IMC leans further into its strategy, continuing to focus on
the Israeli and German markets with a primary goal of sustainably
increasing revenue in each of these core markets, while
accelerating its path to profitability through active cost
management and margin improvement.
TORONTO and GLIL YAM,
Israel, May
15, 2023 /PRNewswire/ -- IM Cannabis Corp. (the
"Company" or "IMC") (NASDAQ: IMCC) (CSE: IMCC), an
international medical cannabis company, announced its financial
results today for the first quarter ended March 31, 2023. All amounts are reported in
Canadian dollars and compared to Q1 2022 unless otherwise
stated.
Q1 2023 Financial Highlights
- 46% increase in gross profit and 35% compared to Q4,
2022
- 42% decrease in operating expenses
- 100% decrease in net loss driven by the increase in
gross profit and decrease in operating expenses
- Revenues stayed stable with a 1% year-over-year increase to
$13.2 million
Management Commentary
"In 2022 IMC reworked its strategy," said Oren Shuster, Chief Executive Officer of
IMC. "We shifted our focus to meeting patients' and pharmacies'
needs. During Q1 of this year, we have continued this transition.
IMC is becoming a lean and agile company, with a clear focus on
building brands that consumers love, driven by consumer
insight.
"The strategic shift drove the additional restructuring
initiatives we announced this quarter - the reorganization of the
Company's management and operations to better suit the current
market environment and our short- to mid-term objectives. This
allowed us to focus on core activities, drive efficiencies and
reduce costs in furtherance of the goal to realize sustainable
profitability. We are already seeing the results of our shift in
strategy in our Q1 results. Our gross profit increased 46% compared
to Q1 2022, while our revenue stayed stable", concluded
Shuster.
Operational Highlights
- On March 8, 2023, the Company
announced that as part of its ongoing restructuring initiatives, it
would be reducing its workforce in Israel by 21% across all functions (including
executives), estimated to result in annualized cost savings of
$3.6 million from mid-2023 while
maintaining revenue.
- In January and February of 2023, the Company issued an
aggregate of 2,828,248 units of the Company (each a "Unit")
at a price of US$1.25 per Unit for
aggregate gross proceeds of US$3,535,310 in a series of closings pursuant to
a non-brokered private placement offering pursuant to the listed
issuer financing exemption under Part 5A of National Instrument
45-106 – Prospectus Exemptions (the "LIFE Offering").
Each Unit consisted of one common share of the Company (each, a
"Common Share") and one Common Share purchase warrant (each,
a "Warrant"), with each Warrant entitling the holder thereof
to purchase one additional Common Share at an exercise price of
US$1.50 for a period of 36 months
from the date of issue. In addition, a non-independent director of
the Company subscribed for an aggregate of 131,700 Units under the
LIFE Offering at an aggregate subscription price of US$164,625. The director's subscription price was
satisfied by the settlement of US$164,625 in debt owed by the Company to the
director for certain consulting services previously rendered by the
director to the Company.
- Concurrent with the LIFE Offering, the Company issued an
aggregate of 2,317,171 Units on a non-brokered private placement
basis at a price of US$1.25 per Unit
for aggregate gross proceeds of approximately US$2,896,464.
Q1 2023 Financial Results
- Revenues for the first quarter of 2023were $13.2 million compared to $13 million in the first quarter of 2022, an
increase of 1%.
- Total Dried Flower sold in the first quarter of 2023 was
approximately 1,842kg with an average selling price of $6.59 per gram compared to approximately 1,415kg
in the first quarter of 2022 with an average selling price of
$8.13 per gram. The decrease in
average selling price was caused by increased competition within
the retail segment.
- Gross Profit for the first quarter of 2023 was
$3.5 million, compared to
$2.4 million in the first quarter of
2022, an increase of 46%. The increase is mainly
attributable to increased high margin sales of imported premium
cannabis products, and reduction of costs of sales.
- Gross Margin, before fair value adjustments,in the first
quarter of 2023was 30%, compared to 24% in the first quarter of
2023, an increase of 25%.
- General and Administrative Expenses in the first quarter
of 2023 were $3.2 million, compared
to $3.9 million in the first quarter
of 2022, a decrease of 18%. The decrease in the general and
administrative expense is mainly attributable to reduced employee
salaries derived from the restructuring plan in Israel announced in the first quarter of 2023
and presented separately in the interim financial statement for the
period.
- Selling and Marketing Expenses in the first quarter of
2023 were $2.8 million, compared to
$2.5 million in the first quarter of
2022, an increase of 12%.The increase was due mainly to the
Company's increased marketing efforts in Israel and the rising distribution costs of
the Company's products.
- Total Operating Expenses in the first quarter of 2023
were $6.5 million, compared to
$11.3 million in the first quarter of
2022, a decrease of 41%. Most of the decline can be
attributed to restructuring that took place in the first quarter of
2022.
- Operating Loss in the first quarter of 2023was
$3.0 million, compared to
$8.9 million in the first quarter of
2022, a decrease of 66%.
- Non-IFRS Adjusted EBITDA Loss in the first quarter of
2023 was $1.3 million, compared to an
Adjusted EBITDA Loss of $2.9 million
in the first quarter of 2022, a decrease of 55%. The
decrease is mainly attributable to improved performance of the
Company's gross margin and a reduction in general and
administrative expenses, such as cost reduction, cost efficiencies
and other corporate expense reductions.
- Net Gain From Continuing Operations in the first quarter
of 2023 was $0.04 million, compared
to a loss of $7.1 million in the
first quarter of 2022, a decrease of 100%, driven
mostly by a decrease in operation expenses, increase in finance
income and higher gross margin.
- Basic and Diluted (Loss) Gain per Share From Continuing
Operations in the first quarter of 2023 was $0.03, compared to a loss of $0.08 (per share in the first quarter of
2022.
- Cash and Cash Equivalents as of March 31, 2023 were $1.4
million, compared to $2.9
million in December 31,
2022.
- Total Assets as of March 31,
2023 were $56.8 million,
compared to $60.7 million in
December 31, 2022, a decrease of
6%. The decrease is mainly attributed to reduced cash and cash
equivalents and to trade receivables.
- Total Liabilities as of March 31,
2023 were $32.2million,
compared to $36.9 in December 31, 2022, a decrease of approximately
13%. The decrease was mainly due to the reduction
in trade payables.
The complete non- audited interim condensed consolidated
financial statements of the Company and related management's
discussion and analysis for the three months ended March 31, 2023, will be available under the
Company's SEDAR profile at www.sedar.com and will be available on
EDGAR at www.sec.gov/edgar.
Q1 2023 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.
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 has recently exited operations in Canada to pivot its focus and resources to
achieve sustainable and profitable growth in its highest value
markets, Israel and Germany. 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 its commercial relationship
with 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, distribution centers, 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. Until recently, the Company also
actively operated in Canada
through Trichome Financial Corp and its wholly owned subsidiaries,
where it cultivated, processed, packaged, and sold premium and
ultra-premium cannabis at its own facilities under the WAGNERS and
Highland Grow brands for the adult-use market in Canada. The Company has exiting operations in
Canada and considers these
operations discontinued.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements under applicable Canadian and U.S.
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 Company leaving the
Canadian cannabis market to focus on Israel and Germany; achieving profitability and
shareholder value; statements regarding the Company's ongoing
restructuring of its operations, including the reduction in its
Israeli workforce, the strategic plans of the Company, estimated
cost reductions and maintaining revenues.
Forward-looking statements are based on assumptions that may
prove to be incorrect, including but not limited to: the
development and introduction of new products; continuing demand for
medical and adult-use recreational cannabis in the markets in which
the Company operates; the Company's ability to reach patients
through both e-commerce and brick and mortar retail operations; the
Company's ability to maintain and renew or obtain required
licenses; the effectiveness of its products for medical cannabis
patients and recreational consumers; and the Company's ability to
market its brands and services successfully to its anticipated
customers and medical cannabis patients.
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: any failure of the Company to maintain "de facto"
control over Focus Medical in accordance with IFRS 10; 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 Focus Medical
(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
and war, conflict and civil unrest in Eastern Europe and the Middle East.
Please see the other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's annual
information form dated March 31,
2023, which is available on the Company's issuer profile on
SEDAR at www.sedar.com and Edgar at www.sec.gov. 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.
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 December 31,
2022, available under the Company's SEDAR profile
at www.sedar.com on EDGAR at www.sec.gov/edgar.
We reconcile these non-IFRS financial measures to the most
comparable IFRS measures as set out below.
Company Contact:
Oren Shuster, CEO
IM Cannabis Corp.
info@imcannabis.com
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
Canadian Dollars in
thousands
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
1,419
|
|
$
2,449
|
Trade
receivables
|
|
|
|
6,227
|
|
8,684
|
Advances to
suppliers
|
|
|
|
2,161
|
|
1,631
|
Other accounts
receivable
|
|
|
|
3,657
|
|
3,323
|
Inventories
|
|
4
|
|
16,156
|
|
16,585
|
|
|
|
|
|
|
|
|
|
|
|
29,620
|
|
32,672
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
5,435
|
|
5,221
|
Investments in
affiliates
|
|
|
|
2,347
|
|
2,410
|
Right-of-use assets,
net
|
|
|
|
1,701
|
|
1,929
|
Deferred tax assets,
net
|
|
|
|
824
|
|
763
|
Intangible assets,
net
|
|
|
|
7,349
|
|
7,910
|
Goodwill
|
|
|
|
9,515
|
|
9,771
|
|
|
|
|
|
|
|
|
|
|
|
27,171
|
|
28,004
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
56,791
|
|
$
60,676
|
|
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
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
Note
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
|
|
$ 9,240
|
|
$ 15,312
|
Bank loans and credit
facilities
|
|
|
|
7,957
|
|
9,246
|
Other accounts payable
and accrued expenses
|
|
|
|
6,203
|
|
6,013
|
Accrued purchase
consideration liabilities
|
|
|
|
1,951
|
|
2,434
|
Current maturities of
operating lease liabilities
|
|
|
|
676
|
|
814
|
|
|
|
|
|
|
|
|
|
|
|
26,027
|
|
33,819
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Warrants measured at
fair value
|
|
5
|
|
3,398
|
|
8
|
Operating lease
liabilities
|
|
|
|
990
|
|
1,075
|
Long-term
loans
|
|
|
|
393
|
|
399
|
Employee benefit
liabilities, net
|
|
|
|
182
|
|
246
|
Deferred tax liability,
net
|
|
|
|
1,250
|
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
6,213
|
|
3,060
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
32,240
|
|
36,879
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY:
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Share capital and
premium
|
|
|
|
246,866
|
|
245,776
|
Translation
reserve
|
|
|
|
888
|
|
1,283
|
Reserve from
share-based payment transactions
|
|
|
|
15,159
|
|
15,167
|
Accumulated
deficit
|
|
|
|
(239,229)
|
|
(239,574)
|
|
|
|
|
|
|
|
Total equity
attributable to equity holders of the Company
|
|
|
|
23,684
|
|
22,652
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
867
|
|
1,145
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
24,551
|
|
23,797
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
|
$
56,791
|
|
$ 60,676
|
|
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
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
|
Note
|
|
2023
|
|
2022
(*)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$ 13,173
|
|
$ 13,001
|
Cost of
revenues
|
|
|
|
9,286
|
|
9,915
|
Gross profit before
fair value adjustments
|
|
|
|
3,887
|
|
3,086
|
|
|
|
|
|
|
|
Fair value
adjustments:
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
|
|
-
|
|
(315)
|
Realized fair value
adjustments on inventory sold in the period
|
|
|
|
(339)
|
|
(366)
|
Total fair value
adjustments
|
|
|
|
(339)
|
|
(681)
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
3,548
|
|
2,405
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
3,175
|
|
3,947
|
Selling and marketing
expenses
|
|
|
|
2,805
|
|
2,461
|
Restructuring
expenses
|
|
|
|
283
|
|
3,747
|
Share-based
compensation
|
|
|
|
258
|
|
1,110
|
Total operating
expenses
|
|
|
|
6,521
|
|
11,265
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
2,973
|
|
8,860
|
|
|
|
|
|
|
|
Finance
income
|
|
5
|
|
3,796
|
|
2,886
|
Finance
expense
|
|
|
|
(795)
|
|
(1,333)
|
Finance (expense)
income, net
|
|
|
|
3,001
|
|
1,553
|
|
|
|
|
|
|
|
Gain (Loss) before
income taxes
|
|
|
|
28
|
|
(7,307)
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
|
(15)
|
|
(225)
|
|
|
|
|
|
|
|
Net (loss) gain from
continuing operations
|
|
|
|
43
|
|
(7,082)
|
|
|
|
|
|
|
|
Net loss from
discontinued operations
|
|
|
|
-
|
|
3,659
|
|
|
|
|
|
|
|
Net (loss)
gain
|
|
|
|
43
|
|
(10,741)
|
|
|
|
|
|
|
|
Other comprehensive
income that will not be reclassified to profit or loss in
subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income that will not be reclassified to profit or
loss in subsequent periods
|
|
|
|
36
|
|
-
|
|
|
|
|
|
|
|
Exchange differences on
translation to presentation currency
|
|
|
|
(562)
|
|
(1,792)
|
|
|
|
|
|
|
|
Total other
comprehensive income that will not be reclassified to profit or
loss in subsequent periods
|
|
|
|
(526)
|
|
(1,792)
|
|
|
|
|
|
|
|
Other comprehensive
income that will be reclassified to profit or loss in
subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments arising
from translating financial statements of foreign
operation
|
|
|
|
155
|
|
858
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss) that will be reclassified to profit
or loss in subsequent periods
|
|
|
|
155
|
|
858
|
|
|
|
|
|
|
|
Total other
comprehensive loss
|
|
|
|
371
|
|
934
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
|
|
$
328
|
|
$ 11,675
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
AND OTHER
COMPREHENSIVE INCOME (UNAUDITED)
|
Canadian Dollars in
thousands, except per share data
|
|
|
|
|
|
Three months
ended
March
31,
|
|
|
Note
|
|
2023
|
|
2022
(*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
309
|
|
(9,452)
|
Non-controlling
interests
|
|
|
|
(266)
|
|
(1,289)
|
|
|
|
|
|
|
|
|
|
|
|
$
43
|
|
$ (10,741)
|
Total comprehensive
income (loss) attributable to:
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
|
(50)
|
|
(10,290)
|
Non-controlling
interests
|
|
|
|
(278)
|
|
(1,385)
|
|
|
|
|
|
|
|
|
|
|
|
$
(328)
|
|
$ (11,675)
|
Net income (loss) per
share attributable to equity
holders of the
Company:
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
(loss) gain per share (in CAD)
|
|
|
|
$
0.03
|
|
$
(0.14)
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to equity holders of the Company
from continuing operations:
|
|
|
|
|
|
|
Basic and diluted
(loss) gain per share (in CAD)
|
|
|
|
$
0.03
|
|
$
(0.08)
|
|
|
|
|
|
|
|
Loss per share
attributable to equity holders of the Company from
discontinued operations:
|
|
|
|
|
|
|
Basic and diluted
loss per share (in CAD)
|
|
|
|
$
-
|
|
$
(0.06)
|
|
(*) Reclassified in
respect of discontinued operations – see Note 9.
|
|
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
|
|
|
|
Three months
ended
March
31,
|
|
|
2023
|
|
2022
|
Cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
|
$
43
|
|
$
(10,741)
|
Adjustments for
non-cash items:
|
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
-
|
|
(1,079)
|
Fair value adjustment
on sale of inventory
|
|
339
|
|
863
|
Fair value adjustment
on Warrants, investments and accounts receivable
|
|
(3,636)
|
|
(2,688)
|
Depreciation of
property, plant and equipment
|
|
174
|
|
1,038
|
Amortization of
intangible assets
|
|
456
|
|
636
|
Depreciation of
right-of-use assets
|
|
179
|
|
163
|
Finance expenses,
net
|
|
635
|
|
2,132
|
Deferred tax
liability, net
|
|
(150)
|
|
(542)
|
Share-based
payment
|
|
258
|
|
1,610
|
Share-based
acquisition costs related to business combination
with
acquisition of subsidiary
|
|
-
|
|
-
|
Revaluation of other
receivable
|
|
-
|
|
67
|
Restructuring
expense
|
|
283
|
|
3,069
|
|
|
(1,462)
|
|
5,269
|
|
|
|
|
|
Changes in working
capital:
|
|
|
|
|
Decrease (increase) in
trade receivables
|
|
1,937
|
|
(6,009)
|
Decrease (increase) in
other accounts receivable and advances to suppliers
|
|
(940)
|
|
1,892
|
Decrease (increase) in
biological assets, net of fair value adjustments
|
|
-
|
|
641
|
Decrease (increase) in
inventories, net of fair value adjustments
|
|
90
|
|
(1,847)
|
Decrease (increase) in
trade payables
|
|
(6,021)
|
|
2,377
|
Changes in employee
benefit liabilities, net
|
|
(22)
|
|
(83)
|
Increase in other
accounts payable and accrued expenses
|
|
(14)
|
|
(437)
|
|
|
|
|
|
|
|
(4,970)
|
|
(3,466)
|
|
|
|
|
|
Taxes (paid)
received
|
|
328
|
|
(505)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(6,061)
|
|
(9,443)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(411)
|
|
(682)
|
Payment of purchase
consideration
|
|
(56)
|
|
-
|
Proceeds from loan
receivable
|
|
-
|
|
350
|
|
|
|
|
|
Net cash used in
investing activities
|
|
$
(467)
|
|
$
(332)
|
|
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
|
|
|
|
Three months
ended
March
31,
|
|
|
2023
|
|
2022
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds
from issuance of share capital, net of issuance costs
|
|
825
|
|
-
|
Proceeds
from issuance of warrants
|
|
7,027
|
|
-
|
Proceeds
from exercise of options
|
|
-
|
|
333
|
Repayment
of lease liability
|
|
(175)
|
|
(371)
|
Interest
paid - lease liability
|
|
(18)
|
|
(435)
|
Receipt of
bank loan and credit facilities
|
|
(1,046)
|
|
6,047
|
Cash paid
for interest
|
|
(56)
|
|
(211)
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
6,557
|
|
5,363
|
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
|
(1,059)
|
|
824
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
|
(1,030)
|
|
(3,588)
|
Cash and cash
equivalents at beginning of the period
|
|
2,449
|
|
13,903
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
|
$ 1,419
|
|
$
10,315
|
|
|
|
|
|
Supplemental disclosure
of non-cash activities:
|
|
|
|
|
|
|
|
|
|
Right-of-use asset
recognized with corresponding lease liability
|
|
$
49
|
|
$
169
|
Issuance of shares in
payment of purchase consideration liability
|
|
$
-
|
|
$ 3,147
|
Issuance of shares in
payment of debt settlement to a non-independent
director of the company
|
|
$
222
|
|
$
-
|
|
The accompanying notes
are an integral part of the interim condensed consolidated
financial statements.
|
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