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Unrivaled Brands Reports Second Quarter 2022 Financial Results

·8 min read
Unrivaled Brands, Inc.
Unrivaled Brands, Inc.

SANTA ANA, Calif., Aug. 19, 2022 (GLOBE NEWSWIRE) -- Unrivaled Brands, Inc. (OTCQX: UNRV) ("Unrivaled" or the "Company"), a multi-state vertically integrated company focused on the cannabis sector with operations in California and Oregon, yesterday reported its second quarter 2022 financial results for the quarter ended June 30, 2022.

Financial Update

  • During the three months ended June 30, 2022, the Company generated total revenue of $17.56 million composed of retail revenue of $10.95 million and cultivation/distribution revenue of $6.61 million. This compared to total revenue of $2.87 million for the quarter ended June 30, 2021, which included retail revenue of $2.32 million and cultivation/distribution revenue of $0.55 million. This was an increase of 511.0% in total revenue.

  • The Company’s gross profit for the three months ended June 30, 2022 was $8.27 million, compared to a gross profit of $2.72 million for the three months ended June 30, 2021, an increase of $5.55 million or 204.0%.

  • 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 June 30, 2022 were $19.07 million, compared to $4.70 million for the three months ended June 30, 2021, an increase of $14.37 million or 305.9%. For the three months ended June 30, 2022, amortization and depreciation expenses increased by $2.56 million over the three months ended June 30, 2021, facilities related expenses, such as rent, utilities, repairs and maintenance, security, and insurance, increased by $2.89 million over second quarter of 2021. Taxes, licensing and permitting increased by $1.17 million. Advertising increased by $0.73 million. Employee related expenses increased by $3.93 million or 382%.

  • The Company realized an operating loss of $67.07 million for the three months ended June 30, 2022 compared to an operating loss of $1.97 million for the three months ended June 30, 2021, an increase of $65.09 million or 3,298.5%. This increase was attributed primarily to a $55.73 million charge for impairment of intangible assets and goodwill related to the UMBRLA and People's acquisitions.

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 dispensaries, direct to consumer delivery, a state-wide distribution network, company-owned brands, and two cultivation facilities. 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 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. and Subsidiaries Consolidated Balance Sheets

June 30,
2022

December 31,
2021

 

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash

$

7,263

 

$

6,891

 

 

Accounts receivable, net

 

855

 

 

4,677

 

 

Inventory, net

 

6,038

 

 

7,179

 

 

Prepaid expenses and other assets

 

3,084

 

 

1,272

 

 

Notes receivable

 

375

 

 

750

 

 

Current assets held for sale

 

582

 

 

4,495

 

 

Total current assets

 

18,197

 

 

25,264

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

21,416

 

 

23,728

 

 

Intangible assets, net

 

102,772

 

 

129,637

 

 

Goodwill

 

14,506

 

 

48,132

 

 

Other assets

 

19,359

 

 

26,915

 

 

Investments

 

1,214

 

 

163

 

 

Long-term assets held for sale

 

2,791

 

 

17,984

 

 

TOTAL ASSETS

$

180,255

 

$

271,824

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

LIABILITIES:

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$

37,148

 

$

31,904

 

 

Short-term debt

 

26,532

 

 

45,749

 

 

Income taxes payable

 

9,913

 

 

7,969

 

 

Current liabilities held for sale

 

1,851

 

 

2,087

 

 

Total current liabilities

 

75,444

 

 

87,708

 

 

 

 

 

 

Long-term liabilities:

 

 

 

Long-term debt, net of discounts

 

7,638

 

 

10,006

 

 

Deferred tax liabilities

 

3,986

 

 

6,123

 

 

Long-term lease liabilities

 

14,471

 

 

21,316

 

 

Long-term liabilities held for sale

 

1,465

 

 

184

 

 

Total long-term liabilities

 

27,560

 

 

37,629

 

 

Total liabilities

 

103,004

 

 

125,337

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock, par value $0.001:

 

 

 

990,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 532,514,803 shares issued and 530,206,383 shares outstanding as of June 30, 2022; 498,546,295 shares issued and 496,237,883 shares outstanding as of December 31, 2021.

 

554

 

 

521

 

 

Additional paid-in capital

 

401,214

 

 

392,930

 

 

Treasury stock

 

(808

)

 

(808

)

 

Accumulated deficit

 

(323,710

)

 

(250,015

)

 

Total Unrivaled Brands, Inc. Stockholders’ Equity

 

77,251

 

 

142,628

 

 

Non-controlling interest

 

 

 

3,859

 

 

Total stockholders’ equity

 

77,251

 

 

146,487

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

180,255

 

$

271,824

 

 

 

 

 

 


 

 

 

 

 

UNRIVALED BRANDS, INC. and Subsidiaries Consolidated Statement of Operations

Three Months Ended
June 30,

Six Months Ended
June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

Total revenues

$

17,556

 

$

2,872

 

$

38,280

 

$

4,928

 

Cost of goods sold

 

9,286

 

 

147

 

 

23,578

 

 

2,013

 

Gross profit

 

8,270

 

 

2,725

 

 

14,702

 

 

2,915

 

 

 

 

 

 

Selling, general and administrative expenses

 

19,070

 

 

4,698

 

 

37,837

 

 

17,347

 

Impairment of assets

 

55,726

 

 

 

 

55,726

 

 

 

Loss on sale of assets

 

542

 

 

 

 

343

 

 

 

Loss from operations

 

(67,068

)

 

(1,973

)

 

(79,204

)

 

(14,432

)

 

 

 

 

 

Other income (expense):

 

 

 

 

Gain (loss) on extinguishment of debt

 

 

 

 

 

542

 

 

(6,161

)

Interest expense, net

 

(443

)

 

(39

)

 

(2,210

)

 

(112

)

Unrealized gain on investments

 

963

 

 

 

 

963

 

 

 

Other income

 

443

 

 

17

 

 

1,477

 

 

362

 

Gain (loss) on investments

 

 

 

(874

)

 

 

 

5,337

 

Total other income (expense)

 

963

 

 

(896

)

 

773

 

 

(574

)

 

 

 

 

 

Loss from continuing operations, before provision for income taxes

 

(66,105

)

 

(2,869

)

 

(78,432

)

 

(15,006

)

Provision for income tax benefit for continuing operations

 

449

 

 

 

 

2,136

 

 

 

Net loss from continuing operations

 

(65,655

)

 

(2,869

)

 

(76,295

)

 

(15,006

)

 

 

 

 

 

Income (loss) from discontinued operations, before provision for income taxes

 

1,843

 

 

(2,101

)

 

3,979

 

 

(1,663

)

Provision for income tax benefit for discontinued operations

 

95

 

 

 

 

 

 

 

Net income (loss) from discontinued operations

 

1,938

 

 

(2,101

)

 

3,979

 

 

(1,663

)

 

 

 

 

 

NET LOSS

 

(63,718

)

 

(4,970

)

 

(72,317

)

 

(16,669

)

 

 

 

 

 

Less: Loss attributable to non-controlling interest from continuing operations

 

 

 

(868

)

 

 

 

(486

)

Less: Income attributable to non-controlling interest from discontinued operations

 

 

 

 

 

275

 

 

 

NET LOSS ATTRIBUTABLE TO UNRIVALED BRANDS, INC.

$

(63,718

)

$

(4,102

)

$

(72,592

)

$

(16,183

)

 

 

 

 

 

Loss from continuing operations per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted

$

(0.11

)

$

(0.01

)

$

(0.13

)

$

(0.06

)

Net Loss per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted

$

(0.11

)

$

(0.02

)

$

(0.13

)

$

(0.07

)

 

 

 

 

 

Weighted-average number of common shares outstanding – basic and diluted

 

575,973,609

 

 

258,897,777

 

 

572,176,041

 

 

248,066,926