IM Cannabis Reports 2023 Financial Results
- Revenue decrease of 10% to $48.8 million in 2023.
- Gross profit increased by 7.5% to $9.8 million.
- G&A expenses decreased by 49% to $11 million.
- Net loss from continuing operations was $10.2 million for 2023.
- Cash and cash equivalents were $1.8 million as of December 31, 2023.
- Revenue decrease due to negative currency fluctuations and Israel-Hamas war impact.
- Gross profit decrease for the three months ended December 31, 2023.
- Net loss from continuing operations increased compared to 2022.
- Total assets decreased by 20% to $48.8 million as of December 31, 2023.
Insights
Reviewing IM Cannabis Corp.'s financial results for the year ended December 31, 2023, several key financial metrics stand out. The revenue decline of 10% year-over-year and 26% for the last quarter signals a challenging operational environment, likely exacerbated by the geopolitical tensions in the region. However, a gross profit increase of 7.5% annually suggests some efficiency gains or cost control measures may have been successful, despite the revenue drop.
Significantly, the reduction in G&A expenses by 49% and selling and marketing expenses by 6% could indicate aggressive cost-cutting strategies, possibly including layoffs or restructuring. These efforts appear to have contributed to a reduced net loss from operations, which is a positive sign for the company's financial health. Nonetheless, the decrease in total assets by 20% and a slight reduction in cash and cash equivalents could raise concerns about the company's liquidity and long-term sustainability.
Investors should consider the mixed signals these financials present. While cost management seems effective, the revenue decline could be indicative of deeper market penetration issues or competitive pressures. The geopolitical situation also adds a layer of risk that must be factored into any investment decision.
The medical cannabis industry is subject to volatile market conditions and regulatory changes. IM Cannabis Corp.'s operational challenges, including the impact of the Israel-Hamas war, have disrupted supply chains and led to inventory discounting. This context is critical for understanding the company's performance.
Market trends show an increasing demand for medical cannabis, but competition is also intensifying. The company's decrease in revenue could suggest that it is losing market share to competitors or failing to expand its customer base. This is particularly concerning given the industry's growth potential.
Investors should be aware of these market dynamics when evaluating the company's future prospects. The ability of IM Cannabis Corp. to navigate supply chain disruptions, manage geopolitical risks and maintain or grow its market share will be important for its recovery and growth.
The economic implications of IM Cannabis Corp.'s financial results are multifaceted. The revenue decrease reflects not only company-specific issues but also broader economic factors such as currency fluctuations and geopolitical instability. These factors can have far-reaching effects on international businesses, influencing investor confidence and market stability.
The company's ability to decrease its G&A and selling and marketing expenses significantly may be seen as a robust response to adverse economic conditions. However, the sustainability of such cost-cutting measures could be questioned if they result in decreased capacity to generate revenue in the long term.
Investors should consider the resilience of the company's business model in the face of economic headwinds. The ongoing geopolitical risks in the region could continue to affect the company's operations and should be monitored closely.
FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2023
- Revenue decreased to
$48.8 million $53.3 10% .- Primarily due to negative currency fluctuations and the impact of the Israel-Hamas war on the Company's operations.
- Revenue decreased to
$10.7 million $14.5 million 26% .- Primarily due to the interruption on the Company's supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
- Gross profit increased to
$9.8 million $9.2 million 7.5% - Gross profit decreased to
$0.8 million $2.6 million 68% - Primarily due to the interruption on the Company's supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
- The Company's fair value adjustment was approximately
$1 million $2.1 million
- G&A expenses decreased to
$11 million $21.5 million 49% - G&A expenses decreased to
$3.3 million $9.8 million 66% - Primarily due to the impairment on Y2022 and restructuring and HC adjustments in 2023.
- Selling and marketing expenses decreased to
$10.8 million $11.5 million 6% - Selling and marketing expenses decreased to
$2.8 million $3.1 million 10% - Primarily due to a decrease in share based compensation payments and a restructuring of the Company's personnel.
- Net Loss from continuing operations for the fiscal year ended December 31, 2023 was
$10.2 million $24.9 million - Net Loss from continuing operations for the three months ended December 31, 2023 was
$3.5 million $9.6 million - Diluted Loss per Share for the fiscal year ended December 31, 2023 was
$0.74 $3.81 - Diluted Loss per Share for the three months ended December 31, 2023 was
$(0.25) - Cash and Cash Equivalents as of December 31, 2023, was
$1.8 million $2.4 million - Total assets were
$48.8 million $60.7 million 20% .- Primarily attributed to an inventory reduction of about
$6.6 million $1.8 million $3.5 million
- Primarily attributed to an inventory reduction of about
- Total Liabilities were
$35.1 million $36.9 5% .- Primarily attributed to a reduction in trade payables of
$6.1 million
- Primarily attributed to a reduction in trade payables of
- Operating expenses decreased to
$22.6 million $40 million 43% - Operating expenses decreased to
$6 million $13.3 million 55% - Adjusted EBITDA1 decreased to
$8 million $11.5 30% - Total Dried Flower sold in 2023 was approximately 8,609 kg with an average selling price of
$5.14 $7.12 - Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.
- Total Dried Flower sold in the fourth quarter of 2023 was about 2,082kg with an average selling price of
$4.52 $5.19 - Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.
The Annual Financial Statements include a note regarding the Company's ability to continue as a going concern. The Annual Financial Statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern. For more information, please refer to the "Liquidity and Capital Resources" and "Risk Factors" sections in the 2023 Annual MD&A.
Management Commentary
"IMC Germany delivered accelerated growth in 2023, growing
"As previously warned and as expected, unfortunately, the Israel-Hamas war had a negative impact on our fourth quarter 2023 results, which weighed on our full year results. Due to the ongoing conflict, there was a
Conference Call
The Company will host a Zoom web conference call today at 9:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Investors are invited to register by clicking here. All relevant information will be sent upon registration.
If you are unable to join us live, a recording of the call will be available on our website at https://investors.imcannabis.com/ within 24 hours after the call.
Non-IFRS Measures
This press release makes reference to "Gross Margin" and "Adjusted EBITDA", which are financial measures that are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as complementary information to the Company's IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should neither be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
For an explanation of how management defines Gross Margin and Adjusted EBITDA, see the 2023 MD&A.
We reconcile these non-IFRS financial measures to the most comparable IFRS measures as set out below:
About IM Cannabis Corp.
IM Cannabis Corp. (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in
The IMC ecosystem operates in
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company's ability to focus and resources to achieve sustainable and profitable growth in its highest value markets; the Company's ability to mitigate the impact of the Israel-Hamas war on the Company; the Company's ability to take advantage of the partial legalization of medicinal cannabis in
The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company's ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the "Group") to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group's obligations; the Group's possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group's cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in
Please see the other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual report dated March 28, 2024, which is available on the Company's issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
1 Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company's operating performance and therefore highlight trends in Company's core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.
2 Based on reporting by Insight Health's as of December 31, 2023.
Company Contact:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
a.taranko@imcannabis.de
Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
info@imcannabis.com
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
Canadian Dollars in thousands | ||||||
December 31, | ||||||
Note | 2023 | 2022 | ||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ 1,813 | $ 2,449 | ||||
Trade receivables | 6 | 7,651 | 8,684 | |||
Advances to suppliers | 936 | 1,631 | ||||
Other accounts receivable | 7 | 3,889 | 3,323 | |||
Inventory | 9 | 9,976 | 16,585 | |||
24,265 | 32,672 | |||||
NON-CURRENT ASSETS: | ||||||
Property, plant and equipment, net | 10 | 5,058 | 5,221 | |||
Investments in affiliates | 15c | 2,285 | 2,410 | |||
Right-of-use assets, net | 12 | 1,307 | 1,929 | |||
Deferred tax assets, net | 17 | - | 763 | |||
Intangible assets, net | 11 | 5,803 | 7,910 | |||
Goodwill | 11 | 10,095 | 9,771 | |||
24,548 | 28,004 | |||||
Total assets | $ 48,813 | $ 60,676 | ||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
Canadian Dollars in thousands | ||||||
December 31, | ||||||
Note | 2023 | 2022 | ||||
LIABILITIES AND EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | 14 | $ 9,223 | $ 15,312 | |||
Credit from banks and others | 13 | 12,119 | 9,246 | |||
Other accounts payable and accrued expenses | 15 | 6,218 | 6,013 | |||
Accrued purchase consideration liabilities | 5 | 2,097 | 2,434 | |||
PUT Option liability | 2,697 | |||||
Current maturities of operating lease liabilities | 12 | 454 | 814 | |||
32,808 | 33,819 | |||||
NON-CURRENT LIABILITIES: | ||||||
Warrants measured at fair value | 17 | 38 | 8 | |||
Operating lease liabilities | 12 | 815 | 1,075 | |||
Credit from banks and others | 394 | 399 | ||||
Employee benefit liabilities, net | 16 | 95 | 246 | |||
Deferred tax liability, net | 19 | 963 | 1,332 | |||
2,305 | 3,060 | |||||
Total liabilities | 35,113 | 36,879 | ||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 20 | |||||
Share capital and premium | 253,882 | 245,776 | ||||
Translation reserve | 95 | 1,283 | ||||
Reserve from share-based payment transactions | 9,637 | 15,167 | ||||
Accumulated deficit | (249,145) | (239,574) | ||||
Total equity attributable to shareholders of the Company | 14,469 | 22,652 | ||||
Non-controlling interests | (769) | 1,145 | ||||
Total equity | 13,700 | 23,797 | ||||
Total equity and liabilities | $ 48,813 | $ 60,676 | ||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | ||||||||
AND OTHER COMPREHENSIVE INCOME | ||||||||
Canadian Dollars in thousands | ||||||||
Year ended December 31, | ||||||||
Note | 2023 | 2022 | *) 2021 | |||||
Revenues | 21 | $ 48,804 | $ 54,335 | $ 34,053 | ||||
Cost of revenues | 21 | 37,974 | 43,044 | 25,458 | ||||
Gross profit before fair value adjustments | 10,830 | 11,291 | 8,595 | |||||
Fair value adjustments: | ||||||||
Unrealized change in fair value of biological assets | - | (315) | 6,308 | |||||
Realized fair value adjustments on inventory sold in the year | (984) | (1,814) | (8,570) | |||||
Total fair value adjustments | (984) | (2,129) | (2,262) | |||||
Gross profit after fair value adjustments | 9,846 | 9,162 | 6,333 | |||||
General and administrative expenses | 21 | 11,008 | 21,460 | 17,221 | ||||
Selling and marketing expenses | 21 | 10,788 | 11,473 | 6,725 | ||||
Restructuring expenses | 1 | 617 | 4,383 | - | ||||
Share-based compensation | 20 | 225 | 2,637 | 5,422 | ||||
Total operating expenses | 22,638 | 39,953 | 29,368 | |||||
Operating loss | (12,792) | (30,791) | (23,035) | |||||
Finance income | 7,006 | 6,703 | 23,544 | |||||
Finance expenses | (3,671) | (1,972) | (673) | |||||
Finance income (expense), net | 3,335 | 4,731 | 22,871 | |||||
Loss before income taxes | (9,457) | (26,060) | (164) | |||||
Income tax expense (benefit) | 18 | 771 | (1,138) | 500 | ||||
Net loss from continuing operations | (10,228) | (24,922) | (664) | |||||
Net loss from discontinued operations, net of tax | 25 | - | (166,379) | (17,854) | ||||
Net loss | (10,228) | (191,301) | (18,518) | |||||
*) Reclassified in respect of discontinued operations - see Note 25. | ||||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | ||||||||
AND OTHER COMPREHENSIVE INCOME | ||||||||
Canadian Dollars in thousands, except per share data | ||||||||
Year ended December 31, | ||||||||
Note | 2023 | 2022 | *) 2021 | |||||
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: | ||||||||
Remeasurement gain on defined benefit plans | 38 | 59 | 21 | |||||
Exchange differences on translation to presentation currency | (894) | (1,238) | 858 | |||||
Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods | (856) | (1,179) | 879 | |||||
Other comprehensive income that will be reclassified to profit or loss in subsequent periods: | ||||||||
Adjustments arising from translating financial statements of foreign operation | 231 | (246) | 530 | |||||
Total other comprehensive income (loss) | (625) | (1,425) | 1,409 | |||||
Total comprehensive loss | $ (10,853) | $ (192,726) | $ (17,109) | |||||
Net loss attributable to: | ||||||||
Equity holders of the Company | $ (9,498) | $ (188,890) | $ (17,763) | |||||
Non-controlling interests | (730) | (2,411) | (755) | |||||
$ (10,228) | $ (191,301) | $ (18,518) | ||||||
Total comprehensive loss attributable to: | ||||||||
Equity holders of the Company | $ (10,648) | $ (190,162) | $ (16,357) | |||||
Non-controlling interests | $ (205) | (2,564) | (752) | |||||
$ (10,853) | $ (192,726) | $ (17,109) | ||||||
Earnings (loss) per share attributable to equity holders of the Company from continuing operations: | 22 | |||||||
Basic earnings (loss) per share (in CAD) | $ (0.74) | $ (3.13) | $ 0.02 | |||||
Diluted loss per share (in CAD) | $ (0.74) | $ (3.81) | $ (3.62) | |||||
Loss per share attributable to equity holders of the Company from discontinued operations: | ||||||||
Basic and diluted loss per share (in CAD) | - | $ (23.17) | $ (3.08) | |||||
Loss per share attributable to equity holders of the Company from net loss: | ||||||||
Basic earnings (loss) per share (in CAD) | $ (0.74) | $ (26.3) | $ (3.06) | |||||
Diluted loss per share (in CAD) | $ (0.74) | $ (26.98) | $ (6.7) | |||||
*) Reclassified in respect of discontinued operations - see Note 25. | ||||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||
Canadian Dollars in thousands | ||||||||||||||||
Share capital and premium | Treasury Stock | Reserve from share-based payment transactions | Translation reserve | Accumulated deficit | Total | Non-controlling interests | Total | |||||||||
Balance as of January 1, 2021 | $ 37,040 | $ - | $ 5,829 | $ 1,229 | $ (33,001) | $ 11,097 | $ 1,513 | $ 12,610 | ||||||||
Net loss | - | - | - | - | (17,763) | (17,763) | (755) | (18,518) | ||||||||
Total other comprehensive income | - | - | - | 1,385 | 21 | 1,406 | 3 | 1,409 | ||||||||
Total comprehensive income (loss) | - | - | - | 1,385 | (17,742) | (16,357) | (752) | (17,109) | ||||||||
Issuance of common shares, net of issuance costs of | 195,259 | - | - | - | - | 195,259 | 2,948 | 198,207 | ||||||||
Purchase of treasury common shares | - | (660) | - | - | - | (660) | - | (660) | ||||||||
Exercise of warrants and compensation options | 4,293 | - | - | - | - | 4,293 | - | 4,293 | ||||||||
Exercise of options | 1,053 | - | (920) | - | - | 133 | - | 133 | ||||||||
Share-based compensation | - | - | 7,471 | - | - | 7,471 | - | 7,471 | ||||||||
Expired options | 32 | - | (32) | - | - | - | - | - | ||||||||
Balance as of December 31, 2021 | 237,677 | (660) | 12,348 | 2,614 | (50,743) | 201,236 | 3,709 | 204,945 | ||||||||
Net loss | - | - | - | - | (188,890) | (188,890) | (2,411) | (191,301) | ||||||||
Total other comprehensive income (loss) | - | - | - | (1,331) | 59 | (1,272) | (153) | (1,425) | ||||||||
Total comprehensive loss | - | - | - | (1,331) | (188,831) | (190,162) | (2,564) | (192,726) | ||||||||
Issuance of treasury common shares | - | 660 | - | - | - | 660 | - | 660 | ||||||||
Issuance of shares, net of issuance costs of | 6,818 | - | - | - | - | 6,818 | - | 6,818 | ||||||||
Exercise of options | 992 | - | (659) | - | - | 333 | - | 333 | ||||||||
Share-based compensation | - | - | 3,767 | - | - | 3,767 | - | 3,767 | ||||||||
Expired options | 289 | - | (289) | - | - | - | - | - | ||||||||
Balance as of December 31, 2022 | 245,776 | - | 15,167 | 1,283 | (239,574) | 22,652 | 1,145 | 23,797 | ||||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||
Canadian Dollars in thousands | ||||||||||||||
Share capital | Reserve from | Translation | Accumulated | Total | Non-controlling interests | Total | ||||||||
Balance as of December 31, 2022 | 245,776 | 15,167 | 1,283 | (239,574) | 22,652 | 1,145 | 23,797 | |||||||
Net loss | - | - | - | (9,498) | (9,498) | (730) | (10,228) | |||||||
Total other comprehensive income (loss) | - | - | (1,188) | 38 | (1,150) | 525 | (625) | |||||||
Total comprehensive loss | - | - | (1,188) | (9,460) | (10,648) | (205) | (10,853) | |||||||
Issuance of treasury common shares | 2,351 | - | - | - | 2,351 | - | 2,351 | |||||||
Issuance of shares, net of issuance costs of | ||||||||||||||
Exercise of options | ||||||||||||||
Other comprehensive income Classification | - | - | - | (111) | (111) | (1,709) | (1,820) | |||||||
Share-based compensation | - | 225 | - | - | 225 | - | 225 | |||||||
Expired options | 5,755 | (5,755) | - | - | - | - | - | |||||||
Balance as of December 31, 2023 | 253,882 | 9,637 | 95 | (249,145) | 14,469 | (769) | 13,700 | |||||||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Canadian Dollars in thousands | ||||||
Year ended December 31, | ||||||
2023 | 2022 | 2021 | ||||
Cash provided from operating activities: | ||||||
Net loss | $ (10,228) | $ (18,518) | ||||
Adjustments for non-cash items: | ||||||
Unrealized gain on changes in fair value of biological assets | - | (84) | (7,210) | |||
Fair value adjustment on sale of inventory | 984 | 4,342 | 8,796 | |||
Fair value adjustment on warrants, investments, and accounts receivable | (6,955) | (6,000) | (21,638) | |||
Depreciation of property, plant and equipment | 644 | 3,044 | 3,021 | |||
Amortization of intangible assets | 1,758 | 2,343 | 1,158 | |||
Depreciation of right-of-use assets | 594 | 1,944 | 1,550 | |||
Impairment of goodwill | - | 107,854 | 275 | |||
Impairment of property, plant and equipment | - | 2,277 | - | |||
Impairment of intangible assets | - | 7,199 | - | |||
Impairment of right-of-use assets | - | 1,914 | - | |||
Finance income, net | 3,019 | 6,532 | 1,262 | |||
Deferred tax payments (benefit), net | 394 | (3,004) | 278 | |||
Share-based payments | 225 | 3,767 | 7,471 | |||
Share based acquisition costs related to business combination | - | - | 807 | |||
Revaluation of other accounts receivable | - | 3,982 | - | |||
Restructuring expenses | - | 8,757 | - | |||
Loss from revaluation of investments | 601 | - | - | |||
1,264 | 144,867 | (4,230) | ||||
Changes in non-cash working capital: | ||||||
Increase (decrease) in trade receivables, net | 2,320 | 6,058 | (6,602) | |||
Increase (decrease) in other accounts receivable and advances to suppliers | 1,299 | 3,622 | 845 | |||
Decrease in biological assets, net of fair value adjustments | - | 565 | 6,412 | |||
Increase (decrease) in inventory, net of fair value adjustments | 4,771 | 883 | (19,707) | |||
Increase (decrease) in trade payables | (6,098) | 11,284 | 5,573 | |||
Changes in employee benefit liabilities, net | (139) | (63) | 28 | |||
Increase in other accounts payable and accrued expenses | (750) | 12,126 | 2,661 | |||
1,403 | 34,475 | (10,790) | ||||
Taxes paid | (514) | (681) | (834) | |||
Net cash used in operating activities | (8,075) | (12,640) | (34,372) | |||
The accompanying notes are an integral part of the consolidated financial statements. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Canadian Dollars in thousands | ||||||
Year ended December 31, | ||||||
2023 | 2022 | 2021 | ||||
Cash flows from investing activities: | ||||||
Purchase of property, plant and equipment | (581) | (1,562) | (4,578) | |||
Proceeds from sales of property, plant and equipment | - | 210 | - | |||
Proceeds from loans receivable | - | 350 | 7,796 | |||
Purchase of intangible assets | - | - | (17) | |||
Acquisition of businesses, net of cash acquired | - | - | (12,536) | |||
Deconsolidation of subsidiary (see Note 25) | - | (406) | - | |||
Investments in financial assets | - | - | (13) | |||
Proceeds from sale of investment | - | - | 319 | |||
Proceeds from (investment in) restricted deposits | - | - | 17 | |||
Investments in associates | (601) | (125) | - | |||
Net cash used in investing activities | (1,182) | (1,533) | (9,012) | |||
Cash provided by financing activities: | ||||||
Proceeds from issuance of share capital, net of issuance costs | 1,688 | 3,756 | 28,131 | |||
Proceeds from issuance of warrants measured at fair value | 6,585 | - | 11,222 | |||
Proceeds from exercise of warrants | - | - | 3,682 | |||
Proceeds from exercise of options | - | 333 | 133 | |||
Repayment of lease liability | (586) | (1,656) | (633) | |||
Payment of lease liability interest | (63) | (1,429) | (1,347) | |||
Proceeds from loans | 5,482 | 9,636 | 7,804 | |||
Repayment of loans | (4,827) | (4,976) | - | |||
Interest paid | (1,664) | (902) | (261) | |||
Proceeds from discounted checks | 2,802 | - | - | |||
Net cash provided by financing activities | 9,417 | 4,762 | 48,731 | |||
Effect of foreign exchange on cash and cash equivalents | (796) | (2,043) | (329) | |||
Increase (decrease) in cash and cash equivalents | (636) | (11,454) | 5,018 | |||
Cash and cash equivalents at beginning of year | 2,449 | 13,903 | 8,885 | |||
Cash and cash equivalents at end of year | $ 1,813 | $ 2,449 | $ 13,903 | |||
Supplemental disclosure of non-cash activities: | ||||||
Right-of-use asset recognized with corresponding lease liability | $ 309 | $ 613 | $ 1,678 | |||
Conversion of warrant and compensation options into common shares | $ - | $ - | $ 611 | |||
Issuance of shares in payment of purchase consideration liability | $ - | $ 3,061 | $ - | |||
Issuance of shares in payment of debt settlement to a non-independent director of the company | $ 1,061 | $ - | $ - | |||
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SOURCE IM Cannabis Corp.
FAQ
What was IM Cannabis Corp.'s revenue for the fiscal year ended December 31, 2023?
What was the percentage change in gross profit for IM Cannabis Corp. in 2023?
How much were the G&A expenses for IM Cannabis Corp. in 2023?
What was the net loss from continuing operations for IM Cannabis Corp. in 2023?
How much cash and cash equivalents did IM Cannabis Corp. have as of December 31, 2023?
