Greenlane Holdings (Nasdaq: GNLN) announced a $110 million private placement to fund its cryptocurrency treasury strategy focused on Berachain (BERA) tokens. Led by Polychain Capital and other investors, the funds will be used to acquire BERA for the treasury. https://t.co/4KcFikfoqA ...

Core Insights - Berachain ("BERA") has established the first and only digital asset treasury backed by the Berachain Foundation, with financing led by institutional and crypto-native investors including Polychain Capital [1] - The Berachain is a Layer 1 blockchain that introduces a Proof of Liquidity mechanism aimed at accelerating the growth of on-chain businesses while capturing their value through the BERA token [1] - The Berachain Treasury Strategy, known as BeraStrategy, will be led by Ben Isenberg as Chief Investment Officer, with Bruce Linton appointed as Chairman and Billy Levy as Director following the completion of the transaction [1]

Industry Overview - The marijuana stock market is currently experiencing significant selling pressure, with many shareholders holding positions for extended periods and the sector trading at all-time lows [1] - Investors are adjusting their strategies and outlooks, recognizing that profitability alone may not be sufficient to drive market movement [1] Federal Reform Speculation - There has been a recent upward trend in marijuana stocks driven by speculation about potential federal reform regarding cannabis in the USA [2] - Unlike Canada, which has fully legalized cannabis, the USA is still progressing towards legalization [2][3] Key Companies to Watch - **Green Thumb Industries Inc. (OTC: GTBIF)**: This company manufactures and sells cannabis products for both medical and adult-use markets. It has recently expanded its presence in Pennsylvania with a new dispensary [4][6] - **Jushi Holdings Inc. (OTC: JUSHF)**: A vertically integrated cannabis company involved in cultivation, processing, retail, and distribution. It has modified a secured commercial loan to support capital expenditures and working capital [8][10] - **Greenlane Holdings, Inc. (NASDAQ: GNLN)**: Engages in the development and distribution of cannabis accessories and lifestyle products. The company reported a significant decline in total revenue for Q2 2025 compared to the previous year [10][12] Financial Performance Highlights - **Greenlane Holdings, Inc.**: Reported total revenue of $0.8 million for Q2 2025, down from $2.6 million in the prior year. Operating expenses decreased by 27% to $3.3 million, while the operating loss improved slightly to $3.3 million compared to $3.5 million in the previous year [12][14]

Industry Overview - The cannabis industry is experiencing increased trading activity, driven by speculation regarding federal reform and the potential for greater legitimacy [1][2][3] - Despite significant revenue generation, the industry still has room for growth and development, with hopes that regulatory changes will lead to more consistent trading of marijuana stocks [3] Company Highlights - **Green Thumb Industries Inc.**: Engages in the manufacturing, distribution, marketing, and sale of cannabis products, operating through Retail and Consumer Packaged Goods segments. Recently expanded its presence in Pennsylvania with a new RISE Dispensary, marking its 19th location in the state and 108th nationwide [4][6] - **Jushi Holdings Inc.**: A vertically integrated cannabis company involved in cultivation, processing, retail, and distribution for medical and adult-use markets in the U.S. [7] - **Greenlane Holdings, Inc.**: Focuses on the development and distribution of cannabis accessories and lifestyle products across the U.S., Canada, Europe, and Latin America. Reported Q2 2025 earnings in mid-August [9] Financial Performance - A company reported total revenue of $0.8 million for the recent quarter, a decline from $2.6 million in the same period last year. Operating expenses decreased by 27% to $3.3 million, while the operating loss improved slightly to $3.3 million from $3.5 million year-over-year. The net loss was $3.2 million, compared to a net loss of $0.6 million in the prior year [12]

Industry Overview - The U.S. cannabis industry is expected to show substantial progress by 2025, despite a recent drop in market value, indicating ongoing potential in the sector [1] - Legislative and regulatory actions, including banking reform and cannabis rescheduling, are crucial for the industry's future [1][2] Market Dynamics - Marijuana stocks are currently more influenced by the probability of reform rather than its actual implementation, reflecting the political uncertainty surrounding the industry [2] - Long-term demand for cannabis in legal states is growing, with steady consumer adoption and market expansion in newer markets [2] Company Highlights - **Greenlane Holdings, Inc.** focuses on cannabis accessories and reported Q2 2025 financial results [4][6] - **High Tide Inc.** operates in the cannabis retail sector in Canada, with total revenue of $0.8 million in the latest period, down from $2.6 million year-over-year, while total operating expenses decreased by 27% to $3.3 million [9] - **Village Farms International, Inc.** reported strong Q2 results with consolidated income from continuing operations of $9.9 million, net income of $26.5 million, and an adjusted EBITDA of $17.1 million, reflecting a 146% year-over-year increase in Canadian cannabis adjusted EBITDA [17]

PART I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Greenlane Holdings, Inc.'s unaudited condensed consolidated financial statements, highlighting increased cash and equity despite declining net sales and rising net losses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Asset/Liability Category | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Cash | $5,724 | $899 | | Accounts receivable, net | $3,795 | $4,262 | | Inventories, net | $14,352 | $14,215 | | Total current assets | $28,117 | $23,772 | | Total assets | $31,777 | $28,631 | | Accounts payable | $8,710 | $9,787 | | Current portion of notes payable | $— | $7,674 | | Total current liabilities | $11,826 | $22,266 | | Total liabilities | $11,831 | $22,349 | | Total stockholders' equity | $19,946 | $6,282 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statements of Operations (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $788 | $2,652 | $2,257 | $7,578 | | Cost of sales | $786 | $1,641 | $1,534 | $5,055 | | Gross profit | $2 | $1,011 | $723 | $2,523 | | Total operating expenses | $3,258 | $4,506 | $7,455 | $9,998 | | Loss from operations | $(3,256) | $(3,495) | $(6,732) | $(7,475) | | Total other income (expense), net | $41 | $2,863 | $(350) | $2,352 | | Net loss | $(3,215) | $(632) | $(7,082) | $(5,123) | | Net loss attributable to Greenlane Holdings, Inc. | $(3,215) | $(615) | $(7,082) | $(5,106) | | Net loss per share - basic and diluted | $(3.18) | $(997.50) | $(13.92) | $(10,267.50) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' Equity Changes (in thousands) | Item | Balance Dec 31, 2024 | Net Loss (Q1 2025) | Issuance of Shares/Warrants | Exercise of Warrants | Net Loss (Q2 2025) | Balance June 30, 2025 | | :-------------------------- | :------------------- | :----------------- | :-------------------------- | :------------------- | :----------------- | :-------------------- | | Additional Paid-In Capital | $281,095 | — | $20,730 | — | $3 | $301,841 | | Accumulated Deficit | $(274,929) | $(3,867) | — | — | $(3,215) | $(282,011) | | Total Stockholders' Equity | $6,282 | $(3,867) | $20,730 | $0 | $(3,215) | $19,946 | - The Company's Class A common stock shares outstanding increased significantly from 3,023 at December 31, 2024, to **1,386,551 at June 30, 2025**, primarily due to the exercise of pre-funded warrants and issuance of Class A shares and warrants[8](index=8&type=chunk)[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(7,895) | $(379) | | Net cash used in investing activities | $(68) | $(151) | | Net cash provided by financing activities | $12,788 | $237 | | Net increase (decrease) in cash | $4,825 | $(294) | | Cash as of end of the period | $5,724 | $169 | - The significant increase in cash provided by financing activities in 2025 was primarily due to **$20.7 million in proceeds from the February 2025 private placement**, offset by **$8.0 million in debt payments**[18](index=18&type=chunk)[253](index=253&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1. Business Operations and Organization](index=9&type=section&id=NOTE%201.%20BUSINESS%20OPERATIONS%20AND%20ORGANIZATION) - Greenlane Holdings, Inc. operates as a holding company for Greenlane Holdings, LLC, merchandising **cannabis accessories, vaporization solutions, and lifestyle products globally**, and has developed proprietary brands like Groove and Higher Standards, while holding licenses for Marley Natural and K.Haring products[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The Company effected a **one-for-seven hundred and fifty reverse stock split** on June 25, 2025, retroactively adjusting all share and per share amounts[32](index=32&type=chunk)[34](index=34&type=chunk) - Despite incurring net losses and significant cash usage in operating activities, management believes current cash on hand, including proceeds from the February 2025 Private Placement, will be **sufficient for the next 12 months**, contingent on executing a plan to **reduce costs, increase revenue, form strategic partnerships, and seek additional capital**[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - In February 2025, the Company completed a private placement raising approximately **$25.0 million** through the sale of Class A common stock and investor warrants, which was crucial for its liquidity[43](index=43&type=chunk)[44](index=44&type=chunk) - Management initiatives include **strategic marketing partnerships** (Mainstem, Cannabis Creative Group), **exclusive distribution agreements** (Green Gruff, Greentank, ALD Group Limited), **sales team restructuring, renegotiating vendor terms, and consolidating operational and digital footprints** to improve efficiency and reduce costs[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [NOTE 2. Summary of Significant Accounting Policies](index=14&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The Company's unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim reporting, with certain information condensed or omitted[63](index=63&type=chunk) - As of June 30, 2025, the Company manages its global business operations through **one reportable operating business segment**[66](index=66&type=chunk) - Revenue is recognized when customers obtain control of goods, measured by expected consideration, and reduced by discounts and return allowances, with the Company transitioning its Industrial segment from a commission revenue model back to recognizing gross revenue[67](index=67&type=chunk)[71](index=71&type=chunk) - Two customers accounted for approximately **30% and 18% of net sales** for the three and six months ended June 30, 2025, respectively, indicating significant customer concentration[72](index=72&type=chunk) [NOTE 3. Business Acquisitions and Dispositions](index=16&type=section&id=NOTE%203.%20BUSINESS%20ACQUISITIONS%20AND%20DISPOSITIONS) - The sale of EU subsidiaries Shavita B.V. and ARI Logistics B.V. in May 2024 is currently in dispute due to unmet consideration and monetary obligations from the purchasers, leading the Company to continue operations and pursue claims[76](index=76&type=chunk) [NOTE 4. Fair Value of Financial Instruments](index=16&type=section&id=NOTE%204.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) - The Company's investment in equity securities without readily determinable fair value, specifically Airgraft Inc., was approximately **$1.9 million** as of June 30, 2025, and December 31, 2024, with no fair value adjustments recorded during the periods[78](index=78&type=chunk)[79](index=79&type=chunk) [NOTE 5. Leases](index=17&type=section&id=NOTE%205.%20LEASES) Operating Lease Commitments (in thousands) | Period | Operating Leases | | :---------------------- | :--------------- | | Remainder of 2025 | $483 | | 2026 | $81 | | Total minimum lease payments | $564 | | Present value of minimum lease payments | $553 | | Long-term portion | $5 | Operating Lease Expenses (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | | Operating lease cost | $736 | $457 | | Total lease cost | $736 | $457 | [NOTE 6. Debt](index=18&type=section&id=NOTE%206.%20DEBT) Debt Balance (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :---------- | :------------ | :---------------- | | Note Payable | $— | $3,674 | | Exchange Note | $— | $4,000 | | Total Debt | $— | $7,674 | - All outstanding debt, including the Exchange Note and Note Payable to Cobra, was **fully repaid** during the six months ended June 30, 2025, primarily using proceeds from the February 2025 Private Placement[90](index=90&type=chunk)[95](index=95&type=chunk) - In 2024, the Company recorded a **gain on extinguishment of $2.1 million** related to the modification of the Secured Bridge Loan with Synergy, where Synergy acquired certain assets in exchange for debt reduction[98](index=98&type=chunk) [NOTE 7. Commitments and Contingencies](index=20&type=section&id=NOTE%207.%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company is involved in several legal proceedings, including an arbitration demand for **$320 thousand in unpaid legal invoices**, multiple purchaser class action antitrust lawsuits regarding Ccell products, a breach of contract suit for **$297 thousand**, and a Civil Investigation Demand concerning a **$1.9 million PPP loan** under the False Claims Act[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - No reserves for litigation have been taken for the three and six months ended June 30, 2025 and 2024, as the outcomes are inherently unpredictable[110](index=110&type=chunk) [NOTE 8. Supplemental Financial Statement Information](index=21&type=section&id=NOTE%208.%20SUPPLEMENTAL%20FINANCIAL%20STATEMENT%20INFORMATION) Property and Equipment, net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Furniture, equipment and software | $8,595 | $8,595 | | Leasehold improvements | $33 | $33 | | Work in process | $88 | $20 | | Less: accumulated depreciation | $(7,535) | $(7,228) | | Property and equipment, net | $1,181 | $1,420 | Other Current Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | VAT refund receivable | $61 | $43 | | Prepaid expenses | $199 | $301 | | Non-inventory deposits | $952 | $952 | | Customs bonds | $500 | $— | | Total | $1,719 | $1,305 | Accrued Expenses and Other Current Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Accrued employee compensation | $223 | $1,052 | | Accrued professional fees | $704 | $166 | | Other accrued expenses | $175 | $— | | Total | $1,102 | $1,218 | Customer Deposits (in thousands) | Item | Amount | | :------------------------------------ | :----- | | Balance as of December 31, 2024 | $2,661 | | Customer adjustments | $(1,063) | | Revenue recognized | $132 | | Balance as of June 30, 2025 | $1,466 | - The four largest vendors accounted for approximately **38.6% of total purchases** for the three months ended June 30, 2025, and **57.4% for the six months ended June 30, 2025**, indicating significant supplier concentration[119](index=119&type=chunk) [NOTE 9. Stockholders' Equity](index=24&type=section&id=NOTE%209.%20STOCKHOLDERS%27%20EQUITY) - The Company completed a **one-for-750 reverse stock split** on June 25, 2025, which retroactively adjusted all share and per share amounts in the financial statements[124](index=124&type=chunk)[125](index=125&type=chunk) - In February 2025, the Company consummated a private placement of approximately **$25.0 million of Class A common stock and investor warrants**, significantly impacting additional paid-in capital[130](index=130&type=chunk) - During the three months ended June 30, 2025, investors exercised **1,353,658 Series B warrants and 21,777 additional pre-funded warrants**, with no cash collected as they were pre-funded[133](index=133&type=chunk) Potentially Dilutive Securities Excluded from EPS Calculation (in common stock equivalent shares) | Security Type | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------- | :------------------ | :------------------ | | Stock options | 5 | 5 | | Warrants | 31,552 | 1,032 | | Total | 31,557 | 1,037 | [NOTE 10. Compensation Plans](index=27&type=section&id=NOTE%2010.%20COMPENSATION%20PLANS) - The total number of Class A common stock shares authorized for issuance under the Amended and Restated 2019 Equity Incentive Plan is **10,000 shares**, after giving effect to the reverse stock splits[143](index=143&type=chunk) Equity-Based Compensation Expense (in thousands) | Expense Type | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | Stock options - Class A common stock | $— | $— | | Restricted shares - Class A common stock | $— | $86 | | Total equity-based compensation expense | $— | $86 | [NOTE 11. Income Taxes](index=29&type=section&id=NOTE%2011.%20INCOME%20TAXES) - Effective December 31, 2022, the Operating Company became wholly owned by Greenlane, converting its tax status to a disregarded entity, meaning **100% of its U.S. income and expenses are now included in Greenlane's U.S. and state tax returns**[150](index=150&type=chunk) - The Company has established a **full valuation allowance** against its deferred tax assets, resulting in a carrying balance of **$0** as of June 30, 2025, and December 31, 2024, due to uncertainty regarding the realization of net operating loss benefits[151](index=151&type=chunk) - The Tax Receivable Agreement (TRA) liability was **none** as of June 30, 2025, and December 31, 2024, because the amount or timing of payments to noncontrolling interest holders is no longer probable or reasonably estimable due to the full valuation allowance on deferred tax assets[155](index=155&type=chunk) [NOTE 12. Segment Reporting](index=29&type=section&id=NOTE%2012.%20SEGMENT%20REPORTING) - As of June 30, 2025, Greenlane Holdings, Inc. operates as a **single reportable operating segment**, aligning with how management reviews financial information and allocates resources[158](index=158&type=chunk) Net Sales by Geography (in thousands) | Geography | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | United States | $788 | $1,364 | $2,257 | $5,214 | | Canada | $— | $70 | $— | $157 | | Europe | $— | $1,218 | $— | $2,207 | | Total net sales | $788 | $2,652 | $2,257 | $7,578 | Long-Lived Assets by Geographic Area (in thousands) | Geography | June 30, 2025 | December 31, 2024 | | :---------- | :------------ | :---------------- | | United States | $1,768 | $2,459 | | Canada | $— | $4 | | Europe | $— | $— | | Total long-lived assets | $1,768 | $2,463 | Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Cash | $5,724 | $899 | $4,825 | 536.7% | | Total Current Assets | $28,117 | $23,772 | $4,345 | 18.3% | | Total Assets | $31,777 | $28,631 | $3,146 | 11.0% | | Total Current Liabilities | $11,826 | $22,266 | $(10,440) | (46.9)% | | Total Liabilities | $11,831 | $22,349 | $(10,518) | (47.1)% | | Total Stockholders' Equity | $19,946 | $6,282 | $13,664 | 217.5% | Condensed Consolidated Statements of Operations Highlights (in thousands, except EPS) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Sales | $788 | $2,652 | $(1,864) | (70.3)% | | Gross Profit | $2 | $1,011 | $(1,009) | (99.8)% | | Loss from Operations | $(3,256) | $(3,495) | $239 | 6.8% | | Net Loss | $(3,215) | $(632) | $(2,583) | (408.7)% | | Net Loss per Share (Basic & Diluted) | $(3.18) | $(997.50) | $994.32 | 99.7% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Sales | $2,257 | $7,578 | $(5,321) | (70.2)% | | Gross Profit | $723 | $2,523 | $(1,800) | (71.3)% | | Loss from Operations | $(6,732) | $(7,475) | $743 | 9.9% | | Net Loss | $(7,082) | $(5,123) | $(1,959) | (38.2)% | | Net Loss per Share (Basic & Diluted) | $(13.92) | $(10,267.50) | $10,253.58 | 99.9% | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Cash Used in Operating Activities | $(7,895) | $(379) | $(7,516) | (1983.1)% | | Net Cash Used in Investing Activities | $(68) | $(151) | $83 | 55.0% | | Net Cash Provided by Financing Activities | $12,788 | $237 | $12,551 | 5295.8% | | Net Increase (Decrease) in Cash | $4,825 | $(294) | $5,119 | (1741.8)% | | Cash at End of Period | $5,724 | $169 | $5,555 | 3286.9% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, noting significant declines in net sales and gross profit, increased net losses, and ongoing profitability initiatives - Greenlane is a global platform for **cannabis accessories, vape devices, and lifestyle products**, serving a diverse customer base including multi-state operators (MSOs), single-state operators (SSOs), Canadian licensed producers (LPs), specialty retailers, and direct consumers through various e-commerce platforms[170](index=170&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk) - The Company's plan to accelerate profitability includes **technology enhancements, facility footprint rationalization, headcount reduction, improved inventory management, sales force upgrades, product innovation, and securing additional capital investment**[176](index=176&type=chunk)[178](index=178&type=chunk) - The United States Postal Service (USPS) approved Greenlane's PACT Act Exemption, allowing it to ship vaporizers and accessories classified as electronic nicotine delivery systems (ENDS) products to other compliant businesses, which is expected to **reduce shipping costs and improve fulfillment times**[179](index=179&type=chunk)[180](index=180&type=chunk) Consolidated Results of Operations (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net sales | $788 | $2,652 | $(1,864) | (70)% | | Gross profit | $2 | $1,011 | $(1,009) | (100)% | | Salaries, benefits and payroll taxes | $1,119 | $1,509 | $(390) | (26)% | | General and administrative | $1,938 | $2,801 | $(863) | (31)% | | Loss from operations | $(3,256) | $(3,495) | $239 | (7)% | | Interest expense | $— | $(289) | $(289) | (100)% | | Net loss | $(3,215) | $(632) | $(2,583) | (409)% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net sales | $2,257 | $7,578 | $(5,321) | (70)% | | Gross profit | $723 | $2,523 | $(1,800) | (71)% | | Salaries, benefits and payroll taxes | $2,386 | $4,455 | $(2,069) | (46)% | | General and administrative | $4,762 | $5,093 | $(331) | (7)% | | Loss from operations | $(6,732) | $(7,475) | $743 | 10% | | Interest expense | $(391) | $(811) | $420 | 52% | | Net loss | $(7,082) | $(5,123) | $(1,959) | (38)% | - The Company's cash balance increased to **$5.7 million** as of June 30, 2025, from **$0.9 million** at December 31, 2024, and working capital increased to **$16.3 million** from **$1.5 million**, largely due to the **$25.0 million February 2025 Private Placement**[221](index=221&type=chunk)[222](index=222&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Quantitative and qualitative disclosures regarding market risk are not required for the Company - The Company is not required to provide quantitative and qualitative disclosures about market risk[257](index=257&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective due to un-remediated material weaknesses, with ongoing remediation efforts and ERP system adaptation - As of June 30, 2025, the Company's disclosure controls and procedures were **not effective** due to un-remediated material weaknesses in internal control over financial reporting, as described in its Annual Report on Form 10-K for the year ended December 31, 2024[259](index=259&type=chunk) - Remediation efforts are actively underway, including **enhancing company-wide risk assessment, improving control documentation, implementing additional review procedures, improving segregation of duties, and providing training to control owners**[261](index=261&type=chunk) - The Company completed a multi-year implementation of a new ERP system in 2023, which is expected to lead to ongoing changes in internal control over financial reporting as processes and procedures are adapted[264](index=264&type=chunk) PART II. Other Information [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 7 for details on material pending legal proceedings, including various lawsuits and investigations - For a description of material pending legal proceedings, refer to Note 7 of the Notes to Condensed Consolidated Financial Statements[267](index=267&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, highlighting significant losses, going concern uncertainty, potential Nasdaq delisting, and adverse impacts from tariffs and trade disputes - The Company has incurred net losses of **$7.1 million and $5.1 million** for the six months ended June 30, 2025 and 2024, respectively, and anticipates continued significant losses, raising substantial doubt about its ability to continue as a going concern[269](index=269&type=chunk) - The Company's ability to continue as a going concern is contingent upon successful execution of management's plan to improve liquidity and profitability, including **reducing operating costs, increasing revenue, executing strategic partnerships, and seeking additional capital**[269](index=269&type=chunk)[270](index=270&type=chunk) - Greenlane received a delisting notification from Nasdaq on May 5, 2025, but demonstrated compliance with the Bid Price Rule by July 29, 2025, though it remains under a **one-year Discretionary Panel Monitor** due to its history of compliance issues[272](index=272&type=chunk)[273](index=273&type=chunk) - New tariffs, including a **145% tariff** on substantially all products of Chinese origin (some temporarily paused at **30%**), and the evolving trade policy dispute between the U.S. and China, may adversely affect demand for the Company's products and its costs[274](index=274&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities or issuer purchases of equity securities occurred during the period - There were no unregistered sales of equity securities or issuer purchases of equity securities during the period[275](index=275&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No other information is reported in this section - No other information is reported in this section[276](index=276&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including agreements, certifications, and XBRL financial statements - The exhibits include forms of warrants, securities purchase agreements, loan and security agreements, asset purchase agreements, loan modification agreements, certifications of executive officers, and Inline XBRL formatted financial statements[278](index=278&type=chunk)

Industry Overview - The cannabis industry is experiencing volatility, yet consumer demand for cannabis is growing globally [2][3] - Over half of the United States has legalized cannabis, generating billions in revenue, but federal banking measures are still lacking due to its classification as a Schedule 1 narcotic [2] Company Highlights - **Jushi Holdings Inc.**: A vertically integrated cannabis company involved in cultivation, processing, retail, and distribution for medical and adult-use markets in the U.S. [4] - **Recent Financial Performance**: Jushi reported Q2 2025 earnings with total revenue of $65.0 million, gross profit of $28.9 million (44.5% margin), and a net loss of $12.3 million [9] - **Planet 13 Holdings Inc.**: Engages in cultivating and providing cannabis products for medical and retail markets. They announced the introduction of "Planet the 13th Night Market" to support local creators [8][11] - **Greenlane Holdings, Inc.**: Focuses on the development and distribution of cannabis accessories and vape devices. Recently selected JointCommerce for its B2C e-commerce digital marketing platform [12][14] Investment Opportunities - Investors are encouraged to keep an eye on specific marijuana stocks that may present profitable opportunities in the future [3][8]

Industry Overview - The cannabis industry has faced challenges, with the market value dropping from projections of $30 billion to below that figure, yet there remains optimism for future growth due to potential federal reforms [2] - Current market conditions have led to a decline in marijuana stock prices, presenting potential entry points for investors [3] Company Highlights - **Green Thumb Industries Inc.**: Engaged in manufacturing, distributing, and selling cannabis products for medical and adult-use markets in the U.S. The company is set to hold a Q2 2025 earnings conference call on August 6, 2025 [4][6] - **Greenlane Holdings, Inc.**: Focuses on the development and distribution of cannabis accessories and lifestyle products. Recently selected JointCommerce as its B2C e-commerce digital marketing platform to enhance growth [7][8] - **Planet 13 Holdings Inc.**: Cultivates and provides cannabis products for medical and retail markets in the U.S. The company will report its Q2 2025 earnings on August 13, 2025, with a conference call to discuss financial results and business strategy [9][11]

Industry Overview - The cannabis industry is projected to exceed $45 billion by 2025, with strong growth expected over the next five years as demand for accessories and digital services increases [1][4] - Ancillary sectors such as technology, packaging, and paraphernalia are becoming essential, providing support without directly handling cannabis [1][4] Legislative Environment - Momentum for cannabis legalization is building, with new bills being introduced in key states and some regions expanding medical access or softening penalties [2] - Federal reform remains slow, causing fluctuations in cannabis stocks in response to news events [2] Investment Opportunities - Ancillary cannabis companies are seen as a smart investment for exposure to the cannabis sector without the legal risks associated with growers or dispensaries [1][4] - Key ancillary stocks to monitor include Leafly Holdings Inc. (LFLY), WM Technology Inc. (MAPS), and Greenlane Holdings Inc. (GNLN) [4][6] Company Profiles Leafly Holdings Inc. (LFLY) - Leafly is a leading online cannabis marketplace, serving millions of users and listing inventory from over 10,000 licensed dispensaries [5][7] - The company is facing financial strain, having shifted to over-the-counter trading, with anticipated Q1 2025 revenue around $8.5 million [7] - Leafly's primary revenue source is advertising, but operational losses are a concern, necessitating improved monetization and cost management [7] WM Technology Inc. (MAPS) - WM Technology, known as Weedmaps, connects consumers with licensed retailers and provides digital tools for over 5,000 cannabis businesses [8] - In Q1 2025, Weedmaps reported revenue of $44.6 million, maintaining positive adjusted operating income of $2.6 million, indicating financial stability [8] - The company is focusing on improving platform features and retaining long-term clients, despite a slowdown in new customer growth [8] Greenlane Holdings Inc. (GNLN) - Greenlane is a supplier of cannabis accessories and packaging, specializing in vaporizers and safety packaging, with operations across North America and abroad [9] - The company raised $25 million through a private placement in February 2025 and executed a 1-for-750 reverse stock split to meet Nasdaq standards [11] - Greenlane is undergoing restructuring efforts to stabilize and return to profitability, with revenue figures for Q1 yet to be disclosed [11] Market Sentiment - Ancillary cannabis companies are viewed as strong entry points for investors seeking exposure without direct investment in cultivation or retail [12] - Each company presents unique advantages and challenges, with July 2025 being a critical time to monitor their progress and consider investment opportunities [12]

Industry Overview - The cannabis industry continues to attract optimism among investors due to strong financial results from many ancillary and multi-state operators (MSOs) in the U.S. [1][2] - Despite market challenges, companies that remain profitable are seen as long-term investment opportunities, suggesting a potential recovery in the sector [2][3] - Legislative changes, such as rescheduling cannabis or passing banking measures, are anticipated to positively impact market dynamics, given the significant revenue generated in the U.S. [3] Company Highlights - **Planet 13 Holdings Inc.**: Engages in the cultivation and provision of cannabis products for medical and retail markets in the U.S. Recently held its Annual General Meeting, with notable director election results [4][6][7]. - **Greenlane Holdings, Inc.**: Focuses on the development and distribution of cannabis accessories and lifestyle products across multiple regions. Recently appointed Mike Hinson as Executive Vice President of Sales to enhance sales and marketing initiatives [8][10]. - **Jushi Holdings Inc.**: A vertically integrated cannabis company involved in cultivation, processing, and retail. Recently launched a lifestyle cannabis brand named 'Shayo', in collaboration with a reality TV star, aiming to promote wellness [12][13].