EX-99.2 3 flora_ex992.htm UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS EXHIBIT 99.2 Flora Growth Corp. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended September 30, 2022 and 2021 (Unaudited) (Expressed in United States Dollars) Flora Growth Corp. Interim Condensed Consolidated Statements of Financial Position (Unaudited - Prepared by Management) (in thousands of United States dollars) | --- | --- | --- | --- | --- | --- | |---------------------------- ...

Flora Growth Corp. (NASDAQ:FLGC) Q2 2022 Earnings Conference Call August 15, 2022 4:30 PM ET Company Participants Jessie Casner - Chief Marketing Officer Luis Merchan - President, Chief Executive Officer and Chairman Jason Warnock - Chief Commercial Officer Elshad Garayev - Chief Financial Officer Annabelle Manalo-Morgan - Lead Scientific Advisor Holly Bell - Vice President, Regulatory Affairs Jessie Casner Thank you all for joining today, FloraÂ's First Half 2022 Call. We are going to get started here in j ...

EX-99.2 3 flora_ex992.htm UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS EXHIBIT 99.2 Flora Growth Corp. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months ended June 30, 2022 and 2021 (Unaudited) (Expressed in United States Dollars) Flora Growth Corp. Interim Condensed Consolidated Statements of Financial Position (Unaudited - Prepared by Management) (in thousands of United States dollars) | --- | --- | --- | --- | --- | |-------------------------------------------------- ...

Financial Performance - Audited revenues for fiscal year 2021 were approximately $9 million, up from just over $100,000 in 2020, primarily driven by the House of Brands pillar [10] - Revenue for the second half of 2021 increased over 329% compared to the first half, with Q4 up 229% over Q3, and Q1 2022 revenue increased approximately 450% year-over-year [11] - Gross profit totaled $2.4 million, resulting in a gross margin of 27%, which is expected to improve as higher margin businesses contribute more [12] - Operating expenses totaled $21.3 million, leading to an operating loss of $19 million, with a net loss of $22.5 million and an EPS loss of $0.48 [13] - As of December 31, 2021, the company had a cash balance of $37.6 million, up from $14.9 million in 2020, allowing for strategic acquisitions and infrastructure investments [14] Business Lines and Market Data - The House of Brands portfolio now reaches over 500,000 consumers and 16,000 distribution points globally, with significant growth in brands like JustCBD and Mind Naturals [8][20] - The Commercial and Wholesale operations include a cultivation facility in Colombia, which boasts one of the lowest production costs globally at $0.06 per gram of dried flower [28] - The Life Sciences pillar focuses on R&D for pharmaceutical-grade products, with plans to commercialize cannabinoid-based prescriptions and dietary supplements [58] Company Strategy and Industry Competition - The company aims to leverage its low-cost production in Colombia to gain market share in the global cannabis market, with a focus on vertical integration and supply chain mastery [19][34] - Flora Growth has established partnerships to enhance its distribution capabilities, including a strategic partnership with Hoshi International for the European market [18] - The company anticipates that 60% to 70% of its revenue in 2022 will come from the House of Brands, with the remainder from Wholesale and Commercial operations [65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of operational excellence and strategic acquisitions [62] - The company is optimistic about the regulatory environment in Colombia, with both presidential candidates supporting cannabis as a key economic growth element [76] - Management expects gross margins to improve significantly in 2022, driven by higher contributions from the House of Brands and the Commercial brand [77] Other Important Information - Flora Growth completed the acquisition of JustCBD, which is expected to enhance revenue and market share, particularly in Europe and Latin America [68] - The company has made significant investments in infrastructure and human capital to support its growth strategy [62] - Flora Growth is actively pursuing educational initiatives to promote the potential of cannabis, partnering with edX for online courses [60] Q&A Session Summary Question: Update on revenue guidance split across divisions - Management expects 2022 to see significant contributions from all three growth pillars, with the House of Brands contributing 60% to 70% of revenues [65] Question: Progress on finding partners for THC flower distribution - The company is projecting to recognize distribution opportunities for high-THC strains by Q3, with no issues in finding distribution partners [66][67] Question: JustCBD growth opportunity and margin profile - JustCBD is experiencing strong growth, particularly in Europe, with gross margins around 60% depending on the product category [68] Question: Update on outdoor cultivation and extraction capacity - The company is currently producing around 600 kilos per week, focusing on high-THC strains for Q3 and Q4 [71] Question: Status of preclinical and clinical trials with the University of Manchester - The company is in the final phases of approval for human trials, expecting to begin before the end of the year [73][74] Question: Impact of Colombian elections on business - Both presidential candidates support cannabis as a key economic growth element, providing confidence in continued government support [75][76] Question: Outlook for gross margins in 2022 - Management expects gross margins to improve significantly, with contributions from high-margin brands like JustCBD and Naturals [77][78]

United States Securities and Exchange Commission Washington, D.C. 20549 Title of each class Trading symbol Name of each exchange on which registered Common Shares, no par value FLGC Nasdaq Capital Market FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission file number 001-40397 Flora Growth Corp. (Exact name of Registrant as specified in its charter) Province of Ontario (Jurisdiction of incorporation or organiza ...