SCHWAZZE ANNOUNCES SECOND QUARTER RESULTS
SCHWAZZE ANNOUNCES SECOND QUARTER RESULTS
PR Newswire
DENVER, Aug. 11, 2022
OTCQX: SHWZNEO: SHWZ
Record Quarterly Revenue and Adjusted EBITDA
Revenue Increases 44% to $44.3 Million Compared to $30.7 Million in Q2 2021
Adjusted EBITDA of $15 Millio…
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SCHWAZZE ANNOUNCES SECOND QUARTER RESULTS
PR Newswire
DENVER, Aug. 11, 2022
OTCQX: SHWZ
NEO: SHWZ
Record Quarterly Revenue and Adjusted EBITDA
Revenue Increases 44% to $44.3 Million Compared to $30.7 Million in Q2 2021
Adjusted EBITDA of $15 Million, 33.9% of Revenue
Revised Guidance Driven by Short-Term, Challenging Colorado Market Conditions
Q4 2022 Projected Revenue Annualized Run Rate: $175 Million - $200 Million
Q4 2022 Projected Adjusted EBITDA Annualized Run Rate: $60 Million - $72 Million
Conference Call & Webcast Scheduled for Today – 5:00 pm EDT
DENVER, Aug. 11, 2022 /PRNewswire/ - Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) ("Schwazze" or the "Company"), today announced financial results for the second quarter ended June 30, 2022 ("Q2 2022").
Q2 2022 Financial Summary:
- Revenues of $44.3 million increased 44% compared to $30.7 million in second quarter ended June 30, 2021 ("Q2 2021")
- Retail sales were $38.1 million up 77% when compared to Q2 2021
- Gross Margin of $25.2 million was up 69% compared to $14.9 million in Q2 2021, this quarter was affected by $0.2M in purchase accounting
- Net Income was $33.8 million compared to a Net Income of $4.4 million for the same period last year
- Adjusted EBITDA of $15 million was 33.9% of revenue, compared to $10 million for the same period last year
- Colorado two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales(1) were 1.8% and one year IDs(1) were (12.7%) comparing Q2 2022 to Q2 2021
- Average basket size (1) for Q2 2022 was $59.98 down 4.1% compared to Q2 2021
- Recorded customer visits (1) for Q2 2022 totaled 444,771 down 8.9%, compared to Q2 2021
- New Mexico two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales(1) were 41.0% and one year IDs(1) were 30.4% comparing Q2 2022 to Q2 2021
- Average basket size (1) for Q2 2022 was $54.56 down 12.7% compared to Q2 2021
- Recorded customer visits (1) for Q2 2022 totaled 209,591 up 49.4%, compared to Q2 2021
Accomplishments
Since December 2021, Schwazze has closed acquisitions adding 15 cannabis dispensaries, 10 in New Mexico and five in Colorado as well as four cultivation facilities in New Mexico and one in Colorado and one manufacturing asset in New Mexico.
- Closed Acquisition of Urban Health & Wellness Assets
- Listed Common Stock on the NEO Exchange
- Closed Acquisition of Brow 2 LLC Assets
- Closed Acquisition of Emerald Fields
- Added President of New Mexico Division
- Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
- Added to Key Senior Leadership Team
- Closed Acquisition of Drift Assets
Justin Dye, Chairman and CEO of Schwazze stated, "Similar to the rest of the country, the cannabis industry in Colorado is also experiencing a slowdown in growth compared to the last couple of years. Schwazze, however, is demonstrating that our regional strategy, built on a customer first approach, developing significant scale, building brands and leveraging data analytics and technology is not only sound but gaining momentum as demonstrated by revenue and unit sales growth, customer loyalty and by once again outpacing the legacy market growth by approximately 12%. We believe this model will travel well to other states as we find attractive opportunities. Despite share price weakness driven by broader market influences, we remain bullish on our business and have conviction that as Schwazze continues to deliver superior operating results that our shareholders will be rewarded."
Justin continued, "As we look to the future, we expect continued growth in Colorado and New Mexico through both organic and inorganic means. Our operations continue to mature and gain momentum, and we firmly believe that we are winning in our markets. Our team will continue to focus on growing profitably and generating cash flow from operations. When positive federal legislation is passed, Schwazze will be well-positioned as a market leader to take advantage of banking services and institutional investment."
Q2 2022 Revenue
Revenues for the three months ended June 30, 2022, totaled $44.3 million, including (i) retail sales of $38.1 million (ii) wholesale sales of $6.1 million and (iii) other operating revenues of $43,750, compared to revenues of $30.7 million, including (i) retail sales of $21.5 million, (ii) wholesale of $9.2 million, and (iii) other operating revenues of $16,844 during the three months ended June 30, 2021, representing an increase of $13.5 million or 44%. This increase was due to increased sale of our products as well as execution of our growth through acquisition initiatives. In the second quarter of 2022, the Company acquired one additional retail dispensary, which generated additional retail revenue. Additionally, recreational marijuana sales became legal in New Mexico in April 2022, which increased sales volume and revenues in New Mexico. Wholesale revenues in Colorado decreased due to increased cultivation capacity in the state resulting in an over-supply of wholesale cannabis materials.
Cost of goods and services for the three months ended June 30, 2022, totaled $19.1 million compared to cost of services of $15.8 million during the three months ended June 30, 2021, representing an increase of $3.3 million or 21%. The increase in cost of goods is driven by the increase in revenue, however not at the same rate. In the quarter, the Company experienced a reduction in costs driven by vertical integration and third-party price negotiations.
Gross profit increased to $25.2 million for Q2 2022 compared to $14.9 million during the same period in 2021. Gross profit margin increased as a percentage of revenue from 48.5% to 56.8%, and net of purchase accounting, the gross margin increased to 57.4%. This positive result, net of purchase accounting continues to reflect our consolidated purchasing approach, the implementation of our retail playbook, and vertical product sales in New Mexico.
Operating expenses for the three months ended June 30, 2022, totaled $16.1 million, compared to operating expenses of $10.5 million during the three months ended June 30, 2021, representing an increase of $5.6 million or 54%. This increase is due to increased selling, general and administrative expenses, professional service fees, salaries, benefits, and related employment costs driven by growth from acquisitions.
Other income for the three months ended June 30, 2022, totaled $29.2 million compared to $0.2 million during the three months ended June 30, 2021, representing an increase in income of $29 million or 18,435%. The increase in other income is due to the revaluation of the derivative liability related to the Investor Notes, offset by higher interest payments.
The Company generated net income for the three months ended June 30, 2022, of $33.8 million, compared to net income of $4.4 million for the three months ended June 30, 2021.
Adjusted EBITDA for Q2 2022 was $15 million representing 33.9% of revenue, compared to $10 million and 32.6% of revenue for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details.
For six months ending June 30, 2022, the Company used cash for operations of ($8.0) million compared to generating cash of $1.4 million for the same period in 2021. The Company has cash and cash equivalents of $33.9 million at the end of Q2 2022.
Nancy Huber, CFO for Schwazze commented, "During Q2 we focused on completing integration of our acquisitions and made sure that we used our resources effectively. We are focused on reducing operating and SG&A expenses and judiciously investing growth capital to ensure adequate liquidity and profitability despite difficult market conditions in Colorado, which we believe to be transitory and temporary. Our balance sheet remains strong, and we have ample liquidity. We are focused on delivering positive cash flow net of acquisition costs for the year while driving organic growth and making smart acquisitions."
2022 Guidance
The Company has revised its guidance for a fourth-quarter 2022 (Q4 2022) annualized run rate, which excludes transactions that are announced but not closed. Q4 2022 revenue annualized run rate is projected to be $175 million to $200 million, and the Q4 2022 adjusted EBITDA annualized run rate is projected to be from $60 million to $72 million.
NOTES: |
(1) Schwazze did not own all the assets and entities in part of 2021, 2020 and 2019 and is using unaudited numbers for this comparison. |
Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition and capital raise related costs, and other one-time expenses, such as severance, retention, and employee relocation. The Company uses adjusted EBITDA as it believes it better explains the results of its core business. The Company has not reconciled guidance for adjusted EBITDA to the corresponding GAAP financial measure because it cannot provide guidance for the various reconciling items. The Company is unable to provide guidance for these reconciling items because it cannot determine their probable significance, as certain items are outside of its control and cannot be reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.
Webcast – August 11, 2022 – 5:00 PM EDT
Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 1-888-664-6383 or listen to the webcast from the Company's website at https://ir.schwazze.com The webcast will be available on the Company's website and on replay until August 18, 2022, and may be accessed by dialing 1-888-390-0541 / # 575833
Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: https://app.webinar.net/lwXbZbBZmKN This weblink has been posted to the Company's website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings
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. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. 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. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious practices. 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.
Forward-Looking Statements
Such forward-looking statements may be preceded by the words "plan," "will," "may," "continue," "anticipate," "become," "build," "develop," "expect," "believe," "poised," "project," "approximate," "could," "potential," or similar expressions as they relate to Schwazze. Forward-looking statements include the guidance provided regarding the Company's Q4 2022 performance and annual capital spending. 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) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and New Mexico and outside the states, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. 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.
MEDICINE MAN TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
For the Three Months ended June 30, 2022 and 2021
Expressed in U.S. Dollars
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 33,862,423 | $ | 106,400,216 | ||||
Accounts receivable, net of allowance for doubtful accounts | 5,753,621 | 3,866,828 | ||||||
Inventory | 19,375,341 | 11,121,997 | ||||||
Note receivable - current, net | 71,667 | – | ||||||
Prepaid expenses and other current assets | 7,743,112 | 2,523,214 | ||||||
Total current assets | 66,806,164 | 123,912,255 | ||||||
Non-current assets | ||||||||
Fixed assets, net accumulated depreciation of $3,212,679 and $1,988,973, respectively | 20,955,604 | 10,253,226 | ||||||
Goodwill | 107,969,018 | 43,316,267 | ||||||
Intangible assets, net accumulated amortization of $11,930,443 and $7,652,750, respectively | 105,427,462 | 97,582,330 | ||||||
Marketable securities, net of unrealized loss of $13,813 and gain of $216,771, respectively | 479,741 | 493,553 | ||||||
Note receivable – noncurrent, net | – | 143,333 | ||||||
Accounts receivable – litigation | 290,648 | 303,086 | ||||||
Other noncurrent assets | 1,464,163 | 514,962 | ||||||
Operating lease right of use assets | 14,755,181 | 8,511,780 | ||||||
Total non-current assets | 251,341,817 | 161,118,537 | ||||||
Total assets | $ | 318,147,981 | $ | 285,030,792 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 3,222,956 | $ | 2,548,885 | ||||
Accounts payable - related party | 73,387 | 36,820 | ||||||
Accrued expenses | 8,966,821 | 5,592,222 | ||||||
Derivative liabilities | 11,634,721 | 34,923,013 | ||||||
Notes payable - related party | – | 134,498 | ||||||
Lease liabilities – current | 3,795,776 | – | ||||||
Income taxes payable | 863,971 | 2,027,741 | ||||||
Total current liabilities | 28,557,632 | 45,263,179 | ||||||
Long term debt | 121,080,876 | 97,482,468 | ||||||
Lease liabilities | 11,532,286 | 8,715,480 | ||||||
Total long-term liabilities | 132,613,162 | 106,197,948 | ||||||
Total liabilities | 161,170,794 | 151,461,127 | ||||||
Stockholders' equity | ||||||||
Common stock, $0.001 par value. 250,000,000 shares authorized; 55,995,681 shares issued and 54,446,575 shares outstanding at June 30, 2022 and 45,484,314 shares issued and 44,745,870 shares outstanding as of December 31, 2021. | 55,996 | 45,485 | ||||||
Preferred stock, $0.001 par value. 10,000,000 shares authorized; 86,994 shares issued and 82,594 outstanding at June 30, 2022 and December 31, 2021. | 87 | 87 | ||||||
Additional paid-in capital | 179,623,469 | 162,815,097 | ||||||
Accumulated deficit | (20,711,687) | (27,773,968) | ||||||
Common stock held in treasury, at cost, 886,459 shares held as of June 30, 2022 and 517,044 shares held as of December 31, 2021 | (1,990,678) | (1,517,036) | ||||||
Total stockholders' equity | 156,977,187 | 133,569,665 | ||||||
Total liabilities and stockholders' equity | $ | 318,147,981 | $ | 285,030,792 | ||||
See accompanying notes to the financial statements
MEDICINE MAN TECHNOLOGIES, INC.
CONSOLDIATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
For the Three Months ended June 30, 2022 and 2021
Expressed in U.S. Dollars
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Operating revenues | ||||||||||||||||
Retail | $ | 38,138,799 | $ | 21,525,816 | $ | 64,664,515 | $ | 33,342,016 | ||||||||
Wholesale | 6,080,843 | 9,186,181 | 11,288,231 | 16,632,445 | ||||||||||||
Other | 43,750 | 16,844 | 88,200 | 94,494 | ||||||||||||
Total revenue | 44,263,392 | 30,728,841 | 76,040,946 | 50,068,955 | ||||||||||||
Cost of goods and services | ||||||||||||||||
Total cost of goods and services | 19,106,944 | 15,826,341 | 39,946,995 | 27,913,451 | ||||||||||||
Gross profit | 25,156,448 | 14,902,500 | 36,093,951 | 22,155,504 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative expenses | 6,666,044 | 4,797,495 | 13,521,755 | 7,987,134 | ||||||||||||
Professional services | 1,516,544 | 1,519,016 | 4,101,016 | 3,714,124 | ||||||||||||
Salaries | 7,240,368 | 2,992,055 | 12,537,145 | 4,861,413 | ||||||||||||
Stock based compensation | 697,842 | 1,153,018 | 1,688,925 | 2,636,824 | ||||||||||||
Total operating expenses | 16,120,798 | 10,461,584 | 31,848,841 | 19,199,495 | ||||||||||||
Income (loss) from operations | 9,035,650 | 4,440,916 | 4,245,110 | 2,956,009 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest income (expense), net | (7,489,205) | (1,713,770) | (14,791,459) | (2,675,053) | ||||||||||||
Unrealized gain (loss) on derivative liabilities | 36,705,764 | 1,864,741 | 23,288,292 | 610,927 | ||||||||||||
Other income (expense) | – | – | 7 | – | ||||||||||||
Gain (loss) on sale of assets | – | – | – | 292,479 | ||||||||||||
Unrealized gain (loss) on investments | (5,264) | 6,627 | (13,813) | 221,257 | ||||||||||||
Total other income (expense) | 29,211,295 | 157,598 | 8,483,027 | (1,550,390) | ||||||||||||
Provision for income taxes (benefit) | 4,405,962 | 228,474 | 5,665,856 | 685,088 | ||||||||||||
Net income (loss) | $ | 33,840,983 | $ | 4,370,040 | $ | 7,062,281 | $ | 720,531 | ||||||||
Less: Accumulated preferred stock dividends for the period | (1,766,575) | – | (3,510,019) | – | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 32,074,408 | $ | 4,370,040 | $ | 3,552,262 | $ | 720,531 | ||||||||
Earnings (loss) per share attributable to common shareholders | ||||||||||||||||
Basic earnings (loss) per share | $ | 0.65 | $ | 0.10 | $ | 0.07 | $ | 0.02 | ||||||||
Diluted earnings (loss) per share | $ | 0.24 | $ | 0.08 | $ | 0.03 | $ | 0.01 | ||||||||
Weighted average number of shares outstanding - basic | 49,178,494 | 42,332,144 | 49,178,494 | 42,286,168 | ||||||||||||
Weighted average number of shares outstanding - diluted | 133,481,667 | 53,975,521 | 133,481,667 | 53,886,727 | ||||||||||||
Comprehensive income (loss) | $ | 33,840,983 | $ | 4,370,040 | $ | 7,062,281 | $ | 720,531 | ||||||||
See accompanying notes to the financial statements
MEDICINE MAN TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS (UNAUDITED)
For the Three Months ended June 30, 2022, and 2021
Expressed in U.S. Dollars
For the Six Months Ended | ||||||||
June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) for the period | 7,062,281 | 720,531 | ||||||
Adjustments to reconcile net income to cash used in operating activities | ||||||||
Depreciation and amortization | 5,501,399 | 4,807,147 | ||||||
Gain on change in derivative liabilities | (23,288,292) | (610,927) | ||||||
Loss (gain) on investment, net | 13,813 | (221,257) | ||||||
Loss (gain) on sale of asset | – | (292,479) | ||||||
Stock based compensation | 1,474,380 | 2,636,824 | ||||||
Changes in operating assets and liabilities (net of acquired amounts): | ||||||||
Accounts receivable | (1,677,476) | (1,854,067) | ||||||
Inventory | 3,903,984 | (3,368,807) | ||||||
Prepaid expenses and other current assets | (1,458,786) | (1,250,938) | ||||||
Other assets | (946,701) | (367,593) | ||||||
Operating leases right of use assets and liabilities | 369,181 | 77,444 | ||||||
Accounts payable and other liabilities | 2,248,013 | 1,169,537 | ||||||
Deferred Revenue | – | (50,000) | ||||||
Income taxes payable | (1,163,770) | – | ||||||
Net cash provided by (used in) operating activities | (7,961,974) | 1,395,416 | ||||||
Cash flows from investing activities: | ||||||||
Cash consideration for acquisition of business | (95,903,316) | (66,082,072) | ||||||
Purchase of fixed assets | (7,004,445) | (1,203,180) | ||||||
Issuance of notes receivable | – | 181,911 | ||||||
Purchase of intangible assets | (2,825) | (29,580) | ||||||
Net cash used in investing activities | (102,910,586) | (67,132,921) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of debt | 19,165,362 | 40,348,241 | ||||||
Debt issuance and discount costs | 4,433,042 | – | ||||||
Repayment of notes payable | – | (5,000,000) | ||||||
Proceeds from issuance of common stock, net of issuance costs | 14,736,363 | 50,282,798 | ||||||
Net cash provided by financing activities | 38,334,767 | 85,631,039 | ||||||
Net increase (decrease) in cash and cash equivalents | (72,537,793) | 19,893,534 | ||||||
Cash and cash equivalents at beginning of period | 106,400,216 | 1,237,235 | ||||||
Cash and cash equivalents at end of period | $ | 33,862,423 | $ | 21,130,769 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 9,004,575 | $ | 2,131,495 | ||||
Cash paid for income taxes | 6,840,000 | – | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Common stock issued in connection with acquisitions | 9,900,506 | – | ||||||
Issuance of common stock | 379,146 | – | ||||||
Return of common stock | 551,875 | – | ||||||
See accompanying notes to the financial statements
MEDICINE MAN TECHNOLOGIES, INC.
Adjusted EBITDA Reconciliation
Non-GAAP measurement
(UNAUDITED)
Three Months Ended | Six Months Ended | ||||
June 30, | June 30, | ||||
2022 | 2021 | 2022 | 2021 | ||
Net income (loss) | $ 33,840,983 | $ 4,370,040 | $ 7,062,281 | $ 720,531 | |
Interest expense, net | 7,489,205 | 1,713,770 | 14,791,459 | 2,675,053 | |
Provision for income taxes | 4,405,962 | 228,474 | 5,665,856 | 685,088 | |
Other (income) expense | (36,700,500) | (1,871,368) | (23,274,486) | (1,124,663) | |
Depreciation and amortization | 2,960,603 | 3,016,579 | 5,501,399 | 4,807,147 | |
EBITDA (non-GAAP measure) | $ 11,996,253 | $ 7,457,495 | $ 9,746,509 | $ 7,763,156 | |
Non-cash stock compensation | 697,842 | 1,153,018 | 1,688,925 | 2,636,824 | |
Deal related expenses | 1,656,529 | 916,471 | 3,913,463 | 1,662,415 | |
Capital raise related expenses | 41,312 | 230,970 | 605,632 | 1,182,089 | |
Inventory adjustment to fair market value for purchase accounting | 246,613 | - | 6,507,047 | 2,164,686 | |
One-time cultivation asset impairment | 329,210 | - | 329,210 | - | |
Severance | 44,537 | 125,826 | 49,102 | 142,092 | |
Retention program expenses | - | 29,687 | - | 59,375 | |
Employee relocation expenses | 332 | 18,391 | 19,110 | 38,391 | |
Other non-recurring items | 8,840 | 90,011 | 10,650 | 217,179 | |
Adjusted EBITDA (non-GAAP measure) | $ 15,021,468 | $ 10,021,869 | $ 22,869,648 | $ 15,866,207 | |
Revenue | 44,263,392 | 30,728,841 | 76,040,946 | 50,068,955 | |
aEBITDA Percent | 33.9 % | 32.6 % | 30.1 % | 31.7 % | |
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SOURCE Schwazze
Government
Low Iron Levels In Blood Could Trigger Long COVID: Study
Low Iron Levels In Blood Could Trigger Long COVID: Study
Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate…
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Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.
A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.
Long COVID Patients Have Low Iron Levels
Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.
In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.
According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.
But it can jeopardize a person’s recovery.
“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”
The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.
“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”
The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.
1 in 5 Still Affected by Long COVID
COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.
Uncategorized
February Employment Situation
By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…
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By Paul Gomme and Peter Rupert
The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.
Temporary help services employment continues a steep decline after a sharp post-pandemic rise.
Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.
The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.
The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.
Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.
As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.
Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.
The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.
unemployment pandemic unemploymentSpread & Containment
Another beloved brewery files Chapter 11 bankruptcy
The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.
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Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.
It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.
Related: Fast-food chain closes more stores after Chapter 11 bankruptcy
The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business.
And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.
During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.
Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.
Image source: Shutterstock
Covid is not the only reason for brewery bankruptcies
While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,
Beer sales have fallen to their lowest levels since 1999 and some industry analysts
"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.
Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.
Another brewery files Chapter 11 bankruptcy
Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11.
"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained.
Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors.
The popular brewery operates three taprooms and sells its beer to go at those locations.
"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.
The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).
Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.
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