuant to its at-the-market (“ATM”) offering, for aggregate net proceeds of$1.1 million . - No shares were sold pursuant to the ATM offering during the three months ended
December 31, 2023 .
________________________
1 Due to the cessation of the Company’s production operations in
Fajardo continued: “Within our commercial strategy, we have driven both extract and flower sales in
“We have also maintained our steadfast commitment to strengthening our cannabinoid portfolio and broader operational infrastructure. As we announced earlier this year,
“Our strategy remains focused on our core set of international cannabinoid markets, our Colombian production efficiencies, and our efforts to preserve and improve cash liquidity. We will maintain our work on each of these fronts as we navigate a constantly evolving global operating environment.”
Full Year 2023 Summary vs. 2022
- Revenue increased 6% to
$17.4 million compared to$16.4 million in 2022. Cannabinoid revenue increased 39% to$6.6 million compared to$4.7 million , and non-cannabinoid revenue was$10.9 million compared to$11.7 million . - All-in cost per gram of dry flower was
$0.75 compared to$0.36 in 2022. The increase was primarily driven by the Company’s significantly reduced agricultural output inColombia in the prior year through the first quarter of 2023, along with changes in cultivation techniques to improve flower quality and organoleptic properties. Cost per gram during the year also reflects more stringent market and regulatory requirements, along with ongoing extraction and processing costs at the Company’s Colombian operations. - Gross profit was
$6.6 million , which included a$1.4 million inventory provision, compared to$7.2 million in 2022, which included a$2.0 million inventory provision. Adjusted gross profit, which excluded such inventory provisions, was$7.9 million compared to$9.2 million in 2022. - Gross margin, which included such inventory provision of
$1.4 million , was 37.6% compared to 44.0% in 2022, which included such inventory provision of$2.0 million . Adjusted gross margin, which excluded such inventory provisions, was 45.4% compared to 56.3% in 2022. - Operating expenses improved to
$22.2 million compared to$54.1 million in 2022. Operating expenses in the prior year included a$19.0 million intangible asset impairment charge the Company recorded on its cannabis-related licenses inColombia during the third quarter of 2022, along with$6.4 million in restructuring expenses. - Net loss was
$17.9 million compared to a net loss of$66.2 million in 2022. Net loss in 2023 includes a$3.7 million loss on investment related to the fourth quarter sale of the Company’s remaining Cansativa stake. Net loss in the prior year included the aforementioned$19.0 million intangible asset impairment charge and$6.4 million in restructuring expenses, along with a$6.9 million gain on investment related to the sale of Cansativa shares to an unrelated third-party and revaluation of the Company's retained interest of the shares held as ofDecember 31, 2022 . - Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) improved to
$(12.4) million compared to$(16.3) million in 2022.
Sale of Non-Cannabinoid Herbal Brands Business
On
The sale transaction was completed on
The Note and Security Agreement was issued by the Buyer in favor of the Seller and accrues interest at seven and one-half percent (7.50%) per annum. Interest is payable quarterly, in cash, until the
Fajardo concluded: “Through completing this transaction, we aim to focus our operations solely on our cannabinoid business, as well as point our ongoing capital and cost optimization initiatives in this direction. We would like to thank
For more details on the transaction and associated payment terms, please refer to the Company’s related disclosure on Form 8-K, filed on
About
Non-GAAP Financial Measures
In this press release,
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “evolve,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “opportunity,” “outlook,” “pipeline,” “plan,” “predict,” “potential,” “projected,” “seek,” “seem,” “should,” “will,” “would” and similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Important factors that may affect actual results or the achievability of the Company’s expectations include, but are not limited to: (i) our ability to continue as a going concern; (ii) our ability to maintain the listing of our securities on Nasdaq; (iii) our ability to implement our restructuring initiatives; (iv) expectations with respect to future operating and financial performance and growth, including if or when
Clever Leaves Investor Inquiries:
+1-949-574-3860
CLVR@gateway-grp.com
Consolidated Statements of Financial Position | |||||||
(Amounts in thousands of | |||||||
(Audited) | |||||||
Assets | |||||||
Current: | |||||||
Cash and cash equivalents | $ | 6,831 | $ | 12,449 | |||
Restricted cash | 70 | 439 | |||||
Accounts receivable, net | 907 | 2,252 | |||||
Prepaids, deposits and other receivables | 1,649 | 2,708 | |||||
Inventories, net | 4,483 | 8,399 | |||||
Total current assets | 13,940 | 26,247 | |||||
Investment – Cansativa | - | 5,679 | |||||
Property, plant and equipment, net | 12,321 | 13,963 | |||||
Asset held for sale - Land | 1,500 | 1,500 | |||||
Intangible assets, net | 2,653 | 3,354 | |||||
Operating lease right-of-use assets, net | 829 | 1,303 | |||||
Other non-current assets | - | 52 | |||||
Total Assets | $ | 31,243 | $ | 52,098 | |||
Liabilities | |||||||
Current: | |||||||
Accounts payable | 2,063 | 2,299 | |||||
Accrued expenses and other current liabilities | 2,844 | 4,238 | |||||
Loans and borrowings, current portion | 498 | 465 | |||||
Warrant liability | - | 113 | |||||
Operating lease liabilities, current portion | 386 | 1,239 | |||||
Deferred revenue | 20 | 1,072 | |||||
Total current liabilities | $ | 5,811 | $ | 9,426 | |||
Loans and borrowings | 720 | 1,065 | |||||
Operating lease liabilities - Long-term | 483 | 1,087 | |||||
Other long-term liabilities | 12 | 112 | |||||
Total Liabilities | $ | 7,026 | $ | 11,690 | |||
Shareholders’ equity | |||||||
Additional paid-in capital | 223,021 | 221,313 | |||||
Accumulated deficit | (198,804 | ) | (180,905 | ) | |||
Total shareholders' equity | 24,217 | 40,408 | |||||
Total liabilities and shareholders' equity | $ | 31,243 | $ | 52,098 | |||
Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(Amounts in thousands of | ||||||||||||||||
(Unaudited) | (Audited) | |||||||||||||||
For the three months ended | For the twelve months ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue, net | $ | 4,638 | $ | 4,402 | $ | 17,417 | $ | 16,410 | ||||||||
Cost of sales | (4,984 | ) | (3,558 | ) | (10,861 | ) | (9,193 | ) | ||||||||
Gross Profit | (346 | ) | 844 | 6,556 | 7,217 | |||||||||||
Expenses | ||||||||||||||||
General and administrative | 3,666 | 4,965 | 17,993 | 23,830 | ||||||||||||
Sales and marketing | 436 | (178 | ) | 2,036 | 1,897 | |||||||||||
Research and development | 233 | 605 | 1,140 | 1,719 | ||||||||||||
Restructuring expenses | - | 2,688 | - | 6,449 | ||||||||||||
Intangible asset impairment | - | - | - | 19,000 | ||||||||||||
Depreciation and amortization | 231 | 291 | 981 | 1,241 | ||||||||||||
Total expenses | 4,566 | 8,371 | 22,150 | 54,136 | ||||||||||||
Loss from operations | (4,912 | ) | (7,527 | ) | (15,594 | ) | (46,919 | ) | ||||||||
Other Expense (Income), Net | ||||||||||||||||
Interest expense and amortization of debt issuance cost | 23 | (24 | ) | 46 | 2,672 | |||||||||||
Gain on remeasurement of warrant liability | (108 | ) | (83 | ) | (113 | ) | (2,092 | ) | ||||||||
Loss (Gain) on investment | 33 | - | 3,738 | (6,851 | ) | |||||||||||
Loss on debt extinguishment, net | - | - | - | 2,263 | ||||||||||||
Foreign exchange loss | 136 | (181 | ) | 433 | 963 | |||||||||||
Other expense, net | 50 | 109 | 31 | 220 | ||||||||||||
Total other expenses (income), net | 134 | (179 | ) | 4,135 | (2,825 | ) | ||||||||||
Loss before income taxes and equity investment loss | (5,046 | ) | (7,348 | ) | (19,729 | ) | (44,094 | ) | ||||||||
Equity investment share of loss | - | - | - | 64 | ||||||||||||
Income tax provision | 68 | 296 | 68 | 296 | ||||||||||||
Deferred Income Tax recovery | - | - | - | (6,650 | ) | |||||||||||
Loss from continuing operations | (5,114 | ) | (7,644 | ) | (19,797 | ) | (37,804 | ) | ||||||||
Income (Loss) from discontinued operations | 29 | (21,172 | ) | 1,898 | (28,361 | ) | ||||||||||
Net loss | $ | (5,085 | ) | $ | (28,816 | ) | (17,899 | ) | $ | (66,165 | ) | |||||
Net loss attributable to non-controlling interest | - | - | ||||||||||||||
Net loss attributable to | $ | (5,085 | ) | $ | (28,816 | ) | ||||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted from continuing operations | $ | (2.96 | ) | $ | (5.26 | ) | $ | (12.63 | ) | $ | (29.54 | ) | ||||
Basic and diluted from discontinued operations | $ | 0.02 | $ | (14.56 | ) | $ | 1.21 | $ | (22.16 | ) | ||||||
Net loss per share | $ | (2.95 | ) | $ | (19.82 | ) | $ | (11.42 | ) | $ | (51.70 | ) | ||||
Weighted-average common shares outstanding - basic and diluted | 1,726,215 | 1,453,751 | 1,567,601 | 1,279,746 | ||||||||||||
Consolidated Statements of Cash Flows | |||||||
(Amounts in thousands of | |||||||
(Audited) | |||||||
For the Twelve months ended | |||||||
2023 | 2022 | ||||||
Cash Flow from Operating Activities: | |||||||
Loss from continuing operations | $ | (19,797 | ) | $ | (37,804 | ) | |
Gain (Loss) from discontinued operations | 1,898 | (28,361 | ) | ||||
Net loss | $ | (17,899 | ) | $ | (66,165 | ) | |
Adjustments to reconcile to net cash used in operating activities: | |||||||
Depreciation and amortization | 2,374 | 3,672 | |||||
Amortization of debt discount and debt issuance cost | - | 1,949 | |||||
Gain on sale of fixed assets | (2,862 | ) | - | ||||
Inventory provision | 1,359 | 4,736 | |||||
Restructuring and related costs | - | 25,809 | |||||
Gain on remeasurement of warrant liability | (113 | ) | (2,092 | ) | |||
Intangible asset Impairment | - | 19,000 | |||||
Deferred Tax Recovery | - | (6,650 | ) | ||||
Foreign exchange loss | 468 | 1,129 | |||||
Share-based compensation expense | 818 | 2,343 | |||||
Amortization of right of use assets | 474 | - | |||||
Loss on equity method investment, net | - | 64 | |||||
Loss/(gain) on investment | 3,738 | (6,851 | ) | ||||
Loss on debt extinguishment, net | - | 2,263 | |||||
Other non-cash expense, net | - | 727 | |||||
Changes in operating assets and liabilities: | |||||||
Decrease (Increase) in accounts receivable | 1,345 | (278 | ) | ||||
Decrease in prepaid expenses & other receivables | 809 | 190 | |||||
Decrease in other receivable and other non-current assets | 52 | 538 | |||||
(Decrease) in lease liability | (588 | ) | - | ||||
Decrease (Increase) in inventory | 2,556 | (4,453 | ) | ||||
(Decrease) in accounts payable and other current liabilities | (2,886 | ) | (4,749 | ) | |||
(Decrease) in deferred revenue | (1,052 | ) | - | ||||
(Decrease) in accrued and other non-current liabilities | (101 | ) | (248 | ) | |||
Net cash used in operating activities | (11,508 | ) | (29,066 | ) | |||
Cash Flow from Investing Activities: | |||||||
Proceeds from sale of assets | 2,862 | - | |||||
Purchase of property, plant and equipment | (31 | ) | (1,306 | ) | |||
Proceeds from sale of investments | 1,863 | 2,498 | |||||
Net cash provided by investing activities | 4,694 | 1,192 | |||||
Cash Flow From Financing Activities: | |||||||
Repayment of debt | (484 | ) | (23,131 | ) | |||
Other borrowings | - | 73 | |||||
Proceeds from issuance of shares | 1,339 | 27,686 | |||||
Equity issuance costs | (199 | ) | (1,361 | ) | |||
Stock option exercise | - | 22 | |||||
Net cash provided by financing activities | $ | 656 | $ | 3,289 | |||
Effect of exchange rate changes on cash, cash equivalents & restricted cash | 171 | (226 | ) | ||||
Decrease in cash, cash equivalents & restricted cash | $ | (5,987 | ) | $ | (24,811 | ) | |
Cash, cash equivalents & restricted cash, beginning of period | 12,888 | 37,699 | |||||
Cash, cash equivalents & restricted cash, end of period | $ | 6,901 | $ | 12,888 | |||
Adjusted EBITDA Reconciliation (Non-GAAP Measure) | ||||||||||||
(Amounts in thousands of | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Net Loss | (5,085 | ) | (28,816 | ) | (17,899 | ) | (66,165 | ) | ||||
Loss (Income) from discontinued operations | (30 | ) | 21,172 | (1,898 | ) | 28,361 | ||||||
Gain on remeasurement of warrant liability | (108 | ) | (83 | ) | (113 | ) | (2,092 | ) | ||||
Share-based compensation | (136 | ) | (263 | ) | 818 | 2,343 | ||||||
Restructuring expenses | - | 2,688 | - | 6,449 | ||||||||
Depreciation and amortization | 441 | 534 | 2,374 | 2,856 | ||||||||
Interest expense and amortization of debt issuance costs | 23 | (24 | ) | 46 | 2,672 | |||||||
Foreign exchange loss (gain) | 137 | (181 | ) | 433 | 963 | |||||||
Loss/(gain) on investments | 33 | - | 3,738 | (6,851 | ) | |||||||
Intangible Asset Impairment | - | - | - | 19,000 | ||||||||
Deferred Tax recovery | - | - | - | (6,650 | ) | |||||||
Loss on debt extinguishment, net | - | - | - | 2,263 | ||||||||
Equity investment share of loss | - | - | - | 64 | ||||||||
Other expense, net | 50 | 109 | 31 | 220 | ||||||||
Income tax provision | 68 | 296 | 68 | 296 | ||||||||
Adjusted EBITDA (Non-GAAP Measure) | (4,607 | ) | (4,568 | ) | (12,402 | ) | (16,271 | ) | ||||
Adjusted Gross Profit Reconciliation (Non-GAAP Measure) | ||||||||||||||||
(Amounts in thousands of | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 4,638 | $ | 4,402 | $ | 17,417 | $ | 16,410 | ||||||||
Cost of sales, before inventory provision | (4,216 | ) | (2,643 | ) | (9,502 | ) | (7,175 | ) | ||||||||
Inventory provision | (768 | ) | (915 | ) | (1,359 | ) | (2,018 | ) | ||||||||
Gross (loss) profit | $ | (346 | ) | $ | 844 | $ | 6,556 | $ | 7,217 | |||||||
Inventory provision | (768 | ) | (915 | ) | (1,359 | ) | (2,018 | ) | ||||||||
Adjusted Gross Profit (Non-GAAP Measure) | $ | 422 | $ | 1,759 | $ | 7,915 | $ | 9,235 | ||||||||
Gross Profit Margin (%) | -7.5 | % | 19.2 | % | 37.6 | % | 44.0 | % | ||||||||
Adjusted Gross Profit Margin (Non-GAAP Measure) (%) | 9.1 | % | 40.0 | % | 45.4 | % | 56.3 | % |
Source:
2024 GlobeNewswire, Inc., source