StateHouse Reports Third Quarter 2023 Financial Results

Generates Solid Revenue of $25.5 Million and Gross Margins of 44.9%

Continued Cultivation Improvements with yields up 28% per sq/ft compared to Q3 2022

STASH Loyalty Program Customers reaches over 286,000 Members Enrolled at Quarter End

SAN DIEGO and TORONTO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- StateHouse Holdings Inc. (“StateHouse” or the “Company”) (CSE: STHZ) (OTCQB: STHZF), a California-focused, vertically integrated cannabis company, today announced its financial results for the three-month (“Q3 2023”) and nine-month periods ended September 30, 2023, and provided additional business updates. The unaudited condensed interim consolidated financial statements for Q3 2023, as well as the corresponding management’s discussion and analysis are available for download from the Company’s investor website, statehouseholdings.com, and on the Company’s SEDAR profile. Unless otherwise indicated, all dollar amounts in this press release are denominated in U.S. currency.

Q3 2023 Financial Highlights

• Q3 2023 net revenues were $25.5 million, compared with $30.8 million in Q3 2022.
  • Retail revenues were $13.2 million, representing 51.8% of total sales for Q3 2023, compared to $16.5 million or 53.6% of total sales in Q3 2022. 
  • Manufacturing revenues were $11.7 million, representing 45.9% of total sales for Q3 2023, compared to $13.2 million or 42.7% of total sales in Q3 2022.
  • Wholesale revenues were $0.6 million, representing 2.2% of total sales for Q3 2023, compared to $1.2 million or 3.9% of total sales in Q3 2022.
• Gross profit before adjustments for biological assets was $11.4 million in Q3 2023, compared with $11.1 million in Q3 2022.
• Consolidated gross margins improved to 44.9% in Q3 2023, compared to 35.9% for Q3 2022.
• Q3 2023 cultivation yields in the Company’s Salinas facility were up 28% over Q3 2022 due to improved lighting and growing techniques.
• STASH, the Company’s re-named high-value customer loyalty program, expanded by 9.6% to 292,363 loyalty members enrolled as of November 26, 2023, compared to June 30, 2023.

Management Commentary