UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------- ...

Financial Data and Key Metrics Changes - In 2021, consolidated revenue increased by 59% year-over-year to $74.4 million, driven by strong performance in the rest of the world segment, particularly in Canada and Israel [29] - Consolidated net revenue for Q4 2021 was $25.8 million, a 51% increase from the prior year period, primarily due to growth in the adult-use Canadian market and increased sales in the Israeli medical market [31] - Consolidated gross profit for Q4 2021 was $1.9 million, representing a $16.8 million improvement from Q4 2020, mainly due to a decrease in inventory write-downs [31] - Adjusted EBITDA for Q4 2021 was negative $27.4 million, showing a $25.8 million improvement from Q4 2020, driven by improved gross profit and reduced expenses [32] Business Line Data and Key Metrics Changes - The rest of the world segment reported net revenue of $22.7 million in Q4 2021, a 68% increase from the prior year, driven by growth in adult-use extracts and flower categories in Canada and sales in the Israeli medical market [33] - The U.S. segment reported net revenue of $3.1 million in Q4 2021, an 11% decrease from the prior year, attributed to reduced volume due to competitive pressures [35] Market Data and Key Metrics Changes - The total patient count in Israel increased to approximately 190,000, up 40% year-over-year, indicating strong growth potential in the Israeli medical cannabis market [21] - The Spinach brand continued to gain market share in Canada, with SOURZ by Spinach gummies achieving double-digit market share in the edibles category [15] Company Strategy and Development Direction - The company is undergoing a realignment to drive profitable and sustainable long-term growth, focusing on an asset-light model and exiting the Peace Naturals Campus [8][9] - The strategy includes leveraging joint ventures and partnerships for cultivation, emphasizing R&D and brand development, particularly in the adult-use market [10][24] - The company aims to maintain a disciplined approach to capital allocation while preparing for potential U.S. market entry [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve profitability through the exit from the Peace Naturals Campus and the focus on efficient cultivation partnerships [27][50] - The company anticipates continued growth in the Canadian market and is optimistic about the Israeli market's potential, citing strong brand recognition and demand [21][70] Other Important Information - The company incurred a $119.9 million noncash impairment charge related to the exit from the Peace Naturals Campus, along with additional expected charges of approximately $4.5 million [27] - The company ended the quarter with approximately $1 billion in cash and short-term investments, down $35 million from the previous quarter [37] Q&A Session Summary Question: How long has the exit from Stayner been contemplated? - Management indicated that the decision has been in consideration for a while, aligning with the belief that cultivation will shift towards agricultural specialists [42] Question: What are the implications of the exit on headcount and R&D facilities? - Management acknowledged that there will be changes in headcount but emphasized a commitment to treating employees well during the transition. R&D efforts will continue across multiple facilities without impact [48][49] Question: How is the FEELZ brand performing? - The FEELZ brand is performing well, with early success noted in the edibles category, and management is optimistic about continued growth [73] Question: What is the company's strategy regarding the U.S. market? - The company is focused on rightsizing the U.S. segment and is conducting a strategic review to improve profitability while maintaining brand strength [62][63] Question: How does the company view its position in the Israeli market? - Management believes the company is well-positioned in Israel, with strong brand recognition and a robust local team to support growth [70]

Strategic Investments and Partnerships - Cronos Group made a strategic investment of approximately $110.4 million for a 10.5% stake in PharmaCann Inc., a leading U.S. cannabis company[241]. - Cronos Group's joint venture, Cronos GrowCo, began selling to Canadian license holders in the wholesale market in Q3 2021[243]. - The company appointed Jeff Jacobson as Senior Vice President, Head of Growth (North America), to enhance its market leadership[244]. Product Development and Launches - The company launched SOURZ by Spinach™, a new line of cannabis gummies, in June 2021, enhancing its product portfolio[241]. - In 2021, the company expanded its Spinach branded product portfolio with premium high-THC strains and launched its first cultured cannabinoid product, SPINACH FEELZ™[241]. Financial Performance - For FY 2021, the company reported consolidated net revenue of $74.4 million, an increase of 59% from $46.7 million in FY 2020[252]. - The consolidated cost of sales for FY 2021 was $80.0 million, representing a 72% increase from $46.5 million in FY 2020[253]. - The gross profit for FY 2021 was $(17.5) million, an improvement of $8.3 million compared to $(25.8) million in FY 2020[256]. - Operating expenses for FY 2021 totaled $543.1 million, a significant increase of 181% from $193.6 million in FY 2020[257]. - The net loss for FY 2021 was $(397.2) million, compared to a net loss of $(75.3) million in FY 2020, reflecting a 428% increase in losses[264]. - Adjusted EBITDA for the year ended December 31, 2021, was $(160.5) million, a decline from $(147.3) million in 2020, indicating a worsening operational performance[296]. Impairment Charges and Losses - Cronos Group reported a non-cash impairment charge of $119.9 million related to the planned exit from the Peace Naturals Campus in Ontario[245]. - The company reported an impairment loss on goodwill and indefinite-lived intangible assets of $236.1 million in FY 2021, a 490% increase from $40.0 million in FY 2020[262]. - The impairment loss on goodwill and indefinite-lived intangible assets for the year ended December 31, 2021, was $236.1 million, primarily related to the U.S. segment[300]. - The company recognized an impairment loss on long-lived assets of $127.6 million for the year ended December 31, 2021, reflecting significant asset write-downs[296]. Inventory and Sales - The company recorded consolidated inventory write-downs of $12.0 million in FY 2021, a decrease of 54% from $26.1 million in FY 2020[255]. - For FY 2021, the ROW segment reported net revenue of $64.6 million, an increase of 73% from FY 2020, primarily driven by growth in the adult-use market in Canada[275]. - The U.S. segment reported net revenue of $9.9 million in FY 2021, a 4% increase from FY 2020, primarily due to the introduction of new hemp-derived CBD products[281]. Cash Flow and Liquidity - The company has approximately $30.2 million in cash requirements related to R&D activities as of December 31, 2021, with $20.2 million payable within 12 months[293]. - As of December 31, 2021, the company had $887.0 million in cash and cash equivalents and $117.7 million in short-term investments, with no external financing[289]. - The company reported a net cash used in operating activities of $153.6 million for FY 2021, an increase of $8.7 million from FY 2020, primarily due to a rise in net loss[285]. Operational Challenges - The ongoing COVID-19 pandemic has caused supply chain challenges, but the company has not yet seen a significant impact on its operations[238]. Research and Development - Research and development expenses increased to $23.3 million in FY 2021, a 15% rise from $20.4 million in FY 2020[259]. Financial Instruments and Valuations - The company expects continued fluctuations in derivative valuations due to changes in share price, with a gain on revaluation of derivative liabilities of $151.4 million reported for FY 2021[266]. - The fair value of derivative liabilities is calculated using the Black-Scholes model, with significant assumptions impacting the valuation[309]. Shareholder and Transaction Costs - Share-based payments totaled $10.2 million for the year ended December 31, 2021, compared to $15.4 million in 2020[296]. - Transaction costs related to strategic projects amounted to $3.8 million for the year ended December 31, 2021[296].

Cronos Group Inc. (NASDAQ:CRON) Q3 2021 Earnings Conference Call February 18, 2022 8:30 AM ET Company Participants Shayne Laidlaw - Investor Relations Kurt Schmidt - President & Chief Executive Officer Bob Madore - Chief Financial Officer Conference Call Participants John Zamparo - CIBC Capital Markets Rahul Sarugaser - Raymond James Andrew Carter - Stifel Operator Good morning. My name is Catherine, and I will be your conference operator today. I would now like to welcome everyone to Cronos Group’s 2021 Th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------|------------------------------------------------------ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------- ...

Cronos Group, Inc. (NASDAQ:CRON) Q1 2021 Earnings Conference Call May 7, 2021 8:30 AM ET Company Participants Shayne Laidlaw - Director, IR & Strategy Kurt Schmidt - President & CEO Jerry Barbato - CFO Michael Gorenstein - Executive Chairman Conference Call Participants Rahul Sarugaser - Raymond James John Zamparo - CIBC Andrew Carter - Stifel Heather Balsky - Bank of America Merrill Lynch Operator Good morning. My name is Paulie, and I will be your conference operator today. I would like to welcome everyon ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ Form 10-Q _______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-38403 __________________________ CRONOS GROUP INC. (Exact name of registrant as specified in i ...

Cronos Group Inc. (NASDAQ:CRON) Q4 2020 Results Conference Call February 26, 2021 8:30 AM ET Company Participants Shayne Laidlaw - Investor Relations Kurt Schmidt - CEO Mike Gorenstein - Executive Chairman Jerry Barbato - CFO Xiuming Shum - EVP of Legal and Regulatory Affairs Conference Call Participants Andrew Carter - Stifel Vivien Azer - Cowen Rahul Sarugaser - Raymond James John Zamparo - CIBC Michael Lavery - Piper Sandler Matt Bottomley - Canaccord Thea Wang - Jefferies Operator Good morning. My nam ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ Form 10-K __________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-38403 __________________________ CRONOS GROUP INC. (Exact name of Registrant as specified in its Charter) _ ...