Thu, Apr 10, 7:51 PM (16 days ago)
### Summary of TILT Holdings Inc. (TILT) Annual Report for 2024 **Financial Performance:** - **Revenue:** $115,614,000, down 30% year-over-year due to lower sales volume and market price decreases. - **Gross Profit:** $20,053,000, down 18% year-over-year, primarily due to decreased sales volume at Jupiter. - **Operating Loss:** $69,430,000, up 33% year-over-year, mainly due to non-cash impairment loss. - **Net Loss:** $99,670,000, up 59% year-over-year, driven by increased operating expenses and income tax expense. **Strategic Overview:** - **Business Divisions:** Inhalation Technology (Jupiter) and Cannabis (CAC, Standard Farms PA, Standard Farms OH). - **Market Position:** Operations in 40 U.S. states, Canada, South America, and the European Union. - **Strategic Alternatives:** Exploring divestitures, partnerships, and other strategic actions to focus on Jupiter Research. **Future Outlook:** - **Operating Plans:** Increase revenue growth, reduce production and operational costs, and obtain additional financing. - **Liquidity Risk:** Significant doubt about the ability to continue as a going concern within 12 months. **Risk Factors:** - **Regulatory Risks:** Dependence on regulatory approvals, legal uncertainties, and potential changes in cannabis laws. - **Financial Risks:** High indebtedness, potential liquidity constraints, and dependence on debt financing. - **Operational Risks:** Dependence on skilled labor, supply chain disruptions, and market competition. **Financial Condition:** - **Cash and Cash Equivalents:** $3,003,000 as of December 31, 2024. - **Total Indebtedness:** $72,087,000 as of December 31, 2024. - **Negative Working Capital:** $46,608,000 as of December 31, 2024. **Market Position Changes:** - **Divestiture of SFNY:** Completed in September 2023, resulting in a gain of $483,000. - **2024 Standard Farms Loan:** $3,000 drawn, with a contingent interest derivative of $1,700. **Note:** All amounts are in thousands, except per share amounts.