Investor Presentaiton
OPERATIONS:
$ /Lb.
UNMATCHED COST STRUCTURE
PRO FORMA WHOLESALE BIOMASS ECONOMICS 1
Declining cost of production leads to improving gross margins
Cost of Production²
Q2 2023 through Q4 2023 Cost of Production are projections based on Glass House official guidance
Cultivation Proforma Economics
$300
$350
$188
$237
$204
Weighted Average Selling Price 3,6
$236
$290
$330
70%
$300
$250
$238
70%
$250
50%
$196
$200
$200
$159
$150
$150
$150
46%
34%
33%
32%
30%
$134
$120
$127 $120
$100
$100
10%
$100
$238
$159
$134
$127
$196
$100
$50
-10%
$50
$-
-27%
$(50)
-30%
Q1
Q2
Q3
Q4
Long-Term Goal
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
2022 2023
I Cost of Production
Proforma Gross Profit4
Long-Term Goal
Proforma Gross Margin %
5
1. This table includes forward-looking information that is disclosed using non-GAAP measures. These non-GAAP measures are described in the notes below. For more information on non-GAAP measures and forward-looking statements, please see Disclaimers on Slide 2.
2. Cost of Production includes all expenses from nursery and cultivation to curing and trimming at which point the product is ready for sale as wholesale cannabis or to be transferred to CPG. 2022 cost and Q1 2023 cost are actual. Q2 23 through Q4 23 are Glass House guidance.
3. Weighted Average Selling Price = the individual selling price for flower, smalls and trim multiplied by the mix of product for each product sold.
4. Proforma Gross Profit = Weighted Average Selling Price minus Cost of Production.
5. Proforma Gross Profit Margin = Proforma Gross Profit divided by Weighted Average Selling Price
6. Full Year 2023 projected weighted average selling price of $330/lb. is used for proforma Gross Margin calculation for 'Long Term Goal'. Please note that cost of production is typically highest in Q1 and Q2 due to a seasonal decline in pounds produced. We expect to produce
315,000 pounds of wholesale biomass in 2023, with 39% in the first half and 61% in the second half.
7. The purpose of this financial analysis is to provide investors with a basis for analysis of the Company's proforma cost structure. Readers are cautioned that the information may not be appropriate for other purposes.
15View entire presentation