Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.23.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Accounting Standards Update and Change in Accounting Principle In accordance with U.S. GAAP, the change has been reflected in the consolidated statements of operations and comprehensive loss through retrospective application as follows:
For the year ended December 31, 2021
(in thousands) Prior to Change Effect of Change As Adjusted
Cost of sales $ 138,381  $ (6,174) $ 132,207 
Gross profit $ 27,679  $ 6,174  $ 33,853 
General and administrative $ 41,700  $ 6,174  $ 47,874 
Total operating expenses $ 80,401  $ 6,174  $ 86,575 
Schedule of Error Corrections and Prior Period Adjustments
A summary of the impact of the adjustments on the previously reported financial statements are included below. Note 14 discloses the impact of the adjustments on the Company's unaudited condensed consolidated financial statements for the interim periods within the year ended December 31, 2022.
GREENLANE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
December 31, 2022
(in thousands, except par value per share amounts) As previously reported Corrections (a) As restated
ASSETS
Property and equipment, net
 $ 11,062  $ (7,100) $ 3,962 
Intangible assets, net $ 49,268  $ (49,268) $ — 
Total assets $ 146,053  $ (56,368) $ 89,685 
STOCKHOLDERS’ EQUITY
Additional paid-in capital
 $ 266,516  $ (2,636) $ 263,880 
Accumulated deficit $ (171,365) $ (53,749) $ (225,114)
Total stockholders’ equity attributable to Greenlane Holdings, Inc.
 $ 95,358  $ (56,385) $ 38,973 
Non-controlling interest $ 1  $ 17  $ 18 
Total stockholders’ equity $ 95,359  $ (56,368) $ 38,991 
Total liabilities and stockholders’ equity $ 146,053  $ (56,368) $ 89,685 

GREENLANE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
For the year ended December 31, 2022
(in thousands, except share and per share amounts) As previously reported Corrections (a) As restated
Operating expenses:
Definite-lived intangibles impairment charge —  50,694  50,694 
Property and equipment impairment charge
 —  7,336  7,336 
Depreciation and amortization 9,067  (1,662) 7,405 
Total operating expenses 152,717  56,368  209,085 
Loss from operations (127,734) (56,368) (184,102)
Loss before income taxes (125,871) (56,368) (182,239)
Net loss (125,858) (56,368) (182,226)
Less: Net loss attributable to non-controlling interest
 (10,098) (2,619) (12,717)
Net loss attributable to Greenlane Holdings, Inc. (115,760) (53,749) (169,509)
Net loss attributable to Class A common stock per share - basic & diluted*
 $ (15.37) $ (7.14) $ (22.51)
Weighted-average shares of Class A common stock outstanding - basic & diluted*
 7,531  —  7,531 
Comprehensive loss
 (126,043) (56,368) (182,411)
Less: Comprehensive loss attributable to non-controlling interest
 (10,014) (2,619) (12,633)
Comprehensive loss attributable to Greenlane Holdings, Inc.
 $ (116,029) $ (53,749) $ (169,778)
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
GREENLANE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)

Class A
Common Stock		 Class B
Common Stock		 Additional
Paid-In
Capital*		 Accumulated
Deficit		 Accumulated
Other
Comprehensive
Income (Loss)		 Non-
Controlling
Interest		 Total
Stockholders’
Equity
Shares* Amount* Shares* Amount*
Balance As previously reported
Net loss —  $ —  —  $ —  $ —  $ (115,760) $ —  $ (10,098) $ (125,858)
Exchanges of noncontrolling interest for Class A common stock 1,087  9  (1,087) —  10,282  —  —  (10,291) — 
Balance Balance December 31, 2022 15,985  152  —  —  266,516  (171,365) 55  1  95,359 
Restatement impacts (a)
Net loss —  —  —  —  —  (53,749) —  (2,619) (56,368)
Exchanges of noncontrolling interest for Class A common stock —  —  —  —  (2,636) —  —  2,636  — 
Balance Balance December 31, 2022 —  —  —  —  (2,636) (53,749) —  17  (56,368)
Balance As restated
Net loss (As restated) —  —  —  —  —  (169,509) —  (12,717) (182,226)
Exchanges of noncontrolling interest for Class A common stock 1,087  9  (1,087) —  7,646  —  —  (7,655) — 
Balance Balance December 31, 2022 (As restated) 15,985  $ 152  —  $ —  $ 263,880  $ (225,114) $ 55  $ 18  $ 38,991 
*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.

GREENLANE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2022
(in thousands) As previously reported Corrections (a) As restated
Cash flows from operating activities:
Net loss (including amounts attributable to non-controlling interest)
 $ (125,858) $ (56,368) $ (182,226)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization $ 9,067  $ (1,662) $ 7,405 
Goodwill and indefinite-lived intangibles impairment charge $ 71,360  $ —  $ 71,360 
Definite-lived intangibles impairment charge
 $ —  $ 50,694  $ 50,694 
Property and equipment impairment charge
 $ —  $ 7,336  $ 7,336 
Net cash used in operating activities $ (26,426) $ —  $ (26,426)
Cash flows from investing activities:
Net cash provided by (used in) investing activities $ 12,025  $ —  $ 12,025 
Cash flows from financing activities:
Net cash provided by financing activities $ 13,930  $ —  $ 13,930 
Net (decrease) in cash and restricted cash $ (681) $ —  $ (681)
Cash and restricted cash, as of beginning of the period $ 12,857  $ —  $ 12,857 
Cash and restricted cash, as of end of the period $ 12,176  $ —  $ 12,176 
(a) To reflect 1) the impairment charge to definite-lived intangibles and property and equipment, which occurred as of September 30, 2022, along with the allocation of the resulting additional net loss to non-controlling interest; and 2) the reversal of depreciation and amortization expense recognized during the fourth quarter of 2022.