The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) (“Greenrose”
or the “Company”), a multi-state grower and producer of cannabis
brands and products, is reporting financial and operating results
for the first quarter ended March 31, 2022.
First Quarter 2022 Financial Summary
(Non-GAAP)
|
|
For the three months ended |
|
|
|
March 31, |
|
|
|
Successor |
|
|
Predecessor |
|
(in thousands) |
|
2022 |
|
|
2021 |
|
Net Income (Loss) |
|
$ |
(14,568 |
) |
|
$ |
2,792 |
|
Provision for income taxes |
|
|
481 |
|
|
|
251 |
|
Interest expense, net |
|
|
6,619 |
|
|
|
33 |
|
Depreciation & amortization |
|
|
4,526 |
|
|
|
202 |
|
EBITDA
(non-GAAP) |
|
|
(2,942 |
) |
|
|
3,278 |
|
Adjusting items: |
|
|
|
|
|
|
|
|
Transaction related fees(a) |
|
|
588 |
|
|
|
294 |
|
Change in Fair Value of Financial Instruments(b) |
|
|
(470 |
) |
|
|
- |
|
Fair Value Step-up of Inventory(c) |
|
|
2,134 |
|
|
|
- |
|
Infrequent events(d) |
|
|
811 |
|
|
|
87 |
|
Management fees(e) |
|
|
- |
|
|
|
400 |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
121 |
|
|
$ |
4,059 |
|
(a) |
|
For the three months ended March 31, 2022, transaction fees relate
to the consulting legal and accounting fees related to the
acquisitions of Theraplant and True Harvest and their corresponding
contractual filing requirements of an S-1 to register shares. For
the three months ended March 31, 2021, transaction fees relate to
consulting, legal, and accounting fees in preparation for the
Theraplant Business Combination. |
(b) |
|
Change in Fair Value of Financial Instruments represent the
(gain)/loss recognized on the Consolidated Statement of Operations.
For the three months ended March 31, 2022, the Company recognized a
gain of $470 thousand on its financial instruments which resulted
from fluctuations in the Company’s stock price. |
(c) |
|
Represents the impact to the cost of goods sold due to the fair
value step up of inventory from purchase accounting. |
(d) |
|
For the three months ended March 31, 2022, infrequent events
relates to $811 thousand loss on note settlement. For the three
months ended March 31, 2021, the $87 thousand is consisted of $28
thousand related to costs related to a fire in a grow room causing
repair expenses that had not yet been recovered by insurance, as
well as $58 thousand related to lobbyist fees related to
Connecticut cannabis regulation proposals. |
(e) |
|
Represents management fees
associated with management consulting services that were not
required to be paid after the closing of the Theraplant Business
Combination. |
|
Successor |
|
|
Predecessor |
(in thousands) |
March 31, 2022 |
|
|
March 31, 2021 |
Revenues |
$ |
8,189 |
|
|
|
$ |
7,150 |
|
Cost of Goods Sold* |
|
6,353 |
|
|
|
|
2,698 |
|
Gross Profit* |
|
1,836 |
|
|
|
|
4,452 |
|
Gross Margin* |
|
22.4 |
% |
|
|
|
62.3 |
% |
Adjusted EBITDA |
|
121 |
|
|
|
|
4,059 |
|
Net income |
$ |
(14,568 |
) |
|
|
$ |
2,792 |
|
Basic Earnings per Share |
|
(0.92 |
) |
|
|
|
** |
|
* Cost of Good Sold includes $2,134 of additional expense, due
to the due to the fair value step up of inventory from purchase
accounting, which negatively impacts gross profit by $2,134 and
gross margin by 26%. **Predecessor earnings per shares attributable
to Angel Founder Units, Series A units, and Series R units, were
$13.50 per share, respectively; however, presentation of
predecessor results not deemed comparable to results of successor
given changes in capitalization and holding company results of
operation.
Management Commentary
“During the first quarter, we began building the foundation of
our multi-state, cultivation-focused cannabis business,” said
Mickey Harley, CEO of Greenrose. “Since acquiring Connecticut-based
Theraplant and Arizona-based True Harvest in the fourth quarter of
2021, we have worked closely with the management and cultivation
teams at each of our operating subsidiaries to streamline
operations and optimize production capacity. Over the past few
months, we have worked to expand the production at each subsidiary
and enhance our positioning for the early-stage recreational market
opportunities in Connecticut and Arizona. While our first quarter
financial performance reflects certain costs and operational
interruptions associated with ramping this additional production
capacity, we believe our work to strengthen our infrastructure will
help position our brands as high-quality flower brands in
Connecticut and Arizona’s emerging recreational markets.
“In Connecticut, we are closely monitoring the state’s
regulatory approach and timeline regarding activating the
recreational market, and we are taking steps that should strengthen
our position for the expected commencement of recreational cannabis
sales statewide during the fourth quarter of 2022. In the first
quarter, we completed our expansion of our cultivation facility at
Theraplant by 30,000 sq. ft., bringing our footprint up to 98,000
sq. ft. and increasing our total available canopy by over 80%.
While slower patient growth and illicit in-market sales impacted
our revenue, we believe Theraplant, with its strong brand and
wholesale presence with all 18 of the state’s existing
dispensaries, is well-positioned to benefit from the upcoming
recreational market. In fact, we have already completed a
population of all the rooms, and we expect our last two rooms to
complete their first harvests in early June to strengthen our
inventory levels. Further, we are actively pursuing opportunities
for social equity partnerships in Connecticut, and if successful,
Theraplant will be in a position to invest in retail licenses and
dispensaries while supporting applicants from state communities
disproportionately affected by the war on drugs. We will continue
to explore the market for opportunities to develop a retail
footprint in the state to achieve vertical integration.
“Since acquiring True Harvest at the end of 2021, we have
focused on optimizing our canopy and seeking opportunities to
establish a retail presence in Arizona. Within our 76,000 sq. ft.
facility, we have activated two out of four planned additional grow
rooms, with the third and fourth room expected to be operational in
the second half of 2022. Though the grow room construction process
caused some delays and interruptions in our production cycle and
inventory levels, we expect operational efficiency and product
levels to rebound during the second quarter as this phase of
expansion is completed. From a retail perspective, we are
evaluating both social equity opportunities and potential
acquisitions to secure dispensary licenses. With our focus on
high-quality cultivation and superior products, we are
well-positioned in Arizona’s early-stage recreational market, where
the supply of high-end flower products remains constrained. We
believe the Shango brand secured by True Harvest under license,
together with our improved cultivation processes, will help True
Harvest deliver top-quality flower at every price point in this
market.”
Paul “Otto” Wimer, President of Greenrose, added: “As we move
further into 2022, we remain focused on growing our existing
platform and seeking additional expansion opportunities. From a
production standpoint, we will continue working to ramp our
additional capacity at Theraplant and complete construction on the
additional grow rooms and improving post-harvest processes at True
Harvest. We also aim to deepen our footprint within the Connecticut
and Arizona markets by working to build a retail presence, enabling
us to achieve vertical integration. While early in the Company’s
lifecycle, we look forward to making additional progress on our
strategy and working to establish Greenrose as a vertically
integrated, cultivation-led multi-state operator.”
First Quarter 2022 Financial Results
For the first quarter ended March 31, 2022, the Company’s
revenue, net of discounts, increased 15% to $8.2 million compared
to $7.2 million in the prior year quarter. The increase reflects
incremental revenue contributions from True Harvest compared to the
prior year period, which only included contributions from
Theraplant. True Harvest’s first quarter revenue performance
reflects the impact of construction-related production
interruptions during the facility’s recent expansion, while
Theraplant’s revenue decreased period over the period, reflecting
demand headwinds in Connecticut’s medical market, as well as
increased competition, particularly from the illicit market.
Cost of goods sold, net, for the first quarter ended March 31,
2022 was $6.4 million compared to $2.7 million in the prior year
quarter. The increase primarily reflects a significant adjustment
from purchase accounting considerations in the fair value step-up
of inventory of $2.1 million and costs associated with ramping the
Company’s recently expanded production capacity at both Theraplant
and True Harvest. The Company also incurred additional start-up
costs related to initial planting and production processes in
Theraplant’s new production facility.
Gross profit for the first quarter ended March 31, 2022 was $1.8
million compared to $4.5 million in the prior year, reflecting a
gross margin of 22.4% compared to 62.3% in the prior year quarter.
The decrease primarily reflects the aforementioned purchase
accounting considerations in the fair value step-up of inventory
and the increased costs associated with ramping the Company’s
production capacity, as well as the softer than expected revenue
performance during the quarter.
General and administrative expenses the first quarter ended
March 31, 2022 were $5.0 million compared to $1.4 million in the
prior year quarter. This increase was primarily due to incremental
cost contributions from True Harvest and additional corporate
expenses of being a public operating company relative to the prior
year period, which only includes expenses from Theraplant.
Net income (loss) for the first quarter ended March 31, 2022 was
$(14.6) million compared to $2.8 million in the prior year. This
was primarily attributable to the revenue impacts of the production
interruptions at True Harvest and the aforementioned demand
headwinds in the Connecticut market, as well as increased interest
expense of $6.6 million, purchase accounting fair value inventory
step-up of $2.1 million, and intangible amortization expense of
$4.0 million.
Adjusted EBITDA for the first quarter ended March 31, 2022 was
$0.1 million compared to $4.1 million in the prior year quarter.
The decrease was primarily driven by the aforementioned lower level
of gross profit generated during the quarter, higher corporate
general and administrative expenses, as well as expenses related to
ramping the Company’s expanded production capacity at Theraplant
and True Harvest.
Cash and cash equivalents combined with restricted cash was $3.5
million at March 31, 2022 compared to $9.1 million at December 31,
2021. The decrease was primarily attributable to
acquisition-related expenses and debt obligations.
Revised 2022 Outlook Due to ongoing demand
headwinds within Connecticut’s medical market and the impacts of
construction-related production interruptions at True Harvest,
Greenrose has revised its 2022 outlook, and the Company is expected
to generate between $100 million and $120 million in full year 2022
revenue, 2022 net income of between approximately $(5) million and
$1 million, and 2022 adjusted EBITDA between the range of $65
million and $75 million, excluding fair value adjustments to
financial instruments and transaction related expenses. These
projections assume an expected fourth quarter 2022 start for
recreational cannabis sales in Connecticut.
Conference Call
Greenrose will conduct a conference call today at 5:30 p.m.
Eastern time to discuss its results for the first quarter ended
March 31, 2022.
Greenrose management will host the conference call, followed by
a question and answer session.
Conference Call Date: May 16, 2022Time: 5:30 p.m. Eastern
timeToll-free dial-in number: 1-855-716-0858International dial-in
number: 1-516-575-8860Conference ID: 8656495
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Group at (949)
574-3860.
The conference call will be broadcast live here and available
for replay via the webcast link on the same day through May 16,
2023.
About The Greenrose Holding Company Inc.The
Greenrose Holding Company Inc. is a multi-state cultivator and
producer of cannabis brands and products. Greenrose is driven by
cultivation. It is understood that being a leader in the cannabis
industry starts with outstanding flower derived from sophisticated
genetics and scalable grow methods. Greenrose aims to be a
vertically integrated company that looks for scale and horizontal
consolidation. For more information, please visit
greenroseholdings.com.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measures that represents
earnings before interest expense, income taxes, depreciations, and
amortization, or EBITDA, and further adjustments to EBITDA to
exclude certain non-cash items and other non-recurring items that
management believes are not indicative of ongoing operations. We
disclose EBITDA and Adjusted EBITDA because these non-GAAP measures
are key measures used by our management to evaluate our business,
measure its operating performance, and make strategic decisions. We
believe EBITDA and Adjusted EBITDA may be useful for investors and
others in understanding and evaluating our operations results in
the same manner as its management. However, EBITDA and Adjusted
EBITDA are not financial measures calculated in accordance with
GAAP and should not be considered as a substitute for net income,
income before income taxes, or any other operating performance
measure calculated in accordance with GAAP. Using these non-GAAP
financial measures to analyze our business would have material
limitations because the calculations are based on the subjective
determination of management regarding the nature and classification
of events and circumstances that investors may find significant. In
addition, although other companies in our industry may report
measures titled EBITDA and Adjusted EBITDA or similar measures,
such non-GAAP financial measures may be calculated differently from
how we calculate non-GAAP financial measures, which reduces their
overall usefulness as comparative measures. Because of these
limitations, you should consider EBITDA and Adjusted EBITDA
alongside other financial performance measures, including net
income and our other financial results presented in accordance with
GAAP.
Forward-Looking StatementsCertain statements
made in this release are "forward looking statements" within the
meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release, the words "estimates," "projected," "expects,"
"anticipates," "forecasts," "plans," "intends," "believes,"
"seeks," "may," "will," "should," "future," "propose" and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
Greenrose's control, that could cause actual results or outcomes to
differ materially from those discussed in the forward-looking
statements. Important factors, among others, that may affect actual
results or outcomes include:
- liquidity of Greenrose's stock;
- Greenrose's ability to manage growth;
Greenrose's ability to identify and integrate other future
acquisitions;
- servicing Greernose debt will require
a significant amount of cash;
- lacking sufficient capital or the
inability to raise additional capital, whether equity or debt;
- rising costs adversely affecting
Greenrose's profitability;
- competition in the legal cannabis
industry;
- adverse changes to the legal
environment for the cannabis industry; and general economic and
market conditions impacting demand for Greenrose's products and
services;
- failure to realize the anticipated
benefits of recently completed and future acquisitions, including
delays in consummating any future acquisitions or difficulty in, or
costs associated with, integrating the businesses of Greenrose,
Theraplant and True Harvest;
- prevailing prices for cannabis
products in the markets in which Greenrose operates;
- new regulations or pending changes
(and the timing of any such changes) in the current regulations in
the states of Connecticut and Arizona where the businesses of
Theraplant and True Harvest operate, respectively;
- the effects of competition on
Greenrose’s business;
- costs related to potential
acquisitions; and
- those factors discussed in Greenrose’s
Form 10-K filed April 15, 2022 under the heading “Risk Factors,”
and other documents of Greenrose filed, or to be filed, with the
SEC.
If the risks materialize or assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Greenrose does not presently know or that
Greenrose currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements.
In addition, forward-looking statements reflect
Greenrose’s expectations, plans or forecasts of future events and
views as of the date hereof. Greenrose anticipates that subsequent
events and developments will cause its assessments to change.
However, while Greenrose may elect to update these forward-looking
statements at some point in the future, Greenrose specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing Greenrose’s assessments
as of any date subsequent to the date hereof. Accordingly, readers
should not unduly rely on any projections or other forward-looking
statements or data contained herein.
Investor Relations Contact:Gateway Group, Inc.
Cody Slach or Jackie Keshner(949) 574-3860GNRS@gatewayir.com
Greenrose Contact:Daniel HarleyExecutive Vice
President, Investor Relations(516)
307-0383ir@greenroseholdings.com
|
The Greenrose Holding Company
Inc.Condensed Consolidated Balance
SheetsMarch 31, 2022 and December 31,
2021(in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,864 |
|
|
$ |
7,240 |
|
Restricted Cash |
|
|
1,678 |
|
|
|
1,817 |
|
Marketable Security |
|
|
1,475 |
|
|
|
1,694 |
|
Accounts Receivable, net |
|
|
1,866 |
|
|
|
1,197 |
|
Inventories |
|
|
11,732 |
|
|
|
12,513 |
|
Prepaid expenses and other current assets |
|
|
1,783 |
|
|
|
3,031 |
|
Total current assets |
|
|
20,398 |
|
|
|
27,492 |
|
Intangible assets, net |
|
|
109,734 |
|
|
|
113,684 |
|
Property and equipment,
net |
|
|
25,053 |
|
|
|
25,209 |
|
Goodwill |
|
|
66,038 |
|
|
|
71,658 |
|
Other assets |
|
|
1,201 |
|
|
|
1,050 |
|
Total assets |
|
$ |
222,424 |
|
|
$ |
239,093 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
18,670 |
|
|
$ |
18,916 |
|
Current Tax Payable |
|
|
519 |
|
|
|
38 |
|
Current Portion of Note Payable |
|
|
107,205 |
|
|
|
106,015 |
|
Convertible Promissory Note - Related Parties |
|
|
- |
|
|
|
2,000 |
|
Promissory Notes - Related Parties |
|
|
- |
|
|
|
641 |
|
Due to Related Parties |
|
|
846 |
|
|
|
846 |
|
Due to Prior Members |
|
|
1,021 |
|
|
|
1,130 |
|
Other Current Liabilities |
|
|
674 |
|
|
|
1,340 |
|
Total current liabilities |
|
|
128,935 |
|
|
|
130,926 |
|
Contingent Consideration |
|
|
15,260 |
|
|
|
20,880 |
|
Private Warrants
Liabilities |
|
|
968 |
|
|
|
436 |
|
Warrant Liabilities |
|
|
16,830 |
|
|
|
16,601 |
|
Derivative Liability |
|
|
- |
|
|
|
1,167 |
|
Total liabilities |
|
|
161,993 |
|
|
|
170,010 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par
value; 150,000,000 shares authorized; 17,585,249 and 16,061,190
shares issued and outstanding at March 31, 2022 December 31, 2021,
respectively. |
|
|
2 |
|
|
|
2 |
|
Preferred stock, $0.0001 par
value; 1,000,000 shares authorized; none issued and
outstanding |
|
|
- |
|
|
|
- |
|
Additional paid-in
capital |
|
|
76,775 |
|
|
|
70,859 |
|
Accumulated deficit |
|
|
(16,346 |
) |
|
|
(1,778 |
) |
Total Stockholders’ Equity |
|
|
60,431 |
|
|
|
69,083 |
|
Total liabilities and Stockholders’ Equity |
|
$ |
222,424 |
|
|
$ |
239,093 |
|
|
|
|
|
|
|
|
|
|
|
The Greenrose Holding Company
Inc.Condensed Consolidated Statements of
Operations (Unaudited)For the three months ended
March 31, 2022 and 2021(in thousands, except share
and per share amounts) |
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
|
|
For theThree MonthsEndedMarch 31, |
|
|
For theThree MonthsEndedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
8,189 |
|
|
$ |
7,150 |
|
Cost of Goods
Sold |
|
|
6,353 |
|
|
|
2,698 |
|
Gross
Profit |
|
|
1,836 |
|
|
|
4,452 |
|
Expenses from
Operations |
|
|
|
|
|
|
|
|
Selling and Marketing |
|
|
26 |
|
|
|
4 |
|
General, and Administrative |
|
|
4,976 |
|
|
|
1,361 |
|
Depreciation and Amortization |
|
|
3,961 |
|
|
|
11 |
|
Total Expenses from Operations |
|
|
8,963 |
|
|
|
1,376 |
|
Income (Loss) From Operation |
|
|
(7,127 |
) |
|
|
3,076 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
(811 |
) |
|
|
- |
|
Interest Expense, net |
|
|
(6,619 |
) |
|
|
(33 |
) |
Change in Fair Value in Financial Instruments |
|
|
470 |
|
|
|
- |
|
Total other income (expense), net |
|
|
(6,960 |
) |
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
Income (Loss) Before Provision for Income
Taxes |
|
|
(14,087 |
) |
|
|
3,043 |
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
|
|
(481 |
) |
|
|
(251 |
) |
Net Income
(Loss) |
|
$ |
(14,568 |
) |
|
$ |
2,792 |
|
|
|
|
|
|
|
|
|
|
Successor earnings per
share |
|
|
|
|
|
|
|
|
Earnings (Loss) per
common share |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
15,897,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor earnings
per share |
|
|
|
|
|
|
|
|
Net Income per share – basic
and diluted – attributable to: |
|
|
|
|
|
|
|
|
Angel Founder Units |
|
|
|
|
|
$ |
13.50 |
|
Series A Units |
|
|
|
|
|
$ |
13.50 |
|
Series R Units |
|
|
|
|
|
$ |
13.50 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares – basic and diluted – attributable to: |
|
|
|
|
|
|
|
|
Angel Founder Units |
|
|
|
|
|
|
110,000 |
|
Series A Units |
|
|
|
|
|
|
42,761 |
|
Series R Units |
|
|
|
|
|
|
54,000 |
|
|
|
|
|
|
|
|
|
|
|
The Greenrose Holding Company
Inc.Condensed Consolidated Statements of Changes
in Stockholders’ Equity/Members’ Equity
(Unaudited)For the three months ended March 31,
2022 and 2021 |
|
|
|
|
|
|
Successor |
|
(in
thousands except share and per share amount) |
|
CommonStock |
|
|
Amount |
|
|
AdditionalPaid
InCapital |
|
|
Accumulated(Deficit) |
|
|
TotalStockholder’sEquity |
|
Balance at December 31, 2021 |
|
|
16,061,190 |
|
|
$ |
2 |
|
|
$ |
70,859 |
|
|
$ |
(1,778 |
) |
|
$ |
69,083 |
|
Issuance of stock options |
|
|
- |
|
|
|
- |
|
|
|
225 |
|
|
|
- |
|
|
|
225 |
|
Settlement of Investor Shares
released from lockup |
|
|
- |
|
|
|
- |
|
|
|
1,390 |
|
|
|
- |
|
|
|
1,390 |
|
Issuance of shares in
settlement of promissory note |
|
|
685,289 |
|
|
|
- |
|
|
|
2,864 |
|
|
|
- |
|
|
|
2,864 |
|
Issuance of shares to board
members |
|
|
73,700 |
|
|
|
- |
|
|
|
387 |
|
|
|
- |
|
|
|
387 |
|
Issuance of shares to
Investor |
|
|
753,165 |
|
|
|
- |
|
|
|
1,000 |
|
|
|
- |
|
|
|
1,000 |
|
Issuance of shares to
vender |
|
|
11,905 |
|
|
|
- |
|
|
|
50 |
|
|
|
- |
|
|
|
50 |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(14,568 |
) |
|
|
(14,568 |
) |
Balance at March 31,
2022 |
|
|
17,585,249 |
|
|
$ |
2 |
|
|
$ |
76,775 |
|
|
$ |
(16,346 |
) |
|
$ |
60,431 |
|
|
|
Predecessor |
|
(in thousands except share and per share amount) |
|
TotalMembers’Equity |
|
Balance, December 31, 2020 |
|
$ |
12,245 |
|
Distributions to Members |
|
|
- |
|
Net Income |
|
|
2,792 |
|
Balance, March 31, 2021 |
|
$ |
15,037 |
|
|
|
|
|
|
|
The Greenrose Holding Company
Inc.Condensed Consolidated Statement of Cash Flows
(Unaudited)For the three months ended March 31,
2022 and 2021(in thousands, except share and per
share amounts) |
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(14,568 |
) |
|
$ |
2,792 |
|
Adjustments to reconcile net
income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,526 |
|
|
|
11 |
|
Change in Fair Value in Financial Instruments |
|
|
340 |
|
|
|
- |
|
Share Based Compensation |
|
|
662 |
|
|
|
- |
|
Amortization of debt discount & issuance fees |
|
|
1,356 |
|
|
|
- |
|
Interest Expense - PIK |
|
|
2,247 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Change in operating assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(669 |
) |
|
|
22 |
|
Prepaid expenses and other assets |
|
|
1,096 |
|
|
|
(173 |
) |
Inventories |
|
|
782 |
|
|
|
(113 |
) |
Accounts payable and accrued liabilities |
|
|
85 |
|
|
|
529 |
|
Deferred Tax Liabilities |
|
|
481 |
|
|
|
1 |
|
Net Cash Provided by
(Used in) Operating Activities |
|
|
(3,662 |
) |
|
|
3,069 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(419 |
) |
|
|
(1,389 |
) |
Net cash used in investing activities |
|
|
(419 |
) |
|
|
(1,389 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from notes payable |
|
|
- |
|
|
|
408 |
|
Principal repayments of notes payable |
|
|
(1,434 |
) |
|
|
(17 |
) |
Distributions to members |
|
|
- |
|
|
|
(170 |
) |
Net Cash Provided by
(Used in) Financing Activities |
|
|
(1,434 |
) |
|
|
221 |
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
|
(5,515 |
) |
|
|
1,901 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
9,057 |
|
|
|
2,263 |
|
Cash, cash equivalents and restricted cash, end of period |
|
|
3,542 |
|
|
|
4,164 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
1,864 |
|
|
|
4,164 |
|
Restricted cash |
|
|
1,678 |
|
|
|
- |
|
Total cash, cash
equivalents and restricted cash, end of period |
|
$ |
3,542 |
|
|
$ |
4,164 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for interest (net of
interest capitalized) |
|
$ |
2,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
|
|
|
|
Investor shares released from
lockup |
|
$ |
1,390 |
|
|
|
|
|
Investor share settled
liabilities |
|
|
1,000 |
|
|
|
|
|
Settlement of Sponsor
Notes |
|
|
2,641 |
|
|
|
|
|
Goodwill measurement period
adjustment |
|
|
5,620 |
|
|
|
|
|
Capital expenditures
payable |
|
|
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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