10-Q - Greenlane Holdings, Inc. (0001743745) (Filer)

Wed, Aug 14, 8:25 PM (27 days ago)

For the quarter ended June 30, 2024, Greenlane Holdings, Inc. reported significant financial challenges, with net sales declining to $2.65 million, down 86.5% from $19.63 million in the same quarter of 2023. The drop in revenue is attributed to a major restructuring of the Industrial Goods segment and a strategic shift towards higher-margin in-house brands. Gross profit also fell sharply, leading to a net loss of $615,000, compared to a loss of $9.03 million in Q2 2023. Operating expenses decreased by 64.2% to $4.51 million, reflecting cost-cutting measures, including workforce reductions and streamlined operations. Cash flow from operations turned negative, with $379,000 used during the first half of 2024, raising substantial doubt about the company's ability to continue as a going concern. As of June 30, 2024, cash reserves were critically low at $169,000, and the company reported negative working capital of approximately $1.1 million. Future operations hinge on effective execution of management's restructuring plans and securing additional capital.