SCHWAZZE ANNOUNCES FOURTH QUARTER & FULL YEAR 2021 RESULTS

Revenue Increases 352% to $108.4 Million Compared to $24.0 Million for the year-ended 2020
Net Income attributed to Common Shareholders of $7.2 Million Compared to
Net Loss of ($19.4) Million for year-ended 2020
Adjusted EBITDA of 29.7% Compared to (31.7%) for the year-ended 2020
MSO Status Achieved with New Mexico Entry – Continuing Aggressive Acquisition Plan
Completed Transformational $95 Million Raise

 

Guidance
 Q4 2022 Projected Revenue Annualized Run Rate of Approximately $220 Million - $260 Million
Q4 2022 Projected Adjusted EBITDA Annualized Run Rate of Approximately $70 Million - $82 Million
Conference Call & Webcast Scheduled for Today – 4:30 pm ET

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)