UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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 number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other juris ...

Financial Performance - The company reported net losses of $79.1 million and $31.3 million for the years ended December 31, 2022, and 2021, respectively, due to substantial investments in developing monitoring and compliance platforms[147]. - The company has substantial doubt about its ability to continue as a going concern, which could limit its ability to raise additional funds through equity or debt securities[145]. - The company anticipates continuing to incur losses in the near term, although at lower levels due to restructuring actions taken in 2022[147]. - Government contracts for Leaf Data Systems® accounted for 22% and 18% of revenue in 2022 and 2021, respectively[171]. Strategic Alternatives and Mergers - Akerna plans to sell its membership interests in MJ Freeway and Ample Organics for a total purchase price of $4.0 million[47]. - The company aims to enhance shareholder value through strategic alternatives, including mergers and acquisitions[42]. - Akerna is currently in the process of a proposed merger with Gryphon, which is subject to various closing conditions, including stockholder approval[111]. - If the merger with Gryphon does not complete, Akerna's board will evaluate other strategic alternatives, which may not be as favorable to stockholders[112]. - The company is committed to a Sale Transaction to exit the SaaS industry and a Merger as the most favorable strategic alternative for stockholders[145]. - The company may incur costs related to the Sale Transaction, including legal, accounting, and financial advisory fees, even if the transaction is not completed[139]. Market and Industry Trends - The U.S. legal cannabis sales surpassed $25 billion in 2021, representing a 40% growth from $18 billion in 2020, with forecasts predicting sales to reach $46 billion by 2026, a CAGR of 14%[60]. - Global cannabis sales reached nearly $29 billion in 2021, an increase of 45% over 2020, with projections to grow to $61 billion by 2026, reflecting a CAGR of over 16%[60]. - The global CBD market was valued at USD 2.8 billion in 2020, expected to expand at a CAGR of 21.2% from 2021 to 2028[62]. - The anti-counterfeit packaging market is projected to grow from $105.9 billion in 2018 to $182.2 billion by 2023, at a CAGR of 11.5%[63]. Compliance and Regulatory Risks - The cannabis industry faces risks such as federal illegality and changing regulatory environments, which could adversely affect demand for the company's products[154][155]. - The company is exposed to racketeering laws due to receipt of funds from clients involved in cannabis operations, which could result in significant penalties[159]. - The Appropriations Rider, which protects state medical marijuana laws, is set to expire on September 30, 2023, increasing federal enforcement risks if not extended[157]. - Legislative developments beneficial to the cannabis industry are uncertain, with potential opposition from established businesses in other sectors[163]. - The company relies on clients obtaining and retaining various licenses, with no assurance that these will be granted or renewed[167]. Operational Challenges - The COVID-19 pandemic has created extensive disruptions that may adversely impact the company's operations and financial results[152]. - Cybersecurity threats pose a significant risk to the company's IT systems, potentially leading to operational disruptions and reputational damage[175]. - Changes in marijuana laws and regulations could require substantial compliance costs and adversely affect client operations[165]. - The evolving nature of the cannabis industry necessitates adaptability to changing market dynamics for sustained growth[170]. Financial Instruments and Shareholder Impact - The company has $14.7 million in Senior Convertible Notes convertible at $4.75 per share, potentially resulting in the issuance of 3,086,890 shares upon full conversion[197]. - Up to 26,562,911 shares of Common Stock could be issued at the floor price upon conversion of the Senior Convertible Notes, leading to significant dilution for stockholders[198]. - The market price of the Common Stock is highly volatile, with significant fluctuations expected due to factors such as trading volume and market conditions[209]. - The company may face additional risks due to material weaknesses in internal control over financial reporting, potentially leading to regulatory actions and negative impacts on stock price[208]. - The company has not paid dividends in the past and does not expect to pay dividends for the foreseeable future, intending to retain future earnings for business development and expansion[212]. Employee and Operational Structure - As of December 31, 2022, Akerna employed 112 full-time employees, with a majority in engineering and technical roles[107]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to utilize extended transition periods for compliance with new accounting standards[108]. - Attracting and retaining qualified personnel is critical for the company's growth, with intense competition in the cannabis industry for talent[179]. Legal and Compliance Costs - The company is subject to increased legal and financial compliance costs due to being a public company, which may divert management's attention from business operations[215]. - The company identified material weaknesses in internal controls over financial reporting as of December 31, 2022, which could result in material misstatements in financial statements if not remediated[214].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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 number 001-39096 AKERNA CORP. 1550 Larimer Street, #246 Denver, Colorado 80202 (Address of principal executive offices) (Zip Code) Registrant's ...

Financial Data and Key Metrics Changes - Akerna reported Q3 2022 revenue of $5.4 million, with $5.3 million (98%) from software sales, showing year-over-year growth driven by acquisitions [36] - Gross margin for the quarter was 62%, consistent with the previous year, while year-to-date gross margin improved to 67% from 62% [12][38] - Adjusted EBITDA for Q3 2022 was a loss of approximately $1.4 million, an improvement from a loss of $2.3 million in the previous quarter [45] Business Line Data and Key Metrics Changes - Software revenue grew by 17% year-over-year and nearly 40% year-to-date [11] - Committed Annual Recurring Revenue (CARR) was approximately $17 million, slightly below the previous quarter, with a noted reduction in CARR due to client contract negotiations [17][18] - Q3 software bookings were approximately $0.5 million, lower than expected, indicating a need to closely monitor cost structures [22] Market Data and Key Metrics Changes - Transaction volume increased by 10% sequentially, while transaction dollar amount decreased by 10%, reflecting supply and demand dynamics in the legal cannabis market [23] - The company noted that competitive market pressure is high, emphasizing the importance of differentiation in their product offerings [24] Company Strategy and Development Direction - Akerna is focused on integrating acquisitions and improving cost structures to position for future market opportunities [9][10] - The company is taking measures to solidify its leadership position in the market, with cost-saving initiatives saving approximately $600,000 per quarter [14] - Akerna aims to capitalize on new market openings and regulatory changes, particularly with the potential for federal banking actions [27][28] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the cannabis market's growth potential and the company's ability to adapt to economic challenges [34][35] - The company is positioned to benefit from emerging markets, particularly in the Southern US and Latin America [55] - Management acknowledged the challenges posed by customer churn and economic pressures but remains confident in the core software's necessity for clients [46][59] Other Important Information - Akerna completed a $10 million funding round and took steps to maintain compliance with NASDAQ listing standards, including a reverse stock split [26] - The company reported cash and restricted cash of approximately $9.5 million as of September 30, 2022, with net cash used in operating activities at $3.2 million for the quarter [48] Q&A Session Summary Question: Strategy to drive bookings and growth amidst economic challenges - Management highlighted strong growth opportunities in markets like Pennsylvania and Puerto Rico, with emerging activity in New Jersey and Southern US states [55] Question: Positioning in states with licensing applications - Akerna has existing clients in application phases and is working with consulting clients to ensure they are positioned competitively [56] Question: Impact of service level declines on bookings - Management indicated uncertainty but noted that they are working closely with clients to navigate economic challenges, positioning themselves for future growth [58][60]

The cannabis economy runs on Akerna October 2022 1 October 2022 Safe Harbor Forward-Looking Statements This Presentation includes "forward‐looking statements" regarding Akerna Corp. ("Akerna") and its wholly-owned subsidiary MJ Freeway LLC ("MJF" and, together with Akerna, the "Company"), its financial condition and results of operations that reflect the Company's current views and information currently available. This information is, where applicable, based on estimates, assumptions and analysis that MJF b ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, $0.0001 par value per share | KERN | Nasdaq Stock Market LLC (Nasdaq Capital Market) | | Warrants to purchase one share of common stock | KERNW | Nasdaq Stock Market LLC ( ...

Akerna Corporation (KERN) Q2 2022 Earnings Conference Call August 11, 2022 9:00 AM ET Company Participants Jessica Billingsley - Chairman, Chief Executive Officer Dean Ditto - Chief Financial Officer Peter Seltzberg - Investor Relations Conference Call Participants Ryan Kintslinger - Alliance Global Ray Rasa - Operator Good morning and welcome to Akerna’s second quarter 2022 financial results conference call. As a reminder, today’s call is being recorded. At this time, I would like to turn the call over to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ 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 For the transition period from / to Commission file number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other juris ...