[Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2024, total assets decreased to **$41,109 thousand** from **$48,813 thousand** at year-end 2023, total liabilities to **$32,765 thousand**, and total equity to **$8,344 thousand**, resulting in a **$10,518 thousand** working capital deficit Consolidated Statement of Financial Position (in thousands CAD) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $19,967 | $24,265 | | **Total Non-Current Assets** | $21,142 | $24,548 | | **Total Assets** | **$41,109** | **$48,813** | | **Total Current Liabilities** | $30,485 | $32,808 | | **Total Non-Current Liabilities** | $2,280 | $2,305 | | **Total Liabilities** | **$32,765** | **$35,113** | | **Total Equity** | **$8,344** | **$13,700** | - The company's working capital (Current Assets - Current Liabilities) as of March 31, 2024, was negative, indicating a deficit of **$10,518 thousand**[29](index=29&type=chunk) [Interim Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For Q1 2024, revenues slightly decreased to **$12,063 thousand**, gross profit sharply declined to **$1,779 thousand**, and the net loss attributable to equity holders significantly widened to **$5,623 thousand**, resulting in a **$0.42** loss per share Statement of Profit or Loss Highlights (in thousands CAD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $12,063 | $12,529 | | Gross Profit | $1,779 | $2,904 | | Total Operating Expenses | $7,409 | $6,521 | | Operating Loss | ($5,630) | ($3,617) | | Net Loss | ($6,020) | ($866) | | Net Loss attributable to Equity Holders | ($5,623) | ($600) | Loss Per Share (in CAD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | ($0.42) | ($0.05) | - Other operating expenses of **$2,750 thousand** were recorded in Q1 2024, which were not present in the prior year period, primarily related to a goodwill impairment[8](index=8&type=chunk)[101](index=101&type=chunk) [Interim Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from **$13,700 thousand** at January 1, 2024, to **$8,344 thousand** by March 31, 2024, primarily due to a **$6,020 thousand** net loss, partially offset by other comprehensive income Equity Reconciliation for Q1 2024 (in thousands CAD) | Description | Amount | | :--- | :--- | | **Balance as of January 1, 2024** | **$13,700** | | Net loss | ($6,020) | | Total other comprehensive income | $1,362 | | Classification | ($730) | | Share-based compensation | $32 | | **Balance as of March 31, 2024** | **$8,344** | [Interim Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, net cash used in operating activities significantly improved to **($629) thousand**, while financing activities used **($852) thousand**, leading to a **($765) thousand** decrease in cash and cash equivalents, ending the period at **$1,048 thousand** Consolidated Statement of Cash Flows (in thousands CAD) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($629) | ($6,061) | | Net cash used in investing activities | ($2) | ($467) | | Net cash (used in) provided by financing activities | ($852) | $6,557 | | **Decrease in cash and cash equivalents** | **($765)** | **($1,030)** | | **Cash and cash equivalents at end of period** | **$1,048** | **$1,419** | [Notes to Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1:- GENERAL](index=11&type=section&id=NOTE%201:-%20GENERAL) This note outlines the company's operations, significant liquidity challenges, going concern risks, strategic developments including a potential reverse merger, and ongoing legal and regulatory matters [Corporate Information and Operations](index=11&type=section&id=Corporate%20Information%20and%20Operations) IM Cannabis Corp. is listed on the CSE and NASDAQ, with primary revenue from medical cannabis sales in Israel and Germany, having ceased Canadian operations in November 2022 - The **majority** of the Group's revenues are generated from sales of medical cannabis products to customers in Israel, with the remainder from Germany[20](index=20&type=chunk) - The company has **exited its operations in Canada**, with related entities deconsolidated on **November 7, 2022**[24](index=24&type=chunk) [Liquidity and Going Concern](index=12&type=section&id=Liquidity%20and%20Going%20Concern) The company faces significant liquidity challenges, including a **$10,518 thousand** working capital deficit and **$255,431 thousand** accumulated deficit, raising substantial doubt about its ability to continue as a going concern Key Financial Indicators as of March 31, 2024 (in thousands CAD) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $1,048 | | Working capital deficit | ($10,518) | | Accumulated deficit | $255,431 | | Q1 2024 Operating loss | ($5,630) | | Q1 2024 Negative operating cash flow | ($662) | - The company's financial condition raises **substantial doubt about its ability to continue as a going concern**[32](index=32&type=chunk) [Strategic Developments and Transactions](index=13&type=section&id=Strategic%20Developments%20and%20Transactions) The company is pursuing a potential reverse merger with Kadimastem to pivot to biotechnology, has formally exited Canadian operations, and implemented restructuring in Israel to enhance efficiency - On **February 13, 2024**, the company entered a non-binding term sheet for a potential reverse merger with Kadimastem, where existing IMCC shareholders would hold **12%** of the new entity, and the legacy cannabis business would be spun out as a contingent value right[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The company has **exited operations in Canada** through CCAA proceedings, and IMCC will likely realize **no return** from the restructuring[37](index=37&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - The company implemented a **restructuring plan in Israel** in 2023, involving workforce reductions and operational changes to drive efficiencies and achieve sustainable profitability[49](index=49&type=chunk) [Legal and Regulatory Matters](index=16&type=section&id=Legal%20and%20Regulatory%20Matters) The company faces NASDAQ non-compliance for its stock price, is contesting Canadian excise tax assessments for 2020 and 2021, and is defending a **$15 million** lawsuit alleging misrepresentation - The company is **not in compliance** with NASDAQ's minimum bid price rule and has until **July 29, 2024**, to regain compliance[58](index=58&type=chunk)[59](index=59&type=chunk) - The company is **contesting Notices of Assessment** for Canadian Excise Tax for **2020 and 2021**, believing its objections may lead to the assessments being vacated[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - A complaint seeking **$15 million** in damages was filed against the company and certain directors/officers by former shareholders of MYM Nutraceuticals Inc., alleging misrepresentations related to its 2021 acquisition, which the company disputes[64](index=64&type=chunk)[65](index=65&type=chunk) [Other Corporate Matters](index=18&type=section&id=Other%20Corporate%20Matters) The company revoked the Oranim pharmacy acquisition post-quarter end, received approval to acquire the remaining interest in Focus Medical Herbs Ltd., and noted a negative impact on operations from the Israel-Hamas war - An amendment signed on **January 10, 2024**, postponed unpaid installments for the Oranim pharmacy acquisition, with failure to pay by **April 15, 2024**, leading to revocation[72](index=72&type=chunk) - The company exercised its option to purchase the remaining **74%** interest in Focus, with regulatory approval received on **February 25, 2024**[73](index=73&type=chunk) - The Israel-Hamas war, which began on **October 7, 2023**, has had a **negative impact** on the company's business operations, affecting employees, supplies, imports, and sales[75](index=75&type=chunk) [NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES](index=20&type=section&id=NOTE%202:-%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The interim condensed consolidated financial statements are prepared under IAS 34, with recent amendments to IAS 1, IFRS 16, IAS 7, and IFRS 7 adopted from January 1, 2024, having no material impact - The financial statements have been prepared in accordance with **IAS 34, "Interim Financial Reporting"**[76](index=76&type=chunk) - New amendments to **IAS 1, IFRS 16, IAS 7, and IFRS 7** became applicable on **January 1, 2024**, and had no impact on the company's interim financial statements[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [NOTE 3:- INVENTORIES](index=22&type=section&id=NOTE%203:-%20INVENTORIES) Total inventory decreased to **$7,901 thousand** as of March 31, 2024, from **$9,976 thousand** at year-end 2023, primarily consisting of bulk and packaged dried cannabis Inventory Breakdown (in thousands CAD) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bulk cannabis (Work in progress) | $3,272 | $3,735 | | Packaged dried cannabis (Finished goods) | $4,196 | $5,651 | | Other products (Finished goods) | $433 | $590 | | **Total Inventory** | **$7,901** | **$9,976** | [NOTE 4:- FINANCIAL INSTRUMENTS](index=23&type=section&id=NOTE%204:-%20FINANCIAL%20INSTRUMENTS) Warrant liabilities are measured at fair value using the Black & Scholes model, resulting in a **$100 thousand** finance expense in Q1 2024, a significant shift from **$3,636 thousand** finance income in Q1 2023 - Liability for Warrants is measured at fair value using the **Black & Scholes model** (Level 3)[88](index=88&type=chunk) - The revaluation of warrants measured at fair value resulted in a finance expense of **$100 thousand** for Q1 2024, compared to finance income of **$3,636 thousand** in Q1 2023[88](index=88&type=chunk) [NOTE 5:- EQUITY](index=24&type=section&id=NOTE%205:-%20EQUITY) As of March 31, 2024, the company had **13,394,136** issued common shares and **325,452** outstanding share options, following a 10-for-1 share consolidation in November 2022 Share Capital Composition | Class | Authorized | Issued and Outstanding (Mar 31, 2024) | | :--- | :--- | :--- | | Common Shares | Unlimited | 13,394,136 | - In January and February 2023, the company completed a LIFE Offering and a Concurrent Offering, issuing a combined total of **5,145,419 units** at **US$1.25 per unit**[91](index=91&type=chunk)[94](index=94&type=chunk) Share Option Movement Q1 2024 | Status | Number of Options | | :--- | :--- | | Outstanding at beginning of period | 325,452 | | Forfeited during the period | 0 | | **Outstanding at end of period** | **325,452** | | Exercisable at end of period | 309,184 | [NOTE 6:- SELECTED STATEMENTS OF PROFIT OR LOSS DATA](index=26&type=section&id=NOTE%206:-%20SELECTED%20STATEMENTS%20OF%20PROFIT%20OR%20LOSS%20DATA) Selected expenses, including salaries and depreciation, decreased in Q1 2024 compared to the prior year, reflecting the company's cost-saving measures Selected Expenses (in thousands CAD) | Expense Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Salaries and related expenses | $1,878 | $2,458 | | Depreciation and amortization | $680 | $809 | [NOTE 7:- NET EARNINGS (LOSS) PER SHARE](index=26&type=section&id=NOTE%207:-%20NET%20EARNINGS%20(LOSS)%20PER%20SHARE) The basic and diluted net loss per share significantly increased to **$0.42** for Q1 2024, up from **$0.05** in Q1 2023, driven by a larger net loss and higher weighted average shares outstanding Net Loss Per Share Calculation | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss attributable to equity holders (thousands CAD) | ($5,623) | ($600) | | Weighted average number of shares (thousands) | 13,394 | 11,308 | | **Basic and Diluted Loss per Share (CAD)** | **($0.42)** | **($0.05)** | [NOTE 8:- OPERATING SEGMENTS](index=27&type=section&id=NOTE%208:-%20OPERATING%20SEGMENTS) The company operates in Israel and Germany, with Israel generating the majority of Q1 2024 revenue at **$10,911 thousand** but also incurring a larger segment loss of **$4,508 thousand** Segment Performance for Q1 2024 (in thousands CAD) | Segment | Revenue | Segment Loss | | :--- | :--- | :--- | | Israel | $10,911 | ($4,508) | | Germany | $1,152 | ($316) | Segment Performance for Q1 2023 (in thousands CAD) | Segment | Revenue | Segment Loss | | :--- | :--- | :--- | | Israel | $11,437 | ($1,618) | | Germany | $1,092 | ($557) | [NOTE 9:- SUBSEQUENT EVENTS](index=28&type=section&id=NOTE%209:-%20SUBSEQUENT%20EVENTS) Subsequent to quarter-end, the company revoked the Oranim Pharmacy acquisition, resulting in a **$2,753 thousand** goodwill reduction, and secured new and extended existing loans totaling approximately **$1,692 thousand** - On **April 16, 2024**, the company revoked the Oranim Pharmacy acquisition, transferring its **51%** shareholding back to the seller and recording a goodwill reduction of **$2,753 thousand** as of March 31, 2024[101](index=101&type=chunk) - On **April 17, 2024**, a subsidiary entered into a new one-year loan agreement for approximately **$1,082 thousand** with a **15%** annual interest rate[102](index=102&type=chunk) - On **April 17, 2024**, an existing loan of approximately **$610 thousand** was extended to **April 18, 2025**, with an annual interest rate of **17%**[102](index=102&type=chunk)

IMC prepares for accelerated growth after legalization in Germany and recovers from the impact of the Israel-Hamas war. TORONTO and GLIL YAM, Israel, May 8, 2024 /PRNewswire/ -- IM Cannabis Corp. (the "Company" or "IMC") (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial results today for the first quarter ended March 31, 2024. All amounts are reported in Canadian dollars and compared to the quarter ended March 31, 2023, unless otherwise stated. Q1 2024 Financial ...

IM Cannabis (NASDAQ:IMCC) stock is rocketing higher on Wednesday following news that President Joe Biden’s Administration plans to reclassify marijuana.According to insider sources, the Biden Administration is planning to reclassify marijuana from a Schedule I drug to a Schedule III drug. With this rescheduling, cannabis would be in the same group as Tylenol with codeine, steroids and other Class I drugs.The rescheduling would also lower the restrictions on marijuana and allow for more research into its med ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR Commission file number: 001-40065 IM Cannabis Corp. (Exact name of Registrant as specified in its charter) British Columbia, Canada (Jurisdiction of incorporation or organization) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION R ...

The accompanying unaudited condensed interim consolidated financial statements of IM Cannabis Corp. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditors. F - 2 IM CANNABIS CORP. AND ITS SUBSIDIARIES Exhibit 99.2 CANNE O IM CANNABIS CORP. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2023 UNAUDITED NOTICE TO READER INTERIM ...

IM Cannabis Corp. (NASDAQ:IMCC) Q1 2023 Earnings Conference Call May 15, 2023 9:00 AM ET Company Participants Anna Taranko - Director, Investor and Public Relations Oren Shuster - Chief Executive Officer Itay Vago - Chief Financial Officer Conference Call Participants Scott Fortune - ROTH Capital Partners Aaron Grey - Alliance Global Partners Operator Good day and welcome to IM Cannabis’ First Quarter 2023 Earnings Conference Call. Today’s conference call is being recorded. At this time, I would like to tur ...

Exhibit 99.2 I AM CANNABIS IM CANNABIS CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As of March 31,2023 (Unaudited) | | Page | | --- | --- | | Interim Condensed Consolidated Statements of Financial Position | 2 - 3 | | Interim Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income | 4 - 5 | | Interim Condensed Consolidated Statements of Changes in Equity | 6 | | Interim Condensed Consolidated Statements of Cash Flows | 7 - 8 | | Notes to Interim Condensed Consolidate ...

WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 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 ____________________ OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ SHELL COMPANY REPORT P ...

IM Cannabis Corp. (NASDAQ:IMCC) Q4 2022 Earnings Conference Call March 29, 2023 9:00 AM ET Company Participants Maya Lustig - Director of Investor and Public Relations Oren Shuster - Chief Executive Officer Shai Shemesh - Chief Financial Officer Conference Call Participants Aaron Grey - Alliance Global Partners Scott Fortune - Roth Capital Partners Operator Good day, and welcome to IM Cannabis' Fourth Quarter and Full Year 2022 Earnings Conference Call. Today's conference call is being recorded. At this tim ...

Exhibit 99.1 IM Cannabis Reports Fourth Quarter and Fiscal Year 2022 Financial Results; Revenues in 2022 Increased 60% Year-over-Year Company to continue its focus on the Israeli and German markets with a primary goal of sustainably increasing revenue in each of these core markets and accelerating path to profitability, while actively managing costs and margins TORONTO, and GLIL YAM, Israel, March 28, 2023 /PRNewswire/ -- IM Cannabis Corp. (the "Company" or "IMC") (NASDAQ: IMCC) (CSE: IMCC), an internationa ...