Exhibit 99.1
Schwazze Announces Third Quarter 2023 Financial Results
Q3 Revenue of $46.7 Million; Income from Operations of $8.9 Million; Adjusted EBITDA of $14.1 Million or 30% of Revenue
Generated $6.9 Million of Operating Cash Flow
DENVER, CO, November 14, 2023 – Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) ("Schwazze" or the "Company"), today announced financial and operational results for the third quarter ended September 30, 2023.
Third Quarter 2023 Summary
| For the Three Months Ended | ||||||||||||
| $ in Thousands USD | September 30, 2023 | June 30, 2023 | September 30, 2022 | |||||||||
| Total Revenue | $ | 46,747 | $ | 42,375 | $ | 43,191 | ||||||
| Gross Profit | $ | 21,438 | $ | 24,519 | $ | 22,476 | ||||||
| Operating Expenses | $ | 12,514 | $ | 19,562 | $ | 11,361 | ||||||
| Income from Operations | $ | 8,924 | $ | 4,957 | $ | 11,115 | ||||||
| Adjusted EBITDA1 | $ | 14,119 | $ | 13,814 | $ | 15,860 | ||||||
| Operating Cash Flow | $ | 6,946 | $ | 2,683 | $ | 10,298 | ||||||
Management Commentary
“We continued to increase our retail footprint during the quarter to a total of 63 stores in Colorado and New Mexico, while further integrating our recently-acquired assets in both states,” said Nirup Krishnamurthy, CEO of Schwazze. “We also generated a 41% increase in our wholesale business year-over-year as we are gaining momentum in New Mexico and improved penetration in Colorado. When looking at wholesale penetration, Schwazze now sells into 7 of the 10 largest operators in Colorado and New Mexico with its expanding product portfolio.
1 Adjusted EBITDA is a non-GAAP measure as defined by the SEC, and represents earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating costs. The Company uses Adjusted EBITDA as it believes it better explains the results of its core business. See “ADJUSTED EBITDA RECONCILIATION (NON-GAAP)” section herein for an explanation and reconciliations of non-GAAP measure used throughout this release.
“In Colorado, we have increased efforts to expand our reach to medical patients through the Standing Akimbo banner with new presence in Colorado Springs and Fort Collins. We also opened a new Starbuds store in Lakewood in August and are seeing promising early results. Alongside new store openings, we are currently remodeling and/or relocating certain stores to further enhance the customer experience.
“In New Mexico, cannabis operators are navigating increased competition as a result of new licenses. While legal cannabis sales in the state were up 19% year-over-year in Q3, total store count was up 76%, leading to lower revenue on a per store basis. In response to these market dynamics, we are strategically investing in the retail experience and remain committed to attracting and retaining our customers and patients there. Our strategy is to first, further integrate the Everest assets while refining assortment, in-stock position and standard costs from a combined integrated supply chain. Second, invest in our leading retail position by bringing new products to our shelves while sharpening pricing and promotional efforts. Third, support the state as it implements cannabis regulation and enforcement to heighten testing and safety standard. And finally, continue to expand our wholesale business in the state.
“As we look to 2024, our strategy remains unchanged: leverage our operating playbook and further integrate our acquired assets to drive customer acquisition and sales across our expanded footprint. We will continue to evaluate opportunities that can enhance our geographic footprint and brand portfolio.”
Recent Highlights
| · | Launched Colorado’s first “store-within-a-store” concept, combining a Star Buds recreational dispensary with the Standing Akimbo medical banner. |
| · | Announced the grand opening of a medical and recreational dispensary under the R. Greenleaf banner in Hobbs, NM, increasing the Company’s New Mexico retail footprint to 33 stores. |
| · | Third quarter ecommerce transactions in New Mexico and Colorado increased a collective 28% compared to the second quarter of 2023. |
| · | Third quarter customer loyalty members increased 16% compared to the second quarter of 2023 with New Mexico loyalty member penetration growing to 78% of total customers. |
| · | Lowell Farms premium pre-roll brand, licensed by the Company, is now in over 130 doors and the #2 pre-roll in Colorado. |
Third Quarter 2023 Financial Results
Total revenue in the third quarter of 2023 increased 8% to $46.7 million compared to $43.2 million for the same quarter last year. The increase was primarily due to growth from new stores compared to the prior year period and increased wholesale revenue, partially offset by pricing pressure from the proliferation of new licenses in New Mexico.
Gross profit for the third quarter of 2023 was $21.4 million or 45.9% of total revenue, compared to $22.5 million or 52.0% of total revenue for the same quarter last year. The decrease in gross margin was primarily driven by a year-to-date true-up expense reclassification from SG&A into cost of goods sold, as well as increased lower margin medical sales mix in Colorado and lower initial gross margin from the Company’s acquisition of Everest Apothecary’s inventory. This was partially offset by improvements to product mix across the Company’s retail footprint.
Operating expenses for the third quarter of 2023 were $12.5 million compared to $11.4 million for the same quarter last year. The increase was primarily due to four-wall SG&A increases associated with 28 additional stores in Colorado and New Mexico that are still ramping.
Income from operations for the third quarter of 2023 was $8.9 million compared to $11.1 million in the same quarter last year. Net loss was $0.3 million compared to net income of $1.8 million for the third quarter of 2022.
Adjusted EBITDA for the third quarter of 2023 was $14.1 million or 30.2% of revenue, compared to $15.9 million or 36.7% of revenue for the same quarter last year. The decrease in Adjusted EBITDA margin was primarily driven by lower gross margin and the higher four-wall SG&A associated with new stores that are still ramping.
As of September 30, 2023, cash and cash equivalents were $19.6 million compared to $38.9 million on December 31, 2022, while operating working capital decreased by $3.5 million to $0.6 million during this period. Total debt as of September 30, 2023, was $155.1 million compared to $127.8 million on December 31, 2022.
Schwazze CFO Forrest Hoffmaster added, “As we focus on revenue growth, customer acquisition and generating positive cash flow, we are also making steady progress on integrating our recent acquisitions to drive operational efficiencies and cost synergies at scale. In addition, we are in the process of optimizing our inventory through an ERP implementation across our cultivation and manufacturing facilities, which we expect will lead to one-time inventory valuation adjustments as we close out the year. These initiatives will enable us to recognize further improvements across our business as we continue to deepen our presence in the markets we serve.”
Conference Call
The Company will conduct a conference call today, November 14, 2023, at 5:00 p.m. Eastern time to discuss its results for the third quarter ended September 30, 2023.
Schwazze management will host the conference call, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing ir@schwazze.com.
Date: Tuesday, November 14, 2023
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 64450430
Webcast: SHWZ Q3 2023 Earnings Call
The conference call will also be broadcast live and available for replay on the investor relations section of the Company’s website at https://ir.schwazze.com.
Toll-free replay number: (888) 390-0541
International replay number: (416) 764-8677
Replay ID: 450430
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
About Schwazze
Schwazze (OTCQX: SHWZ) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company's leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "may," "will," "could," "would," "should," "expect," "intends," "plans," "strategy," "prospects," "anticipate," "believe," "approximately," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
ir@schwazze.com
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
For the Periods Ended September 30, 2023 and December 31, 2022
Expressed in U.S. Dollars
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash & Cash Equivalents | $ | 19,624,615 | $ | 38,949,253 | ||||
| Accounts Receivable, net of Allowance for Doubtful Accounts | 5,049,869 | 4,471,978 | ||||||
| Inventory | 32,767,841 | 22,554,182 | ||||||
| Notes Receivable - Current, net | - | 11,944 | ||||||
| Marketable Securities, net of Unrealized Loss of $1,816 and Loss of $39,270, respectively | 456,099 | 454,283 | ||||||
| Prepaid Expenses & Other Current Assets | 6,485,896 | 5,293,393 | ||||||
| Total Current Assets | 64,384,320 | 71,735,033 | ||||||
| Non-Current Assets | ||||||||
| Fixed Assets, net Accumulated Depreciation of $8,065,794 and $4,899,977, respectively | 32,139,192 | 27,089,026 | ||||||
| Investments | 2,000,000 | 2,000,000 | ||||||
| Goodwill | 76,578,654 | 94,605,301 | ||||||
| Intangible Assets, net Accumulated Amortization of $28,828,713 and $16,290,862, respectively | 168,822,669 | 107,726,718 | ||||||
| Note Receivable - Non-Current, net | 1,313 | - | ||||||
| Deferred Tax Assets, net | 50,467 | - | ||||||
| Other Non-Current Assets | 1,298,950 | 1,527,256 | ||||||
| Operating Lease Right of Use Assets | 25,315,122 | 18,199,399 | ||||||
| Total Non-Current Assets | 306,206,367 | 251,147,700 | ||||||
| Total Assets | $ | 370,590,687 | $ | 322,882,733 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 11,665,499 | $ | 10,701,281 | ||||
| Accounts Payable - Related Party | 22,073 | 22,380 | ||||||
| Accrued Expenses | 9,430,875 | 7,462,290 | ||||||
| Derivative Liabilities | 2,022,248 | 16,508,253 | ||||||
| Lease Liabilities - Current | 4,721,713 | 3,139,289 | ||||||
| Current Portion of Long Term Debt | 4,250,000 | 2,250,000 | ||||||
| Income Taxes Payable | 18,283,784 | 7,297,815 | ||||||
| Total Current Liabilities | 50,396,192 | 47,381,308 | ||||||
| Non-Current Liabilities | ||||||||
| Long Term Debt, net of Debt Discount & Issuance Costs | 150,878,200 | 125,521,520 | ||||||
| Lease Liabilities - Non-Current | 23,525,633 | 17,314,464 | ||||||
| Deferred Income Taxes, net | - | 502,070 | ||||||
| Total Non-Current Liabilities | 174,403,833 | 143,338,054 | ||||||
| Total Liabilities | $ | 224,800,025 | $ | 190,719,362 | ||||
| Stockholders' Equity | ||||||||
| Preferred Stock, $0.001 Par Value. 10,000,000 Shares Authorized; 86,494 Shares Issued and 86,994 Shares Outstanding as of September 30, 2023 and 86,994 Shares Issued and 86,994 Shares Outstanding as of December 31, 2022. | 87 | 87 | ||||||
| Common Stock, $0.001 Par Value. 250,000,000 Shares Authorized; 72,607,621 Shares Issued and 72,591,605 Shares Outstanding as of September 30, 2023 and 56,352,545 Shares Issued and 55,212,547 Shares Outstanding as of December 31, 2022. | 72,607 | 56,353 | ||||||
| Additional Paid-In Capital | 199,177,342 | 180,381,641 | ||||||
| Accumulated Deficit | (51,426,247 | ) | (46,241,583 | ) | ||||
| Common Stock Held in Treasury, at Cost, 920,150 Shares Held as of September 30, 2023 and 920,150 Shares Held as of December 31, 2022. | (2,033,127 | ) | (2,033,127 | ) | ||||
| Total Stockholders' Equity | 145,790,662 | 132,163,371 | ||||||
| Total Liabilities & Stockholders' Equity | $ | 370,590,687 | $ | 322,882,733 | ||||
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Operating Revenues | ||||||||||||||||
| Retail | $ | 41,951,969 | $ | 39,759,734 | $ | 115,871,037 | $ | 104,386,464 | ||||||||
| Wholesale | 4,701,268 | 3,335,252 | 13,034,676 | 14,661,268 | ||||||||||||
| Other | 93,698 | 96,000 | 217,258 | 184,200 | ||||||||||||
| Total Revenue | 46,746,935 | 43,190,986 | 129,122,971 | 119,231,932 | ||||||||||||
| Total Cost of Goods & Services | 25,308,972 | 20,715,192 | 60,133,091 | 60,661,933 | ||||||||||||
| Gross Profit | 21,437,963 | 22,475,794 | 68,989,880 | 58,569,999 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Selling, General and Administrative Expenses | 9,639,268 | 6,594,311 | 28,693,517 | 20,114,335 | ||||||||||||
| Professional Services | 767,822 | 1,507,149 | 2,443,046 | 5,609,579 | ||||||||||||
| Salaries | 4,545,439 | 3,159,578 | 17,700,403 | 15,697,294 | ||||||||||||
| Stock Based Compensation | (2,438,073 | ) | 99,898 | 622,162 | 1,788,823 | |||||||||||
| Total Operating Expenses | 12,514,456 | 11,360,936 | 49,459,128 | 43,210,031 | ||||||||||||
| Income from Operations | 8,923,507 | 11,114,858 | 19,530,752 | 15,359,968 | ||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest Expense, net | (8,320,397 | ) | (8,500,235 | ) | (23,956,691 | ) | (23,312,088 | ) | ||||||||
| Unrealized Gain (Loss) on Derivative Liabilities | 4,516,237 | 4,816,668 | 14,486,005 | 28,104,960 | ||||||||||||
| Other Loss | - | - | - | 20,400 | ||||||||||||
| Unrealized Gain (Loss) on Investments | - | (28,541 | ) | 1,816 | (42,353 | ) | ||||||||||
| Total Other Income (Expense) | (3,804,160 | ) | (3,712,108 | ) | (9,468,870 | ) | 4,770,919 | |||||||||
| Pre-Tax Net Income (Loss) | 5,119,347 | 7,402,750 | 10,061,882 | 20,130,887 | ||||||||||||
| Provision for Income Taxes | 5,441,809 | 5,593,513 | 15,246,546 | 11,259,369 | ||||||||||||
| Net Income (Loss) | $ | (322,462 | ) | $ | 1,809,237 | $ | (5,184,664 | ) | $ | 8,871,518 | ||||||
| Less: Accumulated Preferred Stock Dividends for the Period | (1,547,369 | ) | (1,784,113 | ) | (5,930,646 | ) | (5,294,132 | ) | ||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (1,869,831 | ) | $ | 25,124 | $ | (11,115,310 | ) | $ | 3,577,386 | ||||||
| Earnings (Loss) per Share Attributable to Common Stockholders | ||||||||||||||||
| Basic Earnings (Loss) per Share | $ | (0.02 | ) | $ | - | $ | (0.14 | ) | $ | 0.07 | ||||||
| Diluted Earnings (Loss) per Share | $ | (0.03 | ) | $ | - | $ | (0.14 | ) | $ | 0.03 | ||||||
| Weighted Average Number of Shares Outstanding - Basic | 87,202,537 | 51,232,943 | 78,635,841 | 50,615,437 | ||||||||||||
| Weighted Average Number of Shares Outstanding - Diluted | 87,202,537 | 137,954,532 | 78,635,841 | 137,337,027 | ||||||||||||
| Comprehensive Income (Loss) | $ | (322,462 | ) | $ | 1,809,237 | $ | (5,184,664 | ) | $ | 8,871,518 | ||||||
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2023 | 2022 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net Income (Loss) for the Period | $ | (5,184,664 | ) | $ | 8,871,518 | |||
| Adjustments to Reconcile Net Income (Loss) to Cash for Operating Activities | ||||||||
| Depreciation & Amortization | 15,703,668 | 8,329,767 | ||||||
| Non-Cash Interest Expense | 3,003,386 | 3,137,021 | ||||||
| Non-Cash Lease Expense | 5,756,492 | 3,910,679 | ||||||
| Deferred Taxes | (552,537 | ) | - | |||||
| Change in Derivative Liabilities | (14,486,005 | ) | (28,104,960 | ) | ||||
| Amortization of Debt Issuance Costs | 1,264,537 | 1,264,538 | ||||||
| Amortization of Debt Discount | 6,269,584 | 5,505,420 | ||||||
| (Gain) Loss on Investments, net | (1,816 | ) | 42,353 | |||||
| Stock Based Compensation | 835,347 | 811,897 | ||||||
| Changes in Operating Assets & Liabilities (net of Acquired Amounts): | ||||||||
| Accounts Receivable | 206,179 | (1,100,055 | ) | |||||
| Inventory | (4,883,659 | ) | 2,898,959 | |||||
| Prepaid Expenses & Other Current Assets | (1,192,503 | ) | (3,377,844 | ) | ||||
| Other Assets | 228,306 | (179,072 | ) | |||||
| Change in Operating Lease Liabilities | (5,078,622 | ) | (11,938,634 | ) | ||||
| Accounts Payable & Other Liabilities | (4,124,458 | ) | 8,802,231 | |||||
| Income Taxes Payable | 10,985,969 | 1,560,630 | ||||||
| Net Cash Provided by (Used in) Operating Activities | 8,749,202 | 434,448 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Collection of Notes Receivable | 10,631 | - | ||||||
| Cash Consideration for Acquisition of Business, net of Cash Acquired | (15,813,028 | ) | (56,875,923 | ) | ||||
| Purchase of Fixed Assets | (6,766,759 | ) | (12,511,389 | ) | ||||
| Purchase of Intangible Assets | (2,700,000 | ) | (2,825 | ) | ||||
| Net Cash Provided by (Used in) Investing Activities | (25,269,156 | ) | (69,390,137 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Payment on Notes Payable | (3,488,302 | ) | - | |||||
| Proceeds from Issuance of Common Stock, net of Issuance Costs | 683,618 | 1,280,660 | ||||||
| Net Cash Provided by (Used in) Financing Activities | (2,804,684 | ) | 1,280,660 | |||||
| Net (Decrease) in Cash & Cash Equivalents | (19,324,638 | ) | (67,675,029 | ) | ||||
| Cash & Cash Equivalents at Beginning of Period | 38,949,253 | 106,400,216 | ||||||
| Cash & Cash Equivalents at End of Period | $ | 19,624,615 | $ | 38,725,187 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash Paid for Interest | $ | 13,271,618 | $ | 13,239,685 | ||||
| Cash Paid for Income Taxes | 5,000,000 | 9,840,000 | ||||||
MEDICINE MAN TECHNOLOGIES, INC.
ADJUSTED EBITDA RECONCILIATION (NON-GAAP)
For the Periods Ended September 30, 2023 and 2022
Expressed in U.S. Dollars
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net Income (Loss) | $ | (322,462 | ) | $ | 1,809,237 | $ | (5,184,664 | ) | $ | 8,871,518 | ||||||
| Interest Expense, net | 8,320,397 | 8,500,235 | 23,956,691 | 23,312,088 | ||||||||||||
| Provision for Income Taxes | 5,441,809 | 5,593,513 | 15,246,546 | 11,259,369 | ||||||||||||
| Other (Income) Expense, net of Interest Expense | (4,516,237 | ) | (4,788,127 | ) | (14,487,821 | ) | (28,083,007 | ) | ||||||||
| Depreciation & Amortization | 5,330,529 | 3,322,150 | 15,808,535 | 8,823,549 | ||||||||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (non-GAAP) | $ | 14,254,036 | $ | 14,437,008 | $ | 35,339,287 | $ | 24,183,517 | ||||||||
| Non-Cash Stock Compensation | (2,438,073 | ) | 99,898 | 622,162 | 1,788,823 | |||||||||||
| Deal Related Expenses | 1,401,795 | 993,828 | 3,331,315 | 4,907,291 | ||||||||||||
| Capital Raise Related Expenses | 1,712 | 185,597 | 36,780 | 791,229 | ||||||||||||
| Inventory Adjustment to Fair Market Value for | ||||||||||||||||
| Purchase Accounting | - | 34,604 | - | 6,541,651 | ||||||||||||
| Severance | 121,715 | 22,434 | 425,832 | 71,536 | ||||||||||||
| Retention Program Expenses | 110,023 | - | 505,655 | - | ||||||||||||
| Employee Relocation Expenses | 12,867 | - | 65,042 | 19,110 | ||||||||||||
| Other Non-Recurring Items | 655,244 | 87,097 | 2,132,272 | 422,532 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 14,119,319 | $ | 15,860,466 | $ | 42,458,345 | $ | 38,725,689 | ||||||||
| Revenue | 46,746,935 | 43,190,986 | 129,122,971 | 119,231,932 | ||||||||||||
| Adjusted EBITDA Percent | 30.2 | % | 36.7 | % | 32.9 | % | 32.5 | % | ||||||||
MEDICINE MAN TECHNOLOGIES, INC.
OPERATING WORKING CAPITAL RECONCILIATION (NON-GAAP)
For the Periods Ended September 30, 2023 and December 31, 2022
Expressed in U.S. Dollars
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Current Assets | $ | 64,384,320 | $ | 71,735,033 | ||||
| Less: Cash & Cash Equivalents | (19,624,615 | ) | (38,949,253 | ) | ||||
| Adjusted Current Assets (non-GAAP) | 44,759,705 | 32,785,780 | ||||||
| Current Liabilities | $ | 50,396,192 | $ | 47,381,308 | ||||
| Less: Derivative Liabilities | (2,022,248 | ) | (16,508,253 | ) | ||||
| Less: Current Portion of Long Term Debt | (4,250,000 | ) | (2,250,000 | ) | ||||
| Adjusted Current Liabilities (non-GAAP) | 44,123,944 | 28,623,055 | ||||||
| Operating Working Capital (non-GAAP) | $ | 635,761 | $ | 4,162,725 | ||||