IM Cannabis Reports Third Quarter Financial Results
IM Cannabis Corp. (NASDAQ: IMCC) reported Q3 2024 financial results showing a 12% revenue increase to $13.9M compared to Q3 2023. The company achieved significant growth in Germany with 66% revenue increase to $5.8M. Operating expenses decreased by 16% to $4.1M, while the operational expense ratio improved by 25% to 30%. The company reduced its EBITDA loss by 68% to $0.5M and adjusted EBITDA loss by 82% to $0.2M. Average selling price per gram increased by 42% to $6.20, though total dried flower sales volume decreased to 2,202 kg.
IM Cannabis Corp. (NASDAQ: IMCC) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando un aumento del fatturato del 12% a $13.9 milioni rispetto al terzo trimestre 2023. L'azienda ha registrato una crescita significativa in Germania, con un aumento del fatturato del 66% a $5.8 milioni. Le spese operative sono diminuite del 16% a $4.1 milioni, mentre il rapporto delle spese operative è migliorato del 25% portandosi al 30%. L'azienda ha ridotto la sua perdita EBITDA del 68% a $0.5 milioni e la perdita EBITDA rettificata del 82% a $0.2 milioni. Il prezzo medio di vendita per grammo è aumentato del 42% a $6.20, sebbene il volume totale di vendite di fiori secchi sia diminuito a 2.202 kg.
IM Cannabis Corp. (NASDAQ: IMCC) informó los resultados financieros del tercer trimestre de 2024, mostrando un incremento del 12% en los ingresos a $13.9 millones en comparación con el tercer trimestre de 2023. La empresa logró un crecimiento significativo en Alemania, con un aumento del 66% en ingresos a $5.8 millones. Los gastos operativos disminuyeron en un 16% a $4.1 millones, mientras que la relación de gastos operativos mejoró en un 25% hasta el 30%. La empresa redujo su pérdida EBITDA en un 68% a $0.5 millones y la pérdida de EBITDA ajustada en un 82% a $0.2 millones. El precio de venta promedio por gramo aumentó en un 42% a $6.20, aunque el volumen total de ventas de flores secas disminuyó a 2,202 kg.
IM Cannabis Corp. (NASDAQ: IMCC)는 2024년 3분기 재무 결과를 보고하며 12%의 수익 증가를 기록하며 $13.9M에 도달했다고 발표했습니다. 이 회사는 독일에서 66%의 수익 증가를 이루며 $5.8M을 달성했습니다. 운영 비용은 16% 감소하여 $4.1M이 되었으며, 운영 비용 비율은 25% 개선되어 30%에 이르렀습니다. 이 회사는 EBITDA 손실을 68% 줄여 $0.5M으로, 조정된 EBITDA 손실은 82% 줄여 $0.2M으로 감소시켰습니다. 그램당 평균 판매 가격은 42% 증가하여 $6.20에 이르렀지만, 건조 꽃 판매 총량은 2,202kg으로 감소했습니다.
IM Cannabis Corp. (NASDAQ: IMCC) a rapporté les résultats financiers du troisième trimestre 2024, montrant une augmentation des revenus de 12% à 13,9 millions de dollars par rapport au troisième trimestre 2023. L'entreprise a réussi une croissance significative en Allemagne, avec une augmentation des revenus de 66% à 5,8 millions de dollars. Les dépenses d'exploitation ont diminué de 16% à 4,1 millions de dollars, tandis que le ratio des dépenses d'exploitation s'est amélioré de 25% pour atteindre 30%. L'entreprise a réduit sa perte d'EBITDA de 68% à 0,5 million de dollars et sa perte d'EBITDA ajustée de 82% à 0,2 million de dollars. Le prix de vente moyen par gramme a augmenté de 42% à 6,20 dollars, bien que le volume total des ventes de fleurs sèches ait diminué à 2 202 kg.
IM Cannabis Corp. (NASDAQ: IMCC) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Umsatzanstieg von 12% auf 13,9 Millionen USD im Vergleich zum dritten Quartal 2023. Das Unternehmen erzielte ein signifikantes Wachstum in Deutschland mit einem Umsatzanstieg von 66% auf 5,8 Millionen USD. Die Betriebskosten sanken um 16% auf 4,1 Millionen USD, während sich das Verhältnis der Betriebskosten um 25% auf 30% verbesserte. Das Unternehmen reduzierte seinen EBITDA-Verlust um 68% auf 0,5 Millionen USD und den bereinigten EBITDA-Verlust um 82% auf 0,2 Millionen USD. Der durchschnittliche Verkaufspreis pro Gramm stieg um 42% auf 6,20 USD, obwohl das Gesamtvolumen der Verkäufe von getrockneten Blüten auf 2.202 kg sank.
- Revenue increased 12% YoY to $13.9M
- German market revenue grew 66% to $5.8M
- Operating expenses decreased 16% to $4.1M
- EBITDA loss reduced by 68% to $0.5M
- Average selling price increased 42% to $6.20 per gram
- Gross profit increased 19% YoY
- Net loss of $1.1M in Q3 2024
- Total assets decreased 8.6% to $44.6M
- Total liabilities increased 15% to $40.4M
- Going concern note included in financial statements
- Dried flower sales volume decreased to 2,202 kg from 2,558 kg
Insights
The Q3 2024 results show notable operational improvements despite challenging market conditions. Revenue growth of
Key concerns include the going concern note in financial statements and tight liquidity with only
The cannabis market dynamics reflected in IMC's results reveal important sector trends. The company's strategic pivot, particularly its success in Germany, demonstrates the growing importance of European markets. The higher selling price of
The Oranim deal revocation, while impacting total revenues, appears strategically sound given the improved efficiency metrics. The reduction in selling & marketing expenses by
IMC pairs a +
Q3 2024 Financial Highlights
- +
12% increase in Revenue to vs.$13.9M in Q3, 2023. Adjusting for the revocation of the Oranim deal, increases the revenue to +$12.4M 51% or vs Q3, 2023$4.7M - -
41% decrease in Selling & Marketing expenses to vs.$1.5M in Q3, 2023$2.6M - -
16% decrease in Total Operating expenses to vs.$4.1M in Q3, 2023$4.9M - EBITDA loss, a decrease of -$0.5M 68% vs. in Q3, 2023$1.6M - adjusted EBITDA loss (Non-IFRS), a decrease of -$0.2M 82% vs. in Q3, 2023$1.3M - +
25% improvement in Operational expense ratio to30% vs.40% in Q3, 2023
Management Commentary
"While the
"The discipline necessary to drive efficient resource management is an ongoing focus of ours and can clearly be seen in this quarter's results," commented Uri Birenberg, Chief Financial Officer of IMC. "Our Q3, 2024 revenues increased from
Q3 2024 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.
Q3 2024 Financial Results
- Revenues for the third quarter of 2024 were
compared to$13.9 million in Q3 2023, an increase of$12.4 million or$1.5 million 12% . The increase is mainly attributed to accelerated growth inGermany revenue of net and decreased net Revenue in$4.3 million Israel of , which consists of Oranim revenue in Q3 2023. Adjusting for Oranim Revenue of$2.8 million in Q3 2023, result with revenue increase of$3.2 million or$4.7M 51% . - Total Dried Flower sold in Q3 2024 was approximately 2,202 kg with an average selling price of
per gram, compared to approximately 2,558kg in Q3 2023, with an average selling price of$6.20 per gram, which is a price increase of$4.35 42% . - Cost of revenues for Q3 2024 were
compared to$10.7 million in Q3 2023, an increase of$9.6 million or$1.1 million 11% , mainly due to an increase in costs of approximately including an accrual for slow inventory of$1.2 million , that is offset by decrease in other costs net of approximately$0.6 million .$0.1 million - Gross profit for the third quarter of 2024 was
, compared to$3.1 million in Q3 2023, an increase of$2.6 million 19% . - G&A Expenses in Q3 2024 were
, compared to$2.4 million in Q3 2023, an increase of$2.1 million or$0.3 million 10% . - Selling and Marketing Expenses in Q3 2024 were
, compared to$1.5 million in Q3 2023, a decrease of$2.6 million or$1.1 million 41% mainly due to the revocation of Oranim agreement of and decrease in salaries and professional services of$0.7 million .$0.5 million - Total operating expenses in Q3 2024 were
compared to$4.1 million in Q3 2023, a decrease of$4.9 million or$0.8 million 16% . - Net Loss in Q3 2024 was
, compared to$1.1 million in Q3 2023 a decrease loss of$2.1 million or$1.0 million 48% . - Basic and diluted Loss per Share in Q3 2024 was
, compared to a loss of$0.41 per Share in Q3 2023.$0.96 - Non-IFRS Adjusted EBITDA loss in Q3 2024 was
, compared to loss of$0.2 million in Q3 2023 or$1.3 million 82% decrease. - Cash and Cash Equivalents as of September 30, 2024, were
compared to$2 million on December 31, 2023.$1.8 million - Total assets as of September 30, 2024, were
, compared to$44.6 million on December 31, 2023, a decrease of$48.8 million or$4.2 million 8.6% .
The decrease is mainly attributed to the Oranim agreement cancelation of
In addition to the Oranim revocation agreement effect, there is a total asset increase of
- Total Liabilities as of September 30, 2024, were
, compared to$40.4 million on December 31, 2023, an increase of$35.1 million or$5.3 million 15% .
The increase is mainly attributed to an increase of
The Company's financial statements as of September 30, 2024, includes a note regarding the Company's ability to continue as a going concern. The Company's Q3 2024 financial results 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 Company's management's discussion and analysis for the quarter ended September 30, 2024.
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 Company's management's discussion and analysis for the period ended September 30, 2024, available under the Company's SEDAR+ profile at www.sedarplus.ca on EDGAR at www.sec.gov/edgar.
We reconcile these non-IFRS financial measures to the most comparable IFRS measures as set out below.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in
The IMC ecosystem operates in
Cautionary Note Regarding 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 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 its subsidiaries (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.
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
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||
Canadian Dollars in thousands | ||||||||
September 30, | December 31, | |||||||
Note | (Unaudited) | (Audited) | ||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ 1,958 | $ 1,813 | ||||||
Trade receivables | 14,411 | 7,651 | ||||||
Advances to suppliers | 2,843 | 936 | ||||||
Other accounts receivable | 4,121 | 3,889 | ||||||
Inventories | 3 | 4,310 | 9,976 | |||||
27,643 | 24,265 | |||||||
NON-CURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 4,112 | 5,058 | ||||||
Investments in affiliates | 2,282 | 2,285 | ||||||
Right-of-use assets, net | 516 | 1,307 | ||||||
Intangible assets, net | 3,453 | 5,803 | ||||||
Goodwill | 6,629 | 10,095 | ||||||
16,992 | 24,548 | |||||||
Total assets | $ 44,635 | $ 48,813 | ||||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
Canadian Dollars in thousands | ||||||
September 30, | December 31, | |||||
Note | (Unaudited) | (Audited) | ||||
LIABILITIES AND EQUITY | ||||||
CURRENT LIABILITIES:
| ||||||
Trade payables | $ 16,567 | $ 9,223 | ||||
Bank loans and credit facilities | 12,679 | 12,119 | ||||
Other accounts payable and accrued expenses | 7,660 | 6,218 | ||||
Accrued purchase consideration liabilities | - | 2,097 | ||||
PUT Option liability | - | 2,697 | ||||
Convertible debt | 2,083 | - | ||||
Current maturities of operating lease liabilities | 259 | 454 | ||||
39,248 | 32,808 | |||||
NON-CURRENT LIABILITIES:
| ||||||
Warrants measured at fair value | 4 | 13 | 38 | |||
Operating lease liabilities | 233 | 815 | ||||
Long-term loans | 405 | 394 | ||||
Employee benefit liabilities, net | 24 | 95 | ||||
Deferred tax liability, net | 502 | 963 | ||||
1,177 | 2,305 | |||||
Total liabilities | 40,425 | 35,113 | ||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | 5 | |||||
Share capital and premium | 256,685 | 253,882 | ||||
Translation reserve | 1,144 | 95 | ||||
Reserve from share-based payment transactions | 7,198 | 9,637 | ||||
Conversion option for convertible debt | 327 | - | ||||
Accumulated deficit | (259,400) | (249,145) | ||||
Total equity attributable to equity holders of the Company | 5,954 | 14,469 | ||||
Non-controlling interests | (1,744) | (769) | ||||
Total equity | 4,210 | 13,700 | ||||
Total liabilities and equity | $ 44,635 | $ 48,813 | ||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) | ||||||||
Canadian Dollars in thousands, except per share data | ||||||||
Nine months ended | Three months ended | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | ||||||||
Revenues | $ 40,696 | $ 38,106 | $ 13,883 | $ 12,370 | ||||
Cost of revenues | 34,878 | 28,391 | 10,713 | 9,632 | ||||
Gross profit before fair value adjustments | 5,818 | 9,715 | 3,170 | 2,738 | ||||
Fair value adjustments: | ||||||||
Realized fair value adjustments on inventory sold in the period | (47) | (710) | (22) | (93) | ||||
Total fair value adjustments | (47) | (710) | (22) | (93) | ||||
Gross profit | 5,771 | 9,005 | 3,148 | 2,645 | ||||
General and administrative expenses | 6,846 | 7,708 | 2,351 | 2,145 | ||||
Selling and marketing expenses | 5,279 | 7,991 | 1,506 | 2,564 | ||||
Restructuring expenses | - | 617 | - | - | ||||
Share-based compensation | 364 | 316 | 244 | 195 | ||||
Loss on deconsolidation | 2,734 | - | - | - | ||||
Total operating expenses | 15,223 | 16,632 | 4,101 | 4,904 | ||||
Operating loss | 9,452 | 7,627 | 953 | 2,259 | ||||
Finance income (expense), net | (2,082) | 869 | (155) | 248 | ||||
Loss before income taxes | 11,534 | 6,758 | 1,108 | 2,011 | ||||
Tax income (expense) | 976 | 50 | 26 | (125) | ||||
Net loss | (10,558) | (6,708) | (1,082) | (2,136) | ||||
Other comprehensive income (loss) that will not be reclassified | ||||||||
Remeasurement gain on defined benefit plan | 67 | 36 | - | - | ||||
Exchange differences on translation to presentation currency | 1,566 | (622) | 49 | 39 | ||||
Total other comprehensive income (loss) that will not be | 1,633 | (586) | 49 | 39 | ||||
Other comprehensive income (loss) that will be reclassified to | ||||||||
Adjustments arising from translating financial statements of | (508) | 624 | (482) | 158 | ||||
Total other comprehensive income (loss) that will be reclassified | (508) | 624 | (482) | 158 | ||||
Total other comprehensive income (loss) | 1,125 | 38 | (433) | 197 | ||||
Total comprehensive loss | $ (9,433) | $ (6,670) | $ (1,515) | $ (1,939) |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||
Canadian Dollars in thousands, except per share data | |||||||||||
Nine months ended | Three months ended | ||||||||||
2024 | 2023*) | 2024 | 2023*) | ||||||||
Note | (Unaudited) | ||||||||||
Net income (loss) attributable to: | |||||||||||
Equity holders of the Company | $ (9,574) | $ (6,209) | $ (922) | $ (2,150) | |||||||
Non-controlling interests | (984) | (499) | (160) | 14 | |||||||
$ (10,558) | $ (6,708) | $ (1,082) | $ (2,136) | ||||||||
Total comprehensive income (loss) attributable to: | |||||||||||
Equity holders of the Company | $ (8,458) | $ (6,152) | $ (1,357) | $ (1,943) | |||||||
Non-controlling interests | (975) | (518) | (158) | 4 | |||||||
$ (9,433) | $ (6,670) | $ (1,515) | $ (1,939) | ||||||||
Net income (loss) per share attributable to equity
| 7 | ||||||||||
Basic loss per share (in CAD) | $ (4.29) | $ (2.95) | $ (0.41) | $ (0.96) | |||||||
Diluted loss per share (in CAD) | $ (4.29) | $ (2.95) | $ (0.41) | $ (0.96) | |||||||
Earnings (loss) per share attributable to equity holders
| |||||||||||
Basic loss per share (in CAD) | $ (4.29) | $ (2.95) | $ (0.41) | $ (0.96) | |||||||
Diluted loss per share (in CAD) | $ (4.29) | $ (2.95) | $ (0.41) | $ (0.96) | |||||||
*) Reclassified in accordance with shares consolidation. See also note 5a. | |||||||||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) | ||||||||||||||||
Canadian Dollars in thousands | ||||||||||||||||
Share | Reserve from | Conversion | Translation | Accumulated | Total | Non- | Total | |||||||||
Balance as of January 1, 2024 | $ 253,882 | $ 9,637 | $ - | $ 95 | $ (249,145) | $ 14,469 | $ (769) | $ 13,700 | ||||||||
Net loss | - | - | - | - | (9,574) | (9,574) | (984) | (10,558) | ||||||||
Total other comprehensive income | - | - | - | 1,049 | 67 | 1,116 | 9 | 1,125 | ||||||||
Total comprehensive income (loss) | - | - | - | 1,049 | (9,507) | (8,458) | (975) | (9,433) | ||||||||
Net proceeds of convertible debt allocated to | - | - | 327 | - | - | 327 | - | 327 | ||||||||
Other comprehensive loss Classification | - | - | - | - | (748) | (748) | - | (748) | ||||||||
Share-based compensation | - | 364 | - | - | - | 364 | - | 364 | ||||||||
Forfeited options | 2,803 | (2,803) | - | - | - | - | - | - | ||||||||
Balance as of September 30, 2024 | $ 256,685 | $ 7,198 | $ 327 | $ 1,144 | $ (259,400) | $ 5,954 | $ (1,744) | $ 4,210 |
Share | Reserve from | Translation | Accumulated | Total | Non-controlling | Total | ||||||||
Balance as of January 1, 2023 | $ 245,776 | $ 15,167 | $ 1,283 | $ (239,574) | $ 22,652 | $ 1,145 | $ 23,797 | |||||||
Net loss | - | - | - | (6,209) | (6,209) | (499) | (6,708) | |||||||
Total other comprehensive income (loss) | - | - | 21 | 36 | 57 | (19) | 38 | |||||||
Total comprehensive income (loss) | - | - | 21 | (6,173) | (6,152) | (518) | (6,670) | |||||||
Issuance of common shares | 2,351 | - | - | - | 2,351 | - | 2,351 | |||||||
Share-based compensation | - | 316 | - | - | 316 | - | 316 | |||||||
Forfeited options | 3,028 | (3,028) | - | - | - | - | - | |||||||
Balance as of September 30, 2023 | $ 251,155 | $ 12,455 | $ 1,304 | $ (245,747) | $ 19,167 | $ 627 | $ 19,794 | |||||||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||
Canadian Dollars in thousands | ||||
Nine months ended | ||||
2024 | 2023 | |||
Cash provided by operating activities: | ||||
Net loss for the period | $ (10,558) | $ (6,708) | ||
Adjustments for non-cash items: | ||||
Fair value adjustment on sale of inventory | 47 | 710 | ||
Fair value adjustment on Warrants, investments and accounts receivable | (24) | (4,547) | ||
Interest recorded in respect of the convertible debt | 197 | - | ||
Depreciation of property, plant and equipment | 332 | 494 | ||
Amortization of intangible assets | 1,036 | 1,329 | ||
Depreciation of right-of-use assets | 274 | 442 | ||
Impairment of PPE | 10 | - | ||
Finance expenses, net | 1,911 | 3,678 | ||
Deferred tax liability, net | (138) | (200) | ||
Share-based payment | 364 | 316 | ||
Loss from deconsolidation of subsidiary | 2,764 | - | ||
Net proceeds of convertible debt allocated to conversion option | 327 | - | ||
7,100 | 2,222 | |||
Changes in working capital: | ||||
Increase in trade receivables | (8,184) | (2,719) | ||
Increase in other accounts receivable and advances to suppliers | (2,775) | (353) | ||
Decrease in inventories, net of fair value adjustments | 4,817 | 4,844 | ||
Decrease (increase) in trade payables | 10,595 | (4,652) | ||
Changes in employee benefit liabilities, net | (71) | (204) | ||
Increase in other accounts payable and accrued expenses | 2,420 | 265 | ||
6,802 | (2,819) | |||
Taxes paid | (222) | (552) | ||
Net cash provided (used) in operating activities | 3,122 | (7,857) | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (126) | (553) | ||
Deconsolidation of subsidiary | (346) | - | ||
Net cash used in investing activities | $ (472) | $ (553) | ||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||
Canadian Dollars in thousands | |||||
Nine months ended | |||||
2024 | 2023 | ||||
Cash flow from financing activities: | |||||
Proceeds from issuance of share capital, net of issuance costs | $ - | $ 1,688 | |||
Proceeds from issuance of warrants | - | 6,585 | |||
Repayment of lease liability | (265) | (435) | |||
Interest paid - lease liability | (44) | (44) | |||
Repayment of bank loan and credit facilities | (2,624) | (1,109) | |||
Cash paid for interest | (1,572) | (163) | |||
Proceeds from discounted checks | 4,483 | 2,932 | |||
Net cash provided (used) by financing activities | (22) | 9,454 | |||
Effect of foreign exchange on cash and cash equivalents | (2,483) | (2,189) | |||
Increase (decrease) in cash and cash equivalents | 145 | (1,145) | |||
Cash and cash equivalents at the beginning of the period | 1,813 | 2,449 | |||
Cash and cash equivalents at end of the period | $ 1,958 | $ 1,304 | |||
Supplemental disclosure of non-cash activities: | |||||
Right-of-use asset recognized with corresponding lease liability | $ 40 | $ 49 | |||
Issuance of shares in payment of debt settlement to a non-independent director of the company | $ - | $ 1,061 | |||
The accompanying notes are an integral part of the interim condensed consolidated financial statements. |
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SOURCE IM Cannabis Corp.
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