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From the 10k filing posted today. A few things that stand out to me.
Cash and cash equivalents dropped roughly 116 million dollars down to 114M
Inventories, net went up roughly 92 million.
Total expenses y/y when up roughly 120 percent.
Loss) Income before provision for income taxes roughly -49 million for the qt.
Net (loss) income from continuing operations and comprehensive (loss) income. -77 million
Net (loss) income and comprehensive (loss) income attributable to common shareholders. -114 million
Net (loss) income per share - Continuing operations: -41 cents
Weighted average number of common shares used in computing net (loss) income per share: 188 million
Cash flow from operating activities- year to date. Net (loss) income and comprehensive (loss) income -171 million for the year to date.
A few other notes -On January 28, 2022, the Company closed on a second tranche private placement of 8% Senior Secured Notes (the "2026 Notes - Tranche Two") for aggregate gross proceeds of $76.9 million and net proceeds of $75.6 million. The Company intends to use the net proceeds for capital expenditures and other general corporate purposes. On October 6, 2021, the Company closed its private placement of 8% Senior Secured Notes (the "2026 Notes - Tranche One") for aggregate gross proceeds of $350.0 million and net proceeds of $342.6 million. The Company used a portion of the net proceeds to redeem certain outstanding indebtedness of Harvest and intends to use the remaining net proceeds for capital expenditures and other general corporate purposes. These notes are collectively referred to as the "2026 Notes".
Also, of note Principal portion of private placement notes is at 540 million dollars.
They have to clean this up.
Item 4. Controls and Procedures.
Material Weakness in Internal Control Over Financial Reporting
Evaluation of Internal Controls Over Financial Reporting
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal accounting officer, as appropriate to allow timely decisions regarding disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily was required to apply its judgment in evaluating the risk related to controls and procedures.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
Management of the Company, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of September 30, 2022. Our Chief Executive Officer and Chief Financial Officer have concluded that we did not maintain effective disclosure controls and procedures due to a material weakness in our internal control over financial reporting, as further described below.
We concluded that a certain material weakness in our internal control over financial reporting is still present as of September 30, 2022. The material weaknesses present is that the primary user access controls and program change management controls over information technology systems were not effectively designed or implemented to ensure appropriate authorization and segregation of duties.
Although a material misstatement was not identified in the Company’s financial statements, it was determined that there was a reasonable possibility that a material misstatement in the Company’s financial statements would not have been prevented or detected on a timely basis.
We are in the process of implementing actions to improve our internal control over financial reporting toward the remediation of the control deficiencies resulting in this material weakness. As of September 30, 2022, the Company has completed the following remediation efforts.
Still have that deferred tax thing going on as well. Anyway those stood out about the other issues this company is having that have already been posted on here.
Well, ya, I'm in several different sectors. With this sector you still have to use DD, but the flow of info is limited. I have to take it where I can get it.
And there is good info floating about, so.
Well, while I wait for the earnings on this one I bought some GOOGL and AMZN this afterrnoon , both oversold. And I think the bulk of the bads news is already out .
I hope for at least a breakeven on this one. Key word being hope. Still hoping safe banking some how gets thru before year end. We'll see.
A couple of things from your post. Yes, year over year they have diluted roughly 40 million shares. The shares authorized was 190 million, since June is now far higher as you well know.
But the truth is who cares. Until this company finds a way to sell more product {a lot more} it doesn’t matter. Unless somebody gets excited about being in the 4 cents, give or take a penny or two range there is just nothing there to grow with. Sure, they are still selling product, and sure the dollars they take in is falling. THEY ARE DILUTING TO STAY IN BUSINESS, and with out a complete overhaul of the failed leadership {again were at a little less than .04 cents} to be fair the 4 cents mark didn’t happen until May, that still 6 mo. of hugging that range, a few weeks higher’ lower but still comes back to .04. and yes, I feel it’s the leadership holding this back. Diluting is NOT the main factor on why this company is failing. So again, who cares. IMO
Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced last week that consumer packaged goods and retail industry veteran David Goubert agreed to serve as the company's president.
Goubert joins Ayr's leadership team from Neiman Marcus Group to oversee the company's operational and commercial functions, including production, supply chain, retail, wholesale and marketing.
Prior to joining Neiman Marcus, Goubert spent two decades at LVMH (OTC: LVMUY), the world's leading luxury consumer-products company.
"As the Board and I engaged with David over the last several months, it became clear that he was a natural leader with a track record of driving positive organizational change and operational excellence," Jonathan Sandelman, the company's CEO said. "His experience at other vertically integrated, consumer-facing businesses makes him the ideal choice to help support our Company as we enter our next phase of growth and optimization of our footprint."
Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) announced last week that consumer packaged goods and retail industry veteran David Goubert agreed to serve as the company's president.
Goubert joins Ayr's leadership team from Neiman Marcus Group to oversee the company's operational and commercial functions, including production, supply chain, retail, wholesale and marketing.
Prior to joining Neiman Marcus, Goubert spent two decades at LVMH (OTC: LVMUY), the world's leading luxury consumer-products company.
"As the Board and I engaged with David over the last several months, it became clear that he was a natural leader with a track record of driving positive organizational change and operational excellence," Jonathan Sandelman, the company's CEO said. "His experience at other vertically integrated, consumer-facing businesses makes him the ideal choice to help support our Company as we enter our next phase of growth and optimization of our footprint."
FYI Green Thumb Industries Inc. gtbif ca:gtii said Wednesday it will launch retail sales of cannabis for medical patients at "about" 10 Circle K stores in Florida. The Chicago and Vancouver-based cannabis company said its Rise Dispensaries inked a lease agreement with Circle K to test the rollout of more potential stores out of the gas station chain's 600 stores in Florida. At last check, more than 700,000 Florida residents currently hold medical cards in the Sunshine State, according to data from the state's Department of Health. Green Thumb CEO Ben Kovler said the effort marks a "huge step forward in making it easier and more efficient" for patients to buy cannabis products "as part of their everyday routine." Shares of Green Thumb Industries are down 51% in 2022, compared to a 31% drop by the Nasdaq ndaq and a loss of 59.8% by the AdvisorShares Pure U.S. Cannabis ETF msos.
Pretty early to make that statement. “The Deal won't age well either”. Wouldn’t the smarter play be to see how it plays? And don’t tell me you wouldn’t be doing back flips if Cv got this deal.
I say this I’d rather have it in my back pocket then not. MLB is a big deal. Let’s see what happens.
Hello Darth, hope all is well. Congrats on CW and MLB btw. Well, you know far more than I on the effects and the chemicals of the products. No challenge there. This company has had problems in the past with OSHA violations, as many other companies do. This time a death was involved. The OSHA report on this is still open. And yes, the company paid the fines on the violations for it. We do know another worker was speaking out about the issues like corporate culture, safety, but again there isn’t enough firm footing for me without knowing more. First question would be what was the overall health of the person who died? And a little more detail on this culture issue from somebody who was not that person’s friend. We could go on and on here. BUT. That is not the problem I was speaking on. No, the problem is perception, first directly with the company, and then indirectly with the product, which is still FED illegal, and will this have any effect at all on the 60 votes that will be needed to make it legal. At this point it's a small issue, an unfortunate one to be sure. I think if this is the end of the press on it, ok, fine. If this is just the start of it, if this turns into a lawsuit, etc. Not so good. I don’t have enough information to go any farther with it at this point. I will be watching however.
Just getting caught up here, but this is going to be a problem, and it could be a big one.
Well, that's some decent advice, the risk/ reward is not on the longs side of the fence.
Yes, but it's going to be a long time invested road. Congress will be doing most of the lifting and we won't know how many of the players in the congress will be new to this.
Well, at the end of the day we don't have enough of the rest of the story. I'm not much on guessing, so.
I don't know about 5's. 8's,9's far more likely. Grab a chart, play along.
Going thru the boards there seems to a lack of clarity. Pardons only- Still illegal remember. When we do get decriminalization, possibly next year and then finally legalization, unknown time frame, those will cause, I would think, even bigger spikes. It’s movement in the right direction. The states will also need to play ball, but still it's movement.
Who cares, 6500 people do ! _Oct 6, 2022. Thursday, via executive order, President Biden announced he would pardon thousands of people convicted of cannabis possession under federal law. The pardon only affects 6,500 Americans,
Right now today ,no. but it's movement in the direction we need to go. It's going to be a long process with several steps, I'm happy that were taking the first one.
It's a start.
Who cares, 6500 people do ! _Oct 6, 2022. Thursday, via executive order, President Biden announced he would pardon thousands of people convicted of cannabis possession under federal law. The pardon only affects 6,500 Americans,
If your short you just got busted!
Green Thumb Industries Announces Changes to Board of Directors
7:00 am ET October 6, 2022 (Globe Newswire) Print
Richard Drexler, former CEO and Chairman of the Board at Quality Products, and Jeff Goldman, seasoned entrepreneur with expertise in CPG brand-building, join Board of DirectorsGlobeNewswireOctober 06, 2022
CHICAGO and VANCOUVER, British Columbia, Oct. 06, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods (CPG) company and owner of RISE Dispensaries, today announced that Richard Drexler, a proven financial executive who currently serves as Chairman of the Audit and Finance Committee at Bison Gear and Engineering and previously served as CEO and Chairman of the Board at Quality Products, and Jeff Goldman, a seasoned entrepreneur with expertise in CPG brand-building, will join the Company's board of directors. Drexler will assume the role of Chair of the Audit Committee in this new capacity. The appointments follow the resignation of three board members, William Gruver, Glen Senk and Dorri McWhorter. The resigning directors informed management that their cause for resignation was not related to Green Thumb's business performance, operations, financial performance, financial statements or financial controls, but rather over a disagreement as to the Company's policies and practices related to personal misconduct. It became clear that the former directors and existing management could not find a resolution satisfactory to all parties.
"There comes a time in a company's evolution that a change in leadership is required, and we regret that there was an impasse with the former board members," said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. "There are massive opportunities in front of us and we now have a board aligned with management to provide increased shareholder value. As we enter this next phase for the company, Richard's financial discipline and Jeff's strategic brand experience will help us continue to win as we deliver on our long-term vision."
Drexler was CEO and later Chairman of the Board at Quality Products, a manufacturer and distributor of products for aircraft ground support equipment for the military and hydraulic machine tool markets. Under his leadership, Drexler orchestrated strategic changes that pulled the company out of debt and resulted in significant positive cash flow. In addition to his role at Quality Products, Drexler held senior advisory roles at several multi-million dollar manufacturing and product companies.
"GTI has proven itself as a truly remarkable cannabis company with a strong purpose," said Drexler. "I am thrilled to join Ben and the team at such a pivotal time and drive growth and operational excellence as we help deliver on the Company's growth strategies to maximize shareholder value."
Goldman is a brand veteran and seasoned entrepreneur that has operated and scaled multiple CPG businesses. Under his leadership, Goldman has grown Carol's Cookies, a family-owned business founded by his mother in 1979, into a multi-million dollar, nationally distributed brand by successfully partnering with Fortune 500 companies such as Whole Foods Market and Sysco Foodservice. In addition to his role with Carol's Cookies, Goldman was the owner and operator of Reed-Union Corporation, known for the top-selling automotive appearance brand in North America, Nu Finish. As the head of domestic and international sales, Goldman forged partnerships with Fortune 100 companies such as Walgreens, Target, Walmart and AutoZone. In 2018, Jeff orchestrated the sale of the company's brands to Energizer Holdings.
"I'm honored to join Green Thumb, a company creating some of the most iconic brands within the cannabis space," said Goldman. "Their ability to innovate with products and create brands and retail environments that resonate with consumers is extremely valuable. I am excited to work alongside Ben and the entire team to ensure that GTI remains the undisputed market leader."
Senk served as Chair of the Executive Committee and a member of the Audit and Compensation Committees. Gruver served as Chair of the Audit Committee and a Member of the Executive Committee. McWhorter served as a member of the Audit Committee.
Well, we won't know for a while on the S&P. If however we get a lower high followed by volume to the down side inner mixed with what we already see in projections of lower earning output followed by the stress of higher interest rates, I wouldn't be surprised if the market failed at holding that weight. I'm still thinking 3200 to 3300 in the S&P before the end of the year. If it can stay higher than that, great, but if I had a worry it would be 3200 isn't the bottom. We'll see.
Appreciate your thoughts and view point. Thanks.
I agree.
I will, if fact you couldn't pry the charts away from me.
Bear market rally, would expect to see 2 or 3 between now and the end of year. IMO
Well, with the RSI now at 26 it’s more likely to go up vs down if left on its own. But it’s the markets themselves and the economy in general that holds the keys. This reminds me more of 02 than 08 with a little 70’s and early 80’s mixed in. Were all going to find out. My thoughts are more on the macro, S&P is the one in my focus, if, and again if, the S&P falls to the 3200 to 3300 area, ok that I can deal with. If, however were already there or worst when the next round of earnings comes out in 7 to 9 weeks that maybe enough, along with the economy to trigger that fear of capitulation you mentioned a few months back. All in all, I think it will pay to be nimble. I think it’s all but assured that we will have a recession in 23, but that word can have many favors, from a light, into and out, to a deep dive. And then there’s the length. Next round of earnings should be interesting.
I’ll say this, the FDA doesn’t bend much. Yes, I read the various news releases on CBD, the flow of news is going in the positive/right direction.
Any type of expansion is good news, 3rd quarter or not it’s still coming. Not sitting on their hands is go to see.
Chart is breaking right {included one} but I think more volume would show a better commitment to the move.
It was in my watch list. I screen those and follow. Saw the drop premarket, read the reason why, and bought it.
Just a fyi but the figures in that write up must be dated. It states Verano Holdings owes $161.4 million, while in real life they owe 259 million. Again just a fyi on the lack of current numbers.
From the June 30 quarterly, the deferred tax is 237,641,000 and is included in the total liabilities of 1.3 billion. This from the 10k filing.
I'm sure others are getting beat up on this, but for me it's a gift and I took it. GLTA
Looking forward to it, thanks!
I do pay attention to the politics of the situation in regards to the legalization. I don’t pay much attention to the politicians using the issue to run on. There have been many, I’ll call them pushes, but the end result is where we are right now. Yes, they will pass it at some point, most CEOs involved in this sector are projecting 2023 to 2025. I think, going off of memory here, but the CEO for this company stated 2025. Safe banking is what I’m currently focused on. Were closing in on 40 states that have some programs to sell Mary Jane. Safe banking would be a nice add on and that could happen this year. Legalization will have its own issues once approved I would guess. WE will have new policy and procedures from the FED to follow. There will of course be a tax grab, some form of legal boundaries as in how much and where issues, but the biggest concern will come from the FDA. Their involvement will shape a great deal on how companies do business, what the testing lot process is like and the uniform of the product. {side note here and just a fyi, 70 percent of the FDA funding currently comes from big pharma not from the government}. CBD which is certainly related to this and was passed by the FED {The Agriculture Improvement Act of 2018 (2018 Farm Bill) is still waiting on FDA regulations 4 years later.
You can never ignore fundamentals and from those I still break out financials separately, i.e., short term debt vs long term debt, cash flow vs free cash flow, balance sheet, legal issues etc. It’s the very base of the company. I then blend in the technical, which is dynamic vs static and daily vs quarterly.
Yes, legislation would be the short-term game changer, and in many respects, it will be when the heavy lifting of the real breakdown and study begins. Right now, were in the what if and will be vs is. All IMO.
Yes, that is correct. They are building their business, growing it. And as a young company expanding one need to factor the footprint they are setting. Nothing happens overnight, measure the growth along with the process and see how that compares to the competition. I don’t think there is any problem in that regard, but in doing so a person still needs to see what the debt load is, profit margin, cash flow and free cash flow like any other company {again that is part of the factoring}.
We could see upward movement at any time, current very oversold. In regards to midterms, I try to avoid the political gamesmanship stated before elections. I have a poor view in general of the politics in general, billionaires forming and directing lobbyists who thru funding control the people who we vote for. I shouldn’t leave out big business in there either, FDA comes to mind, but that’s just my opinion. In fact, all IMO
Yep, small cap do that, wider range and all, we shall see.
Well son of a . . . And here I just bought more at 8.40 just a short time ago. Had I read your post that no money can be made in weed stocks, that it all has been made already, that it has no upside, well I still would have bought but it would have been to just teach me a lesson.
Far left policy you say, fueled by the radicals . . . . . bad for your health, {long list there}, sure, sure, but the main thing that confuses me is how can this one little stock, that is dropping, have all that pull that the S&P, NAS and the Dow are all following suit right behind? It’s amazing isn’t it. It's almost like there is more to the story.