Restatement (Tables)

12 Months Ended

Dec. 31, 2021

Restatement

Schedule of effects of restatement on consolidated financial statements

Consolidated Statements of Financial Position – 2020 Restatement

	December 31,				December 31,
	2020			Adjustments	2020 (As Restated)
Assets
Current assets:
Cash and cash equivalents	$	73,542	$	—	$	73,542
Accounts receivable, net		28,830		—		28,830
Inventories, net		197,991		—		197,991
Biological assets		46,210		—		46,210
Assets held for sale		58,504		—		58,504
Prepaid expenses and other current assets		10,140		—		10,140
Current portion of notes receivable		2,645		—		2,645
Total current assets		417,862		—		417,862
Deferred tax asset		5,528		—		5,528
Notes receivable		2,000		—		2,000
Property, plant and equipment, net		242,855		—		242,855
Right-of-use assets, net		267,168		—		267,168
Intangible assets, net		797,401		(89,767)		707,634
Goodwill		470,144		68,681		538,825
Investments		16,264		—		16,264
Prepaid acquisition consideration		132,234		—		132,234
Other assets		35,135		—		35,135
Total assets	$	2,386,591	$	(21,086)	$	2,365,505
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	47,043	$	—	$	47,043
Accrued expenses		57,475		—		57,475
Income tax payable		79,649		—		79,649
Current portion of lease liability		15,710		—		15,710
Current portion of notes payable		6,500		—		6,500
Liabilities held for sale		7,181		—		7,181
Other current liabilities		6,568		—		6,568
Total current liabilities		220,126		—		220,126
Deferred tax liability		226,465		(25,660)		200,805
Notes payable		285,001		—		285,001
Lease liability		270,495		—		270,495
Non-controlling interest redemption liability		2,694		—		2,694
Contingent consideration liability		1,898		—		1,898
Other long term liability		3,698		—		3,698
Total liabilities		1,010,377		(25,660)		984,717
Shareholders’ equity:
Share capital		1,754,412		—		1,754,412
Treasury shares		(5,208)		—		(5,208)
Reserves		(177,744)		—		(177,744)
Accumulated deficit		(194,645)		4,574		(190,071)
Redeemable non-controlling interest contingency		(2,694)		—		(2,694)
Total Curaleaf Holdings, Inc. shareholders' equity		1,374,121		4,574		1,378,695
Non-controlling interest		2,093		—		2,093
Total shareholders’ equity		1,376,214		4,574		1,380,788
Total liabilities and shareholders’ equity	$	2,386,591	$	(21,086)	$	2,365,505

Consolidated Statements of Profits and Losses and Other Comprehensive Loss – 2020 Restatement

	Year ended
	December 31,				December 31,
	2020			Adjustments	2020 (As Restated)
Revenues:
Retail and wholesale revenues	$	586,219	$	—	$	586,219
Management fee income		40,418		—		40,418
Total revenues		626,637		—		626,637
Cost of goods sold		311,148		—		311,148
Gross profit before impact of biological assets		315,489		—		315,489
Realized fair value amounts included in inventory sold		(149,586)		—		(149,586)
Unrealized fair value gain on growth of biological assets		224,610		—		224,610
Gross profit		390,513		—		390,513
Operating expenses:
Selling, general and administrative		227,274		—		227,274
Share-based compensation		30,879		—		30,879
Depreciation and amortization		68,676		(8,753)		59,923
Total operating expenses		326,829		(8,753)		318,076
Income (loss) from operations		63,684		8,753		72,437
Other income (expense):
Interest income		6,484		—		6,484
Interest expense		(47,903)		—		(47,903)
Interest expense related to lease liabilities		(21,099)		—		(21,099)
Gain on investment		37,560		—		37,560
Loss on impairment of goodwill and other intangible assets		(23,659)		—		(23,659)
Other expense		6,976		—		6,976
Total other expense		(41,641)		—		(41,641)
Income (loss) before provision for income taxes		22,043		8,753		30,796
Income tax expense		(83,371)		(4,179)		(87,550)
Net loss		(61,328)		4,574		(56,754)
Less: Net income (loss) attributable to non-controlling interest		407		—		407
Net loss attributable to Curaleaf Holdings, Inc.	$	(61,735)	$	4,574	$	(57,161)
Loss per share attributable to Curaleaf Holdings, Inc. – basic and diluted	$	(0.11)	$	0.01	$	(0.10)
Weighted average common shares outstanding – basic and diluted		557,192,899		—		557,192,899

Consolidated Statements of Cash Flows – 2020 Restatement

	Year ended
	December 31,				December 31,
	2020			Adjustments	2020 (As Restated)
Cash flows from operating activities:
Net loss	$	(61,328)	$	4,574	$	(56,754)
Adjustments to reconcile loss to net cash provided (used) in operating activities:
Depreciation and amortization		88,466		(8,753)		79,713
Share-based compensation		29,361		—		29,361
Non-cash bonus		1,518		—		1,518
Non-cash interest expense		6,590		—		6,590
Unrealized gain on changes in fair value of biological assets		(224,610)		—		(224,610)
Realized fair value amounts included in inventory sold		149,586		—		149,586
Impairment loss		23,659		—		23,659
(Gain)/loss on sale of property, plant and equipment		550		—		550
Deferred taxes		7,541		4,179		11,720
Gain on investment		(37,566)		—		(37,566)
Changes in operating assets and liabilities
Accounts receivable		5,956		—		5,956
Biological assets		55,707		—		55,707
Inventories		(92,384)		—		(92,384)
Prepaid expenses and other current assets		4,748		—		4,748
Other assets		(17,702)		—		(17,702)
Accounts payable		9,958		—		9,958
Income taxes payable		57,753		—		57,753
Accrued expenses		4,552		—		4,552
Net cash provided (used) in operating activities		12,355		—		12,355
Cash flows from investing activities:
Purchases of property and equipment		(126,273)		—		(126,273)
Proceeds from sale of entity		1,004		—		1,004
Payments made on completion on acquisitions		(59,695)		—		(59,695)
Prepayment for acquisition consideration		(7,500)		—		(7,500)
Payment in connection with option to acquire an entity		—		—		—
Amounts advanced for notes receivable		(4,646)		—		(4,646)
Net cash used in investing activities		(197,110)		—		(197,110)
Cash flows from financing activities:
Cash received from financing agreement		186,235		—		186,235
Proceeds from sale leaseback		42,466		—		42,466
Minority buyouts		(2,508)		—		(2,508)
Lease liability payments		(26,762)		—		(26,762)
Cash received in private placement		24,552		—		24,552
Principal payments on notes payable		(2,920)		—		(2,920)
Exercise of stock options		3,013		—		3,013
Net cash provided by financing activities		224,076		—		224,076
Net change in cash		39,321		—		39,321
Cash at beginning of period		42,310		—		42,310
Cash held for sale		(8,089)		—		(8,089)
Cash at end of period	$	73,542	$	—	$	73,542

Specifically, as it relates to purchase price allocation, the effects of the restatement of the allocation of purchase consideration are summarized below:

	December 31,				December 31,
	2020				2020 (As Restated)
Purchase price allocation	Cura			Adjustments	Cura
Assets acquired:
Cash	$	12,755	$	—	$	12,755
Accounts receivable, net		11,027		—		11,027
Prepaid expenses and other current assets		2,232		—		2,232
Inventory		22,074		—		22,074
Biological assets		—		—		—
Property, plant and equipment, net		7,465		—		7,465
Right-of-use assets		9,047		—		9,047
Other assets		832		—		832
Intangible assets :
Licenses		135,060		(134,420)		640
Trade name		28,340		94,300		122,640
Service agreements		59,030		(59,030)		—
Know-how		—		—		—
Non-compete agreements		4,950		630		5,580
Goodwill		113,252		68,681		181,933
Deferred tax liabilities		(58,971)		29,839		(29,132)
Liabilities assumed		(22,652)		—		(22,652)
Consideration transferred	$	324,441	$	—	$	324,441