Financial Overview and Strategic Insights
(in thousands of U.S. dollars)
Net loss
Interest income, net
Income tax expense (benefit)
Depreciation and amortization
EBITDA
Share of (income) loss from equity method investments
Impairment loss on long-lived assets
Loss on revaluation of derivative liabilities(11)
Loss on revaluation of financial instruments()
Impairment loss on other investments (vii)
Foreign currency transaction loss
Other, net(iv)
Restructuring costs (viii)
Share-based compensation
Financial statement review costs(vi)
Inventory write-down(x)
Adjusted EBITDA
ADJUSTED EBITDA (NON-GAAP) RECONCILIATION
For the year ended December 31, 2023
(in thousands of U.S. dollars)
Three months ended December 31, 2023
Continuing
Operations
Discontinued
Operations
Total
$
(70,439) $
(51,235)
(4,114) $
(10)
(74,553)
Net loss
со
(51,245)
Interest income, net
(3,230)
(3,230)
Income tax expense (benefit)
7,866
244
8,110
(117,038)
(3,880)
(120,918)
(1,583)
3,366
205
(1,583)
3,571
Depreciation and amortization
EBITDA
Share of (income) loss from equity method investments
1,177
(58,548)
(752)
Continuing
Operations
Discontinued
Operations
Total
(45,151) $
124 $
(45,027)
(14,214)
(1)
(14,215)
(360)
(360)
1,177
123
Impairment loss on long-lived assets
3,366
85
85
12,042
12,042
23,350
23,350
7,324
7,324
Loss on revaluation of derivative liabilities()
Loss on revaluation of financial instruments
(vii)
Impairment loss on other investments
Foreign currency transaction loss
71
(III)
4,186
23,350
11,323
(1,114)
118
(996)
Other, net(iv)
(89)
(14)
1,524
523
2,047
Restructuring costs (viii)
101
(39)
8,756
13
919
805
$
(61,564) S
839
(2,182) $
8,769
919
1,644
(63.746)
Share-based compensation
Financial statement review costs()
Inventory write-down(x)
(V)
1,933
||ཀླུ | | | | | | $ སྐྱིགློ
(58,425)
(752)
3,366
71
4,186
23,350
11,323
(103)
62
(4)
1,929
180
180
89
89
Adjusted EBITDA
S
(14.790) $
66 $
(14,724)
For the three months and year ended December 31, 2023, impairment loss on long-lived assets related to certain leased properties associated with the Company's former U.S. operations and impairment of the Company's CBCVA
exclusive license under the collaboration and license agreement between Ginkgo and the Company. For the year ended December 31, 2022, impairment loss on long-lived assets related to the Company's decision to seek a
sublease for leased office space in Toronto, Ontario, Canada during the first quarter of 2022.
(i) For the three months and years ended December 31, 2023 and 2022, the (gain) loss on revaluation of derivative liabilities represents the fair value changes on the derivative liabilities.
(i) For the three months and years ended December 31, 2023 and 2022, (gain) loss on revaluation of financial instruments relates primarily to our unrealized holding gain on our mark-to-market investment in Vitura as well as
revaluations of financial liabilities resulting from deferred share units granted to directors.
(iv) For the three months and years ended December 31, 2023 and 2022, other, net primarily related to related to (gain) loss on disposal of assets.
For the three months and years ended December 31, 2023 and 2022, share-based compensation relates to the vesting expenses of share-based compensation awarded to employees under our share-based award plans.
(vi) For the three months and years ended December 31, 2023 and 2022, financial statement review costs include costs related to the Restatements, costs related to the Company's responses to requests for information from various
regulatory authorities relating to the Restatements, the costs related to the Settlement Order and Settlement Agreement and legal costs defending shareholder class action complaints brought against the Company as a result of
the 2019 restatement.
(vii) For the three months ended December 31, 2023 and years ended December 31, 2023 and 2022, impairment loss on other investments related to the Pharma Cann Option for the difference between its fair value and carrying
amount.
(viii) For the three months and years ended December 31, 2023 and 2022, restructuring costs related to the employee-related severance costs and other restructuring costs associated with the Realignment.
(x) For the three months and year ended December 31, 2023, inventory write-downs from discontinued operations relate to product destruction and obsolescence associated with the exit of our U.S. operations and inventory write-
downs from continuing operations relate to product destruction and obsolescence associated with the planned exit of Cronos Fermentation.
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