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IM Cannabis Reports Third Quarter Financial Results

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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.

Positive
  • 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
Negative
  • 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 12% to $13.9M, coupled with a 16% reduction in operating expenses to $4.1M, demonstrates improving operational efficiency. The German market performance is particularly strong, with 66% growth reaching $5.8M.

Key concerns include the going concern note in financial statements and tight liquidity with only $2M in cash. However, the 82% reduction in adjusted EBITDA loss to $0.2M and improved operational expense ratio (30% vs 40%) suggest progress toward profitability. The 42% increase in average selling price per gram indicates stronger pricing power and market positioning.

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 $6.20 per gram versus $4.35 previously suggests premium positioning and market acceptance.

The Oranim deal revocation, while impacting total revenues, appears strategically sound given the improved efficiency metrics. The reduction in selling & marketing expenses by 41% while maintaining revenue growth indicates better operational leverage and market penetration strategies.

IMC pairs a +12% increase in revenue with a -16% decrease in the total operating expenses, building a solid foundation to deliver in 2025.

TORONTO and GLIL YAM, Israel, Nov. 14, 2024 /PRNewswire/ -- IM Cannabis Corp. (the "Company" or "IMC") (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial results today for the third quarter ended September 30, 2024. All amounts are reported in Canadian dollars and compared to the quarter ended September 30, 2023, unless otherwise stated.

IM_Cannabis_Logo

Q3 2024 Financial Highlights

  • +12% increase in Revenue to $13.9M vs. $12.4M in Q3, 2023. Adjusting for the revocation of the Oranim deal, increases the revenue to +51% or $4.7M vs Q3, 2023
  • -41% decrease in Selling & Marketing expenses to $1.5M vs. $2.6M in Q3, 2023
  • -16% decrease in Total Operating expenses to $4.1M vs. $4.9M in Q3, 2023
  • -$0.5M EBITDA loss, a decrease of -68% vs. $1.6M in Q3, 2023
  • -$0.2M adjusted EBITDA loss (Non-IFRS), a decrease of -82% vs. $1.3M in Q3, 2023
  • +25% improvement in Operational expense ratio to 30% vs. 40% in Q3, 2023

Management Commentary

"While the 66% growth we delivered in Germany, to reach $5.8M this quarter is a highlight, we spent the quarter focused on building a solid foundation for 2025," said Oren Shuster, Chief Executive Officer of IMC. "Our goal was to build a strong, consistent supply chain, along with a laser focus on how to improve the efficiency and accuracy of how we use our resources. I believe that the foundation we built this quarter will be the basis we will use to deliver in 2025."

"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 $12.4 million in Q3, 2023, to $13.9 million this quarter, while our operating expenses decreased from $4.9 million in Q3, 2023 to $4.1 million in Q3, 2024. As a result, our operating expense ratio was 30% in Q3, 2024 in comparison with 40% in Q3, 2023, making us 25% more efficient."

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 $13.9 million compared to $12.4 million in Q3 2023, an increase of $1.5 million or 12%. The increase is mainly attributed to accelerated growth in Germany revenue of $4.3 million net and decreased net Revenue in Israel of $2.8 million, which consists of Oranim revenue in Q3 2023. Adjusting for Oranim Revenue of $3.2 million in Q3 2023, result with revenue increase of $4.7M or 51%.
  • Total Dried Flower sold in Q3 2024 was approximately 2,202 kg with an average selling price of $6.20 per gram, compared to approximately 2,558kg in Q3 2023, with an average selling price of $4.35 per gram, which is a price increase of 42%.
  • Cost of revenues for Q3 2024 were $10.7 million compared to $9.6 million in Q3 2023, an increase of $1.1 million or 11%, mainly due to an increase in costs of approximately $1.2 million including an accrual for slow inventory of $0.6 million, that is offset by decrease in other costs net of approximately $0.1 million.
  • Gross profit for the third quarter of 2024 was $3.1 million, compared to $2.6 million in Q3 2023, an increase of 19%.
  • G&A Expenses in Q3 2024 were $2.4 million, compared to $2.1 million in Q3 2023, an increase of $0.3 million or 10%.
  • Selling and Marketing Expenses in Q3 2024 were $1.5 million, compared to $2.6 million in Q3 2023, a decrease of $1.1 million or 41% mainly due to the revocation of Oranim agreement of $0.7 million and decrease in salaries and professional services of $0.5 million.
  • Total operating expenses in Q3 2024 were $4.1 million compared to $4.9 million in Q3 2023, a decrease of $0.8 million or 16%.
  • Net Loss in Q3 2024 was $1.1 million, compared to $2.1 million in Q3 2023 a decrease loss of $1.0 million or 48%.
  • Basic and diluted Loss per Share in Q3 2024 was $0.41, compared to a loss of $0.96 per Share in Q3 2023.
  • Non-IFRS Adjusted EBITDA loss in Q3 2024 was $0.2 million, compared to loss of $1.3 million in Q3 2023 or 82% decrease.
  • Cash and Cash Equivalents as of September 30, 2024, were $2 million compared to $1.8 million on December 31, 2023.
  • Total assets as of September 30, 2024, were $44.6 million, compared to $48.8 million on December 31, 2023, a decrease of $4.2 million or 8.6%.

The decrease is mainly attributed to the Oranim agreement cancelation of $9.5 million of which mainly attributed to; goodwill $3.5 million, intangible asset $1.4 million, inventory $0.8 million, trade receivables $1.3 million and property plant and equipment $0.8 million and reduction of cash and cash equivalents of $0.3 million.

In addition to the Oranim revocation agreement effect, there is a total asset increase of $5.3 million mainly due to an increase of $8.1 million in trade receivables and an increase of Cash and cash equivalents of $0.5 million, offset by $4.8 million reduction in Inventory and reduction of $0.9 million in intangible assets.

  • Total Liabilities as of September 30, 2024, were $40.4 million, compared to $35.1 million on December 31, 2023, an increase of $5.3 million or 15%.

The increase is mainly attributed to an increase of $8.9 million in trade payables and an increase of $1.6 million in other accounts payable offset by a decrease mainly attributed to the Oranim agreement cancelation of $6.8 million of which mainly attributed to a decrease in PUT option liability in the amount of $2.0 million, a decrease in purchase consideration payable in the amount of $2.2 million and a decrease of $1.6 million in trade payables.

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 Israel and Germany, two of the largest medical cannabis markets. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IMC ecosystem operates in Israel through Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, "forward-looking statements"). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the impact of the Israel-Hamas war on the Company, including its operations and the medical cannabis industry in Israel; the timing and impact of the legalization of medicinal cannabis in Germany, including, the Company having it "all in house"; the Company being positioned to take advantage of the legalization; the Company's growth in 2024; the market growth for medicinal cannabis in Germany; the stated benefits of the Company's EU-GMP processing facility and an EU-GDP logistics center; the Company to host a teleconference meeting as stated; and the Company's stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate.

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 Germany; the Company's ability to host a teleconference meeting as stated; and the Company's ability to carry out its stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate; the Company using the proceeds from the non-brokered private placement offering; and shareholders will approve Mr. Shuster becoming a control person.

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 Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company's inability to take advantage of the legalization of medicinal cannabis in Germany; and the Company's inability to host a teleconference meeting as stated; the Company not using the proceeds as stated in its press release dated November 12, 2024; and shareholders not disapproving Mr. Shuster becoming a control person.

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,
2024


December 31,
2023



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,
2024


December 31,
2023



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
September 30,


Three months ended
September 30,



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
  to profit or loss in subsequent periods:


















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
  reclassified to profit or loss in subsequent periods


1,633


(586)


49


39










Other comprehensive income (loss) that will be reclassified to
  profit or loss in subsequent periods:


















Adjustments arising from translating financial statements of
  foreign operation


(508)


624


(482)


158










Total other comprehensive income (loss) that will be reclassified
  to profit or loss in subsequent periods:


(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
September 30,


Three months ended
September 30,





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
  holders of the Company:

 


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
  of the Company:

 











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
Capital and
premium


Reserve from
share-based
payment
transactions


Conversion
option for
convertible
debt


Translation
reserve


Accumulated
deficit


Total


Non-
controlling
interests


Total
equity


















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
  conversion option


-


-


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
Capital and
premium


Reserve from
share-based
payment
transactions


Translation
reserve


Accumulated
deficit


Total


Non-controlling
interests


Total
equity
















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
September 30,



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
September 30,



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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Cision View original content:https://www.prnewswire.com/news-releases/im-cannabis-reports-third-quarter-financial-results-302305718.html

SOURCE IM Cannabis Corp.

FAQ

What was IM Cannabis (IMCC) revenue growth in Q3 2024?

IM Cannabis reported a 12% revenue increase to $13.9M in Q3 2024 compared to $12.4M in Q3 2023.

How much did IMCC's German market revenue grow in Q3 2024?

IMCC's German market revenue grew by 66% to reach $5.8M in Q3 2024.

What was IMCC's net loss in Q3 2024?

IMCC reported a net loss of $1.1M in Q3 2024, a 48% improvement from the $2.1M loss in Q3 2023.

What was IMCC's average selling price per gram in Q3 2024?

IMCC's average selling price was $6.20 per gram in Q3 2024, a 42% increase from $4.35 in Q3 2023.

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