Revenue Performance - Total revenues for the three months ended September 30, 2024, increased by $2.3 million, or 15%, to $17.6 million compared to $15.3 million in the prior year quarter[91]. - LNG Product revenue rose by $2.1 million, or 17.6%, driven by an increase in gallons delivered and customer pricing mix[91]. - Total revenues for the nine months ended September 30, 2024, increased by $0.9 million, or 2%, to $55.995 million compared to $55.065 million in the prior year[104]. - LNG product revenues decreased by $300 thousand, or 0.7%, to $44.295 million, while rental and service revenues increased by 17.9% and 11.7%, respectively[103]. Operating Expenses - Operating expenses increased by $1.6 million, or 9.9%, with cost of revenues accounting for $12.6 million, representing 72% of total revenue[91][93]. - Operating expenses decreased by $2.771 million, or 4.9%, to $54.246 million, primarily due to a $3.209 million decrease in the cost of revenues[103]. - Selling, general, and administrative expenses increased by $33,000, primarily due to higher compensation costs[97]. Net Income - Net income for the current quarter was $997,000, compared to a net loss of $207,000 in the prior year quarter, marking a significant turnaround[91]. - Net income for the nine months ended September 30, 2024, was $2.493 million, compared to a net loss of $1.297 million in the prior year[103]. Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $11.522 million, an increase of $6.142 million compared to $5.380 million in the prior year[118]. - Capital expenditures for the nine months ended September 30, 2024, were $3.6 million, primarily for liquefaction assets and upgrades[122]. - Future capital expenditures will depend on business needs and availability of capital, with approximately $6 million in open purchase orders related to capital expenditures[122]. Financial Position - The company has $12.4 million in cash and cash equivalents and $9.8 million in outstanding debt as of September 30, 2024[116]. - The company has a three-year Revolving Credit Facility with a maximum amount of $10 million, with no amounts drawn as of September 30, 2024[115]. - The company filed a Shelf Registration Statement allowing it to issue up to $100 million in securities to raise capital for various needs[123]. - As of September 30, 2024, there were no off-balance sheet arrangements that could materially affect the company's financial position or results[125]. Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by $232,000, or 81.7%, reflecting improved profitability in joint ventures[91][99]. - Interest income increased by 35% to $81,000, reflecting stable cash balances during the periods[91][99]. - The company recorded a loss of $13,000 from changes in unrealized gains/losses on natural gas derivatives, compared to a gain of $267,000 in the prior year quarter[96]. Regulatory Approvals and Operations - The company received DOE approval to export LNG to all free trade and non-free trade countries for up to 51.75 billion cubic feet per year, valid for 28 years[87]. - The company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[83]. Accounting Policies - The financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported assets, liabilities, revenues, and expenses[126]. - There have been no significant changes in the company's critical accounting policies and estimates during the three and nine months ended September 30, 2024, compared to the previous annual report[126].

Financial Performance - Net income improved by $1.2 million year-over-year, reaching $997,000[2] - EBITDA for the three months ended September 30, 2024, was $2,569,000, up from $1,808,000 in the same period last year, indicating a year-over-year increase of 42%[21] - Adjusted EBITDA for the nine months ended September 30, 2024, reached $7,795,000, compared to $3,917,000 for the same period in 2023, reflecting a growth of 99%[21] - Net income for the three months ended September 30, 2024, was $997,000, compared to a loss of $207,000 for the same period in 2023, representing a significant improvement[19] Revenue and Sales - LNG sales volumes increased by 22% year-over-year[2] - 68% of third quarter revenues were derived from contracted customer agreements, up from 43% in Q3 2023[4] - Revenue mix in high-growth marine and aerospace markets increased from 11% to 40% year-over-year[5] Cash Flow and Assets - Cash flow from operations increased by 73% year-over-year, totaling $2.6 million[2] - Cash provided by operating activities for the three months ended September 30, 2024, was $2,555,000, compared to $1,478,000 in the same period last year, marking a 73% increase[19] - The company reported a net cash increase of $910,000 for the three months ended September 30, 2024, compared to a decrease of $3,207,000 in the same period of 2023[19] - Total assets increased to $89.35 million as of September 30, 2024, up from $81.30 million at the end of 2023[16] - The company’s cash and cash equivalents at the end of the period were $12,393,000, up from $4,914,000 at the end of September 30, 2023[19] Equity and Expenses - Stockholders' equity rose to $65.36 million, compared to $61.81 million at the end of 2023[18] - Depreciation expense for the three months ended September 30, 2024, was $1,776,000, slightly lower than $2,003,000 in the same period last year[21] Investments and Financing - Cash used in investing activities for the three months ended September 30, 2024, was $1,210,000, a decrease from $3,771,000 in the same period of 2023[19] - The company reported a net cash used in financing activities of $405,000 for the three months ended September 30, 2024, compared to $904,000 in the same period last year[19] Operational Developments - The company is expanding Texas Gulf Coast marine bunkering operations with a new LNG train capable of producing 100,000 gallons per day[6] - Identified substantial opportunities for LNG deployment in emergency power generation and aerospace applications[7] Gains and Losses - The company experienced a gain from the disposal of assets amounting to $102,000 for the three months ended September 30, 2024, compared to a loss of $1,002,000 in the same period last year[19]

Core Viewpoint - SLANG Worldwide Inc. has entered into a waiver and support agreement with secured lenders in anticipation of the upcoming maturity date of its credit agreement, indicating potential financial distress and the need for restructuring [3][4]. Financial Condition - The company has a maturity date under its credit agreement set for November 15, 2024, and does not anticipate being able to repay the amounts owed at that time [4][5]. - A payment of US$1.75 million has been agreed upon with the lenders in exchange for a standstill on any actions under the credit agreement until the maturity date or specified termination events occur [4]. Strategic Actions - The board of directors and management are evaluating the company's financial condition and available alternatives, which may include the potential sale, liquidation, or wind down of existing operations and assets [5]. - B. Riley Farber Inc. has been engaged as an advisor to assist in these strategic considerations and facilitate the process [5]. Company Overview - SLANG Worldwide Inc. is a leader in branded cannabis consumer packaged goods, operating in 13 legal cannabis markets across the U.S. with a diversified portfolio of five distinct brands [6]. - The company focuses on acquiring and developing market-proven regional brands and launching innovative new brands to meet evolving consumer preferences [6].

Core Points - Todd Boudreau has resigned from the Board of Directors of SLANG Worldwide Inc. due to other commitments, effective immediately [1] - Ruth Chun, Board Chair, expressed gratitude for Boudreau's contributions and expertise during his tenure since 2022 [2]

Core Insights - SLANG Worldwide Inc. reported a revenue of $6.28 million for Q2 2024, a 26% decrease from $8.44 million in Q2 2023, primarily due to declines in Core Market sales [3][4] - The company experienced a gross profit of $2.69 million with a gross margin of 43% in Q2 2024, down from $4.35 million and 52% in Q2 2023, indicating a 38% decrease in gross profit year-over-year [4][6] - Total comprehensive loss increased to $11.50 million in Q2 2024, compared to $5.16 million in Q2 2023, marking a 123% rise year-over-year [6] Financial Performance - Operating expenses decreased to $5.47 million in Q2 2024 from $6.24 million in Q2 2023, reflecting a 12% reduction year-over-year [5] - EBITDA for Q2 2024 was reported at ($2.07 million), worsening from ($1.17 million) in Q2 2023, primarily due to a decrease in gross profit [7] - Adjusted EBITDA also declined to ($1.42 million) in Q2 2024 from ($0.76 million) in Q2 2023, driven by a decrease in gross profit before fair value adjustments [8] Cash Flow and Liquidity - Cash and restricted cash totaled $6.75 million as of June 30, 2024, down from $8.32 million on March 31, 2024, and $9.04 million on December 31, 2023 [9] - Cash flows used in operating activities for the six months ended June 30, 2024, were ($1.46 million), compared to ($0.49 million) for the same period in 2023, indicating a reduction of $0.97 million [9] Operational Highlights - Wholesale sales in Vermont increased to $0.38 million in Q2 2024 from $0.31 million in Q1 2024 [10] - Alchemy Naturals CBD gummies generated $0.83 million in e-commerce sales for the six months ended June 30, 2024, up from $0.58 million in the same period of 2023 [10]

Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased to $18.6 million, up 44.1% from $12.9 million in Q2 2023, driven by strong demand and improved utilization [15][6] - Net income was slightly above breakeven compared to a net loss of $2.2 million in the same quarter last year [15] - Adjusted EBITDA for the quarter was $2.1 million, an improvement of $2.2 million from the prior year, with an adjusted EBITDA margin of 11.3% [15][16] - Generated $5 million in operating cash flow and ended the period with nearly $16 million in cash and availability under credit agreements [6][16] Business Line Data and Key Metrics Changes - The marine market showed strong performance, particularly with the LNG fueling contract with Carnival Corporation, contributing to improved plant utilization [7][8] - In the commercial and industrial markets, the company serves about eight different sectors and announced a 14-month contract extension for LNG supply for primary power generation [10][21] - Aerospace revenues are expected to increase approximately 75% over 2023 levels, representing about 10% of annual sales for 2024 [11][12] Market Data and Key Metrics Changes - The company is focusing on expanding its operations in emergency power delivery and primary power generation for the data center sector, anticipating a 10% increase in electricity load demand in certain markets [11][21] - The demand for high-purity LNG as rocket propellant is growing due to increased commercial rocket launch activity [11] Company Strategy and Development Direction - The company aims to leverage its business model to develop growth opportunities across marine, commercial, and industrial platforms [7] - Plans to build the first dedicated waterfront LNG bunkering facility along the U.S. Gulf Coast are underway, with advanced discussions for partnerships [8][19] - A phased expansion will more than double storage capacity at the George West facility from 270,000 gallons to 630,000 gallons [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growing demand across multiple end markets and plans to invest in operational capabilities and infrastructure [11][12] - The company is evaluating opportunities to deploy capital to enhance its ability to meet increasing demand for LNG across all platforms [12] Other Important Information - The company has a net cash positive balance sheet with total debt outstanding of $8.6 million as of June 30, 2024 [17] - The second quarter of 2024 marked the company's first-ever second quarter profit and highest adjusted EBITDA, indicating significant progress [16] Q&A Session Summary Question: Details about the dedicated waterfront bunkering facility and financing - Management confirmed the need for commercial activity before reaching a final investment decision (FID) and is in advanced discussions with potential partners [18][19] Question: Role in backup power generation for data centers - Management highlighted the opportunity in primary and backup power for data centers, with ongoing discussions for contracts [20][21] Question: Why LNG versus natural gas for data centers - LNG is often used where data centers lack access to pipeline gas, allowing for hub-and-spoke operations [24][25] Question: Schedule for new George West capacity - Half of the new storage capacity is already operational, with the remainder expected to come online later this year or early next year [25][26] Question: Opportunities in aerospace and potential contracts - Management sees significant growth potential in aerospace and is aware of increasing rocket launch activities [28][29] Question: Competitive environment in marine bunkering - The competitive landscape varies by geography, with the company positioned as a leading turnkey supplier for inland LNG distribution [30][32]

Revenue Performance - Revenues for the Current Quarter increased by $5.7 million, or 44%, compared to the Prior Year Quarter, totaling $18.6 million[82] - LNG Product revenue rose by $4.1 million, or 38.4%, driven by increased gallons delivered and pricing adjustments[82] - Increased rental revenue rose by 58.2% to $1.7 million, and service revenue increased by 53.9% to $1.7 million compared to the Prior Year Quarter[82] - Total revenues for the six months ended June 30, 2024, decreased by $1.4 million, or 4%, compared to the prior year, primarily due to lower natural gas prices and decreased revenues from minimum purchase contracts[89] - LNG product revenues decreased by $2.4 million, or 7.5%, to $30.0 million, while rental revenues increased by $545,000, or 16.5%, to $3.9 million[88] Cost and Expenses - Cost of revenues increased by $3.0 million, or 28%, with costs as a percentage of revenue decreasing from 82% to 73%[82] - Operating expenses decreased by $4.3 million, or 10.5%, to $36.9 million, with cost of revenues down by $3.8 million, or 12%, to $27.1 million[88] Net Income - Net income for the Current Quarter was $27 thousand, a significant improvement from a net loss of $2.2 million in the Prior Year Quarter[82] - Net income for the six months ended June 30, 2024, was $1.5 million, compared to a net loss of $1.1 million in the prior year, representing an increase of $2.6 million[88] Cash Flow and Capital Expenditures - Cash provided by operating activities increased by $5.1 million to $9.0 million for the six months ended June 30, 2024, compared to $3.9 million in the same period in 2023[98] - Capital expenditures for the six months ended June 30, 2024, were $2.2 million, primarily for liquefaction assets and upgrades[102] - Future capital expenditures will depend on business needs and availability of capital, with approximately $5.3 million in open purchase orders related to capital expenditures[102] Debt and Liquidity - The company has $11.5 million in cash and cash equivalents and $8.7 million in outstanding debt as of June 30, 2024[96] - The company has a three-year Revolving Credit Facility with a maximum amount of $10.0 million, with no amounts drawn as of June 30, 2024[95] Regulatory and Operational Updates - The Company received DOE approval to export LNG up to 51.75 billion cubic feet per year, with a term of 28 years[80] - The Company anticipates meeting initial export requirements for both FTA and non-FTA countries within the specified timeframes[80] - The Company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[76] Other Financial Information - Interest income for the Current Quarter was $28 thousand, compared to a net interest expense of $147 thousand in the Prior Year Quarter[86] - The company recorded a gain of $0.1 million from the disposal of assets during the Current Quarter[85] - The company recorded a gain of $0.3 million in unrealized gain/loss on natural gas derivatives for the current year, compared to $0.1 million in the prior year[91] Accounting Policies - The company's financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported amounts of assets and liabilities[105] - There have been no significant changes in the company's "Critical Accounting Policies and Estimates" during the three and six months ended June 30, 2024, compared to the previous annual report[105] - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[107]

Core Insights - SLANG Worldwide Inc. announced the resignation of Sandra Levy from its Board of Directors to focus on other responsibilities [2] - The company is a leader in the cannabis consumer packaged goods sector, operating in 13 legal cannabis markets across the U.S. [3] Company Overview - SLANG Worldwide Inc. specializes in branded cannabis consumer packaged goods with a diversified portfolio of five distinct brands [3] - The company has over a decade of experience in the cannabis sector and focuses on acquiring and developing market-proven regional brands [3] - SLANG's product pipeline includes brands like O.pen, Alchemy Naturals, Ceres, and Firefly, which have a proven track record of success [3]

Core Insights - SLANG Worldwide Inc. reported financial results for Q1 2024, highlighting a diversified strategy and operational efficiencies despite challenges in core markets [2][4] - The company experienced a 41% decrease in gross profit year-over-year, with revenue of $7.03 million for the quarter [4][9] - Significant growth was noted in the e-commerce segment, with a 45% increase in sales, and a remarkable 417% increase in Vermont wholesale sales year-over-year [3][5] Financial Performance - Revenue for Q1 2024 was $7.03 million, down from $10.82 million in Q1 2023, primarily due to increased competition and market declines in Vermont and Colorado [4][7] - Gross profit was $3.36 million, representing a 48% gross margin, compared to $5.72 million and a 53% gross margin in Q1 2023 [4][8] - Operating expenses decreased to $5.54 million in Q1 2024 from $5.78 million in Q1 2023, reflecting a 4% year-over-year reduction [4][9] Operational Highlights - The e-commerce channel contributed $0.46 million in sales in Q1 2024, up from $0.30 million in Q4 2023, indicating a 53% quarter-over-quarter growth [5] - Vermont wholesale sales reached $0.31 million in Q1 2024, a significant increase from $0.06 million in Q1 2023 [5] - The company signed a new distribution agreement to expand the reach of its Alchemy Naturals CBD gummies across the U.S. [5] Market Outlook - The U.S. Department of Justice's recommendation to reschedule cannabis from Schedule I to Schedule III is anticipated to positively impact SLANG and the broader cannabis industry [3]

Core Insights - SLANG Worldwide Inc. is set to release its financial results for Q1 2024 on May 30, 2024, before market opening [2] - The company will host an investor conference call on the same day at 10:00 am ET to discuss the results [2] Company Overview - SLANG Worldwide Inc. is a leader in branded cannabis consumer packaged goods with a diversified portfolio of five distinct brands [3] - The company operates in 13 legal cannabis markets across the U.S. and focuses on acquiring and developing market-proven regional brands [3] - SLANG has over a decade of experience in the cannabis sector, providing partners access to a successful operational playbook [3] - The product pipeline includes brands like O.pen, Alchemy Naturals, Ceres, and Firefly, which have a proven track record of success [3]