| Quarterly Financial Information |
The following tables present the net impact of the restatement described in "Note 2 — Summary of Significant Accounting Policies - Restatement of Previously Issued Financial Statements" on our previously reported unaudited condensed financial statements for the quarterly period ended September 30, 2022. The previously reported amounts presented in the tables below have been derived from our Quarterly Report on Form 10-Q filed on November 14, 2022. See "Note 2 — Summary of Significant Accounting Policies - Restatement of Previously Issued Financial Statements" for a description of the errors shown below. The net impact of the restatement on our quarterly financial data for Q3 2022 is summarized as follows:
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
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As of September 30, 2022 |
| (in thousands, except par value per share amounts) |
As previously reported |
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Corrections (a) |
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As restated |
| ASSETS |
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Property and equipment, net |
$ |
11,838 |
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$ |
(7,336) |
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$ |
4,502 |
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| Intangible assets, net |
$ |
55,294 |
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$ |
(50,694) |
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$ |
4,600 |
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| Total assets |
$ |
165,328 |
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$ |
(58,030) |
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$ |
107,298 |
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| STOCKHOLDERS’ EQUITY |
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| Accumulated deficit |
$ |
(158,109) |
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$ |
(55,394) |
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$ |
(213,503) |
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Total stockholders’ equity attributable to Greenlane Holdings, Inc. |
$ |
101,326 |
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$ |
(55,394) |
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$ |
45,932 |
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| Non-controlling interest |
$ |
218 |
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$ |
(2,636) |
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$ |
(2,418) |
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| Total stockholders’ equity |
$ |
101,544 |
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$ |
(58,030) |
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$ |
43,514 |
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| Total liabilities and stockholders’ equity |
$ |
165,328 |
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$ |
(58,030) |
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$ |
107,298 |
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GREENLANE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
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For the three months ended
September 30, 2022 |
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For the nine months ended
September 30, 2022 |
| (in thousands, except share and per share amounts) |
As previously reported |
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Corrections (a) |
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As restated |
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As previously reported |
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Corrections (a) |
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As restated |
| Operating expenses: |
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| Goodwill and indefinite-lived intangibles impairment charge |
66,760 |
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— |
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66,760 |
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66,760 |
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— |
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66,760 |
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| Definite-lived intangibles impairment charge |
— |
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50,694 |
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50,694 |
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— |
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50,694 |
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50,694 |
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Property and equipment impairment charge |
— |
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7,336 |
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7,336 |
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— |
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7,336 |
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7,336 |
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| Total operating expenses |
84,431 |
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58,030 |
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142,461 |
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130,383 |
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58,030 |
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188,413 |
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| Loss from operations |
(79,462) |
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(58,030) |
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(137,492) |
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(111,347) |
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(58,030) |
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(169,377) |
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| Loss before income taxes |
(79,215) |
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(58,030) |
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(137,245) |
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(112,383) |
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(58,030) |
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(170,413) |
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| Net loss |
(79,215) |
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(58,030) |
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(137,245) |
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(112,445) |
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(58,030) |
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(170,475) |
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| Net loss attributable to non-controlling interest |
(4,106) |
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|
(2,636) |
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(6,742) |
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(9,880) |
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(2,636) |
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(12,516) |
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| Net loss attributable to Greenlane Holdings, Inc. |
(75,109) |
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(55,394) |
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(130,503) |
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(102,565) |
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(55,394) |
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(157,959) |
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Net loss attributable to Class A common stock per share - basic & diluted* |
$ |
(11.43) |
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$ |
(8.42) |
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$ |
(19.85) |
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$ |
(18.01) |
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$ |
(9.73) |
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$ |
(27.74) |
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Weighted-average shares of Class A common stock outstanding - basic & diluted* |
6,574 |
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— |
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6,574 |
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5,694 |
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— |
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5,694 |
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Comprehensive loss |
(79,453) |
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(58,030) |
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(137,483) |
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(112,299) |
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(58,030) |
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(170,329) |
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Comprehensive loss attributable to non-controlling interest |
(4,106) |
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(2,636) |
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(6,742) |
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(9,794) |
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(2,636) |
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(12,430) |
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Comprehensive loss attributable to Greenlane Holdings, Inc. |
(75,347) |
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(55,394) |
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(130,741) |
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(102,505) |
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(55,394) |
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(157,899) |
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*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)
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Class A
Common Stock |
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Class B
Common Stock |
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Additional
Paid-In
Capital* |
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Accumulated
Deficit |
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Accumulated
Other
Comprehensive
Income (Loss) |
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Non-
Controlling
Interest |
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Total
Stockholders’
Equity |
| (in thousands) |
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Shares
* |
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Amount
* |
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Shares
* |
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Amount* |
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As previously reported |
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| Net loss |
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— |
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$ |
— |
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— |
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$ |
— |
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$ |
— |
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$ |
(75,109) |
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$ |
— |
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$ |
(4,106) |
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$ |
(79,215) |
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Balance September 30, 2022 |
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7,470 |
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$ |
68 |
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148 |
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$ |
— |
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$ |
259,314 |
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$ |
(158,109) |
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$ |
53 |
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$ |
218 |
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$ |
101,544 |
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| Balance Restatement impacts (a) |
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| Net loss |
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— |
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$ |
— |
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— |
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$ |
—
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$ |
— |
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$ |
(55,394) |
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$ |
— |
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$ |
(2,636) |
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$ |
(58,030) |
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Balance September 30, 2022 |
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— |
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$ |
— |
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— |
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— |
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— |
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$ |
(55,394) |
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$ |
— |
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$ |
(2,636) |
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$ |
(58,030) |
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| Balance As restated |
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| Net loss (As restated) |
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— |
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$ |
— |
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— |
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$ |
— |
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$ |
— |
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$ |
(130,503) |
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$ |
— |
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$ |
(6,742) |
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$ |
(137,245) |
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Balance September 30, 2022 |
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7,470 |
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$ |
68 |
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|
148 |
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$ |
—
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$ |
259,314 |
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$ |
(213,503) |
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$ |
53 |
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$ |
(2,418) |
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$ |
43,514 |
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*After giving effect to the one-for-20 Reverse Stock Split effective August 9, 2022.
GREENLANE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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For the nine months ended September 30, 2022 |
| (in thousands) |
As previously reported |
|
Corrections (a) |
|
As restated |
| Cash flows from operating activities: |
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| Net loss (including amounts attributable to non-controlling interest) (As restated) |
$ |
(112,445) |
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$ |
(58,030) |
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$ |
(170,475) |
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| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and amortization |
$ |
6,876 |
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$ |
— |
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$ |
6,876 |
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| Goodwill and indefinite-lived intangibles impairment charge |
$ |
66,760 |
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$ |
— |
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$ |
66,760 |
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| Definite-lived intangibles impairment charge (As restated) |
$ |
— |
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|
$ |
50,694 |
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$ |
50,694 |
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Property and equipment impairment charge (As restated) |
$ |
— |
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$ |
7,336 |
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$ |
7,336 |
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| Net cash used in operating activities |
$ |
(22,488) |
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$ |
— |
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$ |
(22,488) |
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| Cash flows from investing activities: |
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| Net cash provided by (used in) investing activities |
$ |
12,500 |
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$ |
— |
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$ |
12,500 |
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| Cash flows from financing activities: |
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| Net cash provided by financing activities |
$ |
7,535 |
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$ |
— |
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$ |
7,535 |
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| Net (decrease) in cash and restricted cash |
$ |
(2,663) |
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$ |
— |
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$ |
(2,663) |
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| Cash and restricted cash, as of beginning of the period |
$ |
12,857 |
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$ |
— |
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$ |
12,857 |
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| Cash and restricted cash, as of end of the period |
$ |
10,194 |
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$ |
— |
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$ |
10,194 |
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(a) To reflect 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.
|