Fourth Quarter Highlights
- Net revenue from continued operations of
$4.7 million in Q4 2023 compared to$6.2 million in Q4 2022. - Gross profit before inventory adjustment of
$2.0 million in Q4 2023, representing gross margin of 42%, compared to$1.9 million , or 31% gross margin, in Q4 2022. Q4 2023 gross profit was the highest quarterly gross profit in the company’s history as the strategic focus on high margin activities and operational efficiency continues to have a positive impact. - Operating costs and professional fees increased to
$5.6 million in Q4 2023 compared to$5.5 million in Q4 2022. - Adjusted EBITDA loss improved to
$5.0 million in Q4 2023 compared to$5.5 million in Q4 2022.
Full-Year 2023 Highlights
- Net revenue from continued operations was
$21.7 million in 2023 compared to$22.1 million in 2022. - Gross profit before inventory adjustment increased to
$6.6 million in 2023 compared to$5.9 million in 2022, with margins expanding from 27% to 31%. - Adjusted EBITDA loss improved to
$13.8 million in 2023 compared to$18.5 million in 2022. - Working capital position of negative
$0.3 million at year end.
"Our performance in the fourth quarter of 2023 reflects our strategic focus on high-margin activities and operational efficiency, resulting in the highest quarterly gross profit in our company's history," said
Financial Summary
Net revenue was
Gross profit before inventory adjustment increased to
Adjusted EBITDA loss improved to
Balance Sheet and Cash Flow
Cash and cash equivalents were
Inventories were
The working capital position was negative
Net cash used in operations was
Leadership Change
Lifeist regrets to announce that
“Faraaz has played an instrumental role in building Lifeist and the Mikra brands, and his dedication and commitment have been invaluable," said
Additional Information
The Company’s complete financial statements and management’s discussion & analysis (“MD&A”) for the financial year ended
About
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards;
Information on Lifeist and its businesses can be accessed through the links below:
www.lifeist.com
www.wearemikra.com
www.cannmart.com
www.australianvaporizers.com.au
Contacts
Tel: 647-362-0390
Email: ir@lifeist.com
Neither the
Non-IFRS Financial Measures
Management evaluates the Company’s performance using a variety of measures, including “Net loss before income tax, depreciation and amortization” and “Adjusted EBITDA”. The non-IFRS measures discussed below should not be considered as an alternative to or to be more meaningful than revenue or net loss. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.
The Company believes these non-IFRS financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company.
Management uses these and other non-IFRS financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company’s underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.
- Current and deferred income taxes, depreciation and amortization, and share-based compensation were excluded from the Adjusted EBITDA calculation as they do not represent cash expenditures.
- Other income consisting of gain on disposal of subsidiary, interest income, realized gain on disposition of AFS investments, unrealized gain on derivatives and other miscellaneous non-recurring income were excluded from Adjusted EBITDA calculation.
- Non-recurring costs related to restructuring and legacy issues were excluded from Adjusted EBITDA calculation.
- Impairment loss relating to goodwill, customer list, domains and brand names were excluded from Adjusted EBITDA calculation.
- Impairment loss relating to receivable is a provision for expected credit loss to an associate and was excluded from Adjusted EBITDA calculation.
- Share of associates loss, net of tax, is excluded due to lack of control.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen.
The forward-looking information contained herein, including, without limitation, statements related to: the Company’s continuing focus and future actions to foster profitability and deliver sustainable growth through additional cost and efficiency measures, and its expectations from such actions to increase revenue growth and profitability are made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including, without limitation, Lifeist’s ability to implement cost cutting measures and efficiencies and to realize the anticipated benefits from focusing on gross profit enhancement, the Company’s expectation that the nutraceutical and wellness market will continue to develop as currently anticipated, the nutraceutical market will continue to be a multi-billion dollar high-margin market, the introduction of new products and brands will generate additional revenue, expectations that the Company’s current and future products will gain market acceptance, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: the inability of the Company to develop its business as anticipated and to increase revenues and/or its profitable margin on such revenues, unanticipated changes to current regulations that would adversely impact the Company’s businesses, the unanticipated decline in demand for cannabis products, competition from others, the risk that the expected demand for nutraceutical products in general and those of Mikra in particular does not develop as anticipated, regulatory risk, risks relating to the Company’s ability to execute its business strategy and the benefits realizable therefrom and risks specifically related to the Company’s operations. Additional risk factors can also be found in the Company’s current MD&A which has been filed under the Company’s SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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