Exhibit 99.1

 

 

 

Ayr Wellness Reports Fourth Quarter and Full Year 2021 Results

 

·Q4 2021 Revenue of $111.8 Million, up 16% sequentially

 

·Q4 2021 Adjusted EBITDA of $26.1 Million, flat sequentially

 

·FY 2021 Revenue and Adjusted EBITDA of $357.6 Million and $98.0 Million, up 131% and 84% Year-over-Year, respectively

 

·US GAAP Operating Loss of $13.8 Million and $56 Million for Q4 and FY 2021, respectively.

 

MIAMI, March 17, 2022 – Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (“Ayr” or the “Company”), a vertically-integrated cannabis multi-state operator (MSO), is reporting financial results for the three and twelve months ended December 31, 2021. Unless otherwise noted, all results are presented in U.S. dollars.

 

Jonathan Sandelman, Founder, Chairman and CEO of Ayr, said, “2021 was a transformative year for Ayr, with outsized revenue and Adjusted EBITDA growth, and an expanded operating footprint bringing us from our two original states to seven leading cannabis markets, with an eighth pending acquisition close. We added 62 dispensaries and 8 cultivation facilities, while welcoming more than 1,600 teammates. Following this transformative year for our operating footprint, we are now squarely focused on making 2022 a transformative year for Ayr’s earnings power. The CapEx projects we began in 2021 are expected to begin generating revenue for us throughout 2022, leading to our expected significant second half ramp. While these projects have been delayed, we are proud of the extensive expansion our team has achieved through this global pandemic and supply chain crisis.”

 

“The talent that we have brought into our team and the culture we are strengthening every day continue to be the hidden assets on our balance sheet. Our teammates are all pulling in the same direction, driven by our collective goals of producing high-quality cannabis at scale, delivering remarkable experiences to our customers every day and being a force for good in our communities.”

 

Fourth Quarter Financial Highlights ($ in millions, excl. margin items)

 

   Q4 20201   Q3 2021   Q4 2021   % Change
Q4/Q4
   % Change
Q4/Q3
 
Revenue  $47.8   $96.2   $111.8    133.9%   16.2%
Adjusted Gross Profit1  $28.7   $56.6   $63.3    120.6%   11.8%
Operating Income/(Loss)  $6.7   $(8.9)  $(13.9)   NA    NA 
Adj. EBITDA1  $18.6   $26.0   $26.1    40.3%   0.4%
Adj. EBITDA Margin1   38.9%   27.0%   23.3%   -1560bps   -370bps

 

 

 

 

Full Year 2021 Financial Highlights ($ in millions, excl. margin items)

 

   FY 20201   FY 2021   % Change
Y/Y
 
Revenue  $155.1   $357.6    130.6%
Adjusted Gross Profit1  $91.7   $207.3    126.1%
Adjusted Gross Profit1 %   59.1%   58.0%   -110bps
Operating Income/(Loss)  $1.2   $(56.0)   NM 
Adj. EBITDA1  $53.4   $98.0    83.5%
Adj. EBITDA Margin1   34.4%   27.4%   -700bps

 

1Adjusted EBITDA, Adjusted Gross Profit and Adjusted EBITDA Margin are non-GAAP measures, and accordingly are not standardized measures and may not be comparable to similar measures used by other companies. See Definition and Reconciliation of Non-GAAP Measures below. For a reconciliation of Operating Loss to Adjusted EBITDA as well as Gross Profit to Adjusted Gross Profit, see reconciliation table appended to this release.

 

Fourth Quarter and Recent Highlights

 

·Northeast
oIn the first quarter, the Company completed construction of its Boylston Street and Watertown adult-use dispensaries in Massachusetts, both of which are awaiting regulatory approval to open, with revenue from these dispensaries expected in the second quarter.
oIn the first quarter, the Company’s final Massachusetts cultivation expansion began the regulatory approval process, with sales from this cultivation facility expected to begin in the fourth quarter.
oIn the fourth quarter, the Company opened two new Pennsylvania dispensaries in Montgomeryville and Bryn Mawr.
oBecause additional cultivation capacity has come online ahead of expected adult-use demand in Pennsylvania, the Company has decided to defer its cultivation expansion plans in the state to align more closely with the expected timing of adult-use sales.
oIn the first quarter, the Company submitted required documentation to allow for adult-use sales at its three dispensaries in New Jersey and is awaiting regulatory approval for conversion.
oIn the fourth quarter, the Company completed the construction of its 75,000 sq. ft. cultivation facility in New Jersey, which is awaiting regulatory approval to open.
·Southwest
oIn the fourth quarter, the Company completed construction of its 80,000 sq. ft. cultivation facility in Arizona, which is expected to begin generating revenue in the second quarter of 2022.
oThe Company continued to grow market share in Nevada to roughly 16% as of January 2022, maintaining strong retail sales despite the fact that the overall Nevada market declined according to BDSA.
oKynd premium flower has been the top selling flower brand in Nevada for 5 straight months.
·Florida
oIn the first quarter, the Company has opened two additional retail stores bringing its total store count to 45.
oAs of the first quarter, the Company has doubled monthly revenues relative to the same period in the prior year.
oInitiatives to refresh and expand genetics and improve plant health have resulted in first quarter to date 2022 yields of approximately 1,200 pounds per harvest, up from approximately 650 pounds per harvest in the first quarter of 2021.

 

 

 

 

oAs of the first quarter 2022, the Company’s Gainesville cultivation campus had 68 unique strains under cultivation, approximately half of which are available across Ayr’s Florida stores.
oThe Company recently added 40% more power capacity to its Gainesville cultivation site to further improve cultivation results.
oThe Company’s hoop houses are in the process of being re-planted with a new strategy better suited to the local weather environment, with the first harvest from the initial 5 acres now expected in the second quarter of 2022.

 

Recent M&A Highlights

 

·On February 15, 2022, Ayr announced the closing of its acquisition of Cultivauna, LLC, the owner of Levia branded infused seltzers and water-soluble tinctures.
·On February 7, 2022, Ayr announced regulatory approval of its Interim Management Services Agreement with Tahoe Hydroponics Company and related business NV Green, Inc., deepening the Company’s cultivation presence in Nevada and adding strong cultivation talent and an improved genetic bank to the Ayr portfolio.
·On November 22, 2021 Ayr entered into a definitive agreement to acquire Gentle Ventures, LLC d/b/a Dispensary 33, in addition to the previously announced agreement to acquire Herbal Remedies Dispensaries, LLC , to establish a retail footprint in the state of Illinois. Both acquisitions are subject to customary closing conditions and regulatory approvals.
·On October 4, 2021, Ayr closed its acquisition of PA Natural Medicine, LLC, which added three key dispensary locations in central Pennsylvania to the Company’s footprint, including the college towns of State College and Bloomsburg.

 

Financing and Capital Structure

 

·On March 16, 2022, the Company entered into a $26.2 million mortgage loan agreement with a community bank with an annual interest rate of 4.625%.
·During the fourth quarter, the Company repurchased approximately 573,000 subordinate voting shares as part of its stock repurchase program for a total of over CAD $11 million.
·On November 12, 2021, the Company added approximately $147 million of cash to its balance sheet following the sale of Senior Secured Notes at a yield-to-maturity of 9.8%.
·During the fourth quarter, the Company deployed approximately $123 million of capital expenditures and anticipates an additional $70 million of capital expenditures for 2022.
·At December 31, 2021, there were approximately 70.7 million fully diluted sharesi outstanding based on a treasury method calculation as of that date.

 

Outlook:

 

Given prior construction delays and uncertain regulatory timelines regarding key revenue-generating initiatives, including regulatory approval for adult-use sales and cultivation expansions in both Massachusetts and New Jersey, the Company expects financial results in the first half of 2022 to remain relatively flat, in-line with industry trends, followed by a step-function in growth beginning in Q3 2022 and continuing through Q4 2022.

 

Assuming the Company receives these regulatory approvals sufficiently early in Q3 2022, the Company anticipates an annualized run-rate of $250 million of Adjusted EBITDA, $100 million of operating income and $800 million of revenue for Q4 2022.

 

The Company’s expectations for future results are based on the assumptions and risks detailed in its MD&A for the period ending December 31, 2021 as filed on SEDAR.

 

 

i Excludes Ayr granted but unvested LTIP shares totaling 8.1 million. 

 

 

 

 

Conference Call

 

Ayr CEO Jonathan Sandelman, Co-COO Jennifer Drake, and CFO Brad Asher will host the conference call, followed by a question and answer period.

 

Conference Call Date: Thursday, March 17, 2022

Time: 8:30 a.m. Eastern time

Toll-free dial-in number: (800) 319-4610

International dial-in number: (604) 638-5340

 

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact the company’s investor relations team at AYR@elevate-ir.com.

 

The conference call will be broadcast live and available for replay here.

 

A telephonic replay of the conference call will also be available for one month beginning at 11:30 a.m. ET on Thursday, March 17, 2022.

 

Toll-free replay number: (855) 669-9658

International replay number: (412) 317-0088

Replay ID: 8414

 

Financial Statements

 

Certain financial information reported in this news release is extracted from Ayr’s Consolidated Financial Statements for the year ended December 31, 2021 and 2020. Ayr files its financial statements on SEDAR and with the SEC. All financial information contained in this news release is qualified in its entirety by reference to such financial statements and MD&A.

 

Definition and Reconciliation of Non-GAAP Measures

 

The Company reports certain non-GAAP measures that are used to evaluate the performance of its businesses and the performance of their respective segments, as well as to manage their capital structures. As non-GAAP measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Securities regulators require such measures to be clearly defined and reconciled with their most comparable GAAP measures.

 

Rather, these are provided as additional information to complement those GAAP measures by providing further understanding of the results of the operations of the Company from management’s perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company’s financial information reported under GAAP. Non-GAAP measures used to analyze the performance of the Company’s businesses include “Adjusted EBITDA” and “Adjusted Gross Profit.”

 

 

 

 

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performances and may be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. These financial measures are intended to provide investors with supplemental measures of the Company’s operating performances and thus highlight trends in the Company’s core businesses that may not otherwise be apparent when solely relying on the GAAP measures.

 

Adjusted EBITDA

 

“Adjusted EBITDA” represents loss from operations, as reported under GAAP, before interest and tax, adjusted to exclude non-core costs, other non-cash items, including depreciation and amortization, and further adjusted to remove non-cash stock-based compensation, the accounting for the incremental costs to acquire cannabis inventory in a business combination, acquisition related costs, and start-up costs.

 

Adjusted Gross Profit

 

“Adjusted Gross Profit” represents gross profit, as reported, adjusted to exclude the accounting for the incremental costs to acquire cannabis inventory in a business combination, interest, depreciation and amortization, and start-up costs.

 

A reconciliation of how Ayr calculates Adjusted EBITDA and Adjusted Gross Profit is provided in the tables appended below. Additional reconciliations of Adjusted EBITDA, Adjust Gross Profit and other disclosures concerning non-GAAP measures are provided in our MD&A for the three and twelve months ended December 31, 2021.

 

Forward-Looking Statements

 

Certain information contained in this news release may be forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often, but not always, identified by the use of words such as “target”, “expect”, “anticipate”, “believe”, “foresee”, “could”, “would”, “estimate”, “goal”, “outlook”, “intend”, “plan”, “seek”, “will”, “may”, “tracking”, “pacing” and “should” and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, Ayr’s future growth plans. Numerous risks and uncertainties could cause the actual events and results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: anticipated strategic, operational and competitive benefits may not be realized; events or series of events, including in connection with COVID-19, may cause business interruptions; required regulatory approvals may not be obtained in a timely manner or at all; inflationary pressures may increase input costs; supply chain issues may hamper production and distribution; acquisitions may not be able to be completed on satisfactory terms or at all; and Ayr may not be able to raise additional debt or equity capital. Among other things, Ayr has assumed that its businesses will operate as anticipated, that it will be able to complete acquisitions on reasonable terms, and that all required regulatory approvals will be obtained on satisfactory terms and within expected time frames. In particular, there can be no assurance that we will complete the pending acquisitions in or enter into agreements with respect to other acquisitions.

 

Forward-looking estimates and assumptions involve known and unknown risks and uncertainties that may cause actual results to differ materially. While Ayr believes there is a reasonable basis for these assumptions, such estimates may not be met. These estimates represent forward-looking information. Actual results may vary and differ materially from the estimates.

 

 

 

 

Assumptions and Risks

 

Forward-looking information in this release is subject to the assumptions and risks as described in our MD&A for December 30, 2021.

 

Additional Information

 

For more information about the Company’s 2021 operations and outlook, please view Ayr’s corporate presentation posted in the Investors section of the Company’s website at www.ayrwellness.com.

 

About Ayr Wellness Inc.

 

Ayr is an expanding vertically integrated, U.S. multi-state cannabis operator, focused on delivering the highest quality cannabis products and customer experience throughout its footprint. Based on the belief that everything starts with the quality of the plant, the Company is focused on superior cultivation to grow superior branded cannabis products. Ayr strives to enrich consumers’ experience every day through the wellness and wonder of cannabis.

 

Ayr’s leadership team brings proven expertise in growing successful businesses through disciplined operational and financial management, and is committed to driving positive impact for customers, employees and the communities they touch. For more information, please visit www.ayrwellness.com.

 

Company Contact:

 

Robert Vanisko

VP, Corporate Communications

Email: robert.vanisko@ayrwellness.com

 

Investor Relations Contact:

 

Sean Mansouri, CFA
Elevate IR
T: (720) 330-2829
Email: IR@ayrwellness.com

 

 

 

 

  

Ayr Wellness Inc. (formerly Ayr Strategies Inc.)

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars, Except Number of Shares)

 

   Year Ended 
   December 31, 2021   December 31, 2020 
ASSETS          
Current          
Cash  $154,342,201   $127,238,165 
Accounts receivable, net   7,412,906    3,464,401 
Due from related parties   -    135,000 
Inventory, net   93,362,985    22,919,605 
Prepaid expenses, deposits, & other current assets   10,949,349    5,270,381 
   $266,067,441   $159,027,552 
Non-current          
Property, plant, & equipment, net   275,222,166    69,104,080 
Intangible assets, net   978,915,457    252,357,677 
Right-of-use assets - operating   88,720,082    22,546,256 
Right-of-use assets - finance, net   17,527,126    877,310 
Goodwill   229,909,562    57,963,360 
Equity investments   -    503,509 
Deposits & other assets   3,550,039    2,540,674 
Total assets  $1,859,911,873   $564,920,418 
           
LIABILITIES & SHAREHOLDERS' EQUITY          
Liabilities          
Current          
Trade payables  $26,983,181   $8,899,786 
Accrued liabilities   32,723,734    8,706,813 
Lease liabilities - operating - current portion   4,195,672    740,864 
Lease liabilities - finance - current portion   3,185,460    125,440 
Contingent consideration - current portion   39,868,080    - 
Purchase consideration payable   811,586    9,053,057 
Income tax payable   28,914,949    21,379,351 
Debts payable - current portion   8,111,723    8,644,633 
Accrued interest payable - current portion   7,541,634    - 
   $152,336,019   $57,549,944 
Non-current          
Deferred tax liabilities   70,081,319    14,677,991 
Lease liabilities - operating - non-current portion   87,767,033    23,474,726 
Lease liabilities - finance - non-current portion   9,406,202    446,585 
Contingent consideration - non-current portion   145,653,870    22,961,411 
Debts payable - non-current portion   125,745,888    53,587,948 
           
Senior secured notes, net of debt issuance costs - non-current portion   245,407,822    103,652,963 
Accrued interest payable - non-current portion   3,451,016    3,301,155 
Total liabilities  $839,849,169   $279,652,723 
Commitments and contingencies          
           
Shareholders' equity          
           
Multiple Voting Shares: no par value, unlimited authorized.
Issued & outstanding - 3,696,486 shares
   -    - 
           
Subordinate, Restricted, & Limited Voting Shares: no par value, unlimited authorized.
Issued & outstanding - 56,337,175 & 28,873,641 shares, respectively
   -    - 
           
Exchangeable Shares: no par value, unlimited authorized.
Issued & outstanding - 7,368,285 & 2,127,543 shares, respectively
   -    - 
Additional paid-in capital   1,289,827,092    530,808,494 
Treasury stock - 568,300 & 63,800 shares, respectively   (7,828,037)   (556,899)
Accumulated other comprehensive income   3,265,610    3,265,610 
Deficit   (265,201,961)   (248,249,510)
Total shareholders' equity  $1,020,062,704   $285,267,695 
Total liabilities & shareholders' equity  $1,859,911,873   $564,920,418 

 

 

 

 

 

Ayr Wellness Inc. (formerly Ayr Strategies Inc.)

Unaudited Consolidated Statements of Operations

(Expressed in United States Dollars, Except Number of Shares)

 

   Three Months Ended   Year Ended 
   December 31, 2021   December 31, 2020   December 31, 2021   December 31, 2020 
Revenues, net of discounts  $111,769,021   $47,764,775   $357,608,311   $155,114,454 
                     
Cost of goods sold excluding fair value items   58,079,456    20,236,777    175,646,346    66,355,014 
Incremental costs to acquire cannabis inventory in a business combination   2,452,956    -    43,863,688    - 
Cost of goods sold  $60,532,412   $20,236,777   $219,510,034   $66,355,014 
                     
Gross profit  $51,236,609   $27,527,998   $138,098,277   $88,759,440 
                     
Operating expenses                    
General and administrative   44,257,487    15,037,287    136,744,916    69,583,293 
Sales and marketing   3,266,551    563,687    7,699,986    2,150,536 
Depreciation and amortization   729,013    299,602    1,997,185    829,745 
Amortization on intangible assets   13,004,905    3,028,715    38,661,734    12,024,715 
Acquisition expense   3,837,321    1,890,427    9,001,683    2,945,194 
Total operating expenses  $65,095,277   $20,819,718   $194,105,504   $87,533,483 
                     
(Loss) Income from operations  $(13,858,668)  $6,708,280   $(56,007,227)  $1,225,957 
                     
Other income (expense)                    
Share of loss on equity investments   -    (2,208)   (31,670)   (33,591)
Foreign exchange   (1,530)   1,256    (62,714)   (7,783)
Fair value gain (loss) on financial liabilities   52,947,305    782,846    83,759,057    (529,555)
Interest expense, net   (5,697,665)   (1,618,557)   (16,549,836)   (3,203,097)
Interest income   42,971    5,624    203,587    10,112 
Other, net   (18,460)   -    997,263    19,971 
Total other income (expense)  $47,272,621   $(831,039)  $68,315,687   $(3,743,943)
                     
Income (Loss) before taxes  $33,413,953   $5,877,241   $12,308,460   $(2,517,986)
                     
Income Taxes                    
Current tax provision   (15,834,205)   (6,780,890)   (45,820,250)   (21,770,590)
Deferred tax benefit (provision)   6,206,452    (48,194)   16,559,339    (316,873)
Total income taxes  $(9,627,753)  $(6,829,084)  $(29,260,911)  $(22,087,463)
                     
Net income (loss)  $23,786,200   $(951,843)  $(16,952,451)  $(24,605,449)
                     
Basic and diluted earnings (loss) per share  $0.35   $(0.03)  $(0.30)  $(0.88)
                     
Weighted average number of shares outstanding (basic and diluted)   67,352,419    29,814,594    57,329,350    27,892,441 

 

 

 

 

 

Ayr Wellness Inc. (formerly Ayr Strategies Inc.)

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars, Except Number of Shares)

 

   Year Ended 
   December 31, 2021   December 31, 2020 
Operating activities          
Net loss  $(16,952,451)  $(24,605,449)
Adjustments for:          
Net fair value (gain) loss on financial liabilities   (83,759,057)   529,555 
Stock-based compensation   27,155,214    31,156,759 
Depreciation and amortization   8,125,151    2,812,028 
Amortization on intangible assets   50,708,958    13,716,502 
Share of loss on equity investments   31,670    33,591 
Gain on disposal of equity investments   (177,926)   - 
Incremental costs to acquire cannabis inventory in a business combination   43,863,688    - 
Loss on disposal of property, plant, and equipment   50,483    - 
Deferred tax (benefit) expense   (16,559,339)   316,873 
Amortization on financing costs   1,744,520    90,858 
Amortization on financing premium   (402,376)   - 
Changes in operating assets and liabilities, net of business acquisition:          
Accounts receivable   (3,916,018)   (843,162)
Inventory   (50,956,053)   (8,876,748)
Prepaid expenses and other current assets   (2,325,897)   (2,529,211)
Trade payables   (1,429,713)   1,616,253 
Accrued liabilities   7,942,658    3,274,488 
Interest accrued   1,446,358    2,214,061 
Lease liabilities - operating   1,911,974    200,913 
Income tax payable   5,717,078    16,176,408 
Cash (used in) provided by operating activities   (27,781,078)   35,283,719 
           
Investing activities          
Purchase of property, plant, and equipment   (100,002,729)   (14,367,690)
Purchases of intangible assets   -    (400,000)
Cash paid for business combinations and asset acquisitions, net of cash acquired   (92,270,242)   (35,174,880)
Cash paid for business combinations and asset acquisitions, bridge financing   (22,750,176)   (8,040,804)
Cash paid for business combinations and asset acquisitions, working capital   (4,359,040)   (2,354,375)
Payments for interests in equity accounted investments   (81,609)   (109,700)
Cash received in disposal of equity investment   1,000,000    - 
Payments made by (advances to) related corporation   135,000    (50,000)
Cash paid for bridge financing   (1,200,000)   - 
Deposits for business combinations   (100,000)   (1,750,000)
Cash used in investing activities   (219,628,796)   (62,247,449)
           
Financing activities          
Proceeds from exercise of Warrants   55,691,685    48,489,148 
Proceeds from exercise of options   314,915    - 
Proceeds from equity offering, net of expenses   118,052,400    - 
Proceeds from senior secured notes, net of financing costs   148,647,037    103,571,105 
Payments of financing costs   (2,142,242)   - 
Tax withholding on stock-based compensation awards   (28,536,340)   - 
Repayments of debts payable   (8,749,327)   (5,615,225)
Repayments of lease liabilities - finance (principal portion)   (6,948,895)   (334,899)
Repurchase of Subordinate Shares   (1,815,323)   (311,430)
Cash provided by financing activities   274,513,910    145,798,699 
           
Net increase in cash   27,104,036    118,834,969 
Cash, beginning of the period   127,238,165    8,403,196 
Cash, end of the period   154,342,201    127,238,165 
           
Supplemental disclosure of cash flow information:          
Interest paid during the period   14,243,886    1,102,193 
Income taxes paid during the period   41,303,039    5,594,182 
Non-cash investing and financing activities:          
Recognition of right-of-use assets for operating leases   68,577,580    12,295,919 
Recognition of right-of-use assets for finance leases   18,576,445    906,924 
Issuance of Subordinate Shares related to business combinations, asset acquisitions, and make-whole provision   576,195,758    30,825,012 
Issuance of Subordinate Shares related to equity component of debt   7,429,389    - 
Repurchase of Subordinate Shares   7,193,155    - 

 

 

 

 

 

Ayr Wellness Inc. (formerly Ayr Strategies Inc.)

Unaudited Consolidated Adjusted EBITDA Reconciliation

(Expressed in United States Dollars)

 

   Three Months Ended December 31,   Year Ended December 31, 
   2021   2020   2021   2020 
(Loss) income from operations (GAAP)  $(13,858,668)  $6,708,280   $(56,007,227)  $1,225,957 
                     
Non-cash items accounting for inventory                    
Incremental costs to acquire cannabis inventory in business combination   2,452,956    -    43,863,688    - 
                     
Interest (within cost of goods sold "COGS")   486,228    119,092    1,407,507    475,447 
Depreciation and amortization (from statement of cash flows)   21,009,444    4,496,380    58,834,109    16,528,530 
Acquisition costs   3,837,321    1,890,427    9,001,683    2,945,194 
Stock-based compensation, non-cash   6,766,808    5,207,203    27,155,214    31,156,759 
Start-up costs1   3,593,796    -    10,030,921    - 
Other2   1,847,817    182,343    3,688,329    1,089,912 
    37,541,414    11,895,445    110,117,763    52,195,842 
                     
Adjusted EBITDA (non-GAAP)   26,135,702    18,603,725    97,974,224    53,421,799 

 

   Three Months Ended December 31,   Year Ended December 31, 
   2021   2020   2021   2020 
Gross Profit (GAAP)  $51,236,609   $27,527,998   $138,098,277   $88,759,440 
                     
Incremental costs to acquire cannabis inventory in business combination   2,452,956    -    43,863,688    - 
Interest (within COGS)   486,228    119,092    1,407,507    475,447 
Depreciation and amortization (within COGS)   7,275,526    1,034,387    18,175,191    2,506,007 
Start-up costs (within COGS)   1,875,209    -    5,708,910    - 
    12,089,919    1,153,479    69,155,296    2,981,454 
                     
Adjusted Gross Profit (non-GAAP)   63,326,528    28,681,477    207,253,573    91,740,894 

 

1 These are set-up costs to prepare a location for its intended use. Start-up costs are expensed as incurred and are not indicative of ongoing operations

2 Other non-operating adjustments associated with non-core costs