Clever Leaves Reports Fourth Quarter and Full Year 2022 Results
On March 30, 2023, Clever Leaves reported a significant revenue increase, with fourth-quarter cannabinoid revenue rising 71% to $1.9 million and full-year cannabinoid revenue up 90% to $6.1 million. Total revenue for 2022 reached $17.8 million, a 16% year-over-year growth. The company has implemented cost reductions, achieving a 30% decrease in G&A and a notable 82% reduction in capital expenditures. However, net loss expanded to $66.2 million, driven by restructuring expenses and impairment charges. Looking ahead, Clever Leaves projects 2023 revenue between $19 million and $22 million and aims for adjusted EBITDA losses between $(13.6) million and $(10.6) million.
- Fourth-quarter cannabinoid revenue increased 71% to $1.9 million.
- Full-year cannabinoid revenue grew 90% to $6.1 million.
- Total annual revenue rose 16% year-over-year to $17.8 million.
- G&A expenses and sales/marketing costs decreased by 30%.
- Capital expenditures dropped 82% in 2022.
- Net loss increased to $66.2 million from $45.7 million.
- Operational costs per gram increased significantly to $0.87 from $0.22.
- Ongoing restructuring expenses related to the Portugal operations.
- Fourth Quarter and Full Year 2022 Cannabinoid Revenue Increased
- Steady Cost Reductions and Portugal Wind-Down Expected to Drive Production, Cost, and CapEx Efficiencies -
- Announces Financial Outlook and Key Focus Markets for 2023 -
TOCANCIPÁ, Colombia, March 30, 2023 (GLOBE NEWSWIRE) -- Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) (“Clever Leaves” or the “Company”), a leading multinational operator and licensed producer of pharmaceutical-grade cannabinoids, is reporting financial and operating results for the fourth quarter and full year ended December 31, 2022. All financial information is provided in US dollars unless otherwise indicated.
“2022 was a transformational year for Clever Leaves as we executed on our refined growth strategy,” said Andres Fajardo, CEO of Clever Leaves. “Our full year revenue growth exceeded our revised 2022 guidance target, reflecting the commercial traction we have gained across our target markets in our cannabinoid business, which grew
Fourth Quarter 2022 Summary vs. Same Year-Ago Quarter
- Revenue increased
10% to$4.6 million compared to$4.2 million . Cannabinoid revenue increased71% to$1.9 million compared to$1.1 million , and non-cannabinoid revenue was$2.8 million compared to$3.1 million . - All-in cost per gram of dry flower was
$3.46 compared to$0.47 , attributed to the Company’s significantly reduced agricultural output, along with ongoing extraction and processing costs at its Colombian operations. Cost per gram in the fourth quarter of 2022 also reflects higher expenses related to the Portugal operations, which the Company is in the process of winding down. - Gross profit, including a
$0.9 million inventory provision, improved to$0.7 million , as compared to$(0.3) million gross profit in the year-ago quarter, which included a$3.0 million inventory provision. Adjusted gross profit (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, was$1.6 million compared to$2.7 million . - Gross margin, which included such inventory provision of
$0.9 million , was15.3% compared to (6.9)%, which included such inventory provision of$3.0 million . Adjusted gross margin (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, was35.2% compared to64.1% . - Net loss was
$28.8 million compared to$24.0 million , driven primarily by a$23.1 million restructuring charge the Company recorded during the quarter. Net loss in the year-ago period included an$18.5 million non-cash goodwill impairment charge and a$3.3 million non-cash share-based compensation expense. - Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) improved to
$(5.2) million compared to$(6.6) million .
Full Year 2022 Summary vs. 2021
- Revenue increased
16% to$17.8 million compared to$15.4 million . Cannabinoid revenue increased90% to$6.1 million compared to$3.2 million , and non-cannabinoid revenue was$11.7 million compared to$12.1 million . - All-in cost per gram of dry flower was
$0.87 compared to$0.22 , attributed to the aforementioned reduced agricultural output in Colombia, as well as continued extraction processing costs on current inventory. Cost per gram during the year also reflects higher production expenses related to the Portugal operations, which the Company is in the process of winding down. - Gross profit was
$4.3 million , which included a$4.7 million inventory provision, compared to$6.8 million , which included a$3.0 million inventory provision. Adjusted gross profit, which excluded such inventory provisions, was$9.1 million compared to$9.8 million . - Gross margin, which included such inventory provision of
$4.7 million , was24.3% compared to44.3% , which included such inventory provision of$3.0 million . Adjusted gross margin, which excluded such inventory provisions, was50.9% compared to63.7% . - Net loss was
$66.2 million compared to$45.7 million . This was primarily attributable to a$26.9 million restructuring expense—largely driven by the aforementioned charge related to the Company’s wind-down of its Portugal operations—as well as the$19.0 million intangible asset impairment charge the Company recorded on its cannabis-related licenses in Colombia during the third quarter of 2022. Net loss in the prior year included the aforementioned$18.5 million non-cash goodwill impairment charge, as well as an$11.5 million non-cash share-based compensation expense and was offset by the$16.9 million gain on measurement of warrant liability. - Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) was
$(23.1) million compared to$(23.7) million .
Fajardo continued: “Throughout 2022, we worked to align our commercial efforts on a select set of core international markets, while optimizing our cost structure and balance sheet to best support these pipeline opportunities. We activated and ramped our market pathways across Australia, Germany, Brazil, and Israel, signing new agreements and further developing our existing partnerships. To enhance our capital efficiency, we implemented various restructuring initiatives and paid off our two largest debt instruments, which we believe will allow us to drive greater cost savings and take meaningful steps towards positive cash flow.
“As we previously announced, we believe the ongoing wind-down of our Portugal operations—and our resulting exclusive operational focus on Colombia—will further advance our strategic progress. While we expect to continue incurring restructuring charges related to the wind-down through the first half of this year, we anticipate that the operational transition will significantly reduce our cash burn over the longer term. From a product standpoint, we are on track to complete our first commercial dry flower export from Colombia to Australia early in the second quarter of this year, with the expectation of launching Colombian flower exports to Germany, Israel, and the United Kingdom by the second half of this year. As we finalize our preparations for dry flower exports in Colombia, we expect to leverage the benefits of our mature, expansive, and cost-efficient production infrastructure.
“As we look to the year ahead, we believe we are well-positioned to further develop the commercial pathways we have forged across our target markets for both extracts and dry flower, while driving incremental improvements in our cost structure and capital efficiency. We look forward to building upon our strong foundation in Colombia and expanding our global reach as a nimble multinational cannabis operator.”
Fourth Quarter 2022 Financial Results
Revenue in the fourth quarter of 2022 increased
All-in cost per gram of dry flower in the fourth quarter of 2022 was
Gross profit, including a
Operating expenses in the fourth quarter of 2022 were
Net loss in the fourth quarter of 2022 was
Adjusted EBITDA in the fourth quarter of 2022 was
Cash, cash equivalents and restricted cash were
Full Year 2022 Financial Results
Revenue in 2022 increased
All-in cost per gram of dry flower in 2022 was
Gross profit, which included a
Operating expenses in 2022 were
Net loss in 2022 was
Adjusted EBITDA in 2022 improved to
2023 Outlook and Strategic Growth Objectives
Pursuant to the operational and commercial progress the Company made during 2022, Clever Leaves expects its full year 2023 revenue to range between
To further progress its commercial momentum, Clever Leaves has identified the following focused strategic growth objectives and key regions for 2023:
- Focused Commercial Strategy: The Company will continue to capitalize on its commercial traction within a concentrated set of core markets:
- Australia: Complete commercial launch of Colombian flower shipments and capitalize on existing flower traction. Continue scaling and securing additional extract sales agreements.
- Germany: Support additional product sales through current extract B2B partnerships. Prepare for launch of Colombian flower in the second half of 2023, leveraging the Company’s IQANNA brand and its B2B partnerships.
- Brazil: Continue activating sales agreements for products that have recently received regulatory approval and complete approvals for other key products.
- Israel: Support current momentum for isolates and APIs and prepare for the launch of Colombian flower in the second half of 2023.
- United Kingdom: Activate and scale early commercial opportunities.
- Colombia: Sell products in the local market through insurance, leveraging changes in regulation enacted in December of 2022.
- Low-Cost, High-Quality Production in Colombia: After concentrating its operations in Colombia, Clever Leaves will continue to expand its already successful extract portfolio and will commercially launch its high-THC flower produced in Colombia. The Company will leverage its scale, operating experience, and factor costs to continue improving margins.
- Optimized Cash Management: As the Company works to accelerate revenue growth, leverage its low-cost unit economics in Colombia, and continue reducing its operating expenses and capital intensity, it is focused on improving its balance sheet, which may include several initiatives such as raising capital, reducing working capital and monetizing non-core assets. The Company remains committed to maintaining a lean and efficient expense structure to optimize its ability to drive continued growth and create shareholder value.
With the new cost structure and unit economics, revenue and expected growth, and operating footprint, Clever Leaves believes it is well-positioned for the new opportunities emerging in the global cannabis market. These include a larger number of markets regulating medical cannabis, progress towards the legalization of adult-use cannabis in various international markets, and the development of large nascent markets, like Brazil or Australia.
Extension for Nasdaq Minimum Bid Price Requirement
On September 29, 2022, Clever Leaves received a deficiency notice from the Nasdaq Listing Qualifications department (“the Staff”) because its closing share price was below
On March 29, 2023, the Company received a second notice from Nasdaq indicating that, while Clever Leaves has not regained compliance with the Minimum Bid Price Requirement, the Staff has determined that we are eligible for an additional 180 calendar day period, or until September 25, 2023 (the “Second Compliance Period”), to regain compliance. According to the Second Notice, the Staff’s determination was based on (i) the Company’s common shares meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and (ii) the written notice of the Company’s intention to cure the deficiency during the Second Compliance Period by effecting a reverse share split, if necessary. If at any time during the Second Compliance Period, the closing bid price of the Company’s common shares is at least
The Company is actively monitoring the bid price for its common shares and will consider available options to resolve the deficiency and regain compliance with the Nasdaq minimum bid price requirement. Further information on the bid price deficiency and potential actions can be found in the Company’s Form 10-K for the year ended December 31, 2022.
Conference Call
Clever Leaves will conduct a conference call today at 5:00 p.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2022.
Clever Leaves management will host the conference call, followed by a question-and-answer session.
Conference Call Date: March 30, 2023
Time: 5:00 p.m. Eastern time
Toll-free dial-in number: 1-855-238-2333
International dial-in number: 1-412-317-5222
Conference ID: 10175028
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.
The conference call will be broadcast live and available for replay here.
A telephonic replay of the conference call will also be available after 8:00 p.m. Eastern time on the same day through April 4, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10175028
About Clever Leaves Holdings Inc.
Clever Leaves is a leading multinational operator and licensed producer of pharmaceutical-grade cannabinoids. Its operations in Colombia produce cannabinoid active pharmaceutical ingredients (API) and finished products in flower and extract form to a growing base of B2B customers around the globe. Clever Leaves aims to disrupt the traditional cannabis production industry by leveraging environmentally sustainable, ESG-friendly, industrial-scale and low-cost production methods, with the world’s most stringent pharmaceutical quality certifications. We announce material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and our website (https://cleverleaves.com). We use these channels, as well as social media, including our Twitter account (@clever_leaves), and our LinkedIn page (https://www.linkedin.com/company/clever-leaves), to communicate with investors and the public about our Company, our products, and other matters. Therefore, we encourage investors, the media, and others interested in our Company to review the information we make public in these locations, as such information could be deemed to be material information. Information on or that can be accessed through our websites or these social media channels is not part of this release, and references to our website addresses and social media channels are inactive textual references only.
Non-GAAP Financial Measures
In this press release, Clever Leaves refers to certain non-GAAP financial measures including Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin. Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA is defined as income/loss from continuing operations before interest, taxes, depreciation and amortization, share-based compensation expense, intangible asset impairment, restructuring expenses, gain on investments, foreign exchange gain/loss, gains/losses on the early extinguishment of debt, gain/loss on remeasurement of warrant liability, equity investment share of gain/loss and other expense/income. Adjusted Gross Profit (and the related Adjusted Gross Margin measure) is defined as gross profit excluding inventory provision. Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin also exclude the impact of certain non-recurring items that are not directly attributable to the underlying operating performance. Clever Leaves considers Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin to be meaningful indicators of the performance of its core business. Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For reconciliations of Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin to the most directly comparable U.S. GAAP measures, see the relevant schedules provided with this press release. We have not provided or reconciled the non-GAAP forward-looking information to their corresponding GAAP measures because the exact amounts for these items are not currently determinable without unreasonable efforts but may be significant.
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “evolve,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “opportunity,” “outlook,” “pipeline,” “plan,” “predict,” “potential,” “projected,” “seek,” “seem,” “should,” “will,” “would” and similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements as well as our outlook for 2023 are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Important factors that may affect actual results or the achievability of the Company’s expectations include, but are not limited to: (i) our ability to continue as a going concern; (ii) our ability to maintain the listing of our securities on Nasdaq; (iii) our ability to implement our restructuring initiatives; (iv) expectations with respect to future operating and financial performance and growth, including if or when Clever Leaves will become profitable; (v) Clever Leaves’ ability to execute its business plans and strategy and to receive regulatory approvals (including its goals in its five key markets); (vi) Clever Leaves’ ability to capitalize on expected market opportunities, including the timing and extent to which cannabis is legalized in various jurisdictions; (vii) global economic and business conditions, including recent economic sanctions against Russia and their effects on the global economy; (viii) geopolitical events (including the ongoing military conflict between Russia and Ukraine), natural disasters, acts of God and pandemics, including the economic and operational disruptions and other effects of COVID-19 such as the global supply chain crisis, travel restrictions, delays or disruptions to physical shipments (including outright bans on imported products), delays in issuing licenses and permits, delays in hiring necessary personnel to carry out sales, cultivation and other tasks, and financial pressures upon Clever Leaves and its customers; (ix) regulatory developments in key markets for the Company's products, including international regulatory agency coordination and increased quality standards imposed by certain health regulatory agencies, and failure to otherwise comply with laws and regulations; (x) uncertainty with respect to the requirements applicable to certain cannabis products as well as the permissibility of sample shipments, and other risks and uncertainties; (xi) consumer, legislative, and regulatory sentiment or perception regarding Clever Leaves’ products; (xii) lack of regulatory approval and market acceptance of Clever Leaves’ new products which may impede its ability to successfully commercialize its products; (xiii) the extent to which Clever Leaves’ is able to monetize its existing THC market quota within Colombia; (xiv) demand for Clever Leaves’ products and Clever Leaves’ ability to meet demand for its products and negotiate agreements with existing and new customers, including the sales agreements identified as a part of the Company’s 2022 strategic growth objectives; (xv) developing product enhancements and formulations with commercial value and appeal; (xvi) product liability claims exposure; (xvii) lack of a history and experience operating a business on a large scale and across multiple jurisdictions; (xviii) limited experience operating as a public company; (xix) changes in currency exchange rates and interest rates; (xx) weather and agricultural conditions and their impact on the Company’s cultivation and construction plans, (xxi) Clever Leaves’ ability to hire and retain skilled personnel in the jurisdictions where it operates; (xxii) Clever Leaves’ rapid growth, including growth in personnel; (xxiii) Clever Leaves’ ability to remediate a material weakness in its internal control cover financial reporting and to develop and maintain effective internal and disclosure controls; (xxiv) potential litigation; (xxv) access to additional financing; and (xxvi) completion of our construction initiatives on time and on budget. The foregoing list of factors is not exclusive. Additional information concerning certain of these and other risk factors is contained in Clever Leaves’ most recent filings with the SEC. All subsequent written and oral forward-looking statements concerning Clever Leaves and attributable to Clever Leaves or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Clever Leaves expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Clever Leaves Investor Inquiries:
Cody Slach or Jackie Keshner
Gateway Group, Inc.
+1-949-574-3860
CLVR@gatewayir.com
Clever Leaves Press Contacts:
Rich DiGregorio
KCSA Strategic Communications
+1-856-889-7351
cleverleaves@kcsa.com
Clever Leaves Commercial Inquiries:
Andrew Miller
Vice President Sales - EMEA, North America, and Asia-Pacific
+1-416-817-1336
andrew.miller@cleverleaves.com
| CLEVER LEAVES HOLDINGS INC. | ||||||
| Consolidated Statements of Financial Position | ||||||
| (Amounts in thousands of U.S. Dollars, except share and per share data) | ||||||
| (Audited) | ||||||
| December 31, 2022 | December 31, 2021 | |||||
| Assets | ||||||
| Current: | ||||||
| Cash and cash equivalents | $ | 12,449 | $ | 37,226 | ||
| Restricted cash | 439 | 473 | ||||
| Accounts receivable, net | 2,252 | 2,222 | ||||
| Prepaids, deposits and other receivables | 2,708 | 5,064 | ||||
| Inventories, net | 8,399 | 15,408 | ||||
| Total current assets | 26,247 | 60,393 | ||||
| Investment – Cansativa | 5,679 | 1,458 | ||||
| Property, plant and equipment, net | 15,463 | 30,932 | ||||
| Intangible assets, net | 3,354 | 23,117 | ||||
| Operating lease right-of-use assets, net | 1,303 | - | ||||
| Other non-current assets | 52 | 260 | ||||
| Total Assets | $ | 52,098 | $ | 116,160 | ||
| Liabilities | ||||||
| Current: | ||||||
| Accounts payable | 2,299 | 3,981 | ||||
| Accrued expenses and other current liabilities | 4,238 | 2,898 | ||||
| Convertible note due 2024, current portion | - | 16,559 | ||||
| Loans and borrowings, current portion | 465 | 949 | ||||
| Warrant liability | 113 | 2,205 | ||||
| Operating lease liabilities, current portion | 1,239 | - | ||||
| Deferred revenue | 1,072 | 653 | ||||
| Total current liabilities | $ | 9,426 | $ | 27,245 | ||
| Convertible note due 2024 | - | 1,140 | ||||
| Loans and borrowings | 1,065 | 6,447 | ||||
| Deferred revenue | - | 1,548 | ||||
| Operating lease liabilities - Long-term | 1,087 | |||||
| Deferred tax liabilities | - | 6,650 | ||||
| Other long-term liabilities | 112 | 360 | ||||
| Total Liabilities | $ | 11,690 | $ | 43,390 | ||
| Shareholders’ equity | ||||||
| Additional paid-in capital | 221,313 | 187,510 | ||||
| Accumulated deficit | (180,905 | ) | (114,740 | ) | ||
| Total shareholders' equity | 40,408 | 72,770 | ||||
| Total liabilities and shareholders' equity | $ | 52,098 | $ | 116,160 | ||
| CLEVER LEAVES HOLDINGS INC. | |||||||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||||
| (Amounts in thousands of U.S. Dollars, except share and per share data) | |||||||||||||||
| (Unaudited) | (Audited) | ||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenue, net | $ | 4,614 | $ | 4,194 | $ | 17,800 | $ | 15,374 | |||||||
| Cost of sales | (3,906 | ) | (4,485 | ) | (13,470 | ) | (8,565 | ) | |||||||
| Gross Profit | 708 | (291 | ) | 4,330 | 6,809 | ||||||||||
| Expenses | |||||||||||||||
| General and administrative | 5,454 | 7,980 | 27,815 | 39,279 | |||||||||||
| Sales and marketing | (179 | ) | 1,499 | 1,897 | 2,915 | ||||||||||
| Research and development | 605 | 1,546 | 1,719 | 1,546 | |||||||||||
| Restructuring expenses | 23,151 | - | 26,942 | ||||||||||||
| Intangible asset impairment | - | - | 19,000 | ||||||||||||
| Goodwill impairment | - | 18,508 | - | 18,508 | |||||||||||
| Depreciation and amortization | 497 | 328 | 2,059 | 1,768 | |||||||||||
| Total expenses | 29,528 | 29,861 | 79,432 | 64,016 | |||||||||||
| Loss from operations | (28,820 | ) | (30,152 | ) | (75,102 | ) | (57,207 | ) | |||||||
| Other Expense (Income), Net | |||||||||||||||
| Interest and amortization of debt issuance cost | (17 | ) | 4,435 | 2,702 | 6,818 | ||||||||||
| Gain on remeasurement of warrant liability | (83 | ) | (11,466 | ) | (2,092 | ) | (16,856 | ) | |||||||
| Gain on investments | - | - | (6,851 | ) | - | ||||||||||
| Loss (gain) on debt extinguishment, net | - | 113 | 2,263 | (3,262 | ) | ||||||||||
| Foreign exchange (gain) loss | (291 | ) | 139 | 1,129 | 1,276 | ||||||||||
| Other expense ( income), net | 91 | (379 | ) | 202 | (502 | ) | |||||||||
| Total other income, net | (300 | ) | (7,158 | ) | (2,647 | ) | (12,526 | ) | |||||||
| Loss before income taxes and equity investment loss | (28,520 | ) | (22,994 | ) | (72,455 | ) | (44,681 | ) | |||||||
| Deferred income tax (recovery) expense | - | 950 | (6,650 | ) | 950 | ||||||||||
| Current income tax expense | 296 | - | 296 | - | |||||||||||
| Equity investment share of loss | - | 56 | 64 | 95 | |||||||||||
| Net loss | $ | (28,816 | ) | $ | (24,000 | ) | $ | (66,165 | ) | $ | (45,726 | ) | |||
| Net loss per share - basic and diluted | $ | (0.66 | ) | $ | (0.91 | ) | $ | (1.72 | ) | $ | (1.78 | ) | |||
| Weighted-average common shares outstanding - basic and diluted | 43,612,539 | 26,353,878 | 38,392,392 | 25,690,096 | |||||||||||
| CLEVER LEAVES HOLDINGS INC. | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (Amounts in thousands of U.S. Dollars) | |||||||
| (Audited) | |||||||
| For the Year ended | |||||||
| December 31, 2022 | December 31, 2021 | ||||||
| Cash Flow from Operating Activities: | |||||||
| Net loss | $ | (66,165 | ) | $ | (45,726 | ) | |
| Adjustments to reconcile to net cash used in operating activities: | |||||||
| Depreciation and amortization | 3,672 | 3,508 | |||||
| Amortization of debt discount and debt issuance cost | 1,949 | 4,227 | |||||
| Fixed asset write-off | - | 228 | |||||
| Inventory provision | 4,736 | 2,980 | |||||
| Non-cash lease expense | 127 | - | |||||
| Restructuring and related costs | 25,809 | - | |||||
| Gain on remeasurement of warrant liability | (2,092 | ) | (16,856 | ) | |||
| Deferred income tax (recover) expense | (6,650 | ) | 950 | ||||
| Foreign exchange loss | 1,129 | 1,276 | |||||
| Share-based compensation expense | 2,343 | 11,451 | |||||
| Intangible asset impairment | 19,000 | - | |||||
| Goodwill impairment | - | 18,508 | |||||
| Gain on investment | (6,851 | ) | - | ||||
| Loss on equity method investment, net | 64 | 95 | |||||
| (Gain) loss on debt extinguishment, net | 2,263 | (3,262 | ) | ||||
| Other non-cash expense, net | 600 | 697 | |||||
| Changes in operating assets and liabilities: | |||||||
| (Increase) in accounts receivable | (278 | ) | (546 | ) | |||
| Decrease in prepaid expenses | 190 | 506 | |||||
| Decrease (Increase) in other receivables and other non-current assets | 538 | (1,298 | ) | ||||
| (Increase) in inventory | (4,453 | ) | (8,198 | ) | |||
| (Decrease) in accounts payable and other current liabilities | (4,749 | ) | (4,197 | ) | |||
| (Decrease) in accrued and other non-current liabilities | (248 | ) | (576 | ) | |||
| Net cash used in operating activities | $ | (29,066 | ) | $ | (36,233 | ) | |
| Cash Flow from Investing Activities: | |||||||
| Proceeds from partial sale of equity method investment | 2,498 | - | |||||
| Purchase of property, plant and equipment | (1,306 | ) | (7,280 | ) | |||
| Net cash used in investing activities | $ | 1,192 | $ | (7,280 | ) | ||
| Cash Flow From Financing Activities: | |||||||
| Proceeds from issuance of long-term debt | - | 25,000 | |||||
| Repayment of debt | (23,131 | ) | (26,538 | ) | |||
| Other borrowings | 73 | 2,917 | |||||
| Proceeds from issuance of shares | 27,686 | - | |||||
| Equity issuance costs | (1,361 | ) | - | ||||
| Proceeds from exercise of warrants | - | 1,410 | |||||
| Deferred debt issuance costs | - | (965 | ) | ||||
| Stock option exercised | 22 | 10 | |||||
| Net cash provided by financing activities | $ | 3,289 | $ | 1,834 | |||
| Effect of exchange rate changes on cash, cash equivalents & restricted cash | (226 | ) | (82 | ) | |||
| (Decrease) in cash, cash equivalents & restricted cash | $ | (24,811 | ) | $ | (41,761 | ) | |
| Cash, cash equivalents & restricted cash, beginning of period | 37,699 | 79,460 | |||||
| Cash, cash equivalents & restricted cash, end of period | $ | 12,888 | $ | 37,699 | |||
| CLEVER LEAVES HOLDINGS INC. | |||||||||||||||
| Adjusted EBITDA Reconciliation (Non-GAAP Measure) | |||||||||||||||
| (Amounts in thousands of U.S. Dollars) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net Loss | $ | (28,816 | ) | $ | (24,000 | ) | $ | (66,165 | ) | $ | (45,726 | ) | |||
| Gain on remeasurement of warrant liability | (83 | ) | (11,466 | ) | (2,092 | ) | (16,856 | ) | |||||||
| Share-based compensation | (263 | ) | 3,314 | 2,343 | 11,451 | ||||||||||
| Intangible asset impairment | - | - | 19,000 | - | |||||||||||
| Restructuring expenses | 23,151 | - | 26,942 | - | |||||||||||
| Goodwill impairment | - | 18,508 | - | 18,508 | |||||||||||
| Depreciation & amortization | 737 | 1,693 | 3,672 | 3,508 | |||||||||||
| Interest expense and amortization of debt issuance costs | (17 | ) | 4,435 | 2,702 | 6,818 | ||||||||||
| Gain on investments | - | - | (6,851 | ) | - | ||||||||||
| Foreign exchange (gain) loss | (291 | ) | 139 | 1,129 | 1,276 | ||||||||||
| Loss (gain) on debt extinguishment, net | - | 113 | 2,263 | (3,262 | ) | ||||||||||
| Deferred income tax (recovery) expense | - | 950 | (6,650 | ) | 950 | ||||||||||
| Current income tax expense | 296 | - | 296 | - | |||||||||||
| Equity investment share of loss | - | 56 | 64 | 95 | |||||||||||
| Other expense (income), net | 91 | (379 | ) | 202 | (502 | ) | |||||||||
| Adjusted EBITDA (Non-GAAP Measure) | $ | (5,195 | ) | $ | (6,637 | ) | $ | (23,145 | ) | $ | (23,740 | ) | |||
| CLEVER LEAVES HOLDINGS INC. | |||||||||||||||
| Adjusted Gross Profit Reconciliation (Non-GAAP Measure) | |||||||||||||||
| (Amounts in thousands of U.S. Dollars) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenue | $ | 4,614 | $ | 4,194 | $ | 17,800 | $ | 15,374 | |||||||
| Cost of sales, before inventory provision | (2,992 | ) | (1,505 | ) | (8,734 | ) | (5,585 | ) | |||||||
| Inventory provision | (914 | ) | (2,980 | ) | (4,736 | ) | (2,980 | ) | |||||||
| Gross Profit | $ | 708 | $ | (291 | ) | $ | 4,330 | $ | 6,809 | ||||||
| Inventory provision | (914 | ) | (2,980 | ) | (4,736 | ) | (2,980 | ) | |||||||
| Adjusted Gross Profit (Non-GAAP Measure) | $ | 1,622 | $ | 2,689 | $ | 9,066 | $ | 9,789 | |||||||
| Gross Profit Margin (%) | 15.3 | % | -6.9 | % | 24.3 | % | 44.3 | % | |||||||
| Adjusted Gross Profit Margin (Non-GAAP Measure) (%) | 35.2 | % | 64.1 | % | 50.9 | % | 63.7 | % | |||||||
FAQ
What were Clever Leaves' fourth quarter results for 2022?
What is Clever Leaves' projected revenue for 2023?
What led to the net loss for Clever Leaves in 2022?
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