StateHouse Reports Second Quarter 2023 Financial Results

Q2 Revenue increased 2% sequentially to $25.3 million with a 15% improvement in gross margin for a consolidated Q2 Gross Margin of 49.9%

Generated $635K in Positive Adjusted EBITDA

Commitment to cost savings drove Q2 operating expense decline of $14.3 million or 50% from Q2 2022

TOPS Loyalty Program Customers recently surpassed 280,000 Members Enrolled

Building Strong Customer demand with Dime Bag Brand Revenue up 41% sequentially

SAN DIEGO and TORONTO, Aug. 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 (“Q2 2023”) and six-month periods ended June 30, 2023, and provided additional business updates. The unaudited condensed interim consolidated financial statements for Q2 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.

Management Commentary

“The combination of our commitment to leading in California, our collective depth of industry knowledge, and the hard work of our talented team is beginning to deliver on the vision we had when we established StateHouse,” said Ed Schmults, Chief Executive Officer of StateHouse. “Reaching positive adjusted EBITDA in Q2 is a solid achievement. Cultivation yields and product quality are continuing to steadily improve, our TOPS customer loyalty program recently reached a milestone of more than 280,000 members, and we’ve expanded our strategic capabilities with our new managed services offering. These are incredibly exciting developments that demonstrate our resilience in spite of challenging market conditions, and we intend to leverage our industry leading size and scale to build out managed services as a scalable new line of business to further enhance our profitability.”

Mr. Schmults added, “We’ve significantly strengthened our financial position through the recent modification of our debt obligations. Pelorus is a valued partner and these modifications reflect the confidence they have placed in our ability to execute on our growth strategy and advance our position as a leading operator in California.”