Lifeist Reports Fourth Quarter 2023 Financial Results - Seite 2

Financial Summary

Net revenue was $4.7 million in Q4 2023 compared to $6.2 million in Q4 2022 due to continued supply chain challenges impacting CannMart’s cannabis revenue in Q4 2023, as compared to Q4 2022.

Gross profit before inventory adjustment increased to $2.0 million in Q4 2023 versus $1.9 million in the same period last year, with margins expanding to 42% in Q4 2023 from 31% in Q4 2022. The increase in margins in Q4 2023 as compared to Q4 2022 reflects the success of the Company’s strategic focus on individual segments, geographies, and products, as well as a continuous effort to improve production efficiencies across all segments.

Adjusted EBITDA loss improved to $5.0 million in Q4 2023 compared to $5.5 million in Q4 2022 and net loss from continuing operations was $6.3 million, or ($0.005) per diluted share, in Q4 2023 compared to a loss of $8.1 million, or ($0.005) per diluted share, in Q4 2022. The improvement in both adjusted EBITDA loss and net loss was due largely to operational efficiencies resulting in higher gross profit before inventory adjustment and a reduction in operating costs of $2.0 million in 2023 versus 2022, plus an earn-out share charge recorded in 2022.

Balance Sheet and Cash Flow

Cash and cash equivalents were $1.5 million at November 30, 2023, compared to $3.8 million at November 30, 2022.

Inventories were $4.5 million at November 30, 2023 compared to $4.5 million at November 30, 2022.

The working capital position was negative $0.3 million at November 30, 2023.

Net cash used in operations was $0.6 million in Q4 2023 compared to $0.1 million in Q4 2022, due in part to lower revenue from CannMart and an increase in overall operating costs.

Leadership Change

Lifeist regrets to announce that Faraaz Jamal has officially stepped down from his leadership position with Mikra Cellular Sciences due to health reasons.

“Faraaz has played an instrumental role in building Lifeist and the Mikra brands, and his dedication and commitment have been invaluable," said Meni Morim, CEO of Lifeist. “On behalf of everyone at Lifeist and Mikra I wish to extend our heartfelt thanks to Faraaz for his outstanding contributions and wish him all the best.”

Additional Information

The Company’s complete financial statements and management’s discussion & analysis (“MD&A”) for the financial year ended November 30, 2023 are available on Lifeist’s website (www.lifeist.com) and SEDAR+ (www.sedarplus.ca).