- \n
- Flora generated $37.2 million in revenue in FY2022, a 314% increase YoY<\/i><\/li>\n
- Record Q4 2022 revenue increased to $11.5 million, a 7% sequential increase from Q3 2022<\/i><\/li>\n
- Gross profit for FY2022 increased by 494%, from $2.4 million to $14.4 million YoY<\/i><\/li>\n
- Company reaffirms its 2023 revenue guidance to range between $90 million – $105 million<\/i><\/li>\n
- Flora management to host a webcast Monday, April 3, at 8:00 am ET<\/i><\/li>\n<\/ul>\n
FORT LAUDERDALE, Fla.–(BUSINESS WIRE<\/a>)–
\nFlora Growth Corp. (NASDAQ: FLGC<\/a>) (\u201cFlora” or the \u201cCompany\u201d), a leading cultivator, manufacturer and distributor of global cannabis products and brands, reported today its financial and operating results for the fiscal year ended December 31, 2022. All financial information is provided in U.S. dollars unless indicated otherwise.\n<\/p>\n\n\u201cIn 2022, we not only met our revenue guidance but reported both quarterly and annual record revenue. This accomplishment was thanks to the successful completion and integration of our M&A transactions, the compelling value proposition of our products in our House of Brands and the operational milestones we achieved throughout the year,\u201d said Luis Merchan, Chairman and CEO of Flora. “It is important to note that we have accomplished all this despite having to navigate one of the most hostile business environments to date, especially for the cannabis industry. Nonetheless, we achieved both quarterly and annual record revenue, improved margins and increased our gross profits – all while cutting costs and improving operational efficiencies.\u201d\n<\/p>\n
\n\u201cToday, I remain more confident than ever in Flora\u2019s opportunity to not only be one of the largest players in the international cannabis industry but to change the global landscape of cannabis. I am proud to reaffirm the 2023 revenue guidance we shared earlier in the year of between $90 million and $105 million,\u201d Merchan added.\n<\/p>\n
FY2022 Financial Highlights<\/span><\/b><\/p>\n
- \n
- \nFor the FY2022, Flora generated $37.2 million in revenue, a 314% increase year-over-year. This was primarily driven by the House of Brands businesses. Additionally, in Q4 2022, revenue was $11.5 million, a 7% sequential increase from Q3 2022, driven primarily by organic growth.\n<\/li>\n
- \nGross profit for FY2022 increased by 494% year-over-year to $14.4 million.\n<\/li>\n
- \nGross margin improved year-over-year from 27% in FY2021 to 39% FY2022.\n<\/li>\n
- \nAdjusted EBITDA loss for FY2022 was $18.3 million, up from $16.5 million in FY2021.\n<\/li>\n
- \nAdjusted EBITDA margin for FY2022 improved to -49.3% from -184.2% in FY2021.\n<\/li>\n
- \nNet loss for FY2022 was $52.6 million as compared to $21.4 million for FY2021 and net loss margin for FY2022 improved to -141.6% from -237.9% in FY2021.\n<\/li>\n
- \nFY2022 capex decreased to $1.3 million from $4 million in the prior year. This decrease was primarily driven by the completion of larger projects in 2021, such as the build-out of the Company\u2019s Colombian cannabis production facility, Cosechemos, while 2022 capital expenditures included smaller-scale projects focused on realizing operations at Cosechemos and Flora\u2019s labs.\n<\/li>\n
- \nOperating expenses for FY2022 were $67.7 million, of which almost half were due to non-cash charges, including an impairment charge of $26.2 million as well as depreciation and amortization, purchase price allocation, and share-based compensation charges.\n<\/li>\n
- \nAs a percentage of sales, operating expenses for 2022 decreased from 239% in FY2021 to 182% in FY2022.\n<\/li>\n
- \nAs of December 31, 2022, the Company had approximately $9.5 million in cash and cash equivalents as compared to $37.6 million as of December 31, 2021.\n<\/li>\n<\/ul>\n
\nAdjusted EBITDA loss and Adjusted EBITDA margin are non-U.S. GAAP figures. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures has been provided in the section titled \u201cAbout Non-GAAP Financial Measures\u201d. Important disclosures regarding the use of non-U.S. GAAP supplemental financial measures are also included below.\n<\/p>\n
2023 Outlook<\/span><\/b><\/p>\n
- \n
- \nFlora\u2019s 2023 revenue guidance of $90 million to $105 million reflects expected organic growth in the House of Brands division and expansion of the Commercial and Wholesale division\u2019s capabilities.\n<\/li>\n
- \nHouse of Brands and Commercial and Wholesale divisions expect roughly equal contributions to total revenue, while the Pharmaceutical division is expected to contribute up to 10% of total revenue.\n<\/li>\n
- \nFlora continues to evaluate future M&A transactions that align with the goal of creating one of the world’s largest end-to-end cannabis supply chains.\n<\/li>\n
- \nThe Company furthered its commitment to organizational and financial efficiencies, implementing internal cost controls and focusing on high-margin revenue generation.\n<\/li>\n<\/ul>\n
Recent Operational Highlights<\/span><\/b><\/p>\n
- \n
- \nAcquired Franchise Global Health (FGH), an international cannabis company with primary operations in Germany.\n<\/li>\n
- \nFlora\u2019s House of Brands saw an increase in customer base to approximately 500,000 consumers and expanded distribution to over 14,000 doors.\n<\/li>\n
- \nBecame a domestic reporter with respect to Securities and Exchange Commission (the \u201cSEC\u201d) filings under the Exchange Act of 1934, as amended (the \u201cExchange Act\u201d) and transitioned to financial reporting under U.S. Generally Accepted Accounting Principles (\u201cU.S. GAAP\u201d).\n<\/li>\n
- \nJustCBD achieved record-breaking sales during the Black Friday Sales Event in 2022, making it the most successful sales event in the Company’s history.\n<\/li>\n
- \nCompleted construction of Bogota, Colombia-based Flora Lab 4, a laboratory specializing in prescription cannabis formulations.\n<\/li>\n
- \nAs a result of the FGH acquisition, Flora appointed former FGH CEO Clifford Starke as President of Flora and member of the Board of Directors and former FGH Chief Operating Officer Edward Woo as a member of the Board of Directors.\n<\/li>\n
- \nCompleted its first extraction of CBD isolate through Flora Lab 1, and successful importation to the United States.\n<\/li>\n
- \nReceived 2022 export quota from the Colombian government for 43,600kg of high-THC cannabis.\n<\/li>\n
- \nColombian government released regulations allowing for THC export, with export to partners beginning in Q4 2022 – broadening the Company’s opportunity for international export.\n<\/li>\n
- \nAwarded best M&A transaction at Benzinga Capital Conference for the acquisition of JustBrands.\n<\/li>\n<\/ul>\n
Earnings Call: April 3, 2023, at 8:00AM ET<\/b><\/p>\n
Live Webcast Details<\/b><\/p>\n
Date:<\/b> Monday, April 3, 2023\n<\/p>\n
Time:<\/b> 8:00 a.m. ET\n<\/p>\n
Online Participant Link: <\/b>https:\/\/us02web.zoom.us\/webinar\/register\/WN_Y0I1RwIISN6Y2sn8I5QEYQ<\/a><\/p>\n
\nAfter registering, you will receive a confirmation email containing information about joining the webinar.\n<\/p>\n
\nThe live webcast will be available online through the above participant link and will be archived and available on the investor page of the Company\u2019s website within approximately 24 hours, until April 2024.\n<\/p>\n
About Flora Growth Corp.<\/b><\/p>\n
\nFlora Growth Corp. is a global cannabis company dedicated to bringing the benefits of cannabis to people worldwide. Our commitment is to create, master and connect the international cannabis supply chain by setting the standard for world-class cultivation and manufacturing, thoughtful brand development, and rigorous research and development of medical-grade cannabis products that meet the highest standards of quality, safety, and efficacy. Our mission is to create a world where the benefits of cannabis are accessible to everyone, and we are working toward that goal by becoming a leading importer and exporter of cannabis to meet demand in every corner of the market. Visit www.floragrowth.com<\/a> or follow @floragrowthcorp on social media for more information.\n<\/p>\n
Cautionary Statement Concerning Forward-Looking Statements<\/i><\/b><\/p>\n
This press release contains \u2018\u2018forward-looking statements,\u2019\u2019 as defined by federal securities laws. Forward-looking statements reflect Flora\u2019s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words \u201cbelieve,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201cmay,\u201d \u201cplan,\u201d \u201cestimate,\u201d \u201cintend,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled \u201cRisk Factors\u201d in Flora\u2019s Annual Report on Form 10-K for year ended December 31, 2022 filed with the SEC on March 31, 2023, as such factors may be updated from time to time in Flora\u2019s periodic filings with the SEC, which are accessible on the SEC\u2019s website at <\/i>www.sec<\/i><\/a>.gov and under the Company\u2019s SEDAR profile at www.sedar.com<\/a>. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora\u2019s filings with the SEC. While forward-looking statements reflect Flora\u2019s good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Flora (or to third parties making the forward-looking statements).<\/i><\/p>\n
About Non<\/i><\/b>–U.S. GAAP Measures<\/i><\/b><\/p>\n
\nAdjusted EBITDA is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA as total net loss, plus (minus) income taxes (benefit), plus (minus) interest expense (income), plus depreciation and amortization, plus (minus) non-operating expense (income), plus share based compensation expense, plus goodwill and other asset impairment charges, plus (minus) unrealized loss (gains) from changes in fair value, plus charges related to the flow-through of inventory step-up on business combinations, plus other acquisition and transaction costs. Management believes that Adjusted EBTIDA provides meaningful and useful financial information as this measure demonstrates the operating performance of the business.\n<\/p>\n
\nAdjusted EBITDA margin % is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA margin % as Adjusted EBITDA, as described above, divided by revenue for the period.\n<\/p>\n
\nThe reconciliation of the Company\u2019s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below:\n<\/p>\n
\nManagement believes that this non-U.S. GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information. Management reviews these non-U.S. GAAP financial measures on a regular basis and uses them, together with financial measures included in the Company\u2019s financial statements, to evaluate and manage the performance of the Company\u2019s operations. These measures should be evaluated in conjunction with the comparable U.S. GAAP financial numbers reported by the Company.\n<\/p>\n
Table 1. Consolidated Statements of Financial Position<\/b><\/p>\n
\n
\n \n \nConsolidated Statements of Financial Position\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(in thousands of United States dollars, except share amounts which are in thousands of shares)\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAs at:\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n December 31, 2022<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \nDecember 31, 2021\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nASSETS\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCurrent\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCash\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 9,537<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n37,614\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nRestricted cash\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTrade and amounts receivable, net of $2,988 allowance ($1,252 at 2021)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 6,851<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n5,324\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLoans receivable and advances\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 271<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n273\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPrepaid expenses and other current assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 978<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,700\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIndemnification receivables\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 3,429<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInventory\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 10,089<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,030\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal current assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 31,155<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n47,943\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-current\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
<\/tr>\n \n \n \nProperty, plant and equipment\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 4,810<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,750\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOperating lease right of use assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 2,537<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,229\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIntangible assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n 18,096<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n9,736\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGoodwill\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n 23,372<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n20,054\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInvestments\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n 730<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,670\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther Assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 287<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n97\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal assets\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 80,987<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n85,479\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLIABILITIES\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCurrent\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
<\/tr>\n \n \n \nTrade payables\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 7,748<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n2,415\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nContingencies\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 5,044<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,033\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCurrent portion of debt\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 1,086<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n18\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCurrent portion of operating lease liability\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 1,188<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n412\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther accrued liabilities\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 2,381<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,241\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal current liabilities\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 17,447<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n6,119\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-current\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
<\/tr>\n \n \n \nNon-current operating lease liability\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 1,869<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n908\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nDeferred tax\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 1,712<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,511\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nContingent purchase considerations\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 3,547<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal liabilities\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 24,575<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8,538\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nSHAREHOLDERS’ EQUITY\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
<\/tr>\n \n \n \nShare capital, no par value, unlimited authorized, 135,573 issued and outstanding (65,517 at 2021)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdditional paid-in capital\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 150,420<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n116,810\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAccumulated other comprehensive loss\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n (2,732)<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,108)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nDeficit\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n (90,865)<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(38,536)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal Flora Growth Corp. shareholders\u2019 equity\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 56,823<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n77,166\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-controlling interest in subsidiaries\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n (411)<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(225)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal Shareholders’ equity\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 56,412<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n76,941\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal liabilities and shareholders’ equity\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 80,987<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n85,479\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n Table 2. Consolidated Statements of Loss and Comprehensive Loss<\/b><\/p>\n
\n
\n \n \nConsolidated Statements of Loss and Comprehensive Loss\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(in thousands of United States dollars, except per share amounts which are in thousands of shares)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n For the year ended December 31, 2022<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n For the year ended December 31, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Revenue<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$37,171\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$8,980\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cost of sales<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n22,757\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n6,555\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Gross profit<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n14,414\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n2,425\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating expenses<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \u00a0<\/td>\n <\/tr>\n \n \n \nConsulting and management fees\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n11,342\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n7,324\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nProfessional fees\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n4,398\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n4,269\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGeneral and administrative\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n4,495\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n922\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPromotion and communication\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n8,416\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n3,585\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTravel expenses\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,055\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n603\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nShare based compensation\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n3,404\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,340\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nResearch and development\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n430\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n132\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOperating lease expense\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,221\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n316\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nDepreciation and amortization\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n2,629\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n501\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nBad debt expense\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,607\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,335\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGoodwill impairment\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n25,452\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n51\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther asset impairments\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n783\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n–\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther expenses (income), net\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n2,489\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n1,050\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal operating expenses\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n67,721\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n21,428\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating loss<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(53,307)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(19,003)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest (income) expense\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(56)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n32\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nForeign exchange loss\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n323\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n79\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nUnrealized loss from changes in fair value\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n593\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n2,345\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet loss before income taxes\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(54,167)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(21,459)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIncome tax benefit\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(1,538)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(98)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Net loss for the period<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(52,629)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(21,361)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Other comprehensive loss<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \u00a0<\/td>\n <\/tr>\n \n \n \nExchange differences on foreign operations, net of income taxes of $nil ($nil in 2021)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(1,624)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(1,147)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Total comprehensive loss for the period<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(54,253)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(22,508)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n \n \nNet loss attributable to:\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \u00a0<\/td>\n <\/tr>\n \n \n \nFlora Growth Corp.\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(52,415)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(21,249)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-controlling interests in subsidiaries\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(214)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(112)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nComprehensive loss attributable to:\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \u00a0<\/td>\n <\/tr>\n \n \n \nFlora Growth Corp.\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(54,039)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(22,396)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-controlling interests in subsidiaries\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(214)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(112)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nBasic and diluted loss per share attributable to Flora Growth Corp.\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(0.68)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$(0.48)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nWeighted average number of common shares outstanding – basic and diluted\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n76,655\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n43,954\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n Table 3. Statement of Cash Flows<\/b><\/p>\n
\n
\n \n \nConsolidated Statement of Cash Flows\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(in thousands of United States dollars)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n For the year ended December 31, 2022<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n For the year ended December 31, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Cash flows from operating activities:<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n <\/tr>\n \n \n \nNet loss\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n$\n<\/p>\n<\/td>\n
\n \n(52,629\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n(21,361\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjustments to net loss:\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n <\/tr>\n \n \n \nDepreciation and amortization\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,629\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n501\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nStock-based compensation\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,404\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,340\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGoodwill impairment\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n25,452\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n51\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther asset impairments\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n783\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nChanges in fair value of investments and liabilities\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n593\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,345\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nBad debt expense\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,607\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,335\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest (income) expense\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(56\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n84\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest paid\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(4\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(78\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIncome tax expense (benefit)\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,538\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(98\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(19,759\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(15,881\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet change in non-cash working capital:\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n <\/tr>\n \n \n \nTrade and other receivables\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n143\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(5,688\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInventory\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,219\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,213\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPrepaid expenses and other assets\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,372\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,204\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTrade payables and accrued liabilities\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,090\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,047\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Net cash used in operating activities<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n (15,935<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n (20,939<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n <\/tr>\n \n \n Cash flows from financing activities:<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n <\/tr>\n \n \n \nCommon shares issued\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n4,551\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n42,617\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nWarrants issued\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n449\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8,706\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nEquity issue costs\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(520\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(5,475\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nExercise of warrants and options\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n187\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n12,851\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCommon shares repurchased\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(255\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLoan borrowings\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n197\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLoan repayments\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(196\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(302\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Net cash provided by financing activities<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n 4,413<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 58,397<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cash flows from investing activities:<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \u00a0<\/td>\n <\/tr>\n \n \n \nLoans Provided\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(273\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLoan repayments received\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n302\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPurchases of property, plant and equipment and intangible assets\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,294\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(3,983\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPurchase of investments\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(2,509\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nBusiness and asset acquisitions, net of cash acquired\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(14,508\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(8,087\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Net cash used in investing activities<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n (15,802<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n (14,550<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nEffect of exchange rate on changes on cash\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(755\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(815\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Change in cash during the period<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n (28,079<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 22,093<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCash and restricted cash at beginning of period\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n37,616\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n15,523\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cash and restricted cash at end of period<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n$\n<\/p>\n<\/td>\n
\n \n9,537\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n37,616\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Supplemental disclosure of non-cash investing and financing activities<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCommon shares issued for business combinations\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n$\n<\/p>\n<\/td>\n
\n \n24,712\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$\n<\/p>\n<\/td>\n
\n \n20,654\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCommon shares issued for other agreements\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,470\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,507\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOperating lease additions to right of use assets\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,919\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,233\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
Table 4. Reconciliation of GAAP to non-U.S.GAAP financial results<\/b><\/p>\n
Table 4<\/b><\/p>\n
\nReconciliation of GAAP to non-U.S.GAAP financial results\n<\/p>\n
\n
\n \n \n(In thousands of United States dollars)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n For the year ended December 31, 2022<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n For the year ended December 31, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Net loss for the period<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n (52,629<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n (21,361<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nIncome tax expense (benefit)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,538\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(98\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest (income) expense\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(56\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n32\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nDepreciation and amortization\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,629\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n501\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNon-operating expense (1)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n323\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n79\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nShare based compensation\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n3,404\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,340\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGoodwill and asset impairments\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n26,235\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n51\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nUnrealized loss from changes in fair value (2)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n593\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,345\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCharges related to the flow-through of inventory step-up on business combinations\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,676\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n342\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther acquisition and transaction costs\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,055\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n229\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted EBITDA<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n (18,308<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n (16,540<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted EBITDA Margin %<\/i><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n -49.3<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n -184.2<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n
\n \u00a0<\/td>\n \n \n(1)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \nNon-operating expense includes foreign exchange gain (loss).\n<\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/td>\n \n \n(2)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \nUnrealized loss from changes in fair value includes changes in the value of the Company\u2019s long-term investment in an early-stage European cannabis company and the value of the Company\u2019s contingent consideration associated with its acquisition of JustCBD.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nThe reconciliation of the Company\u2019s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below: For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures, please see Table 4 under “Reconciliation of GAAP to non-U.S. GAAP financial results” included at the end of this release.\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230331005404\/en\/<\/a><\/span><\/p>\n
Investor Relations:
\n<\/b>
Investor Relations
\n
ir@floragrowth.com
\n<\/a><\/p>\n
- Record Q4 2022 revenue increased to $11.5 million, a 7% sequential increase from Q3 2022<\/i><\/li>\n