FLUENT Reports Fourth Quarter and Full Year 2024 Results
- Annual Revenue Grew 6.4% Year-over-Year to Record $103.6 million -
- Completed Transformative Acquisition of RIV Capital, Adding New York Retail, Wholesale and Cultivation Operations to Multi-State Footprint -
- Successfully Closed Non-Dilutive Debt Refinancing at Favorable Interest Rate and Terms -
- Ended Fiscal Year With More Than $40 Million of Cash and Cash Equivalents, Positioning Company For Additional Expansion and Growth -
- Expanded Brand Presence Through Strategic Launches, including MOODs and KNACK in New York and Hyer Kind Concentrates in Florida -
TAMPA, Fla., April 17, 2025 (GLOBE NEWSWIRE) -- FLUENT Corp. (CSE: FNT.U) (OTCQB: CNTMF) ("FLUENT" or the "Company"), a vertically-integrated, multi-state cannabis company, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2024. Unless otherwise indicated, all financial results are presented in U.S. dollars.
Management Commentary
"Closing out the year, we proudly increased our revenues by 6.4%, underscoring our commitment to maintaining sustainable financial growth, " said CEO Robert Beasley. "The successful acquisition of RIV Capital was a transformative milestone, expanding our operational footprint with the addition of retail, wholesale, and cultivation assets in the key New York market. We also completed a non-dilutive debt refinancing under favorable terms, enhancing our capital structure while maintaining financial discipline. With over $40 million in cash and cash equivalents at year-end, we are well-positioned to pursue strategic growth opportunities. Furthermore, the targeted launch of brands such as MOODs and KNACK in New York, and Hyer Kind concentrates in Florida, underscores our continued commitment to brand innovation and market penetration."
Mr. Beasley added, "Looking ahead, we have largely completed our integration efforts and gained valuable insights into what resonates in the New York market, enabling us to refine our approach for even greater impact with both consumers and patients. Our cultivation facility in Chestertown is producing strong results, with the latest crops yielding impressive outputs and THC levels. We are thrilled with the early success of the first harvests under our management, as our operations teams continue to collaborate seamlessly and deliver exceptional performance well. With our enhanced platform now in place, we are confidently optimizing our operational footprint positioning ourselves for continued success in the year ahead."
Mr. Beasley concluded, "While our plans were not reliant on the passage of Amendment 3 in Florida, we have been somewhat impacted by broader industry dynamics. Many in the sector had prepared extensively for the amendment's passage, and its delay has created market challenges, such as oversupply, heightened competition, and increased product discounting. Despite these headwinds, we remain well-positioned with a robust medical footprint and deep market expertise, enabling us to continue delivering exceptional products and executing our growth strategy as these factors stabilize."
Q4 2024 Financial Highlights (vs. Q4 2023)
-- Revenue was $24.9 million compared to $25.5 million.
-- Pro Forma revenue including a full quarter of New York operations
would be $29.6 million.
-- Florida revenue was $20.3 million compared to $21.6 million.
-- Gross profit before fair value adjustments1 was $10.0 million or 40.1% of
revenue, compared to $12.6 million or 49.4% of revenue.
-- Adjusted EBITDA was $3.0 million compared to $6.9 million, with the
decrease primarily driven by the decrease in revenues in the Florida
market.
-- Cash flow used in operations for the three months ending December 31,
2024, was $14.7 million compared to cash flow provided by operations of
$1.4 million in the prior year.
-- On December 31, 2024, the Company had approximately $40.1 million of cash
and cash equivalents and $82.4 million of total debt outstanding, with
approximately 630 million shares outstanding on an as-converted basis,
compared to $10.5 million of cash and cash equivalents and $61.2 million
of total debt, with approximately 300 million shares outstanding on
December 31, 2023.
-- Additionally, the Company reported an impairment of intangible assets
of $64.3 million for the quarter, compared to no impairment in Q4 2023.
The impairment charge related to the cannabis license in Florida, and
reflects lower anticipated operating profits for the Florida market
compared to the last impairment testing date, largely as a result of the
pricing pressures in the Florida market. The impairment expense is a
non-cash item in the current period and reduces the carrying value of the
Company's intangible assets on its consolidated statements of financial
position to $37.6 million.
Full Year 2024 Financial Highlights (vs. Full Year 2023)
-- Revenue increased 6.4% to $103.6 million compared to $97.3 million.
-- Florida revenue increased 0.3% to $86.8 million compared to $86.5
million.
-- Gross profit before fair value adjustments2 was $50.3 million or 48.6% of
revenue, compared to $49.5 million or 50.9% of revenue.
-- Adjusted EBITDA was $25.0 million compared to $27.2 million, with the
decrease primarily driven by the slow down in the Florida market.
Recent Operational Highlights
-- Currently operating 42 locations across a footprint spanning Florida, New
York, Pennsylvania, and Texas. FLUENT anticipates opening an additional
three stores by the end of 2025.
-- Progressed construction at brand new, Tampa-based cultivation and
processing facility, Rosa, targeting to complete its first harvest target
by Q2 2025. The facility expansion will add an additional 7,000 sq ft of
canopy to FLUENT's growing Florida footprint.
-- Completed the acquisition of RIV Capital Inc., expanding the Company's
footprint to include New York, with retail, wholesale, and cultivation
operations spanning the state.
-- Debuted the popular Florida brand MOODs into the New York market. Various
MOODs formats are being launched in New York, with the full offering
expected to be available in 2025.
-- Launched new flower brand KNACK in New York, with an anticipated
expansion into Florida in early 2025.
-- Introduced FLUENT's first-ever concentrates line Hyer Kind in Florida,
with plans to launch in additional markets in 2025.
-- Completed a new senior secured credit agreement of up to $96,500,000 with
Chicago Atlantic Admin, LLC, refinancing the Company's existing
$71,000,000 senior secured term loan that was set to mature May 29, 2025.
____________________
1 Gross profit before fair value adjustments is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates gross profit before fair value adjustments from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.
2 Gross profit before fair value adjustments is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates gross profit before fair value adjustments from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.
Conference Call
The Company will host a conference call and live audio webcast today at 4:30 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Wednesday, April 17, 2025
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: 1-844-763-8274 (toll -free)
International dial-in number: 1-412-717-9224 (international)
Join Instructions: Participants to ask to be joined into the FLUENT Corp. call.
Link: FLUENT Corp Conference Call
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
The conference call will also be available for replay for up to two weeks via the News & Events section of the Company's investor relations website at https://investors.getFLUENT.com/.
Forward-Looking Information
Certain information in this news release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent the Company's expectations, estimates, and projections regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control.
Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available on its SEDAR+ profile at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
For further information visit: www.getFLUENT.com and www.investors.getFLUENT.com
Company Contact
Robert Beasley, CEO
investors@getFLUENT.com
Media Contact:
press@getfluent.com
Fluent Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
As of December 31, 2024 and December 31,
2023
(USD '000)
2024 2023
-------------------------------------------- ---------- ------------
Assets
Current assets
Cash and cash equivalents $ 40,106 $ 10,521
Accounts receivable 422 215
Biological assets 3,162 331
Inventory, net 15,155 9,244
Prepaid expenses and other current assets 2,587 1,882
Total current assets $ 61,432 22,193
-------------------------------------------- -------- --------
Assets held for sale -
Property and equipment, net 52,200 27,642
Intangible assets, net 37,590 93,593
Right-of-use assets, net 46,731 31,943
Goodwill 1,525 1,525
Deferred tax assets 1,039 -
Other assets 6,476 907
Total assets $ 206,993 $ 177,803
============================================ ======== ========
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 6,332 $ 5,525
Accrued expenses 8,423 9,779
Income taxes payable 1,003 22,009
Derivative liabilities 2,148 9,109
Short term provision liability 4,957 -
Current portion of notes payable 755 213
Lease obligations - current portion 4,751 2,872
Total current liabilities $ 28,369 $ 49,507
-------------------------------------------- -------- --------
Long-term liabilities
Notes payable, net of current portion
and financing costs 68,775 61,189
Lease obligations, net of current
portion 51,727 37,242
Deferred tax liability 4,817 17,398
Uncertain tax position 43,314 -
Long term provision liability 9,044 -
Convertible notes, net 6,482 -
Other long-term liabilities 3,447 3,882
Total long-term liabilities $ 187,606 $ 119,711
-------------------------------------------- -------- --------
Total liabilities $ 215,975 $ 169,218
-------------------------------------------- -------- --------
Shareholders' equity
Share capital 206,419 183,690
Share-based compensation reserve 7,275 6,739
Equity conversion feature 7,097 6,677
Warrants 29,634 29,634
Accumulated deficit (258,211) (217,821)
Foreign currency translation reserve (1,196) (334)
Accumulated other comprehensive income
(loss) (1,196) (334)
Total shareholders' equity (8,982) 8,585
-------------------------------------------- -------- --------
Total liabilities and shareholders' equity $ 206,993 $ 177,803
============================================ ======== ========
Fluent Corp.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
For the years ended December
31, 2024 and December 31,
2023
(USD '000) Year ended
December 31, 2024 December 31, 2023
------------------- ---------------------
Revenue, net $ 103,562 $ 97,290
Cost of goods sold 53,234 47,814
------------------------------ -------------- --------------
Gross profit before fair value
adjustments 50,328 49,476
Fair value adjustments on
inventory sold (3,642) 12,659
Unrealized gain (loss) on
changes in fair value of
biological assets 7,872 (14,602)
------------------------------ -------------- --------------
Gross profit 54,558 47,533
Operating expenses:
General and administrative 17,602 10,022
Sales and marketing 22,805 20,193
Depreciation and
amortization 7,078 7,414
Share-based compensation 538 638
------------------------------ -------------- --------------
Impairment of goodwill and
intangible assets - -
------------------------------ -------------- --------------
Total operating expenses 48,023 38,267
Income from operations 6,535 9,266
Other expense (income):
Finance costs, net 19,952 17,941
Net change in fair value of
derivative (9,684) 433
Loss on issuance and
settlement of debt, net 8,725 -
(Gain) loss on disposal of
assets 237 (26)
Intangible assets
impairment 64,285 -
(Gain) loss on lease
modifications (223) 67
Bargain purchase gain on
business combination (44,520) -
Loss on loan 1,201 -
Other (income) expense, net 262 7
------------------------------ -------------- --------------
Total other expense (income) 40,235 18,422
Net income (loss) before
income taxes (33,700) (9,156)
Income tax expense 6,690 13,594
Net income (loss) $ (40,390) $ (22,750)
============================== ============== ==============
Other comprehensive income
(loss)
Foreign currency
translation adjustment (862) -
Comprehensive income (loss) $ (41,252) $ (22,750)
============================== ============== ==============
Net loss per share - basic and
diluted $ (0.13) $ (0.08)
Fluent Corp.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
For the three months ended
December 31, 2024 and 2023
(USD '000) Year ended
December 31, 2024 December 31, 2023
------------------- ---------------------
Revenue, net $ 24,919 $ 25,544
Cost of goods sold 14,919 12,932
------------------------------ -------------- --- ------------
Gross profit before fair value
adjustments 10,000 12,612
Fair value adjustments on
inventory sold (1,383) 3,615
Unrealized gain (loss) on
changes in fair value of
biological assets (832) (2,883)
------------------------------ -------------- --- ------------
Gross profit 7,785 13,344
Operating expenses:
General and administrative 5,119 2,436
Sales and marketing 5,507 5,265
Depreciation and
amortization 1,831 1,634
Share-based compensation 119 (6)
------------------------------ -------------- --- ------------
Total operating expenses 12,576 9,329
Income (loss) from operations (4,791) 4,015
Other expense (income):
Finance costs, net 5,252 4,806
Net change in fair value of
derivative (1,392) 171
Loss on issuance and
settlement of debt, net 8,725 116
(Gain) loss on disposal of
assets 25 (96)
Intangible assets
impairment 64,285 -
(Gain) loss on lease
modifications (223) -
Bargain purchase gain on
business combination (44,520) -
Loss on loan 1,201 -
Other (income) expense, net 257 1
------------------------------ -------------- --- ------------
Total other expense (income) 33,610 4,998
Net income (loss) before
income taxes (38,401) (983)
Income tax expense (13,010) 3,727
Net income (loss) $ (25,391) $ (4,710)
============================== ============== === ============
Other comprehensive income
(loss)
Foreign currency
translation adjustment (862) -
Comprehensive income (loss) $ (26,253) $ (4,710)
============================== ============== === ============
Fluent Corp.
CONSOLIDATED STATEMENTS OF
CASH FLOW
For the years ended December
31, 2024 and December 31,
2023
(USD '000)
Year ended
December 31, 2024 December 31, 2023
------------------------------ ------------------- ---------------------
Cash flows used in operating
activities
Net loss $ (40,390) $ (22,750)
Adjustments for non-cash
items:
Bargain purchase gain on
business combination (44,520) -
Loss on issuance and
extinguishment of debt
instruments, net 8,225 -
Intangible assets
impairment 64,285 -
Unrealized (gain) loss on
changes in fair value of
biological assets (7,872) 14,602
Realized (gain) loss on
fair value amounts
included in inventory
sold 3,642 (12,659)
Share-based compensation
expense 538 638
Inventory write-down 81 -
Depreciation and
amortization 14,995 15,078
Accretion and interest
expense 20,012 26,788
Gain on lease modification (223) -
Net change in fair value of
derivative (9,684) 433
Loss on dispositions of
fixed assets 237 253
Uncertain tax position 43,314 -
Deferred tax recovery (12,850) (2,892)
Changes in non-cash working
capital
Accounts receivable 24 (187)
Inventory 20,087 15,596
Biological assets (17,551) (17,145)
Prepaid expenses and
other current assets 1,464 (999)
Right of use assets /
liabilities (4,840) (3,698)
Other assets (492) 661
Accounts payable 805 (1,400)
Accrued liabilities (8,430) 4,390
Income taxes (18,902) 10,806
Other long-term
liabilities (435) 2,549
------------------------------ -------------- --------------
Net cash provided by operating
activities before income
taxes and interest paid 11,520 30,064
Cash interest paid (7,642) (8,860)
Income taxes received
(paid), net (2,104) (2,749)
-------------- --------------
Net cash provided by operating
activities $ 1,774 $ 18,455
------------------------------ -------------- --------------
Cash flows provided by (used
in) investing activities
Cash acquired through
business combination $ 39,501 $ -
Purchase of property and
equipment (16,173) (6,019)
Purchase of intangible
assets (1,332) (319)
-------------- --------------
Net cash provided by (used in)
investing activities $ 21,996 $ (6,338)
------------------------------ -------------- --------------
Cash flows provided by (used
in) financing activities
Proceeds from issuance of
convertible notes, net of
financing costs $ 8,975 $ -
Proceeds from issuance of
shares and warrants - 2,992
Proceeds from term loan,
net of financing costs 68,976 -
Repayments of principal on
term loan (67,173) (8,533)
Net proceeds from equipment
loan 48 -
Payment of notes principal (1,335) (2,033)
Payment of lease principal (2,814) (2,381)
------------------------------ -------------- --------------
Net cash provided by (used in)
financing activities $ 6,677 $ (9,955)
------------------------------ -------------- --------------
Net increase in cash and cash
equivalents $ 30,447 $ 2,162
Effect of foreign exchange
rate movements on cash held (862) -
Cash, beginning of period 10,521 8,359
------------------------------ -------------- --------------
Cash, end of period $ 40,106 $ 10,521
------------------------------ -------------- --------------
Fluent Corp.
EBITDA AND ADJUSTED EBITIDA CALCULATION
For the years ended December 31, 2024 and
December 31, 2023
(USD '000)
Year ended
--------------------------------
December 31, December 31,
2024 2023
------------------------------------------ -------------- ----------------
Net income (loss) $ (40,390) $ (22,750)
Finance costs, net 19,952 17,941
Income taxes 6,690 13,594
Depreciation and amortization 14,773 15,078
EBITDA $ 1,025 $ 23,863
------------------------------------------ --------- ---------
Year ended
--------------------------------
December 31, December 31,
2024 2023
------------------------------------------ -------------- ----------------
EBITDA $ 1,025 $ 23,863
Change in fair value of biological assets (4,230) 1,943
Change in fair market value of derivative (9,684) 433
Bargain purchase gain on business
combination (44,520) -
Loss on issuance and settlement of debt 8,725 -
Intangible assets impairment 64,285 -
Professional fees(1) 5,584 -
One-time employee costs(2) 927 -
Share-based compensation 538 638
Loss on loan 1,201 -
Other non-recurring expense(3) 1,168 307
Adjusted EBITDA $ 25,019 $ 27,184
------------------------------------------ --------- ---------
(1) Legal and professional fees associated with potential
transactions and professional fees associated with
prior periods.
(2) Severance and relocation costs.
(3) One-time costs incurred during the
period related.
(END) Dow Jones Newswires
April 17, 2025 16:07 ET (20:07 GMT)