Part I [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.) Unaudited Q1 2024 financials show reduced net loss despite revenue decline, with balance sheet changes and notes highlighting going concern and Nasdaq compliance issues [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets slightly decreased, total liabilities increased due to reclassified convertible notes, and stockholders' deficit widened Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,100 | $15,293 | | Total current assets | $18,477 | $19,002 | | Total assets | $21,171 | $21,835 | | Convertible promissory notes, current | $29,221 | $0 | | Total current liabilities | $35,346 | $5,080 | | Total liabilities | $35,442 | $34,293 | | Total stockholders' deficit | $(14,271) | $(12,458) | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 revenue decreased by 19.6% to $9.0 million, but net loss significantly narrowed to $2.4 million due to a 33.9% reduction in operating expenses Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share amounts) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $9,048 | $11,249 | | Gross Profit | $8,072 | $9,903 | | Total Operating Expenses | $9,820 | $14,851 | | Loss from Operations | $(1,748) | $(4,948) | | Net Loss | $(2,387) | $(5,397) | | Net Loss Per Share (Basic & Diluted) | $(1.09) | $(2.79) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities dramatically improved to $0.9 million in Q1 2024, primarily due to lower net loss and favorable working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(873) | $(9,226) | | Net cash used in investing activities | $(209) | $(525) | | Net cash (used in) provided by financing activities | $(114) | $112 | | **Net decrease in cash** | **$(1,196)** | **$(9,639)** | | Cash, cash equivalents, and restricted cash, end of period | $14,348 | $15,563 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight substantial doubt about going concern due to maturing convertible notes and Nasdaq non-compliance, with revenue primarily from U.S. retail advertising - The company has substantial doubt about its ability to continue as a going concern, as it does not have the ability to repay its **$29.7 million** of convertible notes maturing on January 31, 2025, with its current liquidity[36](index=36&type=chunk)[39](index=39&type=chunk) - On April 9, 2024, Leafly received a notice from Nasdaq for non-compliance with continued listing standards, as it did not meet the minimum requirements for Stockholders' Equity, Market Value of Listed Securities, or Net Income[79](index=79&type=chunk) Revenue Breakdown by Segment (Q1 2024 vs Q1 2023, in thousands) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | Retail | $7,871 | $9,470 | | Brands | $1,177 | $1,779 | | **Total** | **$9,048** | **$11,249** | - Subsequent to quarter end, on May 7, 2024, the company converted an additional **$275,000** of its 2022 Notes into **96,813 shares** of common stock[141](index=141&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.) Management discusses a 20% revenue decline offset by ARPA growth, significant expense reductions improving net loss, and reiterates going concern and Nasdaq compliance issues [Key Metrics](index=31&type=section&id=Key%20Metrics) Key operating metrics show a strategic shift with a 33% decrease in retail accounts offset by a 22% increase in retailer Average Revenue Per Account (ARPA) Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Ending retail accounts | 3,840 | 5,702 | -33% | | Retailer ARPA | $677 | $553 | +22% | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2024 total revenue decreased by 20% to $9.0 million, while total operating expenses fell 34% to $9.8 million due to significant cost reductions - The **20% decrease** in total revenue was driven by a **$1.6 million (-17%)** decrease in Retail revenue and a **$0.6 million (-34%)** decrease in Brands revenue[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Total operating expenses decreased by **$5.0 million (-34%)** year-over-year, a result of reductions in force and cost-cutting activities initiated in early 2023[163](index=163&type=chunk)[164](index=164&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA loss significantly improved to **$0.9 million** in Q1 2024 from **$3.3 million** in Q1 2023, attributed to cost savings from restructuring Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(2,387) | $(5,397) | | EBITDA | $(1,451) | $(4,489) | | **Adjusted EBITDA** | **$(867)** | **$(3,344)** | [Liquidity, Capital Resources, and Going Concern](index=36&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Going%20Concern) Current capital resources are insufficient to fund operations for 12 months, raising substantial doubt about going concern due to inability to repay **$29.7 million** in 2022 Notes maturing in January 2025 - The company has **$29.7 million** of 2022 Notes maturing on January 31, 2025, and based on its current liquidity position, it would not be able to repay them when due[184](index=184&type=chunk) - Management concluded that substantial doubt exists about the company's ability to continue as a going concern within one year of the financial statement issuance date[185](index=185&type=chunk) - The company is non-compliant with Nasdaq's continued listing standards and intends to submit a plan to regain compliance, but there is no assurance an extension will be granted or that compliance will be achieved[189](index=189&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.) As a smaller reporting company, Leafly is not required to provide information regarding market risk - Leafly is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information otherwise required with respect to market risk[197](index=197&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period[200](index=200&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[201](index=201&type=chunk) Part II [Legal Proceedings](index=41&type=section&id=Item%201.) The company is involved in ordinary course legal proceedings with no material developments since the 2023 Annual Report - There have been no material developments to the legal proceedings reported in the 2023 Annual Report[202](index=202&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.) There have been no material changes to the risk factors disclosed in the company's 2023 Annual Report - As of the date of this report, the company is not aware of any material changes in the risk factors disclosed in its 2023 Annual Report[203](index=203&type=chunk) [Other Information](index=41&type=section&id=Item%205.) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024 - During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[204](index=204&type=chunk) [Exhibits](index=42&type=section&id=Item%206.) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including certifications and new agreements

Financial Data and Key Metrics Changes - The company reported revenue of $9 million in Q1 2024, down 19.6% year-over-year and down 7.2% sequentially [20] - The net loss in Q1 was $2.4 million, an improvement from the $5.4 million net loss reported in Q1 2023 [10] - Adjusted EBITDA in Q1 was negative $0.9 million, improving from negative $3.3 million in Q1 2023 [10] - Gross margin improved to 89.2% in Q1 2024 compared to 88% in Q1 2023 [21] - The company ended the quarter with $14.1 million in cash, excluding restricted cash [39] Business Line Data and Key Metrics Changes - Retail revenue in Q1 was $7.9 million, while brand revenue was $1.2 million, with brand revenue down 34% year-over-year [20][9] - The average revenue per account (ARPA) for the first quarter was $677, up 22% year-over-year and up about 1% sequentially [9] - Ending retail accounts totaled 3,840, marking a 5.8% reduction quarter-over-quarter [32][50] Market Data and Key Metrics Changes - The company is focusing on enhancing retail penetration and customer acquisition in key markets [5][32] - The rescheduling of cannabis is expected to provide significant tax savings for operators, estimated between $1 billion to $2 billion, which can be reinvested into their businesses [43][55] Company Strategy and Development Direction - The company is committed to enhancing operational efficiency and building a path to profitability while nurturing customer relationships [31] - Efforts are being made to revamp the brand subscription offering to introduce brands to the Leafly platform and deepen relationships with them [37] - The company is focused on improving its product portfolio to cater to a wider range of retail customers [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential for growth following the rescheduling of cannabis, which could alleviate capital constraints in the industry [27][55] - The company anticipates revenue of around $8.6 million for Q2 2024 and an adjusted EBITDA loss of approximately negative $1.1 million [41] - Management is focused on mitigating account churn and winning new business to reverse the downward trend in retail accounts [58] Other Important Information - The company is in ongoing dialogue with its lender regarding convertible notes due in January 2025, which have become a current liability [39][56] - The company plans to submit a compliance plan to NASDAQ for a 180-day extension to regain compliance with listing requirements [24] Q&A Session Summary Question: How does the rescheduling of cannabis impact the business and the industry? - Management highlighted excitement around rescheduling, noting it could alleviate capital constraints faced by retailers and brands [27] Question: Can you provide an update on the convertible note? - Management discussed efforts to work with the lender to convert a portion of the debt to equity and explore opportunities to maximize shareholder value [44][45] Question: Can you talk about account churn and new customer acquisition? - Management indicated that account churn has stabilized, and new sales heads are focused on adding accounts to mitigate churn and attract new customers [29][46]

Leafly Holdings, Inc. Reports First Quarter 2024 Financial Results Delivered Q1 2024 revenue of $9.0 million Reported net loss of $2.4 million and adjusted EBITDA1 loss of $0.9 million Hires financial advisors, PGP and Benchmark, to explore financing and strategic opportunities SEATTLE--(BUSINESS WIRE)-- May 9, 2024 --Leafly Holdings, Inc. ("Leafly" or "the Company") (NASDAQ: LFLY), a leading online cannabis discovery marketplace and resource for cannabis consumers, today announced financial results for its ...

 Ancillary Cannabis Companies Enhancing Industry InfrastructureThe US cannabis industry and marijuana stocks are experiencing rapid growth, with a market value expected to reach $41 billion by 2025. Ancillary cannabis companies are playing a crucial role in this expansion. These firms provide essential services and products such as packaging, technology, and online marketplaces. This support allows core cannabis businesses to thrive without handling every aspect of the operation. Recent headlines highlight ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-K _____________________________ (Mark One) ☒ 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 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-39119 _____________________________ (Exact nam ...

Leafly Holdings Inc (NASDAQ:LFLY) Q4 2023 Results Conference Call March 28, 2024 4:30 PM ET Company Participants Josh deBerge - IR Yoko Miyashita - President, CEO & Director Suresh Krishnaswamy - Chief Financial Officer Operator Good afternoon. Thank you for attending today's Leafly Fourth Quarter 2023 Earnings Call. My name is Tamia, and I will be your moderator for today's call. I would now like to pass the conference over to your host, Josh deBerge with Leafly. You may proceed. Josh deBerge Good afternoo ...

Table of Contents 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, 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: 001-39119 Leafly Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 84-2266022 (State or other jurisdiction of incorporation or organization) 113 Cherry ...

Table of Contents ROC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 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: 001-39119 Leafly Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 84-2266022 ( Sta ...

Leafly Holdings, Inc. (NASDAQ:LFLY) Q1 2023 Earnings Conference Call May 11, 2023 6:00 PM ET Company Participants Keenan Zopf - Investor Relations, The Blueshirt Group Yoko Miyashita - Chief Executive Officer Suresh Krishnaswamy - Chief Financial Officer Conference Call Participants Operator Good morning. Thank you for attending today's Leafly First Quarter 2023 Earnings Call. [Operator Instructions] I'd now like to pass the conference over to your host Keenan Zopf, with The Blueshirt Group. You may procee ...

ROC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Table of Contents 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, 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: 001-39119 Leafly Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 84-2266022 ( St ...