Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.20.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net (loss) income (including amounts attributable to non-controlling interests) $ (39,824) $ (5,888)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,705 1,489
Debt issuance costs on convertible notes 0 2,637
TRA liability adjustment (5,721) 0
Change in deferred tax asset, net 10,894 0
Unrealized gain on equity investment (1,537) 0
Equity-based compensation expense 8,020 4,060
Change in fair value of convertible notes 12,063 0
Provision for doubtful accounts 352 658
Provision for slow moving or obsolete inventory 1,215 (36)
Loss from equity method investments in associated entities 0 234
Other 32 (87)
Changes in operating assets and liabilities, net of the effects of acquisitions:    
Accounts receivable, net 635 (4,993)
Vendor deposits (1,503) (5,579)
Inventories (12,954) (11,941)
Deferred offering costs (1,238) (2,284)
Other current assets (1,993) (709)
Accounts payable (11,261) 2,664
Accrued expenses 3,132 3,692
Customer deposits 80 2,505
Net cash used in operating activities (36,903) (13,578)
Cash flows from investing activities:    
Acquisitions, net of cash acquired (1,159) 785
Purchases of property and equipment, net (2,020) (10,897)
Purchase of intangible assets, net (53) (29)
Investment in equity securities (500) (75)
Net cash used in investing activities (3,732) (10,216)
Cash flows from financing activities:    
Proceeds from issuance of Class A common stock sold in initial public offering, net of underwriting costs 83,003 0
Deferred offering costs paid (3,523) 0
Proceeds from issuance of convertible notes 8,050 38,875
Payment of debt issuance costs (1,734) (187)
Payments on long-term debt 0 (565)
Proceeds from notes payable 0 8,500
Payments on notes payable (169) (53)
Proceeds from line of credit, net 0 (611)
Payments of finance lease obligations (107) (122)
Deferred acquisition costs paid (110) 0
Acquisition of treasury stock (515)
Redemption of Class A and Class B units of Greenlane Holdings, LLC (3,018) (15,075)
Member distributions (898) (1,630)
Net cash provided by financing activities 80,979 29,132
Effects of exchange rate changes on cash 88 (77)
Net increase in cash 40,432 5,261
Cash, as of beginning of the period 7,341 2,080
Cash, as of end of the period 47,773 7,341
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for interest 975 3,182
Cash paid during the period for income taxes 498 125
Cash paid for amounts included in the measurement of operating lease liabilities 1,119 0
Non-cash investing activities and financing activities:    
Conversion of convertible notes to Class A common stock 60,313 0
Redeemable Class B Units issued for acquisition of a subsidiary, net of issuance costs 6,514 8,890
Deferred offering costs included in "Accounts payable" and "Accrued expenses and other current liabilities" 0 1,500
Contingent consideration for the acquisition of Conscious Wholesale included in "Accrued expenses and other current liabilities" 1,609 0
Purchase consideration for the acquisition of Conscious Wholesale included in "Accrued expenses and other current liabilities" 3,029 0
Purchases of property, plant, and equipment with unpaid costs accrued in "Other liabilities" 414 53
Leased assets obtained in exchange for new finance lease liabilities 86 0
Leased assets obtained in exchange for new operating lease liabilities 5,573 0
Spinoff of equity investment in a subsidiary $ 0 $ 682