0001743745false2022Q312-31.05.05.050.33330.05.05P3Y0.33330.050.0500017437452022-01-012022-09-300001743745us-gaap:CommonClassAMember2022-11-10xbrli:shares0001743745us-gaap:CommonClassBMember2022-11-1000017437452022-09-30iso4217:USD00017437452021-12-310001743745us-gaap:NotesPayableOtherPayablesMember2022-09-300001743745us-gaap:NotesPayableOtherPayablesMember2021-12-31iso4217:USDxbrli:shares0001743745us-gaap:CommonClassAMember2022-09-300001743745us-gaap:CommonClassAMember2021-12-310001743745us-gaap:CommonClassBMember2021-12-310001743745us-gaap:CommonClassBMember2022-09-300001743745us-gaap:CommonClassCMember2021-12-310001743745us-gaap:CommonClassCMember2022-09-3000017437452022-08-092022-08-09xbrli:pure00017437452022-07-012022-09-3000017437452021-07-012021-09-3000017437452021-01-012021-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-12-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-12-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-12-310001743745us-gaap:AdditionalPaidInCapitalMember2021-12-310001743745us-gaap:RetainedEarningsMember2021-12-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001743745us-gaap:NoncontrollingInterestMember2021-12-310001743745us-gaap:RetainedEarningsMember2022-01-012022-03-310001743745us-gaap:NoncontrollingInterestMember2022-01-012022-03-3100017437452022-01-012022-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-01-012022-03-310001743745us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001743745us-gaap:CommonClassAMembergnln:ATMProgramMemberus-gaap:CommonStockMember2022-01-012022-03-310001743745gnln:ATMProgramMemberus-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001743745gnln:ATMProgramMember2022-01-012022-03-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-01-012022-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-03-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-03-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2022-03-310001743745us-gaap:AdditionalPaidInCapitalMember2022-03-310001743745us-gaap:RetainedEarningsMember2022-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001743745us-gaap:NoncontrollingInterestMember2022-03-3100017437452022-03-310001743745us-gaap:RetainedEarningsMember2022-04-012022-06-300001743745us-gaap:NoncontrollingInterestMember2022-04-012022-06-3000017437452022-04-012022-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-04-012022-06-300001743745us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001743745us-gaap:CommonClassAMembergnln:ATMProgramMemberus-gaap:CommonStockMember2022-04-012022-06-300001743745gnln:ATMProgramMemberus-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001743745gnln:ATMProgramMember2022-04-012022-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMembergnln:June2022OfferingMember2022-04-012022-06-300001743745us-gaap:AdditionalPaidInCapitalMembergnln:June2022OfferingMember2022-04-012022-06-300001743745gnln:June2022OfferingMember2022-04-012022-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-06-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-06-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2022-06-300001743745us-gaap:AdditionalPaidInCapitalMember2022-06-300001743745us-gaap:RetainedEarningsMember2022-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001743745us-gaap:NoncontrollingInterestMember2022-06-3000017437452022-06-300001743745us-gaap:RetainedEarningsMember2022-07-012022-09-300001743745us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-07-012022-09-300001743745us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-07-012022-09-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-09-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-09-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2022-09-300001743745us-gaap:AdditionalPaidInCapitalMember2022-09-300001743745us-gaap:RetainedEarningsMember2022-09-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001743745us-gaap:NoncontrollingInterestMember2022-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-12-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2020-12-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2020-12-310001743745us-gaap:AdditionalPaidInCapitalMember2020-12-310001743745us-gaap:RetainedEarningsMember2020-12-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001743745us-gaap:NoncontrollingInterestMember2020-12-3100017437452020-12-310001743745us-gaap:RetainedEarningsMember2021-01-012021-03-310001743745us-gaap:NoncontrollingInterestMember2021-01-012021-03-3100017437452021-01-012021-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-01-012021-03-310001743745us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-01-012021-03-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-01-012021-03-310001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-03-310001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-03-310001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-03-310001743745us-gaap:AdditionalPaidInCapitalMember2021-03-310001743745us-gaap:RetainedEarningsMember2021-03-310001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001743745us-gaap:NoncontrollingInterestMember2021-03-3100017437452021-03-310001743745us-gaap:RetainedEarningsMember2021-04-012021-06-300001743745us-gaap:NoncontrollingInterestMember2021-04-012021-06-3000017437452021-04-012021-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-04-012021-06-300001743745us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-04-012021-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-06-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-06-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-06-300001743745us-gaap:AdditionalPaidInCapitalMember2021-06-300001743745us-gaap:RetainedEarningsMember2021-06-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001743745us-gaap:NoncontrollingInterestMember2021-06-3000017437452021-06-300001743745us-gaap:RetainedEarningsMember2021-07-012021-09-300001743745us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001743745us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-07-012021-09-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-07-012021-09-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-07-012021-09-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001743745us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-09-300001743745us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-09-300001743745us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-09-300001743745us-gaap:AdditionalPaidInCapitalMember2021-09-300001743745us-gaap:RetainedEarningsMember2021-09-300001743745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001743745us-gaap:NoncontrollingInterestMember2021-09-3000017437452021-09-300001743745gnln:KushCoMembergnln:FormerGreenlaneStockholdersMember2021-08-310001743745gnln:FormerKushCoStockholdersMembergnln:KushCoMember2021-08-310001743745us-gaap:CommonClassBMember2021-08-310001743745us-gaap:CommonClassAMember2021-08-31gnln:retail_location0001743745us-gaap:CommonClassAMember2022-01-012022-09-300001743745us-gaap:CommonClassBMember2022-01-012022-09-30gnln:vote0001743745us-gaap:CommonClassBMember2021-08-312021-08-310001743745us-gaap:CommonClassAMembergnln:ATMProgramMember2021-08-012021-08-310001743745us-gaap:CommonClassAMembergnln:ATMProgramMember2021-08-012022-09-300001743745gnln:ATMProgramMember2021-08-012022-09-300001743745us-gaap:CommonClassAMember2022-06-272022-06-270001743745gnln:PreFundedWarrantsMember2022-06-270001743745gnln:StandardWarrantsMember2022-06-2700017437452022-06-272022-06-270001743745us-gaap:NotesPayableOtherPayablesMember2022-07-142022-07-140001743745srt:AffiliatedEntityMember2022-07-190001743745srt:AffiliatedEntityMember2022-07-192022-07-190001743745us-gaap:SecuredDebtMember2022-08-090001743745srt:AffiliatedEntityMember2022-09-222022-09-220001743745us-gaap:SubsequentEventMembergnln:VendorLoanMember2022-10-130001743745gnln:VendorLoanMember2022-07-182022-07-180001743745gnln:VendorLoanMember2022-07-180001743745us-gaap:SubsequentEventMembergnln:WarehouseGoodsMembergnln:HighTideMember2022-10-242022-10-240001743745us-gaap:CommonClassAMemberus-gaap:SubsequentEventMembergnln:October2022OfferingMember2022-10-272022-10-270001743745gnln:PreFundedWarrantsMemberus-gaap:SubsequentEventMembergnln:October2022OfferingMember2022-10-270001743745us-gaap:SubsequentEventMembergnln:StandardWarrantsMembergnln:October2022OfferingMember2022-10-270001743745us-gaap:CommonClassAMemberus-gaap:SubsequentEventMember2022-10-270001743745us-gaap:SubsequentEventMember2022-10-270001743745us-gaap:SubsequentEventMembergnln:October2022OfferingMember2022-10-272022-10-270001743745gnln:MergerSubGotham2LLCMemberus-gaap:SubsequentEventMembergnln:XSFinancialMember2022-11-032022-11-030001743745us-gaap:SubsequentEventMember2022-11-030001743745us-gaap:SubsequentEventMember2022-11-032022-11-03gnln:reporting_unit0001743745gnln:IndustrialGoodsMember2021-12-310001743745gnln:ConsumerGoodsMember2021-12-310001743745gnln:IndustrialGoodsMember2022-01-012022-09-300001743745gnln:ConsumerGoodsMember2022-01-012022-09-300001743745gnln:IndustrialGoodsMember2022-09-300001743745gnln:ConsumerGoodsMember2022-09-300001743745srt:ScenarioPreviouslyReportedMember2021-07-012021-09-300001743745srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2021-07-012021-09-300001743745srt:ScenarioPreviouslyReportedMember2021-01-012021-09-300001743745srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2021-01-012021-09-30gnln:segment0001743745gnln:BillAndHoldMember2022-01-012022-09-300001743745gnln:BillAndHoldMember2022-07-012022-09-300001743745gnln:BillAndHoldMember2021-07-012021-09-300001743745gnln:BillAndHoldMember2021-01-012021-09-300001743745us-gaap:IPOMembergnln:AirgraftIncMember2022-09-300001743745us-gaap:IPOMembergnln:AirgraftIncMember2021-12-310001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:Customer1Member2022-07-012022-09-300001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:Customer1Member2022-01-012022-09-300001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:Customer1Member2021-07-012021-09-300001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:Customer1Member2021-01-012021-09-300001743745us-gaap:CustomerConcentrationRiskMembergnln:Customer1Memberus-gaap:AccountsReceivableMember2022-01-012022-09-300001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergnln:Customer2Member2022-01-012022-09-300001743745us-gaap:CustomerConcentrationRiskMembergnln:Customer1Memberus-gaap:AccountsReceivableMember2021-01-012021-12-310001743745us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergnln:Customer2Member2021-01-012021-12-310001743745gnln:EyceDaVinciAndKushCoMember2022-07-012022-09-300001743745gnln:EyceDaVinciAndKushCoMember2021-07-012021-09-300001743745gnln:EyceDaVinciAndKushCoMember2022-01-012022-09-300001743745gnln:EyceDaVinciAndKushCoMember2021-01-012021-09-300001743745gnln:EyceLLCMember2022-04-070001743745us-gaap:CommonClassAMembergnln:EyceLLCMember2022-04-072022-04-07gnln:tranche0001743745gnln:EyceLLCMember2022-04-072022-04-07gnln:installment0001743745gnln:EyceLLCMember2022-07-012022-09-300001743745gnln:EyceLLCMember2022-01-012022-09-300001743745gnln:VIBESHoldingsLLCMember2022-07-190001743745gnln:VIBESHoldingsLLCMember2022-07-192022-07-190001743745gnln:VIBESHoldingsLLCMember2022-07-012022-09-300001743745us-gaap:SubsequentEventMember2022-10-012022-11-140001743745us-gaap:FairValueInputsLevel1Member2022-09-300001743745us-gaap:FairValueInputsLevel2Member2022-09-300001743745us-gaap:FairValueInputsLevel3Member2022-09-300001743745us-gaap:FairValueInputsLevel1Member2021-12-310001743745us-gaap:FairValueInputsLevel2Member2021-12-310001743745us-gaap:FairValueInputsLevel3Member2021-12-310001743745gnln:ContingentConsiderationMember2021-12-310001743745us-gaap:CommonClassAMembergnln:ContingentConsiderationMembergnln:EyceLLCMember2022-01-012022-09-300001743745gnln:ContingentConsiderationMembergnln:EyceLLCMember2022-01-012022-09-300001743745gnln:OrganicixLLCMemberus-gaap:CommonClassAMembergnln:ContingentConsiderationMember2022-01-012022-09-300001743745gnln:ContingentConsiderationMember2022-01-012022-09-300001743745gnln:ContingentConsiderationMember2022-09-300001743745gnln:ContingentConsiderationMember2020-12-310001743745gnln:ContingentConsiderationMembergnln:EyceLLCMember2021-01-012021-09-300001743745gnln:ContingentConsiderationMember2021-01-012021-09-300001743745gnln:ContingentConsiderationMember2021-09-3000017437452019-01-012019-12-310001743745srt:MinimumMember2022-09-300001743745srt:MaximumMember2022-09-300001743745us-gaap:RealEstateLoanMember2022-09-300001743745us-gaap:RealEstateLoanMember2021-12-310001743745us-gaap:SecuredDebtMember2022-09-300001743745us-gaap:SecuredDebtMember2021-12-310001743745gnln:OrganicixLLCMemberus-gaap:NotesPayableOtherPayablesMember2022-09-300001743745gnln:OrganicixLLCMemberus-gaap:NotesPayableOtherPayablesMember2021-12-310001743745us-gaap:NotesPayableOtherPayablesMembergnln:EyceLLCMember2022-09-300001743745us-gaap:NotesPayableOtherPayablesMembergnln:EyceLLCMember2021-12-310001743745us-gaap:RealEstateLoanMember2018-10-010001743745us-gaap:RealEstateLoanMember2022-09-012022-09-300001743745us-gaap:UnsecuredDebtMembergnln:EyceLLCMember2021-03-310001743745gnln:OrganicixLLCMemberus-gaap:UnsecuredDebtMember2021-11-300001743745us-gaap:SecuredDebtMemberus-gaap:PrimeRateMember2022-08-092022-08-090001743745us-gaap:SecuredDebtMember2022-08-092022-08-090001743745us-gaap:SecuredDebtMember2022-01-012022-09-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001743745us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310001743745us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-09-300001743745us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001743745us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-09-300001743745us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:FourMajorVendorsMember2022-07-012022-09-300001743745us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:FourMajorVendorsMember2022-01-012022-09-300001743745us-gaap:SupplierConcentrationRiskMembergnln:FourMajorVendorsMembergnln:PurchasesBenchmarkMember2022-07-012022-09-300001743745us-gaap:SupplierConcentrationRiskMembergnln:FourMajorVendorsMembergnln:PurchasesBenchmarkMember2022-01-012022-09-300001743745us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:FourMajorVendorsMember2021-07-012021-09-300001743745us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueNetMembergnln:FourMajorVendorsMember2021-01-012021-09-300001743745us-gaap:SupplierConcentrationRiskMembergnln:FourMajorVendorsMembergnln:PurchasesBenchmarkMember2021-07-012021-09-300001743745us-gaap:SupplierConcentrationRiskMembergnln:FourMajorVendorsMembergnln:PurchasesBenchmarkMember2021-01-012021-09-300001743745gnln:UnrivaledBrandsIncMember2022-07-012022-09-300001743745gnln:UnrivaledBrandsIncMember2022-01-012022-09-300001743745gnln:UnrivaledBrandsIncMember2021-07-012021-09-300001743745gnln:UnrivaledBrandsIncMember2021-01-012021-09-300001743745gnln:UnrivaledBrandsIncMember2022-09-300001743745gnln:UnrivaledBrandsIncMember2021-12-310001743745gnln:UniversalGrowingMember2022-07-012022-09-300001743745gnln:UniversalGrowingMember2022-01-012022-09-300001743745gnln:UniversalGrowingMember2021-07-012021-09-300001743745gnln:UniversalGrowingMember2021-01-012021-09-300001743745gnln:GreenlaneHoldingsLLCMember2022-09-300001743745gnln:ATMProgramMember2022-04-180001743745us-gaap:CommonClassAMembergnln:ATMProgramMember2022-07-012022-09-300001743745us-gaap:CommonClassAMembergnln:ATMProgramMember2022-01-012022-09-300001743745gnln:ATMProgramMember2022-07-012022-09-300001743745gnln:ATMProgramMember2022-01-012022-09-300001743745us-gaap:CommonClassAMember2021-08-092021-08-090001743745gnln:PreFundedWarrantsMember2021-08-090001743745gnln:StandardWarrantsMember2021-08-090001743745us-gaap:CommonClassAMember2021-08-0900017437452021-08-0900017437452021-08-092021-08-090001743745us-gaap:CommonClassAMembergnln:June2022OfferingMember2022-06-272022-06-270001743745gnln:PreFundedWarrantsMembergnln:June2022OfferingMember2022-06-270001743745gnln:June2022OfferingMembergnln:StandardWarrantsMember2022-06-270001743745us-gaap:CommonClassAMember2022-06-2700017437452022-06-270001743745gnln:June2022OfferingMembergnln:StandardWarrantsMember2022-06-272022-06-270001743745gnln:PreFundedWarrantsMembergnln:June2022OfferingMember2022-06-272022-06-270001743745gnln:June2022OfferingMember2022-06-272022-06-270001743745us-gaap:CommonClassAMembergnln:June2022OfferingMember2022-07-012022-07-310001743745us-gaap:CommonClassAMemberus-gaap:SubsequentEventMembergnln:October2022OfferingMember2022-10-012022-10-310001743745us-gaap:CommonClassCMember2021-08-310001743745gnln:PreFundedWarrantsMemberus-gaap:CommonClassAMember2022-06-270001743745gnln:KushCoMemberus-gaap:CommonClassBMember2021-08-312021-08-310001743745gnln:TwoThousandNineteenEquityIncentivePlanMember2019-04-300001743745gnln:TwoThousandNineteenEquityIncentivePlanMember2021-08-012021-08-310001743745gnln:TwoThousandNineteenEquityIncentivePlanMember2022-08-042022-08-040001743745us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001743745us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001743745us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001743745us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001743745us-gaap:RestrictedStockMember2022-07-012022-09-300001743745us-gaap:RestrictedStockMember2021-07-012021-09-300001743745us-gaap:RestrictedStockMember2022-01-012022-09-300001743745us-gaap:RestrictedStockMember2021-01-012021-09-300001743745us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001743745us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001743745us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001743745us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001743745us-gaap:CommonStockMember2022-07-012022-09-300001743745us-gaap:CommonStockMember2021-07-012021-09-300001743745us-gaap:CommonStockMember2022-01-012022-09-300001743745us-gaap:CommonStockMember2021-01-012021-09-300001743745us-gaap:EmployeeStockOptionMember2022-09-300001743745us-gaap:RestrictedStockMember2022-09-3000017437452021-01-012021-12-310001743745gnln:ConsumerGoodsMember2022-07-012022-09-300001743745gnln:IndustrialGoodsMember2022-07-012022-09-300001743745gnln:ConsumerGoodsMember2021-07-012021-09-300001743745gnln:IndustrialGoodsMember2021-07-012021-09-300001743745gnln:ConsumerGoodsMember2021-01-012021-09-300001743745gnln:IndustrialGoodsMember2021-01-012021-09-30
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 September 30, 2022
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 |
Securities registered pursuant to Section 12 (g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Act. Yes ☐ No ☒
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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐
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 November 10, 2022, Greenlane Holdings, Inc. had 15,803,512 shares of Class A common stock outstanding and 147,989 shares of Class B common stock outstanding.
Greenlane Holdings, Inc.
Form 10-Q
For the Quarterly Period Ended September 30, 2022
TABLE OF CONTENTS | | | | | | | | |
| | Page |
| | |
Item 1. | | |
| | |
| | |
| | |
| | |
| | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
| | |
| Other Information | |
Item 1. | | |
Item 1A. | | |
Item 2. | | |
Item 5. | | |
Item 6. | | |
Signatures | |
PART I
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value per share amounts) | | | | | | | | | | | |
| September 30, 2022 | | December 31, 2021 |
ASSETS | (Unaudited) | | |
Current assets | | | |
Cash | $ | 8,039 | | | $ | 12,857 | |
Restricted cash | 2,155 | | | — | |
Accounts receivable, net of allowance of $4,275 and $1,285 at September 30, 2022 and December 31, 2021, respectively | 11,805 | | | 14,690 | |
Inventories, net | 47,945 | | | 66,982 | |
Vendor deposits | 9,167 | | | 18,475 | |
| | | |
Other current assets (Note 8) | 7,360 | | | 11,733 | |
Total current assets | 86,471 | | | 124,737 | |
| | | |
Property and equipment, net | 11,838 | | | 20,851 | |
Intangible assets, net | 55,294 | | | 84,710 | |
Goodwill | — | | | 41,860 | |
Operating lease right-of-use assets | 5,498 | | | 9,128 | |
Other assets | 6,227 | | | 4,541 | |
Total assets | $ | 165,328 | | | $ | 285,827 | |
| | | |
LIABILITIES | | | |
Current liabilities | | | |
Accounts payable | $ | 16,295 | | | $ | 23,041 | |
Accrued expenses and other current liabilities (Note 8) | 20,679 | | | 25,297 | |
Customer deposits | 4,523 | | | 7,924 | |
Current portion of notes payable, including $0 and $8,000 owed to related party as of September 30, 2022 and December 31, 2021, respectively (Note 6) | 3,156 | | | 11,615 | |
| | | |
Current portion of operating leases | 2,462 | | | 3,091 | |
| | | |
Total current liabilities | 47,115 | | | 70,968 | |
| | | |
Notes payable, less current portion and debt issuance costs, net (Note 6) | 13,488 | | | 10,607 | |
| | | |
Operating leases, less current portion | 3,027 | | | 6,142 | |
| | | |
Other liabilities | 154 | | | 1,746 | |
Total long-term liabilities | 16,669 | | | 18,495 | |
Total liabilities | 63,784 | | | 89,463 | |
| | | |
Commitments and contingencies (Note 7) | | | |
| | | |
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, 600,000 shares authorized; 7,470 shares issued and outstanding as of September 30, 2022; 4,260 shares issued and outstanding as of December 31, 2021* | 68 | | | 43 | |
Class B common stock, $0.0001 par value per share, 30,000 shares authorized; 148 shares issued and outstanding as of September 30, 2022; 1,087 shares issued and outstanding as of December 31, 2021* | — | | | — | |
Class C Common stock, $0.0001 par value per share, no shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021 | — | | | — | |
Additional paid-in capital* | 259,314 | | | 229,705 | |
Accumulated deficit | (158,109) | | | (55,544) | |
Accumulated other comprehensive income | 53 | | | 324 | |
Total stockholders’ equity attributable to Greenlane Holdings, Inc. | 101,326 | | | 174,528 | |
Non-controlling interest | 218 | | | 21,836 | |
Total stockholders’ equity | 101,544 | | | 196,364 | |
Total liabilities and stockholders’ equity | $ | 165,328 | | | $ | 285,827 | |
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended September 30, | | Nine months ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Net sales | $ | 28,680 | | | $ | 41,314 | | | $ | 115,130 | | | $ | 110,038 | |
Cost of sales | 23,711 | | | 39,827 | | | 96,094 | | | 90,943 | |
Gross profit | 4,969 | | | 1,487 | | | 19,036 | | | 19,095 | |
| | | | | | | |
Operating expenses: | | | | | | | |
Salaries, benefits and payroll taxes | 7,000 | | | 11,192 | | | 25,897 | | | 23,158 | |
General and administrative | 8,547 | | | 16,795 | | | 30,850 | | | 34,774 | |
Goodwill and indefinite-lived intangibles impairment | 66,760 | | | — | | | 66,760 | | | — | |
Depreciation and amortization | 2,124 | | | 1,199 | | | 6,876 | | | 2,385 | |
Total operating expenses | 84,431 | | | 29,186 | | | 130,383 | | | 60,317 | |
Loss from operations | (79,462) | | | (27,699) | | | (111,347) | | | (41,222) | |
| | | | | | | |
Other income (expense), net: | | | | | | | |
Interest expense | (926) | | | (119) | | | (1,598) | | | (368) | |
Other income (expense), net | 1,173 | | | (894) | | | 562 | | | (690) | |
Total other income (expense), net | 247 | | | (1,013) | | | (1,036) | | | (1,058) | |
Loss before income taxes | (79,215) | | | (28,712) | | | (112,383) | | | (42,280) | |
Provision for (benefit from) income taxes | — | | | 3 | | | 62 | | | (11) | |
Net loss | (79,215) | | | (28,715) | | | (112,445) | | | (42,269) | |
Less: Net loss attributable to non-controlling interest | (4,106) | | | (12,434) | | | (9,880) | | | (18,689) | |
Net loss attributable to Greenlane Holdings, Inc. | $ | (75,109) | | | $ | (16,281) | | | $ | (102,565) | | | $ | (23,580) | |
| | | | | | | |
Net loss attributable to Class A common stock per share - basic and diluted (Note 9)* | $ | (11.43) | | | $ | (8.19) | | | $ | (18.01) | | | $ | (19.60) | |
Weighted-average shares of Class A common stock outstanding - basic and diluted (Note 9)* | 6,574 | | | 1,987 | | | 5,694 | | | 1,203 | |
| | | | | | | |
Other comprehensive income (loss): | | | | | | | |
Foreign currency translation adjustments | (238) | | | (147) | | | (212) | | | (59) | |
Unrealized gain (loss) on derivative instrument | — | | | 52 | | | 358 | | | 256 | |
Comprehensive loss | (79,453) | | | (28,810) | | | (112,299) | | | (42,072) | |
Less: Comprehensive loss attributable to non-controlling interest | (4,106) | | | (12,479) | | | (9,794) | | | (18,556) | |
Comprehensive loss attributable to Greenlane Holdings, Inc. | $ | (75,347) | | | $ | (16,331) | | | $ | (102,505) | | | $ | (23,516) | |
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
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 Income (Loss) | | Non- Controlling Interest | | Total Stockholders’ Equity |
Shares* | | Amount* | Shares* | | Amount* | Shares | | Amount | |
Balance December 31, 2021 | | 4,260 | | | $ | 43 | | | 1,087 | | | $ | — | | | — | | | $ | — | | | $ | 229,705 | | | $ | (55,544) | | | $ | 324 | | | $ | 21,836 | | | $ | 196,364 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (15,332) | | | — | | | (3,417) | | | (18,749) | |
Equity-based compensation | | 94 | | | 1 | | | — | | | — | | | — | | | — | | | 729 | | | — | | | — | | | 172 | | | 902 | |
Issuance of Class A shares, net of costs - ATM Program | | 557 | | | 6 | | | — | | | — | | | — | | | — | | | 6,795 | | | — | | | — | | | — | | | 6,801 | |
Issuance of Class A shares - contingent consideration | | 191 | | | 2 | | | — | | | — | | | — | | | — | | | 3,484 | | | — | | | — | | | — | | | 3,486 | |
Exchanges of noncontrolling interest for Class A common stock | | 28 | | | — | | | (28) | | | — | | | — | | | — | | | 543 | | | — | | | — | | | (543) | | | — | |
Other comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 361 | | | 85 | | | 446 | |
Balance March 31, 2022 | | 5,130 | | | 52 | | | 1,059 | | | — | | | — | | | — | | | 241,256 | | | (70,876) | | | 685 | | | 18,133 | | | 189,250 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (12,124) | | | — | | | (2,357) | | | (14,481) | |
Equity-based compensation | | (4) | | | — | | | — | | | — | | | — | | | — | | | 371 | | | — | | | — | | | 75 | | | 446 | |
Issuance of Class A shares, net of costs - ATM Program | | 296 | | | 3 | | | — | | | — | | | — | | | — | | | 2,221 | | | — | | | — | | | — | | | 2,224 | |
Issuance of Class A shares, net of costs - June 2022 Offering | | 585 | | | 6 | | | — | | | — | | | — | | | — | | | 5,034 | | | — | | | — | | | — | | | 5,040 | |
Issuance of Class A shares - Amended Eyce APA (Note 3) | | 72 | | | 1 | | | — | | | — | | | — | | | — | | | 309 | | | — | | | — | | | — | | | 310 | |
Reclassification adjustment for gain included in net loss (Note 4) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (332) | | | — | | | (332) | |
Other comprehensive income (loss) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (62) | | | — | | | (62) | |
Balance June 30, 2022 | | 6,079 | | | 62 | | | 1,059 | | | — | | | — | | | — | | | 249,191 | | | (83,000) | | | 291 | | | 15,851 | | | 182,395 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (75,109) | | | — | | | (4,106) | | | (79,215) | |
Equity-based compensation | | (15) | | | (3) | | | — | | | — | | | — | | | — | | | 178 | | | — | | | — | | | 10 | | | 185 | |
Issuance of Class A shares - Amended Eyce APA (Note 3) | | — | | | — | | | — | | | — | | | — | | | — | | | 206 | | | — | | | — | | | — | | | 206 | |
Issuance of Class A shares - Prefunded warrants exercise (Note 9) | | 495 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Exchanges of noncontrolling interest for Class A common stock | | 911 | | | 9 | | | (911) | | | — | | | — | | | — | | | 9,739 | | | — | | | — | | | (9,748) | | | — | |
VIBES disposition / deconsolidation (Note 3) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,789) | | | (1,789) | |
Other comprehensive income (loss) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (238) | | | — | | | (238) | |
Balance September 30, 2022 | | 7,470 | | | $ | 68 | | | 148 | | | $ | — | | | — | | | $ | — | | | $ | 259,314 | | | $ | (158,109) | | | $ | 53 | | | $ | 218 | | | $ | 101,544 | |
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
The accompanying notes are an integral part of these consolidated financial statements.
6
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A Common Stock | | Class B Common Stock | | Class C Common Stock | | Additional Paid-In Capital* | | Accumulated Deficit | | Accumulated Other Comprehensive Income (Loss) | | Non- Controlling Interest | | Total Stockholders’ Equity |
| | Shares* | | Amount* | | Shares* | | Amount* | | Shares | | Amount | |
Balance December 31, 2020 | | 666 | | | $ | 7 | | | 175 | | | $ | — | | | 76,039 | | | $ | 8 | | | $ | 39,869 | | | $ | (24,848) | | | $ | 29 | | | $ | 54,192 | | | $ | 69,257 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (4,256) | | | — | | | (3,458) | | | (7,714) | |
Equity-based compensation | | 11 | | | — | | | — | | | — | | | — | | | — | | | 182 | | | — | | | — | | | 324 | | | 506 | |
Other comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 18 | | | 31 | | | 49 | |
Issuance of Class A common stock | | 21 | | | — | | | — | | | — | | | — | | | — | | | 2,005 | | | — | | | — | | | — | | | 2,005 | |
Exchanges of noncontrolling interest for Class A common stock | | 118 | | | 1 | | | (52) | | | — | | | (3,975) | | | (1) | | | 5,797 | | | — | | | — | | | (5,797) | | | — | |
Cancellation of Class B common stock due to forfeitures | | — | | | — | | | — | | | — | | | — | | | — | | | 8 | | | — | | | — | | | (8) | | | — | |
Balance March 31, 2021 | | 816 | | | 8 | | | 123 | | | — | | | 72,064 | | | 7 | | | 47,861 | | | (29,104) | | | 47 | | | 45,284 | | | 64,103 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (3,043) | | | — | | | (2,797) | | | (5,840) | |
Equity-based compensation | | (1) | | | — | | | — | | | — | | | — | | | — | | | 161 | | | — | | | — | | | 246 | | | 407 | |
Exchanges of noncontrolling interest for Class A common stock | | 30 | | | — | | | — | | | — | | | (1,763) | | | — | | | 983 | | | — | | | — | | | (983) | | | — | |
Exercise of Class A common stock options | | 2 | | | — | | | | | | | | | | | 112 | | | — | | | — | | | — | | | 112 | |
Member distributions | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (200) | | | — | | | — | | | (200) | |
Other comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 96 | | | 147 | | | 243 | |
Balance June 30, 2021 | | 847 | | | $ | 8 | | | 123 | | | $ | — | | | 70,301 | | | $ | 7 | | | $ | 49,117 | | | $ | (32,347) | | | $ | 143 | | | $ | 41,897 | | | $ | 58,825 | |
Net loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (16,281) | | | — | | | (12,434) | | | (28,715) | |
Equity-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | 2,036 | | | — | | | — | | | 1,772 | | | 3,808 | |
Exchanges of noncontrolling interest for Class A common stock | | 201 | | | 2 | | | (201) | | | — | | | — | | | — | | | 5,368 | | | — | | | — | | | (5,370) | | | — | |
Exercise of Class A common stock options and warrants | | 299 | | | 3 | | | — | | | — | | | — | | | — | | | 153 | | | — | | | — | | | — | | | 156 | |
Conversion of Class C common stock | | — | | | — | | | 1,172 | | | — | | | (70,301) | | | (7) | | | 7 | | | — | | | — | | | — | | | — | |
Issuance of Class A common stock, net of costs | | 2,644 | | | 26 | | | — | | | — | | | — | | | — | | | 166,187 | | | — | | | — | | | — | | | 166,213 | |
Other comprehensive loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (51) | | | (44) | | | (95) | |
Balance September 30, 2021 | | 3,991 | | | $ | 39 | | | 1,094 | | | $ | — | | | — | | | $ | — | | | $ | 222,868 | | | $ | (48,628) | | | $ | 92 | | | $ | 25,821 | | | $ | 200,192 | |
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands) | | | | | | | | | | | |
| Nine months ended September 30, |
| 2022 | | 2021 |
Cash flows from operating activities: | | | |
Net loss (including amounts attributable to non-controlling interest) | $ | (112,445) | | | $ | (42,269) | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | |
Depreciation and amortization | 6,876 | | | 2,385 | |
Equity-based compensation expense | 2,020 | | | 4,762 | |
Goodwill and indefinite-lived intangibles impairment charge | 66,760 | | | — | |
Change in fair value of contingent consideration | (1,197) | | | 755 | |
Change in provision for doubtful accounts | 2,637 | | | 318 | |
Gain related to indemnification asset | (2,018) | | | (1,692) | |
(Gain) loss on disposal of fixed assets | 820 | | | 109 | |
(Gain) loss on disposal of held-for-sale assets | (780) | | | 97 | |
Gain related to VIBES disposition / deconsolidation (Note 3) | (2,062) | | | — | |
Unrealized loss on equity investments | 1,214 | | | 305 | |
Realized (gain) loss on interest rate swap contract | (408) | | | — | |
Amortization of deferred financing costs and debt discount | 446 | | | 15 | |
Other | (17) | | | 7 | |
Changes in operating assets and liabilities, net of the effects of acquisitions: | | | |
Decrease (increase) in accounts receivable | 247 | | | (2,092) | |
Decrease (increase) in inventories | 19,044 | | | 9,723 | |
Decrease (increase) in vendor deposits | 5,027 | | | (661) | |
Decrease (increase) in other current assets | 1,257 | | | 9,985 | |
(Decrease) increase in accounts payable | (5,384) | | | (7,673) | |
(Decrease) Increase in accrued expenses and other liabilities | (1,124) | | | (5,957) | |
(Decrease) increase in customer deposits | (3,401) | | | (145) | |
Net cash used in operating activities | (22,488) | | | (32,028) | |
Cash flows from investing activities: | | | |
Purchase consideration paid for acquisitions, net of cash acquired | — | | | (12,284) | |
Proceeds from VIBES disposition (Note 3) | 4,567 | | | — | |
Purchases of property and equipment, net | (1,660) | | | (2,327) | |
Proceeds from sale of assets held for sale | 9,593 | | | 675 | |
Purchase of intangible assets, net | — | | | (320) | |
Net cash provided by (used in) investing activities | 12,500 | | | (14,256) | |
Cash flows from financing activities: | | | |
Proceeds from issuance of Class A common stock, net of costs | 14,064 | | | 29,539 | |
Proceeds from exercise of stock options and warrants | — | | | 268 | |
Proceeds from Asset-Based Loan | 14,550 | | | — | |
Debt issuance costs | (1,472) | | | (100) | |
Payments on Eyce and DaVinci promissory notes | (2,791) | | | (294) | |
Payments on Real Estate Note | (7,958) | | | (120) | |
Repayment of Bridge Loan | (8,000) | | | — | |
Proceeds from termination of interest rate swap | 145 | | | — | |
Purchase consideration paid for Eyce LLC acquisition | (875) | | | — | |
Member distributions | — | | | (200) | |
Other | (128) | | | (222) | |
Net cash provided by financing activities | 7,535 | | | 28,871 | |
Effects of exchange rate changes on cash and restricted cash | (210) | | | 193 | |
Net (decrease) in cash and restricted cash | (2,663) | | | (17,220) | |
Cash and restricted cash, as of beginning of the period | 12,857 | | | 30,435 | |
Cash and restricted cash, as of end of the period | $ | 10,194 | | | $ | 13,215 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)
(in thousands)
| | | | | | | | | | | |
Reconciliation of cash and restricted cash to condensed consolidated balance sheets | | | |
| Nine months ended September 30, |
| 2022 | | 2021 |
Beginning of the period | | | |
Cash | $ | 12,857 | | | $ | 30,435 | |
Restricted cash | — | | | — | |
Total cash and restricted cash, beginning of period | $ | 12,857 | | | $ | 30,435 | |
| | | |
End of the period | | | |
Cash | $ | 8,039 | | | $ | 13,215 | |
Restricted cash | 2,155 | | | — | |
Total cash and restricted cash, end of period | $ | 10,194 | | | $ | 13,215 | |
| | | |
| | | |
Supplemental disclosures of cash flow information | | | |
| | | |
| | | |
Cash paid for amounts included in the measurement of lease liabilities | $ | 2,120 | | | $ | 1,093 | |
Lease liabilities arising from obtaining finance lease assets | $ | — | | | $ | 119 | |
| | | |
| | | |
Non-cash investing and financing activities: | | | |
Non-cash purchases of property and equipment | $ | 1,617 | | | $ | 381 | |
Issuance of Class A common stock for business acquisitions | $ | 3,486 | | | $ | 125,496 | |
Issuance of warrants and stock options for acquisition | $ | — | | | $ | 13,182 | |
Issuance of promissory note for business acquisition | $ | — | | | $ | 2,503 | |
Issuance of contingent consideration for acquisition | $ | — | | | $ | 1,828 | |
Decrease in non-controlling interest as a result of exchanges for Class A common stock | $ | (10,291) | | | $ | (12,150) | |
Decrease in non-controlling interest as a result of VIBES disposition | $ | (1,789) | | | $ | — | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9
GREENLANE HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. BUSINESS OPERATIONS AND ORGANIZATION
Organization
Greenlane Holdings, Inc. (“Greenlane” and, collectively with the Operating Company (as defined below) and its consolidated subsidiaries, the “Company”, "we", "us", and "our") was formed as a Delaware corporation on May 2, 2018. We are a holding company that was formed for the purpose of completing an underwritten initial public offering (“IPO”) of shares of our Class A common stock, $0.01 par value per share (“Class A common stock”), in order to carry on the business of Greenlane Holdings, LLC (the “Operating Company”). The Operating Company was organized under the laws of the state of Delaware on September 1, 2015, and is based in Boca Raton, Florida. Unless the context otherwise requires, references to the “Company” refer to us, and our consolidated subsidiaries, including the Operating Company.
We are the sole manager of the Operating Company and our principal asset is Common Units of the Operating Company (“Common Units”). As the sole manager of the Operating Company, we operate and control all of the business and affairs of the Operating Company, and we conduct our business through the Operating Company and its subsidiaries. We have a board of directors and executive officers, but no employees. All of our assets are held and all of the employees are employed by the Operating Company and its subsidiaries.
We have the sole voting interest in, and control the management of, the Operating Company, and we have the obligation to absorb losses of, and receive benefits from, the Operating Company, that could be significant. We determined that the Operating Company is a variable interest entity (“VIE”) and that we are the primary beneficiary of the Operating Company. Accordingly, pursuant to the VIE accounting model, beginning in the fiscal quarter ended June 30, 2019, we consolidated the Operating Company in our consolidated financial statements and reported a non-controlling interest related to the Common Units held by the members of the Operating Company (other than the Common Units held by us) on our consolidated financial statements.
On August 31, 2021, we completed our previously announced merger with KushCo Holdings, Inc. ("KushCo") and have included the results of operations of KushCo in our consolidated statements of operations and comprehensive loss from that date forward. As such, the KushCo financial information included in our condensed consolidated financial statements for the three and nine months ended September 30, 2021 is for the period commencing on August 31, 2021 (the date of the closing of the merger) through September 30, 2021. Also, KushCo financial information is included in our condensed consolidated financial statements for the three and nine months ended September 30, 2022. Immediately following the merger with KushCo, stockholders that held Class A common stock prior to the completion of the merger owned 51.9% and former KushCo stockholders owned 48.1% of the equity of the combined company on a fully diluted basis. In connection with the merger with KushCo, the Greenlane Certificate of Incorporation was amended and restated (the “A&R Charter”) in order to (i) increase the number of authorized shares of Greenlane Class B common stock, $0.0001 par value per share (the “Class B Common stock”), from