Q4 2023 IM Cannabis Corp Earnings Call

March 28, 2024

Operator: Good morning, and welcome to IM Cannabis's Q4 2023 and full year 2023 earnings conference call. Today's conference call is being recorded. At this time, I would like to turn the conference over to Anna Taranko, Director of Investor and Public Relations.

Anna Taranko: Good morning and thank you, operator. Joining me for today's call are IM Cannabis Chief Executive Officer, Oren Shuster, and Chief Financial Officer, Uri Birenberg. The earnings press release that accompanies this call is available on the investor relations section of our website at investors.imcannabis.com. Today's call will include estimates and other forward-looking information and statements, including statements concerning future results of operations, economic conditions, and anticipated courses of action, and are based on assumptions, expectations, estimates, and projections as of the date hereof. This information may involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such statements.

Anna Taranko: Factors that could cause or contribute to such differences are described in detail in the company's most recent filings available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Furthermore, certain non-IFRS measures will be referred to during this call, and the term non-IFRS adjusted EBITDA loss will hereafter be referred to as adjusted EBITDA loss. Any estimates or forward-looking information or statements provided are accurate only as of the date of this call, and the company undertakes no obligation to publicly update any forward-looking information or statements or supply new information regarding the circumstances after the date of this call. Please also note that all references on this call reflect currency in Canadian dollars. With that, it is my pleasure to turn the call over to Oren Shuster, CEO of IM Cannabis. Oren, please go ahead.

Oren Shuster: Thank you, Anna. Good morning, everyone, and thank you for joining us today. As you know, we are a medical cannabis company based in Israel and Germany, which is why we will focus the call today on the legalization in Germany, the impact of the Israeli-Hamas war had on our Q4 results, and the potential reverse merger with Kadimastem, which we announced on 28 February. When we take a look at Germany, 2023 was a roller coaster for the cannabis market. The year started out with extremely high expectations surrounding the proposed cannabis legalization. When the German Minister of Health unveiled his initial legalization proposal in April 2023, it was a big step forward, but still fell short of the initial legalization expectations.

Oren Shuster: The German government spent the rest of the year reworking step one of the proposal focused on decriminalization, home growth, not-for-profit social clubs, and the rescheduling medical cannabis from narcotics, the most tightly regulated medication, to regular prescription medication. While the implementation of the legalization was delayed several times, it cleared the final hurdle last Friday, 22 March. The new legislation will enter into effect on 1 April, with the opening of cannabis social clubs expected on 1 July. Our German team is extremely excited to have the relative freedom to operate within the new regulatory structure. The size of the opportunity is massive. The German population is about 83 million people, more than double the population of California. Until the nonprofit social clubs are up and running, the only legal way to buy cannabis in Germany will be in the pharmacy with a prescription.

Oren Shuster: We believe the key to medical market growth is the rescheduling of medical cannabis from narcotic to a regular prescription medication, which will lower the barriers to market entry for new patients. Currently, one of the biggest bottlenecks in market growth is the prescription process. When prescribing narcotics, German physicians are required to document each patient and are subject to regular narcotic audits, whereas the prescription process for regular prescription medication is simplified, removing this bottleneck. In addition, the rescheduling will ease the storage and transport regulations for both distributors as well as pharmacies. The prescription cost for self-payers will also be reduced. Narcotic prescription has co-payment, which will no longer be applied under the new regulations.

Oren Shuster: When we put all the beneficial changes brought about by the rescheduling together, we anticipate that the medical cannabis market growth will accelerate significantly as more new patients are expected to start entering the market. In 2020, we started laying the framework to become a top cannabis company in Germany. Since 2021, we have been in the top ten. We have a fully licensed EU GMP cannabis processing facility, one of a handful in Germany licensed to repack bulk. We distribute our cannabis products through our EU GDP licensed logistics center to any pharmacy in Germany within 24 hours. Having all our facilities EU GMP and EU GDP certified is so important because these are the highest certifications the European Union has to guarantee the safety of medical products.

Oren Shuster: The structure behind both the EU GMP and the EU GDP is lean, agile, and can be easily ramped up to meet increasing market demand. By adding all these processes in-house, it enables us to maximize our margins while having independent full end-to-end control. We can and have been providing cannabis services to other cannabis brands in Germany as well. In November 2022, we restructured and pivoted our strategy to focus exclusively on private payers and flowers, the market segment with the highest growth rates. Although our objective was sustainable profitability, the result of this pivot was tremendous. When we take a look at December 2023 market data from Insight Health, it shows that we grew 180% in 2023, while the market only grew 20%.

Oren Shuster: The German team posted the highest market share growth in the category to close out the year as a strong number 5 within the German cannabis flower distributors. We are number 1 in sales SKU within the German market and have the highest growth in the market. These results clearly show the potential of our strategic pivot, driving accelerated growth while reducing costs. With our in-house EU GMP facility, EU GDP logistics facility to support the accelerated growth we already delivered in 2023, we have the supply agreements in place to deliver further accelerated growth in 2024. With the framework we have put in place and the experience we have gathered over the last 4 years, we believe that we are in an excellent position to take advantage of the momentous change in the cannabis category we'll go through in Germany.

Oren Shuster: We have the infrastructure in place, we have the team, and the supply agreements we need to grow further. Moving to Israel. The Israel-Hamas War started on 7 October 2023. While we can already see that it's leading to an increase in patient and license numbers, it also played havoc with our business. For instance, the decrease in our October sales, plus the interruption of our supply chain, caused a 26% or CAD 3.2 million decrease in our Q4 revenues. Also, our shipping costs have increased by almost 100%. The currency fluctuations we talked about last quarter continued to affect our revenue. The total annual effect of the fluctuation is downside of approximately CAD 2.5 million. In Q4, we continued cleaning our slow-moving stock by reducing prices that we started in Q3.

Oren Shuster: While this helped drive incremental sales in volume, the lower prices impacted both our revenue and gross margin. On a positive note, in Q4, we reinforced our position as the number one in the premium market by relaunching two Black Market strains, Jealousy and Bacio Gelato, as well as two Pico strains, Jealousy Number One and Bacio Gelato Number Four, in addition to launching a newer Pico strain, Upside Down Number Five. As in Germany, in 2023, the Israel Ministry of Health started working on a regulatory overhaul facilitating access to medical cannabis for patients with medical indications ranging from metastatic cancer to pain and PTSD. The proposal includes moving medical cannabis to first-line treatment as opposed to last-line treatment and touches on existing export regulations. Just yesterday, the Ministry of Health had a conference to disclose the expected timeline and implementation of the new legislation.

Oren Shuster: I will go into detail during our Q1 2024 call, as we anticipate that the regulatory change will drive substantial growth in the Israeli cannabis market. In summary, while the overall results did not meet our expectations, 2023 was the year of transformation. We are lean and agile business, able to take advantage of the accelerated growth expected of the rapidly evolving cannabis market in both Germany and Israel in 2024. I would now like to take you through the proposed reverse merger with Kadimastem. When we started our year of transformation last year, we were focused on two goals, achieving sustainable profitability and maximizing shareholder value. We massively restructured the entire operation in 2023 to minimize costs and maximize our efficiency and agility. We made considerable progress in this direction throughout the year.

Oren Shuster: While this process significantly improved our company's financial health, it does not translate into increasing shareholder value. This was front and center while we have been looking for a way to deliver maximum value for our shareholders in the current situation, keeping all possibilities open. It drove the decision to initiate the potential reverse merger with Kadimastem. It delivers on our promise of maximizing shareholder value while giving the legacy cannabis business the freedom to fully focus on just that. The cannabis business in Israel and Germany, two of the highest value medical markets, which are set to grow significantly this year. We expect that this process will accelerate the path to sustainable profitability of the cannabis business, which our shareholders will retain in addition to participating with 12% in Kadimastem business, which we believe has tremendous potential.

Oren Shuster: With their focus on clinical-stage cell therapy, they were recently approved by the FDA to conduct Phase IIa clinical trial. The next steps in the reverse merger process involve initiating robust due diligence, commencing work on the definitive agreement, as well as investigating the conditions, precedents, and requirements of the CSE and Nasdaq. It is still too early to assess how long it will take until we sign a definitive agreement. To sum up 2023, we see that while the shift in strategy was not necessarily the easiest decision, the results in Germany undoubtedly show that it was the right one. Between the fluctuation in currency and the Israeli Hamas war in Q4, we did not see the results we had expected in Israel this year.

Oren Shuster: When I look at the overall results of 2023, I see that we are lean, agile, and well-positioned to take advantage, not just of the growth expected by legalization in Germany, but in Israel as well. 2024 is the year we have been preparing for. In 2024, our focus will be clearly on Germany, where we are well-positioned to deliver accelerated growth. We grew 180% in 2023. We are number one in sales per SKU. We have the infrastructure and the team we need for success, as well as the supply agreements in place to deliver. I believe this together with the 12% participation in Kadimastem will deliver shareholder value. I will now turn the call over to our Chief Financial Officer, Uri Birenberg, who will review our Q4 2023 and full year financial results. Uri?

Uri Birenberg: Thank you, Oren. I will now provide an overview of Q4 2023 and the annual financial results for the company's continuing cannabis operations. As Oren already mentioned, Q4 was tremendously impacted by the Israeli Hamas war, which is apparent in our revenues as well as our expenses. Revenues for 2023 were $48.8 million compared to $54.3 million in 2022, a decrease of 10%. Revenues for Q4 2023 were $10.7 million compared to $14.5 million, a decrease of 26%. The main part of the decrease on Q4, about $3.2 million, was due to the interruption of the supply chain caused by the Israeli Hamas war and the slow-moving stock that was moved out at a lower price.

Uri Birenberg: Total dried flower sold in 2023 was approximately 8,609kg with an average selling price of CAD 5.14 per gram, compared to approximately 6,794kg in 2022, with an average selling price of CAD 7.12 per gram. The difference is mainly due to increased competition within the retail segment and mid-range stock discounts to move out slow-moving stock. Total dried flowers sold in Q4 of 2023 was about 2,082kg, with an average selling price of CAD 4.52 per gram, compared to about 2,334kg in Q4 of 2022, with an average selling price of CAD 5.19 per gram.

Uri Birenberg: The decrease in average selling price was caused by increased competition within the retail segment and mid-range stock discounts to move out slow-moving stock. Gross profit for 2023 was CAD 9.8 million compared to CAD 9.2 million in 2022, an increase of 7.5%. Gross profit for Q4 2023 was CAD 0.8 million compared to CAD 2.6 million in Q4 2022, a decrease of 68%. The downside is mainly attributed to the decrease in revenue caused by the war, the slow-moving stock that was moved out at a lower price, and about CAD 0.8 million cost of sales hit due to inventory erase.

Uri Birenberg: Company fair value adjustment was about $1 million versus $2.1 million for the years ended 2023 and 2022. Gross margin before fair value adjustment in 2023 was 22% compared to 21% in 2022. Gross margin before fair value adjustment in Q4 of 2023 was 10% compared to 19% in Q4 of 2022, a decrease of 46%. G&A expenses in 2023 were $11 million compared to $21.5 million in 2022, a decrease of 49%. G&A expenses in Q4 of 2023 were $3.3 million compared to $9.8 million in Q4 of 2022, a decrease of 66%.

Uri Birenberg: The decrease in the G&A expenses is attributed mainly to impairment on year 2022 and restructuring and headcount adjustment in 2023. Selling and marketing expenses in 2023 were CAD 10.8 million compared to CAD 11.5 million in 2022, a decrease of 6%. Selling and marketing expenses in Q4 2023 were CAD 2.8 million compared to CAD 3.1 million in Q4 2022, a decrease of 10%. Mainly due to decrease in share-based compensation and restructuring. Total operating expenses in 2023 were CAD 22.6 million, compared to CAD 40 million in 2022. Total operating expenses in Q4 2023 were CAD 6 million, compared to CAD 13.3 million in Q4 2022. A decrease of 65%.

Uri Birenberg: Non-IFRS Adjusted EBITDA loss in 2023 was CAD 8 million, compared to an Adjusted EBITDA loss of CAD 11.5 million in 2022, a decrease of 31%. Adjusted EBITDA loss in Q4 2023 was CAD 4.2 million, compared to Adjusted EBITDA loss of CAD 1.9 million in Q4 2022, an increase of 127%. Net loss from continuing operations in 2023 was CAD 10.2 million, compared to CAD 24.9 million in 2022. Net loss from continuing operations in Q4 2023 was CAD 3.5 million, compared to a net loss of CAD 9.6 million in Q4 2022.

Uri Birenberg: Diluted loss per share in 2023 was $0.74, compared to a loss of $3.81 per share in 2022. Diluted loss per share in Q4 2023 was $0.25, compared to a basic loss of $2.94 per share and the diluted loss of $3.55 per share in Q4 2022. As of the balance sheet, cash and cash equivalents as of 31 December 2023 were $1.8 million, compared to $2.4 million in 31 December 2022. Total assets as of 31 December 2023 were $48.8 million, compared to $60.7 million in 31 December 2022. A decrease of about 20%.

Uri Birenberg: The decrease is mainly attributed to inventory reduction of about $6.6 million, a reduction in other assets of $1.8 million, and the reduction of non-current assets of about $3.5 million. Total liabilities as of 31 December 2023 were $35.1 million, compared to $36.9 million in 31 December 2022. A decrease of about 5%. The decrease was mainly due to the reduction in trade payables of about $6.1 million. The company is planning to finance its operations from an existing and future working capital resources, as well as from available credit facilities, and will continue to evaluate additional sources of capital and financing as needed. I would like to turn the call back to Oren for closing remarks. Oren?

And full year 2023 earnings conference call.

Today's conference call is being recorded.

At this time, I would like to turn the conference over to Anna, Toronto, director of investor and public relations.

Good morning and thank you. Operator joining me for today's caller, I am Canabis chief executive officer on Chester and Chief Financial Officer Yuri bernberg

The earnings press release that accompanies, this call is available on the investor relations section of our website at investors that I am canabis.com. Today's call will include estimates and other forward-looking information and statements, including statements concerning future results of operations, economic conditions, and anticipated courses of action. And are based on assumptions, expectations estimates and projections as the date here of

This information may involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements factors that could cause or contribute to such differences are described in detail.

In the company's most recent filings available on Cedar, Plus at www.sears.ca and Edgar at www.sec.gov.

Furthermore, certain non-ifrs measures will be referred to during this call and the term non-ifrs suggested ebida loss Will Hereafter be referred to as adjusted ebida loss. Any estimates are forwarded looking information or statements? Provided are accurate only as of the date of this call and the company undertakes. No obligation to publicly update, any forward-looking information, or statements or Supply new information regarding the circumstances after the date of this call. Please also note that all references on this call reflect currency and Canadian dollars.

With that. It is my pleasure to turn the call over to Orange Shoe Store CEO of I am Canvas OR please go ahead.

Thank you, Anna. Good morning, everyone. And thank you for joining us today.

As you know, we are a medical cannabis company based in Israel and Germany.

Which is why we will focus the call today on the legalization in Germany, the impact of the Israeli Hamas War, I don't know Q4 results and the potential reverse merger with kadina, then which we announced on February 28th.

when we take a look at Germany,

2023 was a roller coaster for the Cannabis Market.

The year started out with extremely high, expectations surrounding the proposed cannabis, legalisation.

When the German Ministry of Health unveiled, his initially legalization proposal in April of 2023.

It was a big step forward, but still fell short of the initial legalization, expectations.

The general government sent the rest of the year reworking, Step, 1 of The Proposal proposal focused on decreasing.

Home growth not for profit, Social Clubs and the rescheduling medical cannabis from narcotics.

The most likely regulated medication to regular prescription medication.

while the implementation of the legalization was delayed several times,

It cleared, the final hurdle. Last Friday March 22nd.

The new legislation will enter into effect on April 1st.

with the opening of cannabis, Social Clubs expected on July 1st,

Obviously our German team is extremely excited to have the relative freedom to operate within the the new regulatory structure.

the size of the opportunity is a massive

The German population is about 83 million people.

More than double the population of California.

Until the nonprofit social clubs are up and running the only legal way to buy. Canada is in Germany, will be in the pharmacy with the prescription.

We Believe into medical and market growth, is the rescheduling of medical cannabis from aquatic to a regular prescription medication.

Which will, which will lower the various to Market entry for new patients.

Currently, 1 of the biggest button next in market growth.

Is the prescription process.

When prescribing, an antic German Physicians, are required to document each patient and our subject to regular narcotic audits.

Whereas the prescription process of for regular prescription medication is simplified. Removing this bottleneck

In addition, the rescheduling will ease the storage and transport regulations for both Distributors as well as pharmacists.

We anticipate that the medical cannabis market growth will accelerate significantly as more new patients are expected to start entering the market in 2020, we started laying the framework to become a top candidate company in Germany.

Since 2021, we have been in the top 10.

We have a fully licensed Eugene P. Cannot this processing facility.

1 of a handful in Germany. Licensed to react.

We distribute our cannabis products through our EU. GDP license Logistics Center to any pharmacy in Germany within 24 hours.

Having all our facilities egmp and eug certified is so important because these are the highest certifications. The European Union has to guarantee the safety of medical products.

The structure behind both the EU GMP and the EU GDP is lean agile and can be easily ramped up to meet the increasing market demand.

By adding all these processes in our it enable us to maximize our margins while having independent full end to end control.

We can and has been providing kind of the services to other countries brands in Germany as well.

In November of 2022.

We restructured and pivoted our strategy to focus exclusively on private, payers and flowers, the market segment with the highest growth rates.

Although, our objective was sustainable profitability.

The result of this pivot was tremendous.

When we take a look at the December 2023 Market data from inside health,

it shows that we grew 180% in 2023.

While the market only grew 20%.

The German team.

Posted the highest market share growth in the category to close out the year as a strong number 5 within the German cannabis flower distributors.

We are number 1 in CES, the skew within the German market and have the highest growth in the market.

This results clearly show the potential of our strategic pivot.

driving accelerated growth, while reducing costs

with our in-house Eugene P facility EU, GDP Logistics facility to support the accelerated growth. We already delivered in 2023. We have the supply agreements in place to deliver further. Accelerated growth in 2024

With the framework, we have put in place and the experience, we have gathered of the last 4 years.

We believe that we are in an excellent position to take advantage of the momentous change in the Canada's category, will go through in Germany.

We have the infrastructure in place. We have the team and the supply agreements. We need to grow further.

Moving to Israel.

The Israel started on October 7th.

Well, we can already see that, it's leading to an increase in patient and licensed number and license numbers. It also played Havoc with our business.

Well, in terms of the decreasing, our October Sales, Plus the interruption of our supply chain caused a 26% or 3.2 million CAD decreased in our Q4 revenues.

Also our shipping cost has increased by almost 100%.

the currency fluctuations, we talked about last quarter, continue to affect our Revenue,

the total annual effect of the fluctuation is downside of a pro, approximately 2.5 million C.

In Q4, we continued cleaning out, strong moving stock, by reducing prices.

That we started in Q3.

while this help Drive incremental sales in volume,

the lower prices impacted, both our revenue and gross margin.

As well as 2. Pickle strains, jelly number 1 and B gelatin. Number 4, 4. In addition to launching a new pickle, strain ups and down. Number 5,

As in Germany in 2023, the Israel Ministry of Health.

Started working on a regulatory overall facilitating access to medical cannabis for patients with medical indications. Ranging from metastatic cancer to pain and PTSD.

The Proposal includes moving medical cannabis to first line treatment as opposed to last line treatment and touches on existing export regulations.

Just yesterday, the Ministry of Health had a conference to disclose the expected timeline and implementation of the new legislation.

I will go into detail during our q1 2024 call. As we anticipate that the regulatory change will drive substantial growth in the Israeli cannabis Market.

In summary while the overall results did not meet our expectations.

2023 was the year of transformation.

We are lean and Angel business able to take advantage of the accelerated growth expected of the rapidly evolving cannabis Market in both Germany and Israel in 2024.

I would now like to take you through the proposed. Reverse merger with Kadima.

When we started our ear, oh transformation last year.

We will focus on 2 goals.

Achieving sustainable profitability and maximizing shareholder value.

We massively restructured, the internal operation in 2023 to minimize cost and maximize our efficiency and Agility.

We made considerable progress in this direction throughout the year.

While this process significantly improve our company's Financial Health, it does not translate into increasing shareholder value.

This was front and center. While we have been looking for a way to deliver a maximum value for our shareholder in the current situation keeping all possibilities open.

It drove the decision to initiate the potential reverse merger with kadiva.

It delivers on our promise of maximizing shareholder value.

While giving the Legacy cannabis business, the freedom, to fully focus on Jazz that.

The Canada's business in Israel and Germany 2 of the highest value medical markets which are set to grow significantly this year.

This step that this process will accelerate the path to sustainable profitability of the Cannabis business.

Which our shareholders will retain in addition to participating with 12%, in academics and business.

Which we believe has tremendous potential.

With their focus on clinical stage Center therapy. There were recently approved by the FDA to contact phase 2A, clinical trial,

The next steps in the reverse merger process, evolved initiating robust due diligence.

commencing work on the definitive agreement as well as investigating the conditions president and requirements of the CFC and master

It is still too early to assess how long it will take until we find a definitive agreement.

To sum up 2023. We see that while the shift in strategy.

Was not necessarily the easiest decision.

The results in Germany are undoubtedly show that it was the right 1.

Between the fluctuation in currency and the Israeli Hamas were in Q4. We did not see the results with the expected in Israel, this year.

when I look at the overall results of 2023,

I see that we are lean agile and well positioned to take advantage, not just of the growth expected, but legalization in Germany, but in Israel, as well.

2024 is the year we have been preparing for.

In 2024, our Focus will be clearly on Germany where we are, well, positioned to deliver accelerated growth.

We grew 180% in 20 in 2023. We are number 1 in Salesforce SKU.

The team we need for success as well as the supply agreement in place to deliver.

I believe this together with the 12% participation in Academia stem will deliver shareholder value

I will now turn the call over to our Chief Financial Officer who will be who will review.

Our fourth quarter 2023 and full year Financial results.

Thank you, Owen.

I will now provide an overview of Q4 2023 and the annual Financial results for the company's continuing cannabis operations.

As our knowledge mentioned Q4, was tremendously impacted by the Israeli Hamas War, which is apparent in our revenues, as well as our expenses.

Revenues, for 2023 were 48.8 million compared to 5 4. 3 2.

A decrease of 10%.

Revenues for the fourth quarter of 2023 were 10.72% 14.5 million.

A decrease of 26%.

The main part of the decrease on the fourth quarter about 3.2 million was due to the interruption of the supply chain cost by the Israeli Hamas, wall, and the slow-moving stock that was moved. Moved out at a lower price.

Total grid flour. Sold in 2023, was approximately 8,609 kilogram with an average selling price of 5.14 per gram.

Compared to approximately 6,794 kg in 2022 with an average selling price of 7.12 per gram.

The difference is mainly due to increased competition within the retail segment, and mid-range stock, discounts to move out, slow moving stock.

Not at the right flour. Sold in the fourth quarter of 2023 was about 2,082 kg with an average selling price of 4.52 per gram.

Compared to about 2,334 kg in the fourth quarter of 2022 with an average selling price of 5.19 per gram.

The decrease in average selling price was caused by increased competition within the retail segment, and mid-range stock, discounts to move out slow moving stock.

Gross profit for 2023 was 9.8 million compared to 9.2 million in 2022. An increase of 7.5%.

Gross profit for the fourth quarter of 2023 was 0.8 million compared to 2.6 million in the fourth quarter of 2022, and the increase of 68%.

The downside is mainly attributed to the decreased in Revenue caused by the war and the slow moving stock. That was moved out at a lower price.

And about 0.8 million cost of sales it due to inventory erase.

Company. Fair value adjustment was about 1 million dollar versus 2.1 million for the US and dead, 2023 and 2022.

Gross margins before their value adjustment. In 2023 was 22% compared to 21% in 2022.

Gross margin before their value adjustment in the fourth quarter of 2023 was 10% compared to 19% in the fourth quarter of 2022.

A decrease of 46%.

Gin expenses in 2023 were 11 million compared to 21.5 million in 2022. A decrease of 49%

GNA expenses in the fourth quarter of 2023 were 3.3 million compared to 9.8 million in the fourth quarter of 2022.

A decrease of 66%.

The decrease in the GNA expenses is attributed mainly to empowerment on year, 2022, and restructuring and headcount adjustment in 2023.

Selling and marketing expenses. In 2023 were 10.8 million compared to 11.5 million in 2022, a decrease of 6%.

Selling and marketing expenses in the fourth quarter of 2023 were 2.8 million compared to 3.1 million. In Q4 2022. A decrease of 10% mainly due to the decrease in shared based compensation and restructuring

total operating expenses in 2023 were 22.6 million compared to 40 million in 2022.

Quarter of 2023 were 6 million compared to 13.3 million, in the fourth quarter of 2022.

A decrease of 65%.

None IFRS adjusted ebida loss. In 2023, was 8 million compared to an adjusted Eva loss of 11.5 million in 2022. A decrease of 31%

Adjusted a loss. In the fourth quarter of 2023 was 4.2 million. Compared to a just a debit loss of 1.9 million in the fourth quarter of 2022, an increase of 127%,

Net loss from continuing operations in 2023 was 10.22 million compared to 24.9 million in 2022.

Net loss from continuing operations in the fourth quarter of 2023 was 3.5 million compared to a net loss of 9.6 million in the fourth quarter of 2022.

Diluted loss per share in 2023, was 0.74 compared to a loss of 3.81 per share in 2022.

The loss per share in the fourth quarter of 2023 was

0.25 compared to a basic loss of 2.94 per share and the diluted loss of 3.55 per share in the fourth quarter of 2022.

As of the balance sheet.

Cash and cash equivalent as of December 31st 2023, where 1.8 million compared to 2.4 million in the December 31st 2022.

Total assets as of the 10th of 31st, 2023 were 48.8 million compared to 60.7 million in the December. 31st 2022, a decrease of about 20%

The decrease is mainly attributed to inventory reduction of about 6.6 million, a reduction in other assets of 1.8 million and the reduction of non-current assets of about 3.5 million.

Total liabilities. As of December 31st, 2023 with 35.1 million compared to 36.9 million in the December 31st 2022.

A decrease of about 5%.

The decrease was mainly due to the reduction in trade payables of about 6.1 million.

The company is planning to finance its operations from an existing and future working capital resources as well as from available credit facilities and will continue to evaluate additional sources of capital and financing as needed.

I would like to turn the call back to, or for closing remarks or

Q4 2023 IM Cannabis Corp Earnings Call

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