• |
12% Revenue increase to $14.8M vs. $13.2M in Q2 2023
|
• |
129% increase in IMC Germany sales vs. Q2 2023 to $3.5M. IMC Germany sales now make up 24% of the entire Company revenue, a growth of +105% vs Q2 2023
|
• |
78% decrease in GM vs. 26% in Q2 2023 to 6% mainly caused by inventory clearance of $0.8M plus an accrual of $1.1M for slow moving stock
|
• |
29% decrease in operating expenses to $3.7M vs. $5.2M in Q2 2023
|
• |
Revenues for the second quarter of 2024 were $14.8 million compared to $13.2 million in Q2 2023, an increase of $1.6 million or 11.7%. The increase is mainly attributed to accelerated growth in
Germany revenue of $2 million net and decreased net Revenue in Israel of $0.4 million, which consists of Oranim deal cancellation effect in decreased Revenue of $2.4 million.
|
• |
Total Dried Flower sold in Q2 2024 was approximately 2,333 kg with an average selling price of $6.09 per gram, compared to approximately 2,128kg in Q2 2023, with an average selling price of $5.04 per
gram, which is an increase of 21%.
|
• |
Cost of revenues for Q2 2024 were $13.9 million compared to $9.5 million in Q2 2023, an increase of $4.4 million or 46.6%, mainly due to an increase in Company revenue related costs of approximately
$2.5 million, clearing of old raw materials of approximately $0.8 million and accrued for slow inventory of approximately $1.1 million.
|
• |
Gross profit for the second quarter of 2024 was $0.8 million, compared to $3.5 million in Q2 2023, a decrease of 75.6%. The downside is attributed mainly to the clearing of old inventory, accrual for
slow moving inventory of approximately $1.9 million and slow-moving stock that was moved out at a lower price. Company fair value adjustment was $0 and $0.3 million for the Q2 2024 and Q2 2023 respectively.
|
• |
G&A Expenses in Q2 2024 were $2.2 million, compared to $2.4 million in Q2 2023, a decrease of $0.2 million or 9.5%. The decrease in the G&A expense is attributable mainly to insurance of
approximately $0.2 million.
|
• |
Selling and Marketing Expenses in Q2 2024 were $1.5 million, compared to $2.6 million in Q2 2023, a decrease of $1.1 million or 44% mainly due to the revocation of Oranim agreement of $0.6 million
and decrease in salaries and professional services of $0.4 million.
|
• |
Total operating expenses in Q2 2024 were $3.7 million compared to $5.2 million in Q2 2023, a decrease of $1.5 million or of 29% mainly due to decrease in salaries of approximately $0.4 million,
insurance of $0.2 million, depreciation expenses of $0.3 million and professional services of $0.2 million.
|
• |
Net Loss in Q2 2024 was $3.5 million, compared to $3.7 million in Q2 2023.
|
• |
Basic and diluted Loss per Share in Q2 2024 was $0.23, compared to a loss of $0.26 per Share in Q2 2023.
|
• |
Non-IFRS Adjusted EBITDA loss in Q2 2024 was $2.3 million, compared to an Adjusted EBITDA loss of $0.5 million in Q2 2023 a loss increase of 357%.
|
• |
Cash and Cash Equivalents as of June 30, 2024, were $0.7 million compared to $1.8 million on December 31, 2023.
|
• |
Total assets as of June 30, 2024, were $40.2 million, compared to $48.8 million on December 31, 2023, a decrease of $8.6 million or 17.6%.
|
• |
Total Liabilities as of June 30, 2024, were $34.7 million, compared to $35.1 million on December 31, 2023, a decrease of $0.4 million or 1.1%.
|
June 30,
2024
|
December 31,
2023
|
|||||||||||
Note
|
(Unaudited)
|
(Audited)
|
||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS:
|
||||||||||||
Cash and cash equivalents
|
$
|
700
|
$
|
1,813
|
||||||||
Trade receivables
|
12,087
|
7,651
|
||||||||||
Advances to suppliers
|
788
|
936
|
||||||||||
Other accounts receivable
|
3,648
|
3,889
|
||||||||||
Inventories
|
3
|
5,719
|
9,976
|
|||||||||
22,942
|
24,265
|
|||||||||||
NON-CURRENT ASSETS:
|
||||||||||||
Property, plant and equipment, net
|
4,052
|
5,058
|
||||||||||
Investments in affiliates
|
2,284
|
2,285
|
||||||||||
Right-of-use assets, net
|
626
|
1,307
|
||||||||||
Intangible assets, net
|
3,678
|
5,803
|
||||||||||
Goodwill
|
6,634
|
10,095
|
||||||||||
17,274
|
24,548
|
|||||||||||
Total assets
|
$
|
40,216
|
$
|
48,813
|
June 30,
2024
|
December 31,
2023
|
|||||||||||
Note
|
(Unaudited)
|
(Audited)
|
||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
CURRENT LIABILITIES:
|
||||||||||||
Trade payables
|
$
|
13,877
|
$
|
9,223
|
||||||||
Bank loans and credit facilities
|
12,746
|
12,119
|
||||||||||
Other accounts payable and accrued expenses
|
4,486
|
6,218
|
||||||||||
Accrued purchase consideration liabilities
|
-
|
2,097
|
||||||||||
PUT Option liability
|
-
|
2,697
|
||||||||||
Convertible debt
|
2,002
|
-
|
||||||||||
Current maturities of operating lease liabilities
|
292
|
454
|
||||||||||
33,403
|
32,808
|
|||||||||||
NON-CURRENT LIABILITIES:
|
||||||||||||
Warrants measured at fair value
|
4
|
57
|
38
|
|||||||||
Operating lease liabilities
|
301
|
815
|
||||||||||
Long-term loans
|
401
|
394
|
||||||||||
Employee benefit liabilities, net
|
47
|
95
|
||||||||||
Deferred tax liability, net
|
526
|
963
|
||||||||||
1,332
|
2,305
|
|||||||||||
Total liabilities
|
34,735
|
35,113
|
||||||||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
|
5
|
|||||||||||
Share capital and premium
|
253,966
|
253,882
|
||||||||||
Translation reserve
|
1,579
|
95
|
||||||||||
Reserve from share-based payment transactions
|
9,673
|
9,637
|
||||||||||
Conversion option for convertible debt
|
327
|
-
|
||||||||||
Accumulated deficit
|
(258,478
|
)
|
(249,145
|
)
|
||||||||
Total equity attributable to equity holders of the Company
|
7,067
|
14,469
|
||||||||||
Non-controlling interests
|
(1,586
|
)
|
(769
|
)
|
||||||||
Total equity
|
5,481
|
13,700
|
||||||||||
Total liabilities and equity
|
$
|
40,216
|
$
|
48,813
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
|
$
|
26,813
|
$
|
25,736
|
$
|
14,750
|
$
|
13,207
|
||||||||
Cost of revenues
|
24,165
|
18,759
|
13,891
|
9,473
|
||||||||||||
Gross profit before fair value adjustments
|
2,648
|
6,977
|
859
|
3,734
|
||||||||||||
Fair value adjustments:
|
||||||||||||||||
Realized fair value adjustments on inventory sold in the period
|
(25
|
)
|
(617
|
)
|
(15
|
)
|
(278
|
)
|
||||||||
Total fair value adjustments
|
(25
|
)
|
(617
|
)
|
(15
|
)
|
(278
|
)
|
||||||||
Gross profit
|
2,623
|
6,360
|
844
|
3,456
|
||||||||||||
General and administrative expenses
|
4,495
|
5,563
|
2,163
|
2,389
|
||||||||||||
Selling and marketing expenses
|
3,773
|
5,427
|
1,481
|
2,622
|
||||||||||||
Restructuring expenses
|
-
|
617
|
-
|
334
|
||||||||||||
Share-based compensation
|
120
|
121
|
88
|
(137
|
)
|
|||||||||||
Loss on deconsolidation
|
2,734
|
-
|
(19
|
)
|
-
|
|||||||||||
Total operating expenses
|
11,122
|
11,728
|
3,713
|
5,208
|
||||||||||||
Operating loss
|
8,499
|
5,368
|
2,869
|
1,752
|
||||||||||||
Finance income (expenses), net
|
(1,927
|
)
|
621
|
(1,426
|
)
|
(2,114
|
)
|
|||||||||
Loss before income taxes
|
(10,426
|
)
|
(4,747
|
)
|
(4,295
|
)
|
(3,866
|
)
|
||||||||
Income tax benefit
|
(950
|
)
|
(175
|
)
|
(839
|
)
|
(160
|
)
|
||||||||
Net loss
|
(9,476
|
)
|
(4,572
|
)
|
(3,456
|
)
|
(3,706
|
)
|
||||||||
Other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Remeasurement gain on defined benefit plan
|
67
|
36
|
-
|
-
|
||||||||||||
Exchange differences on translation to presentation currency
|
1,517
|
(661
|
)
|
187
|
(99
|
)
|
||||||||||
Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods
|
1,584
|
(625
|
)
|
187
|
(99
|
)
|
||||||||||
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Adjustments arising from translating financial statements of foreign operation
|
(26
|
)
|
466
|
9
|
311
|
|||||||||||
Total other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
(26
|
)
|
466
|
9
|
311
|
|||||||||||
Total other comprehensive income (loss)
|
1,558
|
(159
|
)
|
196
|
212
|
|||||||||||
Total comprehensive loss
|
$
|
(7,918
|
)
|
$
|
(4,731
|
)
|
$
|
(3,260
|
)
|
$
|
(3,494
|
)
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||||||
Note
|
(Unaudited)
|
|||||||||||||||||||
Net loss attributable to:
|
||||||||||||||||||||
Equity holders of the Company
|
$
|
(8,652
|
)
|
$
|
(4,059
|
)
|
$
|
(3,029
|
)
|
$
|
(3,459
|
)
|
||||||||
Non-controlling interests
|
(824
|
)
|
(513
|
)
|
(427
|
)
|
(247
|
)
|
||||||||||||
$
|
(9,476
|
)
|
$
|
(4,572
|
)
|
$
|
(3,456
|
)
|
$
|
(3,706
|
)
|
|||||||||
Total comprehensive loss attributable to:
|
||||||||||||||||||||
Equity holders of the Company
|
$
|
(7,101
|
)
|
$
|
(4,209
|
)
|
$
|
(2,840
|
)
|
$
|
(3,250
|
)
|
||||||||
Non-controlling interests
|
(817
|
)
|
(522
|
)
|
(420
|
)
|
(244
|
)
|
||||||||||||
$
|
(7,918
|
)
|
$
|
(4,731
|
)
|
$
|
(3,260
|
)
|
$
|
(3,494
|
)
|
|||||||||
Net income (loss) per share attributable to equity holders of the Company:
|
6
|
|||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
Diluted loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
Earnings (loss) per share attributable to equity holders of the Company:
|
||||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
||||||||
Diluted loss per share (in CAD)
|
$
|
(0.65
|
)
|
$
|
(0.33
|
)
|
$
|
(0.23
|
)
|
$
|
(0.26
|
)
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Conversion option for convertible debt
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
Balance as of January 1, 2024
|
$
|
253,882
|
$
|
9,637
|
$
|
-
|
$
|
95
|
$
|
(249,145
|
)
|
$
|
14,469
|
$
|
(769
|
)
|
$
|
13,700
|
||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
(8,652
|
)
|
(8,652
|
)
|
(824
|
)
|
(9,476
|
)
|
||||||||||||||||||||
Total other comprehensive loss
|
-
|
-
|
-
|
1,484
|
67
|
1,551
|
7
|
1,558
|
||||||||||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
1,484
|
(8,585
|
)
|
(7,101
|
)
|
(817
|
)
|
(7,918
|
)
|
||||||||||||||||||||
Net proceeds of convertible debt allocated to conversion option
|
-
|
-
|
327
|
-
|
-
|
327
|
-
|
327
|
||||||||||||||||||||||||
Other comprehensive income Classification
|
-
|
-
|
-
|
-
|
(748
|
)
|
(748
|
)
|
-
|
(748
|
)
|
|||||||||||||||||||||
Share-based compensation
|
-
|
120
|
-
|
-
|
-
|
120
|
-
|
120
|
||||||||||||||||||||||||
Forfeited options
|
84
|
(84
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Balance as of June 30, 2024
|
$
|
253,966
|
$
|
9,673
|
$
|
327
|
$
|
1,579
|
$
|
(258,478
|
)
|
$
|
7,067
|
$
|
(1,586
|
)
|
$
|
5,481
|
Share
Capital and premium
|
Reserve from share-based payment transactions
|
Translation reserve
|
Accumulated deficit
|
Total
|
Non-controlling interests
|
Total
equity
|
||||||||||||||||||||||
Balance as of January 1, 2023
|
$
|
245,776
|
$
|
15,167
|
$
|
1,283
|
$
|
(239,574
|
)
|
$
|
22,652
|
$
|
1,145
|
$
|
23,797
|
|||||||||||||
Net loss
|
-
|
-
|
-
|
(4,059
|
)
|
(4,059
|
)
|
(513
|
)
|
(4,572
|
)
|
|||||||||||||||||
Total other comprehensive loss
|
-
|
-
|
(186
|
)
|
36
|
(150
|
)
|
(9
|
)
|
(159
|
)
|
|||||||||||||||||
Total comprehensive loss
|
-
|
-
|
(186
|
)
|
(4,023
|
)
|
(4,209
|
)
|
(522
|
)
|
(4,731
|
)
|
||||||||||||||||
Issuance of common shares
|
2,351
|
-
|
-
|
-
|
2,351
|
-
|
2,351
|
|||||||||||||||||||||
Share-based compensation
|
-
|
121
|
-
|
-
|
121
|
-
|
121
|
|||||||||||||||||||||
Forfeited options
|
671
|
(671
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance as of June 30, 2023
|
$
|
248,798
|
$
|
14,617
|
$
|
1,097
|
$
|
(243,597
|
)
|
$
|
20,915
|
$
|
623
|
$
|
21,538
|
Six months ended
June 30,
|
||||||||
2024
|
2023
|
|||||||
Cash provided by operating activities:
|
||||||||
Net income (loss) for the period
|
$
|
(9,476
|
)
|
$
|
(4,572
|
)
|
||
Adjustments for non-cash items:
|
||||||||
Fair value adjustment on sale of inventory
|
25
|
617
|
||||||
Fair value adjustment on Warrants, investments and accounts receivable
|
20
|
(3,304
|
)
|
|||||
Interest recorded in respect of the convertible debt
|
115
|
-
|
||||||
Depreciation of property, plant and equipment
|
226
|
337
|
||||||
Amortization of intangible assets
|
769
|
898
|
||||||
Depreciation of right-of-use assets
|
196
|
352
|
||||||
Finance expenses, net
|
1,792
|
2,683
|
||||||
Deferred tax liability, net
|
(107
|
)
|
(220
|
)
|
||||
Share-based payment
|
120
|
121
|
||||||
Loss from deconsolidation of subsidiary
|
2,764
|
-
|
||||||
Net proceeds of convertible debt allocated to conversion option
|
327
|
-
|
||||||
6,247
|
1,484
|
|||||||
Changes in working capital:
|
||||||||
Increase in trade receivables
|
(5,821
|
)
|
(2,428
|
)
|
||||
Increase in other accounts receivable and advances to suppliers
|
(256
|
)
|
(2,572
|
)
|
||||
Decrease in inventories, net of fair value adjustments
|
3,424
|
1,484
|
||||||
Decrease (increase) in trade payables
|
7,309
|
(5,078
|
)
|
|||||
Changes in employee benefit liabilities, net
|
(47
|
)
|
(106
|
)
|
||||
Increase in other accounts payable and accrued expenses
|
(892
|
)
|
(992
|
)
|
||||
3,717
|
(9,692
|
)
|
||||||
Taxes paid
|
(120
|
)
|
(432
|
)
|
||||
Net cash provided (used) in operating activities
|
368
|
(13,212
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(52
|
)
|
(553
|
)
|
||||
Deconsolidation of subsidiary
|
(346
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(398
|
)
|
$
|
(553
|
)
|
Six months ended
June 30,
|
||||||||
2024
|
2023
|
|||||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of share capital, net of issuance costs
|
$
|
-
|
$
|
1,688
|
||||
Proceeds from issuance of warrants
|
-
|
6,585
|
||||||
Repayment of lease liability
|
(197
|
)
|
(345
|
)
|
||||
Interest paid - lease liability
|
(25
|
)
|
(34
|
)
|
||||
Repayment of bank loan and credit facilities
|
(2,392
|
)
|
(1,060
|
)
|
||||
Cash paid for interest
|
(1,054
|
)
|
(124
|
)
|
||||
Proceeds from discounted checks
|
4,311
|
3,967
|
||||||
Net cash provided by financing activities
|
643
|
10,677
|
||||||
Effect of foreign exchange on cash and cash equivalents
|
(1,726
|
)
|
1,960
|
|||||
Decrease in cash and cash equivalents
|
(1,113
|
)
|
(1,128
|
)
|
||||
Cash and cash equivalents at beginning of the period
|
1,813
|
2,449
|
||||||
Cash and cash equivalents at end of the period
|
$
|
700
|
$
|
1,321
|
||||
Supplemental disclosure of non-cash activities:
|
||||||||
Right-of-use asset recognized with corresponding lease liability
|
$
|
40
|
$
|
49
|
||||
Issuance of shares in payment of debt settlement to a non-independent director of the company
|
$
|
-
|
$
|
1,061
|