0001743745false--12-312020Q2P3YP4Y00017437452020-01-012020-06-30xbrli:shares0001743745us-gaap:CommonClassAMember2020-08-040001743745us-gaap:CommonClassBMember2020-08-040001743745us-gaap:CommonClassCMember2020-08-04iso4217:USD00017437452020-06-3000017437452019-12-31iso4217:USDxbrli:shares0001743745us-gaap:CommonClassAMember2019-12-310001743745us-gaap:CommonClassAMember2020-06-300001743745us-gaap:CommonClassBMember2020-06-300001743745us-gaap:CommonClassBMember2019-12-310001743745us-gaap:CommonClassCMember2019-12-310001743745us-gaap:CommonClassCMember2020-06-3000017437452020-04-012020-06-3000017437452019-04-012019-06-3000017437452019-01-012019-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-12-310001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-12-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2019-12-310001743745us-gaap:AdditionalPaidInCapitalMember2019-12-310001743745us-gaap:RetainedEarningsMember2019-12-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001743745us-gaap:NoncontrollingInterestMember2019-12-310001743745us-gaap:RetainedEarningsMember2020-01-012020-03-310001743745us-gaap:NoncontrollingInterestMember2020-01-012020-03-3100017437452020-01-012020-03-310001743745us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-01-012020-03-310001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-01-012020-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-03-310001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-03-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2020-03-310001743745us-gaap:AdditionalPaidInCapitalMember2020-03-310001743745us-gaap:RetainedEarningsMember2020-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001743745us-gaap:NoncontrollingInterestMember2020-03-3100017437452020-03-310001743745us-gaap:RetainedEarningsMember2020-04-012020-06-300001743745us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001743745us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-04-012020-06-300001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-04-012020-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-06-300001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-06-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2020-06-300001743745us-gaap:AdditionalPaidInCapitalMember2020-06-300001743745us-gaap:RetainedEarningsMember2020-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001743745us-gaap:NoncontrollingInterestMember2020-06-300001743745gnln:RedeemableClassBUnitsMember2018-12-310001743745gnln:MembersEquityMember2018-12-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2018-12-310001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2018-12-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2018-12-310001743745us-gaap:AdditionalPaidInCapitalMember2018-12-310001743745us-gaap:RetainedEarningsMember2018-12-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001743745us-gaap:NoncontrollingInterestMember2018-12-3100017437452018-12-310001743745gnln:RedeemableClassBUnitsMember2019-01-012019-03-310001743745gnln:MembersEquityMember2019-01-012019-03-3100017437452019-01-012019-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001743745gnln:RedeemableClassBUnitsMember2019-03-310001743745gnln:MembersEquityMember2019-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-03-310001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-03-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2019-03-310001743745us-gaap:AdditionalPaidInCapitalMember2019-03-310001743745us-gaap:RetainedEarningsMember2019-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001743745us-gaap:NoncontrollingInterestMember2019-03-3100017437452019-03-310001743745gnln:RedeemableClassBUnitsMember2019-04-012019-04-230001743745gnln:MembersEquityMember2019-04-012019-04-2300017437452019-04-012019-04-230001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-04-230001743745us-gaap:AdditionalPaidInCapitalMember2019-04-012019-04-230001743745us-gaap:NoncontrollingInterestMember2019-04-012019-04-230001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-04-012019-04-230001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-04-012019-04-230001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2019-04-012019-04-230001743745us-gaap:RetainedEarningsMember2019-04-242019-06-300001743745us-gaap:NoncontrollingInterestMember2019-04-242019-06-3000017437452019-04-242019-06-300001743745us-gaap:AdditionalPaidInCapitalMember2019-04-242019-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-242019-06-300001743745gnln:RedeemableClassBUnitsMember2019-06-300001743745gnln:MembersEquityMember2019-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2019-06-300001743745us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-06-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2019-06-300001743745us-gaap:AdditionalPaidInCapitalMember2019-06-300001743745us-gaap:RetainedEarningsMember2019-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001743745us-gaap:NoncontrollingInterestMember2019-06-3000017437452019-06-300001743745gnln:CommonStockClassAMember2019-04-230001743745gnln:CommonStockClassAMember2019-04-232019-04-23xbrli:pure00017437452019-04-232019-04-230001743745gnln:CommonStockClassAMemberus-gaap:IPOMember2019-04-232019-04-230001743745gnln:PublicPurchasersMember2020-01-012020-06-300001743745us-gaap:CommonClassAMembergnln:PublicPurchasersMember2020-01-012020-06-300001743745gnln:NonFounderMembersMember2020-01-012020-06-300001743745gnln:FounderMembersMember2020-01-012020-06-300001743745country:US2019-12-310001743745country:CA2019-12-310001743745srt:EuropeMember2019-12-310001743745country:US2020-01-012020-06-300001743745country:CA2020-01-012020-06-300001743745srt:EuropeMember2020-01-012020-06-300001743745country:US2020-06-300001743745country:CA2020-06-300001743745srt:EuropeMember2020-06-300001743745us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMemberus-gaap:ServiceMember2020-01-012020-06-300001743745us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMemberus-gaap:ServiceMember2020-04-012020-06-300001743745gnln:BillAndHoldMember2020-04-012020-06-300001743745gnln:BillAndHoldMember2020-01-012020-06-300001743745gnln:AirgraftIncMemberus-gaap:IPOMember2019-12-310001743745gnln:AirgraftIncMemberus-gaap:IPOMember2020-06-300001743745gnln:MintProductsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2020-01-012020-06-300001743745gnln:MintProductsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2020-04-012020-06-300001743745gnln:MintProductsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2019-04-012019-06-300001743745gnln:MintProductsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2019-01-012019-06-300001743745us-gaap:FairValueInputsLevel1Member2020-06-300001743745us-gaap:FairValueInputsLevel2Member2020-06-300001743745us-gaap:FairValueInputsLevel3Member2020-06-300001743745us-gaap:FairValueInputsLevel1Member2019-12-310001743745us-gaap:FairValueInputsLevel2Member2019-12-310001743745us-gaap:FairValueInputsLevel3Member2019-12-310001743745us-gaap:InterestRateSwapMember2020-06-300001743745gnln:ConsciousWholesaleMembersrt:MinimumMember2020-01-012020-06-300001743745gnln:ConsciousWholesaleMembersrt:MaximumMember2020-01-012020-06-300001743745gnln:AirgraftIncMember2020-06-30gnln:facilities0001743745us-gaap:BuildingMembersrt:MinimumMember2020-06-300001743745us-gaap:BuildingMembersrt:MaximumMember2020-06-300001743745gnln:DistributionCentersMember2020-06-300001743745srt:MinimumMember2020-06-300001743745srt:MaximumMember2020-06-300001743745us-gaap:NotesPayableOtherPayablesMember2020-06-300001743745us-gaap:NotesPayableOtherPayablesMember2019-12-310001743745us-gaap:LetterOfCreditMember2020-06-300001743745us-gaap:LetterOfCreditMember2019-12-310001743745us-gaap:LetterOfCreditMember2018-10-012018-10-010001743745us-gaap:LetterOfCreditMember2018-10-0100017437452018-10-012018-10-010001743745us-gaap:RealEstateLoanMember2018-10-310001743745us-gaap:ConvertibleDebtMember2018-12-310001743745us-gaap:ConvertibleDebtMember2018-12-012018-12-310001743745us-gaap:ConvertibleDebtMember2019-01-310001743745us-gaap:ConvertibleDebtMember2019-01-012019-01-310001743745us-gaap:ConvertibleDebtMember2019-01-012019-03-310001743745us-gaap:CommonClassAMemberus-gaap:ConvertibleDebtMember2019-04-012019-04-3000017437452019-04-012019-04-30gnln:number_of_lawsuits00017437452019-08-022019-08-020001743745gnln:InReGreenlaneHoldingsIncSecuritiesLitigationMember2019-12-092019-12-090001743745gnln:InReGreenlaneHoldingsIncSecuritiesLitigationMember2020-03-062020-03-060001743745us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310001743745us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-06-300001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-06-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-12-310001743745us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-06-300001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-01-012019-06-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2019-06-300001743745us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-06-300001743745gnln:VendorOneMemberus-gaap:SupplierConcentrationRiskMember2020-04-012020-06-300001743745gnln:VendorOneMemberus-gaap:SupplierConcentrationRiskMember2020-01-012020-06-300001743745us-gaap:SupplierConcentrationRiskMembergnln:VendorTwoMember2020-04-012020-06-300001743745us-gaap:SupplierConcentrationRiskMembergnln:VendorTwoMember2020-01-012020-06-300001743745gnln:VendorOneMemberus-gaap:SupplierConcentrationRiskMember2019-04-012019-06-300001743745gnln:VendorOneMemberus-gaap:SupplierConcentrationRiskMember2019-01-012019-06-300001743745us-gaap:SupplierConcentrationRiskMembergnln:VendorTwoMember2019-04-012019-06-300001743745us-gaap:SupplierConcentrationRiskMembergnln:VendorTwoMember2019-01-012019-06-3000017437452019-11-300001743745us-gaap:NoncontrollingInterestMember2020-01-012020-06-300001743745us-gaap:CommonClassBMember2020-04-012020-06-300001743745us-gaap:CommonClassBMember2020-01-012020-06-300001743745gnln:ClassCCommonStockMember2020-04-012020-06-300001743745gnln:ClassCCommonStockMember2020-01-012020-06-300001743745us-gaap:StockOptionMember2020-01-012020-06-300001743745us-gaap:StockOptionMember2020-04-012020-06-300001743745us-gaap:CommonClassBMember2019-01-012019-06-300001743745us-gaap:CommonClassBMember2019-04-012019-06-300001743745gnln:ClassCCommonStockMember2019-04-012019-06-300001743745gnln:ClassCCommonStockMember2019-01-012019-06-300001743745us-gaap:StockOptionMember2019-04-012019-06-300001743745us-gaap:StockOptionMember2019-01-012019-06-300001743745gnln:TwoThousandNineteenEquityIncentivePlanMember2020-06-300001743745us-gaap:EmployeeStockMemberus-gaap:EmployeeStockOptionMember2020-04-012020-06-300001743745us-gaap:EmployeeStockMemberus-gaap:EmployeeStockOptionMember2020-01-012020-06-300001743745us-gaap:EmployeeStockMemberus-gaap:EmployeeStockOptionMember2019-01-012019-06-300001743745us-gaap:EmployeeStockMemberus-gaap:EmployeeStockOptionMember2019-04-012019-06-300001743745us-gaap:CommonStockMember2020-04-012020-06-300001743745us-gaap:CommonStockMember2020-01-012020-06-300001743745us-gaap:CommonStockMember2019-04-012019-06-300001743745us-gaap:CommonStockMember2019-01-012019-06-30gnln:Segments0001743745srt:ReportableGeographicalComponentsMembercountry:US2020-04-012020-06-300001743745srt:ReportableGeographicalComponentsMembercountry:US2019-04-012019-06-300001743745srt:ReportableGeographicalComponentsMembercountry:US2020-01-012020-06-300001743745srt:ReportableGeographicalComponentsMembercountry:US2019-01-012019-06-300001743745country:CAsrt:ReportableGeographicalComponentsMember2020-04-012020-06-300001743745country:CAsrt:ReportableGeographicalComponentsMember2019-04-012019-06-300001743745country:CAsrt:ReportableGeographicalComponentsMember2020-01-012020-06-300001743745country:CAsrt:ReportableGeographicalComponentsMember2019-01-012019-06-300001743745srt:EuropeMembersrt:ReportableGeographicalComponentsMember2020-04-012020-06-300001743745srt:EuropeMembersrt:ReportableGeographicalComponentsMember2019-04-012019-06-300001743745srt:EuropeMembersrt:ReportableGeographicalComponentsMember2020-01-012020-06-300001743745srt:EuropeMembersrt:ReportableGeographicalComponentsMember2019-01-012019-06-300001743745us-gaap:CorporateNonSegmentMember2020-04-012020-06-300001743745us-gaap:CorporateNonSegmentMember2019-04-012019-06-300001743745us-gaap:CorporateNonSegmentMember2020-01-012020-06-300001743745us-gaap:CorporateNonSegmentMember2019-01-012019-06-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
001-38875
(Commission file number)
Greenlane Holdings, Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
Delaware | | 83-0806637 |
State or other jurisdiction of incorporation or organization | | (I.R.S. Employer Identification No.) |
| | | | | | | | | | | |
1095 Broken Sound Parkway, | Suite 300 | | |
Boca Raton, | FL | | 33487 |
(Address of principal executive offices) | | | (Zip Code) |
(877) 292-7660
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
Class A Common Stock, $0.01 par value per share | | GNLN | | Nasdaq Global Market |
Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | |
Large accelerated filer | £ | Accelerated filer | £ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| | Emerging growth company | ☒ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 4, 2020, Greenlane Holdings, Inc. had 12,752,785 shares of Class A common stock outstanding, 3,590,909 shares of Class B common stock outstanding and 77,341,218 shares of Class C common stock outstanding.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value per share amounts)
| | | | | | | | | | | |
| June 30, 2020 | | December 31, 2019 |
Assets | (Unaudited) | | |
Current assets | | | |
Cash | $ | 41,831 | | | $ | 47,773 | |
Accounts receivable, net of allowance of $1,123 and $936 at June 30, 2020 and December 31, 2019, respectively | 6,402 | | | 8,091 | |
Inventories, net | 38,727 | | | 43,060 | |
Vendor deposits | 11,186 | | | 11,120 | |
Other current assets | 2,430 | | | 4,924 | |
Total current assets | 100,576 | | | 114,968 | |
| | | |
Property and equipment, net | 13,765 | | | 13,165 | |
Intangible assets, net | 5,801 | | | 6,301 | |
Goodwill | 2,974 | | | 11,982 | |
Operating lease right-of-use assets | 3,714 | | | 4,695 | |
Other assets | 2,065 | | | 2,091 | |
Total assets | $ | 128,895 | | | $ | 153,202 | |
| | | |
Liabilities and stockholders' equity | | | |
Current liabilities | | | |
Accounts payable | $ | 11,554 | | | $ | 11,310 | |
Accrued expenses and other current liabilities | 7,236 | | | 10,600 | |
Customer deposits | 3,044 | | | 3,152 | |
Current portion of operating leases | 792 | | | 1,084 | |
Current portion of finance leases | 110 | | | 116 | |
Total current liabilities | 22,736 | | | 26,262 | |
| | | |
Notes payable, less current portion and debt issuance costs, net | 7,926 | | | 8,018 | |
Operating leases, less current portion | 3,206 | | | 3,844 | |
Finance leases, less current portion | 126 | | | 194 | |
Other liabilities | 1,064 | | | 620 | |
Total long-term liabilities | 12,322 | | | 12,676 | |
Total liabilities | 35,058 | | | 38,938 | |
| | | |
Commitments and contingencies (Note 6) | | | |
| | | |
Stockholders’ Equity | | | |
Preferred stock, $0.0001 par value, 10,000 shares authorized, none issued and outstanding | — | | | — | |
Class A common stock, $0.01 par value per share, 125,000 shares authorized; 12,603 shares issued and outstanding as of June 30, 2020; 9,999 shares issued and 9,812 shares outstanding as of December 31, 2019 | 126 | | | 98 | |
Class B common stock, $0.0001 par value per share, 10,000 shares authorized; 3,724 and 5,975 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 1 | | | 1 | |
Class C Common stock, $0.0001 par value per share, 100,000 shares authorized; 77,791 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 8 | | | 8 | |
Additional paid-in capital | 38,501 | | | 32,108 | |
Accumulated deficit | (16,239) | | | (9,727) | |
Accumulated other comprehensive loss | (240) | | | (72) | |
Total stockholders’ equity attributable to Greenlane Holdings, Inc. | 22,157 | | | 22,416 | |
Non-controlling interest | 71,680 | | | 91,848 | |
Total stockholders’ equity | 93,837 | | | 114,264 | |
Total liabilities and stockholders’ equity | $ | 128,895 | | | $ | 153,202 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | | | Six Months Ended June 30, | | |
| 2020 | | 2019 | | 2020 | | 2019 |
Net sales | $ | 32,400 | | | $ | 52,986 | | | $ | 66,268 | | | $ | 102,884 | |
Cost of sales | 25,583 | | | 43,835 | | | 52,122 | | | 84,746 | |
Gross profit | 6,817 | | | 9,151 | | | 14,146 | | | 18,138 | |
Operating expenses: | | | | | | | |
Salaries, benefits and payroll taxes | 6,121 | | | 7,029 | | | 12,735 | | | 15,111 | |
General and administrative | 6,426 | | | 5,413 | | | 15,085 | | | 10,797 | |
Goodwill impairment charge | — | | | — | | | 8,996 | | | — | |
Depreciation and amortization | 650 | | | 645 | | | 1,360 | | | 1,330 | |
Total operating expenses | 13,197 | | | 13,087 | | | 38,176 | | | 27,238 | |
Loss from operations | (6,380) | | | (3,936) | | | (24,030) | | | (9,100) | |
Other income (expense), net: | | | | | | | |
Change in fair value of convertible notes | — | | | — | | | — | | | (12,063) | |
Interest expense | (110) | | | (140) | | | (220) | | | (742) | |
Other income, net | 186 | | | 748 | | | 1,126 | | | 924 | |
Total other income (expense), net | 76 | | | 608 | | | 906 | | | (11,881) | |
Loss before income taxes | (6,304) | | | (3,328) | | | (23,124) | | | (20,981) | |
Provision for (benefit from) income taxes | 8 | | | (108) | | | (73) | | | (97) | |
Net loss | (6,312) | | | (3,220) | | | (23,051) | | | (20,884) | |
Less: Net loss attributable to non-controlling interest | (4,261) | | | (1,453) | | | (16,539) | | | (1,453) | |
Net loss attributable to Greenlane Holdings, Inc. | $ | (2,051) | | | $ | (1,767) | | | $ | (6,512) | | | $ | (19,431) | |
| | | | | | | |
Net loss attributable to Class A common stock per share - basic and diluted (Note 8) | $ | (0.18) | | | $ | (0.03) | | | $ | (0.60) | | | $ | (0.03) | |
Weighted-average shares of Class A common stock outstanding - basic and diluted (Note 8) | 11,380 | | | 9,998 | | | 10,921 | | | 9,998 | |
| | | | | | | |
Other comprehensive (loss) income: | | | | | | | |
Foreign currency translation adjustments | 471 | | | 23 | | | (156) | | | 51 | |
Unrealized loss on derivative instrument | (66) | | | — | | | (559) | | | — | |
Comprehensive loss | (5,907) | | | (3,197) | | | (23,766) | | | (20,833) | |
Less: Comprehensive loss attributable to non-controlling interest | (3,955) | | | (1,429) | | | (17,086) | | | (1,429) | |
Comprehensive loss attributable to Greenlane Holdings, Inc. | $ | (1,952) | | | $ | (1,768) | | | $ | (6,680) | | | $ | (19,404) | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A Common Stock | | | | Class B Common Stock | | | | Class C Common Stock | | | | Additional Paid-in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Loss | | Non- Controlling Interest | | Total Stockholders’ Equity |
| | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | | | | | | | | | | |
Balance, December 31, 2019 | | 9,812 | | | $ | 98 | | | 5,975 | | | $ | 1 | | | 77,791 | | | $ | 8 | | | $ | 32,108 | | | $ | (9,727) | | | $ | (72) | | | $ | 91,848 | | | $ | 114,264 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (4,461) | | | — | | | (12,278) | | | (16,739) | |
Equity-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | 64 | | | — | | | — | | | 206 | | | 270 | |
Issuance of Class A common stock for the acquisition of Conscious Wholesale | | 480 | | | 5 | | | — | | | — | | | — | | | — | | | 1,496 | | | — | | | — | | | — | | | 1,501 | |
Cancellation of Class B common stock due to equity-based compensation award forfeitures | | — | | | — | | | (105) | | | — | | | — | | | — | | | 223 | | | — | | | — | | | (223) | | | — | |
Joint venture consolidation | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 189 | | | 189 | |
Other comprehensive loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (267) | | | (853) | | | (1,120) | |
Balance, March 31, 2020 | | 10,292 | | | 103 | | | 5,870 | | | 1 | | | 77,791 | | | 8 | | | 33,891 | | | (14,188) | | | (339) | | | 78,889 | | | 98,365 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,051) | | | — | | | (4,261) | | | (6,312) | |
Equity-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | 220 | | | — | | | — | | | 672 | | | 892 | |
Issuance of Class A common stock for the acquisition of Conscious Wholesale | | 171 | | | 2 | | | — | | | — | | | — | | | — | | | 485 | | | — | | | — | | | — | | | 487 | |
Cancellation of Class B common stock due to equity-based compensation award forfeitures | | — | | | — | | | (6) | | | — | | | — | | | — | | | 9 | | | — | | | — | | | (9) | | | — | |
Exchanges of non-controlling interest for Class A common stock | | 2,140 | | | 21 | | | (2,140) | | | — | | | — | | | — | | | 3,896 | | | — | | | — | | | (3,917) | | | — | |
Other comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 99 | | | 306 | | | 405 | |
Balance, June 30, 2020 | | 12,603 | | | $ | 126 | | | 3,724 | | | $ | 1 | | | 77,791 | | | $ | 8 | | | $ | 38,501 | | | $ | (16,239) | | | $ | (240) | | | $ | 71,680 | | | $ | 93,837 | |
| | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Redeemable Class B Units | | | Members’ Deficit | | Class A Common Stock | | | | Class B Common Stock | | | | Class C Common Stock | | | | Additional Paid-in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Loss | | Non- Controlling Interest | | Total Stockholders’ Equity |
| | | | | | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2018 | $ | 10,033 | | | | $ | (10,773) | | | — | | | $ | — | | | — | | | $ | — | | | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (286) | | | $ | — | | | $ | (11,059) | |
Activity prior to the initial public offering and related organizational transactions (Note 1): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of redeemable Class B units, net of issuance costs | 6,514 | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Redemption of Class A and Class B units | (416) | | | | (2,602) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,602) | |
Equity-based compensation | 2,304 | | | | 191 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 191 | |
Net loss | (3,045) | | | | (14,619) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (14,619) | |
Member distributions | — | | | | (21) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (21) | |
Other comprehensive income | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 28 | | | — | | | 28 | |
Balance, March 31, 2019 | 15,390 | | | | (27,824) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (258) | | | — | | | (28,082) | |
Net loss | (246) | | | | (1,179) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,179) | |
Equity-based compensation | 113 | | | | 137 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 137 | |
Member distributions | (76) | | | | (801) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (801) | |
Other comprehensive income | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (8) | | | — | | | (8) | |
Effects of the initial public offering and related organizational transactions (Note 1): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effects of the organizational transactions | (15,181) | | | | 29,667 | | | — | | | — | | | — | | | — | | | — | | | — | | | (114,094) | | | — | | | 203 | | | 99,404 | | | 15,180 | |
Issuance of Class A common stock in the IPO, net of underwriting discount | — | | | | — | | | 5,250 | | | 53 | | | — | | | — | | | — | | | — | | | 82,950 | | | — | | | — | | | — | | | 83,003 | |
Issuance of Class A common stock to convertible notes holders | — | | | | — | | | 3,548 | | | 35 | | | — | | | — | | | — | | | — | | | 60,277 | | | — | | | — | | | — | | | 60,312 | |
Issuance of Class A common to stock selling stockholders | — | | | | — | | | 750 | | | 8 | | | (106) | | | — | | | (1,935) | | | — | | | (7) | | | — | | | — | | | — | | | 1 | |
Issuance of Class A common stock to underwriter upon exercise of overallotment option | — | | | | — | | | 450 | | | 4 | | | (63) | | | — | | | (1,161) | | | — | | | (4) | | | — | | | — | | | — | | | — | |
Issuance of Class B common stock | — | | | | — | | | — | | | — | | | 6,157 | | | 1 | | | — | | | — | | | (1) | | | — | | | — | | | — | | | — | |
Issuance of Class C common stock | — | | | | — | | | — | | | — | | | — | | | — | | | 80,887 | | | 8 | | | (8) | | | — | | | — | | | — | | | — | |
Capitalization of initial public offering costs | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (3,523) | | | — | | | — | | | — | | | (3,523) | |
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,173 | | | — | | | — | | | — | | | 5,173 | |
Joint venture consolidation | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 60 | | | 60 | |
Activity subsequent to the initial public offering and related organizational transactions (Note 1): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (343) | | | — | | | (1,453) | | | (1,796) | |
Equity-based compensation | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 709 | | | — | | | — | | | 1,122 | | | 1,831 | |
Other comprehensive income | — | | | | — | |