Q4 2024 IM Cannabis Corp Earnings Call

March 31, 2025

Operator: Good morning, and welcome to IM Cannabis's Q4 and Full Year 2024 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.

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 and 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. 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.

Anna Taranko: Furthermore, certain non-IFRS measures will be referred to during this call. The term non-IFRS adjusted EBITDA loss or non-IFRS adjusted EBITDA will hereafter be referred to as adjusted EBITDA loss or adjusted EBITDA as applicable. 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 unless otherwise stated. With that, it's 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 a medical cannabis company based in Germany and Israel, the April 2024 partial legalization in Germany was a game-changer. Since then, the German market and our sales in Germany have experienced extraordinary growth at a tremendous velocity. My personal 2024 highlights were the continuous improvements we made both strategically and operationally, building a solid lean basis from which to drive sustainable growth in 2025. In 2024, we started to shift our focus from the transition years in 2022 and 2023 towards delivery. At the same time, we continued fine-tuning to maintain our efficiency and agility. This is an ongoing process. It is especially important in the dynamic cannabis market to ensure that we keep our competitive edge. As a company, we had two areas of focus in 2024.

Oren Shuster: One, full integration and active cost management to drive efficiencies. Two, building a strong stable supply chain to support growth in 2025. On an operational level, we continued to lean into active cost management and full integration to drive efficiencies. We reduced our overall operating expenses by CAD 4 million or 17% to a total of CAD 18.7 million in 2024. This decrease builds on the 43% decrease we had in 2023, where we spent a total of CAD 22.6 million, coming from CAD 40 million in 2022. Overall, we have managed to reduce our operating expenses by 53% since 2022. The reduction in the operating expenses is most impactful in Q4 of 2024, where we are starting to see initial impact of the saving we initiated during this year.

Oren Shuster: We fully integrated our marketing and supply teams with the goal of building the operational infrastructure and stable supply chain we need to drive growth in Germany in 2025. As a positive upside, we started to see the first results of our efforts in 2024. We imported a total of 11 new strains in Germany in the second half of 2024 with our integrated supply chain for an upside in sales of about 14% in Germany. In total, we added 3 new suppliers and launched 16 new strains in 2024. When we look at the adjusted EBITDA after all these measures, our adjusted EBITDA in Q4 was a gain of CAD 0.5 million versus a loss of CAD 4.3 million in Q4 2023, an improvement of almost CAD 5 million. In Q4, we moved into positive adjusted EBITDA.

Oren Shuster: When we look at the full year, we see a loss of CAD 1.1 million for 2024 versus a CAD 8 million loss in 2023, an improvement of almost CAD 7 million. Moving on to the local level. In Germany, in addition to creating a stronger, fully integrated supply chain, we continued to develop the network of pharmacies we work with directly, and worked on building a stronger sales team. Consolidating our position as one of the top ten medical cannabis brands in Israel. Our sales increased by over 183% in 2024 versus 2023, to reach CAD 15.5 million, with supply being the limiting factor, especially in Q4. What I think best sums up the results in Germany is this. Germany made up 40% of IMC total revenue in the second half of 2024 versus 11% in all of 2023.

Oren Shuster: Looking at these results, it is clear that the strategic shift we made to concentrate our resources on the German market was the right one. In Israel, our team managed to mitigate the impact of the war on our business, the decline in the number of medical cannabis patients, as well as the shift in focus and resources towards the German market. On an operational level in Israel, we launched or relaunched 27 strains across six brands in 2024, maintaining top-line sales. In addition, we moved to a different production facility to reduce our production cost. We expect to see the full effect of this move in 2025. We took a good look at our distribution, outsourcing pharmacy distribution network and adding distribution partners, further reducing costs and improving service.

Oren Shuster: We spent the better part of 2024 clearing out slow-moving non-premium stock and old inventory for about CAD 3.9 million. The quality of this product was not one that we, as IMC, can stand behind. This impacted our cost of sales, gross margin, and gross profit. In Q4, we cleared out final CAD 0.7 million. We do not anticipate a similar scale of write-off in 2025. To sum up 2024, I am delighted with the progress we made internally, both strategically and operationally, while delivering growth. We now have a solid foundation, which is the right size to build on in 2025. You can clearly see the progress we made in 2024 yearly results. When we look towards 2025, we will be moving our focus from internal to external, while walking a strategic tightrope.

Oren Shuster: While we need to invest to drive growth in Germany, on the other hand, we do not want to lose the efficiency and agility in our lean structure. I especially look forward to seeing the results of our new solid integrated supply chain in Q1, which is shaping up to be the best quarter in sales we have had to date in Germany. I will now hand the call over to Uri, who will review our Q4 and full year 2024 financial results. Uri?

Uri Birenberg: Guys, one of this quarter's milestones that Oren already mentioned. The adjusted EBITDA in Q4 2024 resulted in a profit of CAD 0.5 million, compared to an EBITDA loss of CAD 4.3 million in Q4 2023, which is an improvement of almost CAD 5 million. Our Q4 results were mainly impacted by the following points. Our revenue in Q4 increased by 25% versus Q4 2023. This growth was driven mainly by an increase of 280% in the German revenue. We continued with our expense reduction process, which resulted in a decrease in operating expenses of approximately 42% versus Q4 2023. I will now take you through the overview of the Q4 2024 and 2024 full year's financial results for the company's operation.

Uri Birenberg: Revenues for 2024 and 2023 were CAD 54 million and CAD 48.8 million respectively, representing an increase of CAD 5.2 million or 11%. The increase is mainly attributed to the accelerated growth in Germany, with an increase in revenue of CAD 10 million and decreased revenue in Israel of CAD 4.8 million net. The decrease in Israel is attributed to the Oranim deal cancellation, which resulted in a decrease in revenue of approximately CAD 8.5 million compared to 2023. Excluding the Oranim revenue in 2023, we have an increase of revenue in Israel as well of approximately CAD 3.7 million or 12%. Revenue for the three months ended 31 December 2024 and 2023 were 13.3 million and 10.7 million respectively, representing an increase of CAD 2.6 million or 25%.

Uri Birenberg: The increase is mainly attributed to the accelerated growth in Germany with an increase in revenue of CAD 3.7 million and decreased revenue in Israel of CAD 1.1 million net. The decrease in Israel is attributed to the Oranim deal cancellation, which resulted in decrease in revenue of CAD 3.4 million compared to 2023. Excluding the Oranim revenue in Q4 2023, we have an increase of revenue in Israel as well of approximately CAD 2.3 million or 39%. For the 12 and 3 months ended 31 December 2024, Germany's share of total revenue has significantly increased compared to the corresponding period in 2023. This increase has had a considerable impact, reflected in higher average price due to the favorable market conditions and growing demands.

Uri Birenberg: The cost of revenue for 2024 and 2023 were CAD 45.6 million and CAD 38 million respectively, representing an increase of CAD 7.6 million or 20%. This is mainly due to increasing material costs of approximately CAD 8.1 million, of which clearing all raw materials of approximately CAD 3.9 million and increased inventory sales resulted in an increase of approximately CAD 4 million, which is offset by a reduction in other costs, net of approximately CAD 0.5 million. The cost of revenue for the three months ended 31 December 2024 and 2023 were CAD 10.7 million and CAD 9.6 million respectively, representing an increase of CAD 1.1 million or 12%. This is mainly due to the increased material cost of approximately CAD 1 million, including clearing all raw material of CAD 0.7 million.

Uri Birenberg: Gross profit for 2024 and 2023 was CAD 8.5 million and CAD 9.8 million respectively, representing a decrease of CAD 1.4 million or 14%. Gross profit for the three months ended 31 December 2024 and 2023 was CAD 2.7 million and CAD 0.8 million respectively, representing an increase of CAD 1.8 million or 238%. Gross profit included losses from realized fair value adjustment on inventory sold of zero and CAD 1 million for 2024 and 2023 respectively. Gross margin after fair value adjustment for 2024 and 2023 respectively was 16% versus 20%, and 20% versus 8% for the three months ended 31 December 2024 and 2023.

Uri Birenberg: G&A expenses for 2024 and 2023 were CAD 8 million and CAD 11 million respectively, representing a decrease of CAD 3 million or 27%. G&A expenses for the three months ended 31 December 2024 and 2023 were CAD 1.2 million and CAD 3.3 million respectively, representing a decrease of CAD 2.1 million or 64%. The G&A expenses are comprised mainly from salaries to employees in the amount of CAD 2.2 million and CAD 0.6 million for the 12 and 3 months ended 31 December 2024. Professional fees in the amount of CAD 2 million and -CAD 0.3 million for the 12 and 3 months ended 31 December 2024. Depreciation and amortization in the amount of CAD 0.6 million and CAD 0.2 million for the 12 and 3 months ended 31 December 2024.

Uri Birenberg: Insurance costs in the amount of CAD 1.3 million and CAD 0.3 million for the 12 and three months ended 31 December 2024, and other expenses in the amount of CAD 1.9 million and CAD 0.4 million for the 12 and three months ended 31 December 2024. Selling and marketing expenses for 2024 and 2023 were CAD 7.1 million and CAD 10.8 million respectively, representing a decrease of CAD 3.7 million or 34%. Selling and marketing expenses for the three months ended 31 December 2024 and 2023 were CAD 1.8 million and CAD 2.8 million respectively, representing a decrease of CAD 1 million or 36%.

Uri Birenberg: The decrease in selling and marketing expenses for 2024 is mainly attributed to our Oranim agreement of approximately CAD 2.1 million and CAD 0.7 million respectively. In addition, a decrease of CAD 1.6 million and CAD 0.3 million respectively in selling and marketing expenses. Total operating expenses for 2024 and 2023 were CAD 18.7 million and CAD 22.6 million. In Q4 2024, the total operating expenses were CAD 3.5 million compared to CAD 6 million in Q4 2023, a decrease of CAD 2.5 million or 42%. Operating expense ratio for 2024 was 30%, excluding the one-time expense outcome of our Oranim deal cancellation, versus 46% for 2023, representing an increased efficiency of about 36%.

Uri Birenberg: Operating expense ratio for the three months ended 31 December 2024, excluding the one-time expense outcome of our Oranim deal cancellation, was 22% versus 56% for the three months ended 31 December 2023, representing an increased efficiency of about 60%. The efficiency ratio improvement is resulting from decreased operational costs and increased revenue. Adjusted EBITDA loss for 2024 and 2023 was CAD 1.1 million compared with CAD 8 million, representing a decrease of 87%. Adjusted EBITDA profit in Q4 2024 was CAD 0.5 million compared to an EBITDA loss of CAD 4.3 million in Q4 2023. Net loss for 2024 was CAD 11.8 million, compared to CAD 10.2 million for 2023. Net loss in Q4 2024 was one point two million compared to CAD 3.5 million in Q4 2023.

Uri Birenberg: Diluted loss per share for 2024 was 4.51 compared to a loss of 4.45 per share in the same period for year 2023. Diluted loss per share for Q4 2024 was 0.32 compared to a loss of 1.47 per share in Q4 2023. As of the balance sheet, cash and cash equivalents as of 31 December 2024 were CAD 0.9 million compared to CAD 1.8 million on 31 December 2023. Total assets as of 31 December 2024 were CAD 39.2 million compared to CAD 48.8 million on 31 December 2023, a decrease of CAD 9.6 million or 19.7%.

Uri Birenberg: The decrease is mainly attributed to the Oranim agreement cancellation of CAD 9.5 million, of which mainly attributed to goodwill CAD 3.5 million, intangible assets CAD 1.4 million, inventory CAD 0.8 million, trade receivables CAD 1.3 million, total plant and equipment CAD 0.8 million, and reduction of cash and cash equivalent of CAD 0.3 million. In addition to the Oranim revocation agreement effect, there is a total asset decrease of CAD 0.1 million, mainly due to the increase of CAD 7.5 million in trade receivables, offset by CAD 5.9 million reduction in inventory and the reduction of CAD 1.1 million in intangible assets. Total liabilities as of 31 December 2024 were CAD 36 million compared to CAD 35.1 million on 31 December 2023, an increase of CAD 0.9 million or 3%.

Uri Birenberg: The Oranim agreement cancellation effect is a decrease of CAD 6.8 million, of which mainly attributed to put option liability CAD 2 million, purchase consideration payable CAD 2.2 million, trade payables CAD 1.6 million, lease liabilities CAD 0.4 million, and a decrease of CAD 0.3 million in deferred tax liability. In addition to the Oranim revocation agreement effect, there is a total liability increase of CAD 7.7 million, mainly due to increase of CAD 3.5 million in trade payables and an increase of CAD 3.3 million in warrants and convertible debt. The company is planning to finance its operation from its 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 now to turn the call back to Oren for closing remarks. Oren?

Uri Birenberg: The company is planning to finance its operation from its 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 now to turn the call back to Oren for closing remarks. Oren?

Oren Shuster: Thank you, Uri. To sum up 2024, while I'm very proud of the growth IMC delivered in Germany, I'm delighted with the progress we made internally, both strategically and operationally. In Q4, with our positive adjusted EBITDA, we are starting to see the initial impact of the saving we initiated during 2024 through our active cost management and full integration. This gives us a very strong foundation leading into 2025, where we already see that Q1 is shaping up to be the best quarter in sales we have had to date in Germany. I will now hand the call over to the operator to begin our question and answer session. Operator?

Good morning and welcome to IM cannabis's. Fourth quarter and full year 2024 earnings conference call.

Today's conference call is being recorded at this time. I would like to turn the conference over to Anna, Tarango director of investor and public relations Anna. Good morning, and thank you. Operator joining me for today's call are I am Canabis chief executive officer or in Schuster and Chief Financial Officer.

The earnings and press release that a company, this call is available on the investor relations section of our website. At investors.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.cedarpoint.com.

Furthermore, certain none IFRS measures will be referred to during this call, the term non-irs suggested Aida loss or non-ifrs, suggested evida will year after be referred to as adjusted evidence or adjusted evida as applicable. Any, estimates are 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 and Canadian dollars, unless otherwise stated with that, it's my pleasure to turn the call over to Orange Schuster, CEO of I am Canabis. Or please go ahead.

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

As a medical cannabis company, based in Germany and Israel. The April 2024, partial legalization in Germany was a game changer

since then the German market and our service in Germany have experienced extraordinary growth at the tremendous velocity.

But my personal 2024 highlights were the continuous improvements. We made both strategically and operationally,

Building a solid lean basis, from which to drive, sustainable growth in 2025.

In 2024, we started to shift our Focus From the transition years in 2022 and 2023.

Was delivery.

At the same time, we continued fine tuning to maintain our efficiency and Agility.

This is an ongoing process.

It is a special important in the dynamic cannabis Market to ensure that we keep our Competitive Edge.

As a company, we are 2 areas of focus in 2024.

1 full integration and active cost management to drive efficiencies and Tool, building a strong payment supply chain to support growth in 2025.

On an operational level we can continue to lean into active cost management and full integration to to drive efficiencies.

We reduced our overall, aerating expenses by 4 million.

Or 17%.

To a total of 18.7 million in 2024.

This decrease Builds on the 43% decrease, we had in 2023.

when we spent a total of 22.6 million,

Coming for 40 million in 2022.

Overall, we have managed to reduce our operating expenses by 53% since 2022.

The reduction in the operating expenses is most impactful in Q4 or 20204.

Where we are starting to see initially impact of the saving we initiated during this year?

We fully integrated our marketing and Supply teams with the goal of building the operational infrastructure and stable supply chain, we need to drive growth in Germany in 2025.

As a positive upside, we started to see the first Resorts of our efforts in 2024.

with our integrated supply chain for an upside in sales of about 14% in Germany,

In total we added 3, new suppliers and launched 16 new strength in 2024.

When we look at the adjusted limit, the after all these measures are adjusted in Q4, was a game of 0.5 million versus the loss of 4.3 million in Q4 2023.

An improvement of almost 5 million.

Aq4. We moved into positive adjusted.

When we look at the full year, we see a loss of 1.1 million for 2024 versus a 8 million loss in 2023.

And Improvement of almost 7 million.

Moving on.

To the local level in Germany, in addition to creating a stronger fully integrated supply chain. We can continue to develop the network of pharmacies, we work with

directly and work on building a stronger sales team.

Consolidating our position as 1 of the top 10 medical cannabis brands in Israel.

Our says, increased by over 183% in 2024 versus 2023.

Reach 15.5 million.

With Supply being the limiting factor, especially in Q4.

What I think best sums up the results in Germany. Is this

Germany made up 40% of 5 total revenue in the second half of 2024 versus 11% in all of 2023.

Looking at this results, it's it is clear that the Strategic shift we made to concentrate our resources. On the German Market was the right 1.

In Israel, our team managed to mitigate it, the impact of the war, on our business.

The decline in the number of medical cannabis patients as well as the shift in focus and resources to towards the German Market.

on an operational level in Israel, we launched or relaunched 27 strains across 6 bands in 2024,

Maintaining the Top Line Sales.

In addition.

We move to a different production facility reduce our production cost.

We expect to see the full effect of this role in 2025.

We took a good look at our distribution, also sync, Pharmacy, distribution Network and adding distribution, Partners further reducing costs and improving service.

We spent the better part of 2024 clearing out slow moving non-premium stock and all inventory for about 3.9 million.

The quality of this product was not 1 that we as IMC can stand behind.

This impacted our cost of sales, gross margin and gross profit.

Aq4. We cleared, cleared out final 0.7 million.

We do not anticipate a similar scale of right off in 2025.

To sum up 2024 and delighted with the progress we made internally. Both strategically and operationally while delivering growth

We now have a solid foundation, which is the right size to build on in 2025.

You can clearly see the progress we made in 2024 in results.

When we looked towards 2025, we will be moving our Focus from internal to external.

While working a strategic title.

when we need to invest to drive growth in Germany, on the other hand,

we do not want to lose the efficiency in agility in our lean structure.

A special look for the sink, the results for a new solid integrated supply chain in q1, which is shaping up to be the best quarter in sales. We have had to date in Germany.

I will now end the call over to UI. We will review our fourth quarter and full year 2024 Financial results.

1 of these quarters Milestones that are already mentioned.

23, which is an improvement of almost 5 million dollars.

Our Q4 results were mainly impacted by the following points.

Our Revenue Q4 increased by 25% versus Q4 2023.

This growth was driven. Mainly meaning width of 280% in the German Revenue,

we continue with our expense reduction process, which resulted in an increase in operating expenses of approximately 42% versus Q4 1223.

I will now take you through the overview of the Q4 2024 and 2024, full use Financial results for the company's operation.

Revenues for 2024 and 2023 were 54 million and 48.8 million respectively. Representing an increase of 5.2 million or 11%.

The increase is mainly attributed to the accelerated growth in Germany. With an increase in revenue of 10 million and decrease Revenue in Israel of 4.8 million net.

The decrease in Israel is attributed to the warning, the cancellation, which resulted in a decreasing revenue of approximately 8.5 million compared to 2023.

Excluding the running Revenue in 2023, we have an increase of Revenue in Israel. As well of approximately 3.7 million or 12%.

Revenue for the 3 months, ended December, 31st 2024 and 2023 were 1313.3 billion and 10.7 million respectively, representing an increase of 2.6 million or 25%.

The increase is mainly attributed to the accelerated work in Germany with an increasing revenue of 3.7 million and decrease Revenue in Israel of 1.1 million million.

the decrease in Israeli cancellation, which resulted in decreased in revenue of 3.4 million compared to 2023,

Excluding the on in Revenue in Q4 2023. We have an increase of Revenue in Israel, as well of approximately 2.3 million or 39%.

For the 12th and 3 months ended December 31st 2024 Germany's share of total revenue has significantly improved increased compared to the corresponding period in 2023.

This increase as at a considerable impact, reflected in higher average, price due to the favorable market conditions and growing demands.

The cost of revenue for 2024 and 2023 were 45.6 million and 38 million respectively, representing an increase of 7.6 million or 20%. This is mainly due to increasing material cost of approximately 8.1 million of which clearing all raw materials of approximately 3.9, million and increase inventory sales, resulted with an increase of approximately 4 million.

Which is offset by reducing other cost. Net of approximately 0.5 million

The cost of revenue for the 3 months. Ended December, 31st 2024 and 2023 were 10.7 million and 9.6 million respectively, representing an increase of 1.1 million or 12%.

This is mainly due to the increased material cost of approximately 1 million, including clearing all materials of 0.7 million.

gold profit for 2024 and 2023 were 8.5 million, and 9.8 million respectively, representing a decrease of 1.4 million or 14%

Good profit for the 3 months and the the 10th of 31st, 2024 and 2023 was 2.7 million and 0.8 million respectively, representing an increase of 1.8 million or 238%.

It was prophet. Included losses for Real's. Fair value. Adjustment on inventory, sold off zero and 1 million for 2024 and 2023 respectively.

Losing after fair value adjustment for 2024 and 2023 respectively, were 16% versus 20% and 20% versus 8% for the 3 months. Ended December 31st 2024 and 2023.

GNA expenses for the 3 months and the December. 31st 2024 and 2023 were 1.2 million and 3.3 million. Respectively, representing a decrease of 2.1 million or 64%.

The GNA expenses are comprised mainly from salaries to employees in the amount of 2.2 million and 0.6 million for the 12 and 3 months ended December 31st 2024.

Professional fees in the amount of 2 million and minus 0.3 million for the 12 and 3 months and then December 31st 2024, the depreciation amortization in the amount of 0.6 and 0.2 million for the 12th and 3 months ended December 31st 2024.

Insurance cost in the amount of 1.3 million and 0.3 million for the 12th and 3 months, and the December 30th, 1924 and other expenses in the amount of 1.9 million and 0.4 million for the 12th 3 months. Ended December 31st 2024.

Selling and marketing expenses for 2024 and 2023 were 7.1 million and 10.8 million respectively. Representing a decrease of 3.7 million or 34%?

Selling and marketing expenses for the 3 months. Ended December 31st 2024 and 2023, where 1.8 million and 2.8 million respectively. Representing a decrease of 1 million or 36%

The decrease in selling and marketing expenses for 2024 is mainly attributed to our analog agreement of approximately 2.1, million and 0.7 million respectively.

In addition, a decrease of 1.6 million and 0.3 million respectively in selling and marketing expenses.

Total operating expenses for 2024 and 2023 were 18.7 million and 222.6 million.

In Q4 2024, the total operating expenses were 3.5 million compared to 6 million. In Q4 2023, a decrease of 2.5 million or 42%

operating expense ratio for 2024 was 30%.

excluding the 1 time expense outcome of our new deal cancellation versus 46% for 2023 representing, an increase efficiency of about 36%

Operating expenses ratio for the 3 months, ended December. 31st 2024, excluding the 1 time expense outcome of our new cancellation was 22% versus 56% for the 3 months ended December 31st, 2023 representing an increase efficiency of about 60%,

The efficiency ratio Improvement is resulting from decreased operational cost and increased Revenue.

Adjusted a bit and loss for 2024. And 2023 was 1.1 million. Compared with 8 million, representing a decrease of 87%

Adjusted Abida profit. In Q4 2024 was 0.5 million compared to in a loss of 4.3 million in Q4 2023.

Net loss for 2024 was 11.8 million compared to 10.2 million for 2023.

Net loss. In Q4 2024 was 0, 1.2 million compared to 3.5 million in Q4 2023.

We looked at Lo per share for 2024 was 4.51 compared to a loss of 4.545 per share in the same period for year 2023.

We do that loss per share for Q4 2024 was 0.32 compared to a loss of 1.47 per share in Q4 automatically 23.

As of the balance sheet.

Cash and cash equivalent as of December. 31st 2024, where 0.9 million compared to 1.8 million on December 31st 2023.

Total assets as of December. 31st, 2024 were 39.2 million compared to 48.8 million on December. 31st 2023, a decrease of 9.6 million or 19.7%

Property plant and Equipment, 0.8 million and reduction of cash and cash equivalent of 0.3 million.

In addition to the onum, reoc agreement affect.

There is a total asset, decrease of 0.1 million mainly due to the increase of 7.5 million. In credit receivable, offset by 5.9 million deduction in inventory, and the reduction of 1.1 million in intangible assets,

Totally abilities. As of the 10% 2024 were 36 million compared to 35.1 million on the December. 31st, 2023 and increase of 0.9 million or 3%.

The winning agreement. Cancellation effect is a decrease of 6.8 million of which many attributed to put option the ability to million purchase consideration. Payable, 2.2 million trade, payables 1.6 million least the abilities 0.4 million, and a decrease of 0.3 million in the fair tax liability.

In addition, to the unable vocation agreement affect there is a totally ability to increase of 7.7 million. Mainly, due to increase of 3.5 million in trade, payables and an increase of 3.3 million in warrants and comparable debts.

The company is planning to finance its operation from its 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 now to turn the call back to Orange for closing remark.

Thank you.

The sum of 2024.

While I'm very proud of the growth, I'm seeing delivered in Germany. And the delighted with the progress we made internally both, strategically and operationally.

In Q4 with our positive adjusted evidence, we are starting to see the initial impact of the setting. We initiated during 2024.

Through our active cost management and full integration.

This gives us a very strong Foundation leading into 2025 when we already see that q1 is shaking up to be the best quarterly sales we have had to date in Germany.

I will now end the call over to the operator to begin. Our question and answer session, operator.

Q4 2024 IM Cannabis Corp Earnings Call

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