Unrivaled Brands Reports Third Quarter 2022 Financial Results

SANTA ANA, Calif., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Unrivaled Brands, Inc. (OTCQX: UNRV) ("Unrivaled" or the "Company"), a multi-state vertically integrated cannabis company with operations in California and Oregon, today reported its third quarter 2022 financial results for the quarter ended September 30, 2022.

Financial Update

  • During the three months ended September 30, 2022, the Company generated revenue from continuing operations of $10.76 million composed of retail revenue of $8.77 million and cultivation/distribution revenue of $2.00 million. This compared to revenue from continuing operations of $20.05 million for the quarter ended September 30, 2021, which included retail revenue of $7.24 million and cultivation/distribution revenue of $12.81 million. This was a decrease of $9.29 million or 46.3% in revenue from continuing operations.
  • The Company’s gross loss from continuing operations for the three months ended September 30, 2022 was $(0.06) million compared to a gross profit of $0.33 million for the three months ended September 30, 2021, a decrease of $0.39 million or 119.5%.
  • The merger with UMBRLA and the acquisitions of People's First Choice and SilverStreak Solutions in 2021 led to more operations with additional facilities, employees, and costs to support them. Selling, general and administrative expenses for the three months ended September 30, 2022 were $13.24 million, compared to $12.03 million for the three months ended September 30, 2021, an increase of $1.21 million or 10.0%. For the three months ended September 30, 2022, amortization and depreciation expenses increased by $1.67 million and facilities related expenses, such as rent, utilities, repairs and maintenance, security, and insurance, increased by $2.33 million over third quarter of 2021. Those increases were partially offset by decreases in third quarter 2022 of the following items: taxes, licensing and permitting decreased by $0.51 million and stock compensation expenses decreased by $1.14 million.
  • The Company realized an operating loss from continuing operations of $122.80 million for the three months ended September 30, 2022 compared to $11.70 million for the three months ended September 30, 2021, an increase of $111.10 million or 949.5%. This increase was primarily attributable to a $107.97 million impairment of intangible assets and goodwill related to the UMBRLA, People’s, and SilverStreak acquisitions. As part of the Company’s strategic restructuring in fiscal year 2022, the Company terminated its third-party distribution operations in California and its retail and delivery operations at SilverStreak Sacramento, which resulted in a loss on disposal of assets of $1.53 million during the current period.

About Unrivaled Brands

Unrivaled Brands is a multi-state vertically integrated company focused on the cannabis sector with operations in California and Oregon. In California, Unrivaled Brands operates three dispensaries with direct-to-consumer delivery, two cultivation facilities, and several leading company-owned brands. In Oregon, we operate a state-wide distribution network, company-owned brands and outdoor and greenhouse cultivation. Unrivaled Brands is home to Korova, the market leader in high potency products across multiple product categories, currently available in California, Oregon, Arizona, and Oklahoma, as well as Sticks and Cabana.

For more info, please visit: https://unrivaledbrands.com.

Cautionary Language Concerning Forward-Looking Statements

Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as "anticipates," "believes," "plans," "expects," "projects," "future," "intends," "may," "will," "should," "could," "estimates," "predicts," "potential," "continue," "guidance," and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.

New factors emerge from time-to-time and it is not possible for us to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as other risks associated with the combination, will be more fully discussed in our reports with the SEC. Additional risks and uncertainties are identified and discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to the Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.

Contact:

Jason Assad
LR Advisors LLC.
jassad@unrivaledbrands.com
678-570-6791


UNRIVALED BRANDS, INC.  
CONSOLIDATED BALANCE SHEETS (UNAUDITED)  
(in thousands, except for shares)  
       
  September 30, 2022 December 31, 2021  
  (Unaudited)    
ASSETS      
Current Assets:      
Cash and Cash Equivalents $ 1,989   $ 6,891    
Accounts Receivable   573     4,677    
Inventory   2,684     7,179    
Prepaid Expenses & Other Assets   1,564     1,272    
Notes Receivable   375     750    
Assets Held for Sale   23     4,495    
Total Current Assets   7,208     25,264    
       
Property, Equipment and Leasehold Improvements, Net   19,576     23,728    
Intangible Assets, Net   3,360     129,637    
Goodwill   3,585     48,132    
Other Assets   16,212     26,915    
Investments   721     164    
Deferred Tax Asset   608        
Long-Term Assets Held for Sale   2,579     17,984    
TOTAL ASSETS $ 53,849   $ 271,824    
       
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY      
LIABILITIES:      
Current Liabilities:      
Accounts Payable & Accrued Liabilities $ 37,037   $ 31,904    
Current Portion of Notes Payable   26,454     45,749    
Income Taxes Payable   9,394     7,969    
Liabilities Held for Sale   1,653     2,087    
      Total Current Liabilities   74,538     87,708    
       
Notes Payable, Net of Discounts   7,964     10,006    
Deferred Tax Liabilities       6,123    
Lease Liabilities   12,101     21,316    
Long-Term Liabilities Held for Sale   1,357     184    
TOTAL LIABILITIES   95,960     125,337    
       
COMMITMENTS AND CONTINGENCIES          
       
STOCKHOLDERS’ (DEFICIT) EQUITY:      
Common Stock, par value $0.001:      
 990,000,000 shares authorized, 560,353,549 and 498,546,291 shares outstanding as of September 30, 2022 and December 31, 2021, respectively   584     521    
Treasury Stock: 2,308,408 shares of common stock as of September 30, 2022 and December 31, 2021   (808 )   (808 )  
Additional Paid-In Capital   401,729     392,930    
Accumulated Deficit   (443,616 )   (250,015 )  
Total Equity Attributable to Stockholders of Unrivaled Brands, Inc.   (42,111 )   142,628    
Non-Controlling Interest       3,859    
TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY   (42,111 )   146,487    
       
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ 53,849   $ 271,824    
       



UNRIVALED BRANDS, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  
(in thousands, except for shares and per share data)  
           
  Three Months Ended September 30, Nine Months Ended September 30,  
    2022     2021     2022     2021    
           
Revenue $ 10,762   $ 20,052   $ 49,042   $ 24,980    
Cost of Goods Sold   10,826     19,724     34,404     21,737    
Gross (Loss) Profit   (64 )   328     14,638     3,243    
           
Operating Expenses:          
Selling, General & Administrative   13,236     12,029     51,074     29,376    
Impairment Expense   107,972         163,698        
Loss on Disposal of Assets   1,529         1,872        
Total Operating Expenses   122,737     12,029     216,644     29,376    
           
Loss from Operations   (122,801 )   (11,701 )   (202,006 )   (26,133 )  
           
Other Income (Expense):          
Interest Expense, Net   (384 )   (515 )   (2,594 )   (627 )  
Gain (Loss) on Extinguishment of Debt       185     542     (5,976 )  
Gain on Investments               5,337    
Unrealized (Loss) Gain on Investments   (493 )       470        
Other Income   251     5     1,729     367    
Total Other (Expense) Income   (626 )   (325 )   147     (899 )  
           
Loss from Continuing Operations Before Provision for Income Taxes   (123,427 )   (12,026 )   (201,859 )   (27,032 )  
Provision for Income Tax Benefit for Continuing Operations   3,449         5,585        
Net Loss from Continuing Operations   (119,978 )   (12,026 )   (196,274 )   (27,032 )  
           
Net Income from Discontinued Operations   72     6,561     4,051     4,898    
           
NET LOSS   (119,906 )   (5,465 )   (192,223 )   (22,134 )  
           
Less: Net (Loss) Income from Discontinued Operations Attributable to Non-Controlling Interest       (118 )   275     (604 )  
NET LOSS ATTRIBUTABLE TO UNRIVALED BRANDS, INC. $ (119,906 ) $ (5,347 ) $ (192,498 ) $ (21,530 )  
           
Net Loss from Continuing Operations per Common Share Attributable to Unrivaled Brands, Inc. - Basic and Diluted $ (0.21 ) $ (0.03 ) $ (0.33 ) $ (0.09 )  
Net Loss per Common Share Attributable to Unrivaled Brands, Inc. - Basic and Diluted $ (0.21 ) $ (0.01 ) $ (0.33 ) $ (0.07 )  
Weighted-Average Shares Outstanding - Basic and Diluted   579,942,517     457,745,655     588,887,945     317,491,979    
           

 


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Source: Unrivaled Brands, Inc.