Page
|
||
2 - 3
|
||
4 - 5
|
||
6
|
||
7 - 8
|
||
9 - 30
|
September 30, 2024
|
December 31, 2023
|
||||||||||
Note
|
(Unaudited)
|
(Audited)
|
|||||||||
ASSETS
|
|||||||||||
CURRENT ASSETS:
|
|||||||||||
Cash and cash equivalents
|
$
|
1,958
|
$
|
1,813
|
|||||||
Trade receivables
|
14,411
|
7,651
|
|||||||||
Advances to suppliers
|
2,843
|
936
|
|||||||||
Other accounts receivable
|
4,121
|
3,889
|
|||||||||
Inventories
|
3
|
4,310
|
9,976
|
||||||||
27,643
|
24,265
|
||||||||||
NON-CURRENT ASSETS:
|
|||||||||||
Property, plant and equipment, net
|
4,112
|
5,058
|
|||||||||
Investments in affiliates
|
2,282
|
2,285
|
|||||||||
Right-of-use assets, net
|
516
|
1,307
|
|||||||||
Intangible assets, net
|
3,453
|
5,803
|
|||||||||
Goodwill
|
6,629
|
10,095
|
|||||||||
16,992
|
24,548
|
||||||||||
Total assets
|
$
|
44,635
|
$
|
48,813
|
September 30, 2024
|
December 31, 2023
|
||||||||||
Note
|
(Unaudited)
|
(Audited)
|
|||||||||
LIABILITIES AND EQUITY
|
|||||||||||
CURRENT LIABILITIES:
|
|||||||||||
Trade payables
|
$
|
16,567
|
$
|
9,223
|
|||||||
Bank loans and credit facilities
|
12,679
|
12,119
|
|||||||||
Other accounts payable and accrued expenses
|
7,660
|
6,218
|
|||||||||
Accrued purchase consideration liabilities
|
-
|
2,097
|
|||||||||
PUT Option liability
|
-
|
2,697
|
|||||||||
Convertible debt
|
2,083
|
-
|
|||||||||
Current maturities of operating lease liabilities
|
259
|
454
|
|||||||||
39,248
|
32,808
|
||||||||||
NON-CURRENT LIABILITIES:
|
|||||||||||
Warrants measured at fair value
|
4
|
13
|
38
|
||||||||
Operating lease liabilities
|
233
|
815
|
|||||||||
Long-term loans
|
405
|
394
|
|||||||||
Employee benefit liabilities, net
|
24
|
95
|
|||||||||
Deferred tax liability, net
|
502
|
963
|
|||||||||
1,177
|
2,305
|
||||||||||
Total liabilities
|
40,425
|
35,113
|
|||||||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
|
5
|
||||||||||
Share capital and premium
|
256,685
|
253,882
|
|||||||||
Translation reserve
|
1,144
|
95
|
|||||||||
Reserve from share-based payment transactions
|
7,198
|
9,637
|
|||||||||
Conversion option for convertible debt
|
327
|
-
|
|||||||||
Accumulated deficit
|
(259,400
|
)
|
(249,145
|
)
|
|||||||
Total equity attributable to equity holders of the Company
|
5,954
|
14,469
|
|||||||||
Non-controlling interests
|
(1,744
|
)
|
(769
|
)
|
|||||||
Total equity
|
4,210
|
13,700
|
|||||||||
Total liabilities and equity
|
$
|
44,635
|
$
|
48,813
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
|
$
|
40,696
|
$
|
38,106
|
$
|
13,883
|
$
|
12,370
|
||||||||
Cost of revenues
|
34,878
|
28,391
|
10,713
|
9,632
|
||||||||||||
Gross profit before fair value adjustments
|
5,818
|
9,715
|
3,170
|
2,738
|
||||||||||||
Fair value adjustments:
|
||||||||||||||||
Realized fair value adjustments on inventory sold in the period
|
(47
|
)
|
(710
|
)
|
(22
|
)
|
(93
|
)
|
||||||||
Total fair value adjustments
|
(47
|
)
|
(710
|
)
|
(22
|
)
|
(93
|
)
|
||||||||
Gross profit
|
5,771
|
9,005
|
3,148
|
2,645
|
||||||||||||
General and administrative expenses
|
6,846
|
7,708
|
2,351
|
2,145
|
||||||||||||
Selling and marketing expenses
|
5,279
|
7,991
|
1,506
|
2,564
|
||||||||||||
Restructuring expenses
|
-
|
617
|
-
|
-
|
||||||||||||
Share-based compensation
|
364
|
316
|
244
|
195
|
||||||||||||
Loss on deconsolidation
|
2,734
|
-
|
-
|
-
|
||||||||||||
Total operating expenses
|
15,223
|
16,632
|
4,101
|
4,904
|
||||||||||||
Operating loss
|
9,452
|
7,627
|
953
|
2,259
|
||||||||||||
Finance income (expense), net
|
(2,082
|
)
|
869
|
(155
|
)
|
248
|
||||||||||
Loss before income taxes
|
11,534
|
6,758
|
1,108
|
2,011
|
||||||||||||
Tax income (expense)
|
976
|
50
|
26
|
(125
|
)
|
|||||||||||
Net loss
|
(10,558
|
)
|
(6,708
|
)
|
(1,082
|
)
|
(2,136
|
)
|
||||||||
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
|
1,566
|
(622
|
)
|
49
|
39
|
|||||||||||
Total other comprehensive income (loss) that will not be reclassified to profit or loss in subsequent periods
|
1,633
|
(586
|
)
|
49
|
39
|
|||||||||||
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Adjustments arising from translating financial statements of foreign operation
|
(508
|
)
|
624
|
(482
|
)
|
158
|
||||||||||
Total other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
|
(508
|
)
|
624
|
(482
|
)
|
158
|
||||||||||
Total other comprehensive income (loss)
|
1,125
|
38
|
(433
|
)
|
197
|
|||||||||||
Total comprehensive loss
|
$
|
(9,433
|
)
|
$
|
(6,670
|
)
|
$
|
(1,515
|
)
|
$
|
(1,939
|
)
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
||||||||||||||||||
2024
|
2023*)
|
|
2024
|
2023*)
|
|
||||||||||||||
Note
|
(Unaudited)
|
||||||||||||||||||
Net income (loss) attributable to:
|
|||||||||||||||||||
Equity holders of the Company
|
$
|
(9,574
|
)
|
$
|
(6,209
|
)
|
$
|
(922
|
)
|
$
|
(2,150
|
)
|
|||||||
Non-controlling interests
|
(984
|
)
|
(499
|
)
|
(160
|
)
|
14
|
||||||||||||
$
|
(10,558
|
)
|
$
|
(6,708
|
)
|
$
|
(1,082
|
)
|
$
|
(2,136
|
)
|
||||||||
Total comprehensive income (loss) attributable to:
|
|||||||||||||||||||
Equity holders of the Company
|
$
|
(8,458
|
)
|
$
|
(6,152
|
)
|
$
|
(1,357
|
)
|
$
|
(1,943
|
)
|
|||||||
Non-controlling interests
|
(975
|
)
|
(518
|
)
|
(158
|
)
|
4
|
||||||||||||
$
|
(9,433
|
)
|
$
|
(6,670
|
)
|
$
|
(1,515
|
)
|
$
|
(1,939
|
)
|
||||||||
Net income (loss) per share attributable to equity holders of the Company:
|
7
|
||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(4.29
|
)
|
$
|
(2.95
|
)
|
$
|
(0.41
|
)
|
$
|
(0.96
|
)
|
|||||||
Diluted loss per share (in CAD)
|
$
|
(4.29
|
)
|
$
|
(2.95
|
)
|
$
|
(0.41
|
)
|
$
|
(0.96
|
)
|
|||||||
Earnings (loss) per share attributable to equity holders of the Company:
|
|||||||||||||||||||
Basic loss per share (in CAD)
|
$
|
(4.29
|
)
|
$
|
(2.95
|
)
|
$
|
(0.41
|
)
|
$
|
(0.96
|
)
|
|||||||
Diluted loss per share (in CAD)
|
$
|
(4.29
|
)
|
$
|
(2.95
|
)
|
$
|
(0.41
|
)
|
$
|
(0.96
|
)
|
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
|
-
|
-
|
-
|
-
|
(9,574
|
)
|
(9,574
|
)
|
(984
|
)
|
(10,558
|
)
|
||||||||||||||||||||
Total other comprehensive income
|
-
|
-
|
-
|
1,049
|
67
|
1,116
|
9
|
1,125
|
||||||||||||||||||||||||
Total comprehensive income (loss)
|
-
|
-
|
-
|
1,049
|
(9,507
|
)
|
(8,458
|
)
|
(975
|
)
|
(9,433
|
)
|
||||||||||||||||||||
Net proceeds of convertible debt allocated to conversion option
|
-
|
-
|
327
|
-
|
-
|
327
|
-
|
327
|
||||||||||||||||||||||||
Other comprehensive loss Classification
|
-
|
-
|
-
|
-
|
(748
|
)
|
(748
|
)
|
-
|
(748
|
)
|
|||||||||||||||||||||
Share-based compensation
|
-
|
364
|
-
|
-
|
-
|
364
|
-
|
364
|
||||||||||||||||||||||||
Forfeited options
|
2,803
|
(2,803
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Balance as of September 30, 2024
|
$
|
256,685
|
$
|
7,198
|
$
|
327
|
$
|
1,144
|
$
|
(259,400
|
)
|
$
|
5,954
|
$
|
(1,744
|
)
|
$
|
4,210
|
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
|
-
|
-
|
-
|
(6,209
|
)
|
(6,209
|
)
|
(499
|
)
|
(6,708
|
)
|
|||||||||||||||||
Total other comprehensive income (loss)
|
-
|
-
|
21
|
36
|
57
|
(19
|
)
|
38
|
||||||||||||||||||||
Total comprehensive income (loss)
|
-
|
-
|
21
|
(6,173
|
)
|
(6,152
|
)
|
(518
|
)
|
(6,670
|
)
|
|||||||||||||||||
Issuance of common shares
|
2,351
|
-
|
-
|
-
|
2,351
|
-
|
2,351
|
|||||||||||||||||||||
Share-based compensation
|
-
|
316
|
-
|
-
|
316
|
-
|
316
|
|||||||||||||||||||||
Forfeited options
|
3,028
|
(3,028
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance as of September 30, 2023
|
$
|
251,155
|
$
|
12,455
|
$
|
1,304
|
$
|
(245,747
|
)
|
$
|
19,167
|
$
|
627
|
$
|
19,794
|
Nine months ended
September 30,
|
||||||||
2024
|
2023
|
|||||||
Cash provided by operating activities:
|
||||||||
Net loss for the period
|
$
|
(10,558
|
)
|
$
|
(6,708
|
)
|
||
Adjustments for non-cash items:
|
||||||||
Fair value adjustment on sale of inventory
|
47
|
710
|
||||||
Fair value adjustment on Warrants, investments and accounts receivable
|
(24
|
)
|
(4,547
|
)
|
||||
Interest recorded in respect of the convertible debt
|
197
|
-
|
||||||
Depreciation of property, plant and equipment
|
332
|
494
|
||||||
Amortization of intangible assets
|
1,036
|
1,329
|
||||||
Depreciation of right-of-use assets
|
274
|
442
|
||||||
Impairment of PPE
|
10
|
-
|
||||||
Finance expenses, net
|
1,911
|
3,678
|
||||||
Deferred tax liability, net
|
(138
|
)
|
(200
|
)
|
||||
Share-based payment
|
364
|
316
|
||||||
Loss from deconsolidation of subsidiary
|
2,764
|
-
|
||||||
Net proceeds of convertible debt allocated to conversion option
|
327
|
-
|
||||||
7,100
|
2,222
|
|||||||
Changes in working capital:
|
||||||||
Increase in trade receivables
|
(8,184
|
)
|
(2,719
|
)
|
||||
Increase in other accounts receivable and advances to suppliers
|
(2,775
|
)
|
(353
|
)
|
||||
Decrease in inventories, net of fair value adjustments
|
4,817
|
4,844
|
||||||
Decrease (increase) in trade payables
|
10,595
|
(4,652
|
)
|
|||||
Changes in employee benefit liabilities, net
|
(71
|
)
|
(204
|
)
|
||||
Increase in other accounts payable and accrued expenses
|
2,420
|
265
|
||||||
6,802
|
(2,819
|
)
|
||||||
Taxes paid
|
(222
|
)
|
(552
|
)
|
||||
Net cash provided (used) in operating activities
|
3,122
|
(7,857
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(126
|
)
|
(553
|
)
|
||||
Deconsolidation of subsidiary
|
(346
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(472
|
)
|
$
|
(553
|
)
|
Nine months ended
September 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
|
(265
|
)
|
(435
|
)
|
||||
Interest paid - lease liability
|
(44
|
)
|
(44
|
)
|
||||
Repayment of bank loan and credit facilities
|
(2,624
|
)
|
(1,109
|
)
|
||||
Cash paid for interest
|
(1,572
|
)
|
(163
|
)
|
||||
Proceeds from discounted checks
|
4,483
|
2,932
|
||||||
Net cash provided (used) by financing activities
|
(22
|
)
|
9,454
|
|||||
Effect of foreign exchange on cash and cash equivalents
|
(2,483
|
)
|
(2,189
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
145
|
(1,145
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
1,813
|
2,449
|
||||||
Cash and cash equivalents at end of the period
|
$
|
1,958
|
$
|
1,304
|
||||
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
|
NOTE 1:- |
GENERAL
|
a. |
Corporate information:
|
NOTE 1:- |
GENERAL (Cont.)
|
NOTE 1:- |
GENERAL (Cont.)
|
NOTE 1:- |
GENERAL (Cont.)
|
NOTE 1:- |
GENERAL (Cont.)
|
NOTE 1:- |
GENERAL (Cont.)
|
NOTE 1:- | GENERAL (Cont.) |
NOTE 1:- |
GENERAL (Cont.)
|
a. |
On April 17, 2024, one of the Company fully owned subsidiaries entered into a loan agreement with a non-financial institute in the amount of approximately $1,095. Such loan bear interest at an annual rate of 15% and mature 12 months from
the date of issuance.
|
b. |
On April 17, 2024, IMC Holdings signed an amendment to extend the loan agreement with a non- financial institute from April 18, 2024, to April 18, 2025, of approximately $660, with an annual interest rate of 17% with no additional fees
associated.
|
NOTE 1:- |
GENERAL (Cont.)
|
c. |
On July 1st, 2024, IMC Holdings entered into a short-term loan agreement with a non-financial institute in the amount of NIS 3,000 thousand (approximately $1,113). with an annual interest rate of 12%, for a period of 5 months.
|
d. |
On August 1st, 2024, the credit line of approximately $1,850 CAD related to a financial institution, was converted into a six-month short-term loan, bearing an annual variable interest rate of P+1.9% (with the Israel Prime interest rate as
of the submission date being 6%).
|
NOTE 1:- |
GENERAL (Cont.)
|
b. |
Approval of consolidated financial statements:
|
c. |
Definitions:
|
The Company, or IMCC
|
-
|
IM Cannabis Corp.
|
The Group
|
-
|
IM Cannabis Corp., its Subsidiaries
|
Subsidiaries
|
-
|
Companies that are controlled by the Company (as defined in IFRS 10) and whose accounts are consolidated with those of the Company
|
CAD or $
|
-
|
Canadian Dollar
|
NIS
|
-
|
New Israeli Shekel
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES
|
a. |
Basis of Presentation and Measurement:
|
1. |
Amendments to IAS 1,"Non-Current liabilities with Covenants and Classification of Liabilities as current or non-current":
|
2. |
Amendment to IFRS 16, "LEASES":
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
3. |
Amendments to IAS 7 and IFRS 7, "Statement of Cash Flows", and IFRS 7, "Financial Instruments: Disclosures":
|
4. |
IFRS 18, "Presentation and Disclosure in Financial Statements":
|
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
b. |
Significant Accounting Judgements and Estimates:
|
NOTE 3:- |
INVENTORIES
|
September 30, 2024
|
||||||||||||
Capitalized costs
|
Fair valuation
adjustment, net
|
Carrying value
|
||||||||||
Work in progress:
|
||||||||||||
Bulk cannabis
|
$
|
733
|
$
|
-
|
$
|
733
|
||||||
Finished goods
|
||||||||||||
Packaged dried cannabis
|
3,421
|
47
|
3,468
|
|||||||||
Other products
|
109
|
-
|
109
|
|||||||||
Balance as of September 30, 2024
|
$
|
4,263
|
$
|
47
|
$
|
4,310
|
December 31, 2023
|
||||||||||||
Capitalized costs
|
Fair valuation
adjustment, net
|
Carrying value
|
||||||||||
Work in progress:
|
||||||||||||
Bulk cannabis
|
$
|
3,735
|
$
|
-
|
$
|
3,735
|
||||||
Finished goods:
|
||||||||||||
Packaged dried cannabis
|
4,667
|
984
|
5,651
|
|||||||||
Other products
|
590
|
-
|
590
|
|||||||||
Balance as of December 31, 2023
|
$
|
8,992
|
$
|
984
|
$
|
9,976
|
During the nine months ended SepteSmber 30, 2024, and 2023, inventory expensed to cost of goods sold of cannabis products was $32,853 and $26,359, respectively, which
included $47 and $710 of non-cash expense, respectively, related to the changes in fair value of inventory sold.
|
Cost of revenues in nine months period ended September 30, 2024 and 2023, also include production overhead not allocated to costs of inventories produced and recognized
as an expense as incurred.
|
NOTE 4:-
|
FINANCIAL INSTRUMENTS
|
A. |
Financial instruments are measured either at fair value or at amortized cost. The table below lists the valuation methods used to determine fair value of each financial instrument.
|
Financial Instruments Measured at Fair Value
|
Fair Value Method
|
|
Liability for Warrants *)
Investment in Xinteza
|
Black & Scholes model (Level 3 category)
Market comparable (Level 3 category)
|
Management believes that the carrying amount of cash and cash equivalents, trade receivables, other accounts receivable, trade payables, bank loans and credit facility, other account payables and accrued expenses and accrued purchase
consideration payable, approximate their fair value due to the short-term maturities of these instruments.
*) Finance (income) expense from revaluation of Warrants measured at fair value, for the nine months ended September 30, 2024 and 2023, amounted to $(25) and $(4,547), respectively.
|
Issue date
|
||||||||||||
May 2023
|
February 2023
|
May 2021
|
||||||||||
Expected volatility
|
48.43
|
%
|
48.43
|
%
|
48.43
|
%
|
||||||
Share price (Canadian Dollar)
|
3.22
|
3.22
|
3.22
|
|||||||||
Expected life (in years)
|
1.603
|
1.356
|
1.603
|
|||||||||
Risk-free interest rate
|
3.82
|
%
|
3.98
|
%
|
3.82
|
%
|
||||||
Expected dividend yield
|
0
|
%
|
0
|
%
|
0
|
%
|
||||||
Per Warrant (Canadian Dollar)
|
$
|
0.025
|
$
|
0.013
|
$
|
0
|
||||||
Total Warrants (Canadian Dollar in thousands)
|
$
|
2
|
$
|
11
|
$
|
0
|
B. |
On May 26, 2024, the Company has closed a non-brokered private placement of Debentures of the Company. The Debentures fair value for the issuance date was measured using 16.55% IRR and was summarized to $1,975 of Convertible Debt and $327
of conversion option for Convertible Debt.
Finance (income) expense in respect of the Convertible Debt for the nine months ended September 30, 2024, and 2023, amounted to $523 and $nil, respectively.
|
NOTE 5:-
|
EQUITY
|
a. |
Composition of share capital:
|
September 30,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Authorized
|
Issued and outstanding
|
Authorized
|
Issued and outstanding
|
|||||
Common Shares without par value
|
Unlimited
|
2,232,359
|
Unlimited
|
2,232,359
|
b. |
Capital issuances:
LIFE Offering
In January and February of 2023, the Company issued an aggregate of 2,828,248 units of the Company (each a “Unit”) at a price of US$1.25 ($1.66) per Unit for aggregate gross proceeds of US$3,535 ($4,702)
thousand in a series of closings pursuant to a non-brokered private placement offering to purchasers resident in Canada (except the Province of Quebec) and/or other qualifying jurisdictions relying on the listed issuer financing exemption
under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). Each Unit consisted of one Common Share and one Common Share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to
purchase one additional Common Share at an exercise price of US$1.50 ($1.99) for a period of 36 months from the date of issue.
|
NOTE 5:-
|
EQUITY (Cont.)
|
In addition, a non-independent director of the Company subscribed for an aggregate of 131,700 Units under the LIFE Offering at an aggregate subscription price of US$165 ($219). The director's subscription price
was satisfied by the settlement of US$165 in debt owed by the Company to the director for certain consulting services previously rendered by the director to the Company. See also note 5a.
|
Concurrent Offering
Concurrent with the LIFE Offering, the Company issued an aggregate of 2,317,171 Units on a non-brokered private placement basis at a price of US$1.25 ($1.66) per Unit for aggregate gross proceeds of US$2,896
($3,852) (the “Concurrent Offering”). The Concurrent Offering was led and participated by insiders of the Company of 1,159,999 Units out of the total Concurrent offering Units. The Units offered under the Concurrent Offering were offered for
sale to purchasers in all provinces and territories of Canada and jurisdictions outside Canada.
|
Pursuant to available prospectus exemptions other than for the LIFE Offering exemption.
|
All Units issued under the Concurrent Offering were subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities laws. See also note 5a.
|
c. |
Changes in issued and outstanding share capital:
|
Number of shares *)
|
||||
Balance as of January 1, 2024
|
2,232,359
|
|||
Issuance of Common Shares
|
-
|
|||
Balance as of September 30, 2024
|
2,232,359
|
The following table lists the movement in the number of share options and the weighted average exercise prices of share options in the 2018 Plan:
|
Nine months ended September 30, 2024 *)
|
||||||||
Number of options
|
Weighted
average
exercise price
|
|||||||
in CAD
|
||||||||
Options outstanding at the beginning of the period
|
54,242
|
$
|
172.29
|
|||||
Options forfeited during the period
|
(12,151
|
)
|
-
|
|||||
Options outstanding at the end of the period
|
42,091
|
$
|
222.03
|
|||||
Options exercisable at the end of the period
|
40,789
|
$
|
183.27
|
*) See also note 5a.
|
NOTE 6:- |
SELECTED STATEMENTS OF PROFIT OR LOSS DATA
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Salaries and related expenses
|
$
|
4,776
|
$
|
6,081
|
$
|
1,526
|
$
|
1,821
|
||||||||
Depreciation and amortization
|
$
|
1,642
|
$
|
2,265
|
$
|
451
|
$
|
678
|
NOTE 7:- | NET EARNINGS (LOSS) PER SHARE |
Details of the number of shares and income (loss) used in the computation of earnings per share:
|
Nine months ended September 30,
|
||||||||||||||||
2024
|
2023
|
|||||||||||||||
Weighted average number of shares (in thousands)(*)
|
Net loss attributable to equity holders of the Company
|
Weighted average number of shares (in thousands)(*)
|
Net loss attributable to equity holders of the Company
|
|||||||||||||
For the computation of basic net earnings from continuing operations
|
2,232
|
$
|
(9,574
|
)
|
2,104
|
$
|
(6,209
|
)
|
||||||||
Effect of potential dilutive Common Shares
|
-
|
-
|
-
|
-
|
||||||||||||
For the computation of diluted net earnings from continuing operations
|
2,232
|
$
|
(9,574
|
)
|
2,104
|
$
|
(6,209
|
)
|
Three months ended September 30,
|
||||||||||||||||
2024
|
2023
|
|||||||||||||||
Weighted average number of shares (in thousands)(*)
|
Net loss attributable to equity holders of the Company
|
Weighted average number of shares (in thousands)(*)
|
Net loss attributable to equity holders of the Company
|
|||||||||||||
For the computation of basic net earnings from continuing operations
|
2,232
|
$
|
(922
|
)
|
2,232
|
(2,150
|
)
|
|||||||||
Effect of potential dilutive Common Shares
|
-
|
-
|
-
|
-
|
||||||||||||
For the computation of diluted net earnings from continuing operations
|
2,232
|
$
|
(922
|
)
|
2,232
|
(2,150
|
)
|
*) See note 5a.
|
NOTE 8:- |
OPERATING SEGMENTS
|
a. |
Reporting operating segments:
|
Operating segments are reported in a manner consistent with the internal reporting providedb to the chief operating decision-maker ("CODM"), who is responsible for
allocating resources and assessing performance of the operating segments. The Company's Chief Executive Officer is the CODM. The Company has determined that it operates in two operating segments (after the reclassification of the operating
activities of the Trichome Group in Canada as discontinued operations).
Nine months ended September 30, 2024:
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
Revenue
|
$
|
30,219
|
$
|
10,477
|
$
|
-
|
$
|
40,696
|
||||||||
Segment gain (loss)
|
$
|
(8,261
|
)
|
$
|
993
|
$
|
-
|
$
|
(7,268
|
)
|
||||||
Unallocated corporate expenses
|
$
|
(2,184
|
)
|
$
|
(2,184
|
)
|
||||||||||
Total operating loss
|
$
|
(9,452
|
)
|
|||||||||||||
Depreciation, amortization and impairment
|
$
|
1,520
|
$
|
122
|
$
|
-
|
$
|
1,642
|
Nine months ended September 30, 2023:
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
Revenue
|
$
|
33,941
|
$
|
4,165
|
$
|
-
|
$
|
38,106
|
||||||||
Segment loss
|
$
|
(2,974
|
)
|
$
|
(1,035
|
)
|
$
|
-
|
$
|
(4,009
|
)
|
|||||
Unallocated corporate expenses
|
$
|
(3,618
|
)
|
$
|
(3,618
|
)
|
||||||||||
Total operating loss
|
$
|
(7,627
|
)
|
|||||||||||||
Depreciation, amortization and impairment
|
$
|
2,139
|
$
|
126
|
$
|
-
|
$
|
2,265
|
NOTE 8:- |
OPERATING SEGMENTS (Cont.)
|
Three months ended September 30, 2024:
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
Revenue
|
$
|
8,066
|
$
|
5,817
|
$
|
-
|
$
|
13,883
|
||||||||
Segment gain (loss)
|
$
|
(929
|
)
|
$
|
642
|
$
|
-
|
$
|
(287
|
)
|
||||||
Unallocated corporate expenses
|
$
|
(666
|
)
|
$
|
(666
|
)
|
||||||||||
Total operating loss
|
$
|
(953
|
)
|
|||||||||||||
Depreciation, amortization and impairment
|
$
|
402
|
$
|
49
|
$
|
-
|
$
|
451
|
Three months ended September 30, 2023:
|
Israel
|
Germany
|
Adjustments
|
Total
|
|||||||||||||
Revenue
|
$
|
10,832
|
$
|
1,538
|
$
|
-
|
$
|
12,370
|
||||||||
Segment loss
|
$
|
(1,132
|
)
|
$
|
(268
|
)
|
$
|
-
|
$
|
(1,400
|
)
|
|||||
Unallocated corporate expenses
|
$
|
(859
|
)
|
$
|
(859
|
)
|
||||||||||
Total operating loss
|
$
|
(2,259
|
)
|
|||||||||||||
Depreciation, amortization and impairment
|
$
|
630
|
$
|
48
|
$
|
-
|
$
|
678
|
NOTE 9:- |
DECONSOLIDATION OF ORANIM PHARMACY
|
On April 16, 2024, the Company announced that following a reconciliation between the parties regarding all remaining unpaid installments ($1,930) by the company, relating to the Oranim Pharmacy Acquisition completed on March 28, 2022, the parties have mutually agreed to deconsolidate the transaction. As a result, the Company shares (51%) were transferred back to the seller. |
The assets and liabilities of Oranim included in the consolidated statement of financial position as of December 31, 2023, and immediately prior to
the deconsolidation on April 15, 2024, are as follows:
|
April 15,
2024
|
December 31,
2023
|
|||||||
ASSETS
|
||||||||
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
346
|
$
|
308
|
||||
Trade receivables
|
1,324
|
1,289
|
||||||
Other accounts receivable
|
758
|
761
|
||||||
Inventories
|
837
|
725
|
||||||
|
||||||||
|
3,265
|
3,083
|
||||||
Non-current assets:
|
||||||||
Property, plant and equipment, net
|
783
|
802
|
||||||
Right-of-use assets, net
|
533
|
565
|
||||||
Intangible assets, net
|
1,414
|
1,575
|
||||||
Goodwill
|
3,499
|
3,455
|
||||||
|
||||||||
|
6,229
|
6,397
|
||||||
|
||||||||
Total Assets
|
$
|
9,494
|
$
|
9,480
|
|
April 15,
2024
|
December 31,
2023
|
||||||
LIABILITIES
|
||||||||
|
||||||||
Current liabilities:
|
||||||||
Trade payables
|
$
|
1,597
|
$
|
1,477
|
||||
Other accounts payable and accrued expenses
|
176
|
230
|
||||||
Purchase consideration payable
|
2,172
|
2,097
|
||||||
Put option liability
|
1,973
|
2,697
|
||||||
Current maturities of operating lease liabilities
|
155
|
152
|
||||||
|
||||||||
|
6,073
|
6,653
|
||||||
Non-current liabilities:
|
||||||||
Lease liabilities
|
372
|
406
|
||||||
Deferred tax liability, net
|
326
|
364
|
||||||
|
||||||||
|
698
|
770
|
||||||
|
||||||||
Total liabilities
|
$
|
6,771
|
$
|
7,423
|
||||
Non controlling interest
|
$
|
(41
|
)
|
$
|
219
|