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Irwin Naturals Files Q2 2022 Financials

·15 min read
Irwin Naturals
Irwin Naturals

Rapid Execution on Cannabis Licensing and Ketamine Clinic
Rollup Strategy to Accelerate Future Growth

LOS ANGELES, Aug. 30, 2022 (GLOBE NEWSWIRE) -- Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) (FRA: 97X) (“Irwin” or the “Company”) announced the Company filed results for its second quarter of fiscal 2022, the period ended June 30, 2022 on www.sedar.com.

Philippe Faraut, CFO, stated, “While supply chain issues, reduced inventory at our customers and product transitions resulted in an 18% decrease in revenues, we maintained profitability. Additionally, as we continue to execute on our cannabis licensing and ketamine clinic rollup strategy, we will be adding new revenue streams to our results in the quarters to come. Following a bump in sales once the nation emerged from the most severe Covid related restrictions, we believe that our mass market (nutraceutical) business, we are now tracking back to normal sales patterns, which we believe will result in secular growth in the coming quarters.”

Mr. Faraut continued, “We maintain a healthy balance sheet, have very limited debt and have access to considerable working capital through our credit line and other instruments to invest in accelerated growth through our Emergence clinics and cannabis business lines. With acquisitions resulting in 11 clinics announced and completed, we anticipate seeing considerable growth coming from our Emergence business in the coming quarters, further supported by the rollout of our licensing deals, which now sees us in four states and in Canada.”

Financial Summary

 

Three months ended

 

 

 

 

 

Six months ended

 

 

 

 

(in thousands)

June 30,

 

$

 

%

 

June 30,

 

$

 

%

Combined Statement of Profit

 

2022

 

 

2021

 

Change

 

Change

 

 

2022

 

 

2021

 

Change

 

Change

Non-CBD operating revenue

$

20,125

 

$

24,100

 

$

(3,975

)

 

-16.5

%

 

$

40,860

 

$

45,435

 

$

(4,575

)

 

-10.1

%

CBD operating revenue

 

1,684

 

 

2,493

 

 

(809

)

 

-32.5

%

 

 

3,543

 

 

5,293

 

 

(1,750

)

 

-33.1

%

Total Operating Revenue

 

21,809

 

 

26,593

 

 

(4,784

)

 

-18.0

%

 

 

44,403

 

 

50,728

 

 

(6,325

)

 

-12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

9,559

 

 

12,106

 

 

(2,547

)

 

-21.0

%

 

 

20,605

 

 

23,853

 

 

(3,248

)

 

-13.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

505

 

 

3,135

 

 

(2,630

)

 

-83.9

%

 

 

3,031

 

 

6,938

 

 

(3,907

)

 

-56.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit

 

111

 

 

2,977

 

 

(2,866

)

 

-96.3

%

 

 

1,692

 

 

6,692

 

 

(5,000

)

 

-74.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

$

 

%

 

 

 

 

 

 

 

 

Statement of Financial Position

 

June 30, 2022

 

 

Dec 31, 2021

 

Change

 

Change

 

 

 

 

 

 

 

 

Total assets

 

63,785

 

 

47,219

 

 

16,566

 

 

35.1

%

 

 

 

 

 

 

 

 

Total liabilities

 

34,031

 

 

24,103

 

 

9,928

 

 

41.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Klee Irwin, CEO, commented, “The current proliferation of scientific research into the efficacy of psychedelics assisted mental health treatments has sorted two effects. On the one hand, treating physicians are taking notice of the remarkable results this line of treatment can accomplish, which is driving adoption amongst physicians and other mental health workers. On the demand side, we are seeing a rapidly accelerating destigmatization of psychedelics. Both are drivers that will continue to grow the market and with our rapidly expanding clinics chain, we are exceptionally well positioned to capitalize on this growth.”

Mr. Irwin continued, “While we saw similar patterns with cannabis, we believe that the strong science behind these treatments, with buy-in from both medical professionals and patients, will show an accelerated adoption curve. The one element that was missing was a trusted brand. With the Irwin Naturals brand recognized by over 100 million North Americans, there is now a well-known and trusted provider in the space. This, we believe, will drive additional patients our way to drive a marked acceleration of revenue and profitability growth.”

Financial Highlights

  • The 18.0% decline in overall operating revenues were due largely to supply issues in the CBD segment, related to a fire at a key supplier. The decline in sales is believed to be temporary as production of CBD products has restarted at the Company’s manufacturer. Other factors impacting sales related to order timing and the loss of distribution of certain non-CBD mass market products.

  • Income from operations in Q2 2022 came in at $0.5 million, as compared to $3.1 million for the same period in the prior year. The reduction in income was driven primarily by the aforementioned decrease in business volume and startup costs related to Emergence by Irwin Naturals (ketamine clinics) and Irwin Naturals Cannabis (intellectual property licensing to the cannabis industry).

  • The overall decrease in business volume paired with startup costs related to the Company’s initiatives in cannabis and the aforementioned startup costs, resulted in a decrease in EBITDA1 to $0.7 million.

 

Three months ended

 

 

 

 

 

Six months ended

 

 

 

 

(in thousands)

June 30,

 

$

 

%

 

June 30,

 

$

 

%

 

 

2022

 

 

 

2021

 

Change

 

Change

 

 

2022

 

 

 

2021

 

Change

 

Change

Net Profit

$

111

 

 

$

2,977

 

$

(2,866

)

 

-96.3

%

 

$

1,692

 

 

$

6,692

 

$

(5,000

)

 

-74.7

%

Interest Expense

 

111

 

 

 

29

 

 

82

 

 

282.8

%

 

 

360

 

 

 

57

 

 

303

 

 

531.6

%

Income Tax Expense

 

283

 

 

 

129

 

 

154

 

 

119.4

%

 

 

979

 

 

 

189

 

 

790

 

 

418.0

%

Depreciation and Amortization

 

426

 

 

 

353

 

 

73

 

 

20.7

%

 

 

831

 

 

 

707

 

 

124

 

 

17.5

%

EBITDA

$

931

 

 

$

3,488

 

$

(2,557

)

 

-73.3

%

 

$

3,862

 

 

$

7,645

 

$

(3,783

)

 

-49.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

(263

)

 

 

-

 

 

(263

)

 

100.0

%

 

 

(263

)

 

 

-

 

 

(263

)

 

0.0

%

Adjusted EBITDA

$

668

 

 

$

3,488

 

$

(2,820

)

 

-80.8

%

 

$

3,599

 

 

$

7,645

 

$

(4,046

)

 

-52.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1EBITDA is a non IFRS metric that management believes provides a metric for rapid analysis of the underlying strength of the business. A reconciliation from IFRS to EBITDA is provided in the accompanying table above and at the end of this release.

  • Cash Flows from Operating Activities: Cash provided by operating came in at $5.9 million and $10.5 million for the six months ended June 30, 2022 and 2021, respectively. The decrease in operating cash flows is primarily due to lower operating revenue and temporary unfavorability to working capital led by the timing of payments to the Company’s primary product manufacturer and non-cash share capital issuance.

  • Positive cash flow from operations, combined with a largely undrawn line of credit, provides the Company with the financial resources to drive continued execution of its strategy.

Operational Highlights & Subsequent Events

Irwin Naturals is executing on an aggressive expansion strategy into the high-growth cannabis and psychedelics sectors. The Company intends to leverage its household name brand status to drive an aggressive rollup of mental health clinics (the Company is focused on ketamine clinics, as this is currently the only FDA-approved and/or regulated psychedelic substance). Furthermore, the Company has begun executing on its brand licensing strategy throughout the US. To date, the Company has announced or completed the acquisition of 11 clinics, as well as the signing of five brand licensing deals that will see Irwin Naturals products enhanced with THC be offered in California, Colorado, New Mexico, Ohio and Canada.

State

Clinic Acquisitions

Florida

Ketamine Health Centers (5 clinics)

Iowa

Midwest Ketafusion

New Hampshire

New England Ketamine

Mexico

Ketamine Health Centers

Vermont

Preventive Medicine

Georgia

Invictus Clinics (2 clinics)


State

Brand Licenses

California

The Hive

Colorado

Larsen Group II

Ohio

BeneLeaves

New Mexico

Assurance Laboratories

Canada

Entourage

Business highlights and subsequent events

AUG 15, 2022 - Irwin Naturals Emergence Adds New England Clinic to Its National Footprint
AUG 08, 2022 - Irwin Naturals Completes Georgia Acquisition, Adds Two Ketamine Clinics to National Chain
AUG 04, 2022 - Irwin Naturals Cannabis Products to Be Available in Canada
JUL 28, 2022 - Irwin Naturals Emergence Making Immediate Impact in New England
JUN 21, 2022 - Irwin Naturals Continues To Expand Clinic Footprint
JUN 17, 2022 - Irwin Naturals Expands Operations into Northeast with Acquisition of Vermont-Based Clinic
MAY 24, 2022 - Irwin Naturals Expands Licensing Footprint for Branded THC Products to Ohio
MAY 20, 2022 - Irwin Naturals Completes Acquisition of Ketamine Health Centers
MAY 20, 2022 - Irwin Naturals THC Products to Launch in Colorado, the World's 2nd Largest Cannabis Market
MAY 16, 2022 - Irwin Naturals’ Execution of Rollup Strategy Gaining Momentum
MAY 13, 2022 - Irwin Naturals Advances Into Its Second State, New Mexico, Via a License and Supply Deal With Assurance Laboratories for Branded THC Products
APR 19, 2022 - Irwin Naturals Enters Into License and Supply Agreement for Branded THC Products California Market
APR 18, 2022 - Company Leverages Household Brand Status in Effort to be World’s Largest Chain of Psychedelic Mental Health Clinics

About Irwin Naturals

Irwin Naturals has been a household name and best-in-class nutraceutical company since 1994. It is now leveraging its brand into both the cannabis and psychedelic sectors. On a mission to heal the world with plant medicine, Irwin has operated profitably for over 27 years*. The growing portfolio of products is available in more than 100,000 retail doors across North America, where 80% of households know the Irwin Naturals brand**. In 2018, the Company first leveraged its brand to expand into the cannabis industry by launching hemp-based CBD products into the mass market. The Company is now leveraging its famous halo of brand trust to become, perhaps, the first household name brand to offer THC-based products. Its rapidly growing national chain of psychedelic mental health clinics is called Irwin Naturals Emergence.

*Under several corporate structures, Klee Irwin has operated the Irwin brand profitably since 1994, as measured by EBITDA adjusted for extraordinary costs.

**Based on a formal Company survey with a sample size of 500 randomly selected adults.

For investor-related information about the Company, please visit ir.irwinnaturals.com/

To contact the Company’s Investor Relations department, please call toll-free at (800) 883-4851 or send an email to Investors@IrwinNaturals.com.

Klee Irwin
________________________________
Klee Irwin
Chief Executive Officer
T: 310-306-3636
investors@irwinnaturals.com

IR Information

Press Contact

Irwin Naturals Investor Relations
Cassandra Bassanetti-Drumm
T: 310-306-3636
investors@irwinnaturals.com

Regulatory Overview

The following is a brief summary of regulatory matters concerning ketamine in the United States (“US”). Under the Controlled Substances Act (21 U.S.C. § 811) (the "CSA"), ketamine is currently a Schedule III drug as well as being listed under the associated Narcotic Control Regulations, and psilocybin is currently a Schedule I drug.

Most US States have enacted Controlled Substances Acts (“State CSAs”) which regulate the possession, use, sale, distribution, and manufacture of specified drugs or categories of drugs and establish penalties for State CSA violations and form the basis for much state and local drug laws enforcement activity. State CSAs have either adopted drug schedules identical or similar to the federal CSA schedules or, in some instances, have incorporated the federal scheduling mechanism. Among other requirements, some US States have established a prescription drug monitoring or review programs collect information about prescription and dispensing of controlled substances for the purposes of monitoring, analysis and education.

In the United States, facilities holding or administering controlled substances must be registered with the US Drug Enforcement Agency ("DEA") to perform this activity. As such, medical professionals and/or the clinics in which they operate, as applicable, are also required to have a DEA license to obtain and administer ketamine (a "DEA License"). While ketamine is a controlled substance in the United States, it is approved for general anesthetic induction under the US Food, Drug, and Cosmetic Act. Once a drug is approved for use, physicians may prescribe that drug for uses that are not described in the product’s labelling or that differ from those tested by the manufacturer and approved by the Food and Drug Administration (the "FDA"). Licensed medical practitioners may prescribe ketamine legally in Canada or the United States where they believe it will be an effective treatment in their professional judgment.

Please see Irwin’s filing statement on its SEDAR profile for more information on the regulatory environment and regulations surrounding the US THC industry.

Forward-Looking Information

This news release contains certain forward-looking statements that reflect the current views and/or expectations of management of the Company with respect to performance, business and future events. Forward-looking statements can often be identified by words such as "may", "will", "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", or the negative of those words or other similar or comparable words. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. The Company does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the CSE nor its Market Regulator (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Irwin Naturals Inc.


EBITDA and Adjusted EBITDA - Reconciliation

The Company defines EBITDA and Adjusted EBITDA as per the table below. It should be noted that these performance measures are not defined under IFRS and may not be comparable to similar measures used by other entities. The Company believes that these measures are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS. The reconciling items between net earnings, EBITDA, and Adjusted EBITDA are as follows:

 

Three months ended

 

 

 

 

 

Six months ended

 

 

 

 

(in thousands)

June 30,

 

$

 

%

 

June 30,

 

$

 

%

 

 

2022

 

 

 

2021

 

Change

 

Change

 

 

2022

 

 

 

2021

 

Change

 

Change

Net Profit

$

111

 

 

$

2,977

 

$

(2,866

)

 

-96.3

%

 

$

1,692

 

 

$

6,692

 

$

(5,000

)

 

-74.7

%

Interest Expense

 

111

 

 

 

29

 

 

82

 

 

282.8

%

 

 

360

 

 

 

57

 

 

303

 

 

531.6

%

Income Tax Expense

 

283

 

 

 

129

 

 

154

 

 

119.4

%

 

 

979

 

 

 

189

 

 

790

 

 

418.0

%

Depreciation and Amortization

 

426

 

 

 

353

 

 

73

 

 

20.7

%

 

 

831

 

 

 

707

 

 

124

 

 

17.5

%

EBITDA

$

931

 

 

$

3,488

 

$

(2,557

)

 

-73.3

%

 

$

3,862

 

 

$

7,645

 

$

(3,783

)

 

-49.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

(263

)

 

 

-

 

 

(263

)

 

100.0

%

 

 

(263

)

 

 

-

 

 

(263

)

 

0.0

%

Adjusted EBITDA

$

668

 

 

$

3,488

 

$

(2,820

)

 

-80.8

%

 

$

3,599

 

 

$

7,645

 

$

(4,046

)

 

-52.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irwin Naturals Unaudited Condensed Combined Consolidated Interim Statements of Financial Position

 

 

 

June 30,

 

December 31,

 

Notes

 

 

2022

 

 

 

2021

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash

 

 

$

999

 

 

$

625

 

Other Financial Assets

 

 

 

-

 

 

 

1

 

Trade Receivables

15

 

 

13,942

 

 

 

16,394

 

Inventory

6

 

 

21,488

 

 

 

18,652

 

Prepaid Expenses and Other Current Assets

5

 

 

1,364

 

 

 

1,469

 

Total Current Assets

 

 

 

37,793

 

 

 

37,141

 

 

 

 

 

 

 

Non-Current Assets:

 

 

 

 

 

Property and Equipment

7

 

 

183

 

 

 

190

 

Right-of-Use Assets

9

 

 

4,291

 

 

 

3,722

 

Notes Receivable from IN Nevada Shareholders

18

 

 

4,182

 

 

 

3,264

 

Notes Receivable from Related Parties

11

 

 

155

 

 

 

-

 

Goodwill

4

 

 

14,211

 

 

 

-

 

Intangible Assets

11

 

 

87

 

 

 

87

 

Other Non-Current Assets

 

 

 

242

 

 

 

165

 

Deferred Tax Asset

20

 

 

2,641

 

 

 

2,650

 

Total Non-Current Assets

 

 

 

25,992

 

 

 

10,078

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

$

63,785

 

 

$

47,219

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Trade and Other Payables

10

 

$

12,097

 

 

$

13,310

 

Reserve for Returns

 

 

 

491

 

 

 

814

 

Lease Liability - Current

9

 

 

1,878

 

 

 

1,366

 

Note Payable - Current

14

 

 

31

 

 

 

-

 

Line of Credit

8

 

 

9,047

 

 

 

6,178

 

Total Current Liabilities

 

 

 

23,544

 

 

 

21,668

 

 

 

 

 

 

 

Non-Current Liabilities:

 

 

 

 

 

Lease Liability - Non Current

9

 

 

2,483

 

 

 

2,434

 

Note Payable - Non Current

14

 

 

507

 

 

 

-

 

Contingent Consideration

4

 

 

7,450

 

 

 

-

 

Deferred Tax Liability

20

 

 

47

 

 

 

1

 

TOTAL LIABILITIES

 

 

 

34,031

 

 

 

24,103

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Subordinate Voting Shares

12

 

 

3,002

 

 

 

3,000

 

Proportionate Voting Shares

12

 

 

4,945

 

 

 

-

 

Multiple Voting Shares

12

 

 

59

 

 

 

59

 

Class B Non Voting Shares

12

 

 

13,751

 

 

 

13,750

 

Accumulated Other Comprehensive Income

 

 

 

(12

)

 

 

(11

)

Retained Earnings

 

 

 

1,529

 

 

 

189

 

Total Controlling Interest

 

 

 

23,274

 

 

 

16,987

 

Non-Controlling Interest of IN Nevada

19

 

 

6,480

 

 

 

6,129

 

Total Equity

 

 

 

29,754

 

 

 

23,116

 

TOTAL LIABILITIES & EQUITY

 

 

$

63,785

 

 

$

47,219

 

 

 

 

 

 

 

Irwin Naturals Unaudited Condensed Combined Consolidated Interim Statements of Profit and Comprehensive Income

 

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating Revenue

$

21,809

 

 

$

26,593

 

 

$

44,403

 

 

$

50,728

 

Cost of Sales

 

(12,250

)

 

 

(14,487

)

 

 

(23,798

)

 

 

(26,875

)

Gross Profit

 

9,559

 

 

 

12,106

 

 

 

20,605

 

 

 

23,853

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

9,054

 

 

 

8,971

 

 

 

17,574

 

 

 

16,915

 

Gain on Sale of Property and Equipment

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income from Operations

 

505

 

 

 

3,135

 

 

 

3,031

 

 

 

6,938

 

 

 

 

 

 

 

 

 

Other Expense:

 

 

 

 

 

 

 

Interest Income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Interest Expense

 

(111

)

 

 

(29

)

 

 

(360

)

 

 

(57

)

Listing Expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain / (Loss) on Foreign Currency Exchange

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Other Income / (Expense)

 

(111

)

 

 

(29

)

 

 

(360

)

 

 

(57

)

 

 

 

 

 

 

 

 

Profit before Income Taxes

 

394

 

 

 

3,106

 

 

 

2,671

 

 

 

6,881

 

 

 

 

 

 

 

 

 

Income Tax Expense (Note 20)

 

(283

)

 

 

(129

)

 

 

(979

)

 

 

(189

)

 

 

 

 

 

 

 

 

Net Profit

 

111

 

 

 

2,977

 

 

 

1,692

 

 

 

6,692

 

Less: Net Profit Attributable to

 

 

 

 

 

 

 

Non-Controlling Interest of IN Nevada

 

(72

)

 

 

-

 

 

 

(351

)

 

 

-

 

Net Profit Attributable to Controlling Interest

$

39

 

 

$

2,977

 

 

$

1,341

 

 

$

6,692

 

 

 

 

 

 

 

 

 

Foreign Currency Translation Differences

 

(12

)

 

 

-

 

 

 

(8

)

 

 

-

 

 

 

 

 

 

 

 

 

Total Comprehensive Income

 

99

 

 

 

2,977

 

 

 

1,684

 

 

 

6,692

 

Less: Comprehensive Income Attributable to

 

 

 

 

 

 

 

Non-Controlling Interest of IN Nevada

 

(72

)

 

 

-

 

 

 

(351

)

 

 

-

 

Comprehensive Income Attributable to Controlling Interest

$

27

 

 

$

2,977

 

 

$

1,333

 

 

$

6,692

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.09

 

 

$

2.83

 

 

$

1.41

 

 

$

6.52

 

Earnings per share - diluted

$

0.00

 

 

$

2.83

 

 

$

0.01

 

 

$

6.52

 

Weighted average number of shares outstanding - basic

 

1,200,309

 

 

 

1,052,632

 

 

 

1,200,156

 

 

 

1,026,181

 

Weighted average number of shares outstanding - diluted

 

322,460,549

 

 

 

1,052,632

 

 

 

321,917,412

 

 

 

1,026,181

 

 

 

 

 

 

 

 

 

Irwin Naturals Unaudited Condensed Combined Consolidated Interim Statements of Cash Flows

 

For the Six Months Ended

 

June 30,

 

June 30,

 

 

2022

 

 

 

2021

 

 

 

 

 

Net Profit

$

1,692

 

 

$

6,692

 

Adjustments to Reconcile Net Profit to Net Cash Provided by Operating Activities:

 

 

 

Depreciation and Amortization

 

831

 

 

 

707

 

Change in Allowance for Doubtful Accounts

 

37

 

 

 

114

 

Change in Inventory Reserve

 

(1,154

)

 

 

-

 

Deferred Tax Asset

 

56

 

 

 

-

 

Non-Cash Share Capital from Acquisitions

 

4,946

 

 

 

-

 

Interest Expense

 

361

 

 

 

57

 

Income Taxes Expense

 

979

 

 

 

189

 

Changes in Working Capital:

 

 

 

Trade Receivables

 

2,372

 

 

 

(372

)

Inventory

 

(1,682

)

 

 

(332

)

Prepaid Expenses and Other Assets

 

26

 

 

 

413

 

Trade and Other Payables

 

(2,119

)

 

 

3,077

 

Reserve for Returns

 

(323

)

 

 

(7

)

Changes in Other Non-Current Assets

 

(77

)

 

 

(29

)

Net Cash Provided by Operating Activities

 

5,945

 

 

 

10,509

 

 

 

 

 

Cash Flow from Investing Activities:

 

 

 

Disposal of Property and Equipment

 

(48

)

 

 

-

 

Contingent Consideration

 

7,450

 

 

 

-

 

Goodwill

 

(14,211

)

 

 

-

 

Net Cash Used in Investing Activities

 

(6,809

)

 

 

-

 

 

 

 

 

Cash Flow from Financing Activities:

 

 

 

Proceeds from Line of Credit

 

47,726

 

 

 

8,810

 

Payments on Line of Credit

 

(44,857

)

 

 

(12,352

)

Notes Receivable from Related Parties

 

(1,072

)

 

 

-

 

Distributions to Shareholders

 

-

 

 

 

(6,589

)

Payments on Lease Liability

 

(558

)

 

 

(653

)

Net Cash Used in Financing Activities

 

1,239

 

 

 

(10,784

)

Effect of Foreign Exchange on Cash

 

(1

)

 

 

-

 

Net Increase in Cash

 

374

 

 

 

(275

)

Cash at Beginning of the Period

 

625

 

 

 

442

 

Cash at End of the Period

$

999

 

 

$

167