Clever Leaves (US:CLVR)2024-04-01 20:39Production and Sales - The company harvested 4,753 kilograms of cannabinoids in 2023, a decrease of 41% from 8,064 kilograms in 2022, primarily due to the shutdown of its Portugal facility[240]. - The company sold 17,869 kilograms of product in 2023, a 37% increase from 13,035 kilograms in 2022[240]. - The Cannabinoid segment sold 17,869 kilograms of dry flower equivalent in 2023, up from 13,035 kilograms in 2022, indicating strong demand for cannabinoid extracts[265]. - The company has 43 genetic strains of cannabinoids registered in Colombia and aims to expand its cultivation and extraction capabilities[415]. Revenue and Profitability - Revenue for the year ended December 31, 2023, was $6,558,000, representing a 31% increase from $4,996,000 in 2022[240]. - Revenue increased to $17,417 million for the year ended December 31, 2023, from $16,410 million for the year ended December 31, 2022, driven by increased sales in the Cannabinoid segment[259]. - Cannabinoid segment revenue increased to $6,558 million in 2023 from $4,729 million in 2022, representing a growth of 38.7%[329]. - Non-cannabinoid segment revenue decreased to $10,859 million in 2023 from $11,681 million in 2022, a decline of 7.0%[329]. - Gross profit decreased to $6,556 million in 2023 from $7,217 million in 2022, reflecting a decline in profitability[257]. Costs and Expenses - The cost to produce increased by 22% to $3,560,000 in 2023 from $2,913,000 in 2022, with the cost per gram rising by 108% to $0.75[240]. - Cost to produce dry flower equivalent increased to approximately $0.75 per gram in 2023 from $0.36 per gram in 2022, primarily due to reduced agricultural output and changes in cultivation techniques[266]. - Sales and marketing expenses rose to $2,036 million in 2023 from $1,897 million in 2022, attributed to increased advertising and marketing costs[284]. - Total expenses decreased significantly to $22,150 million in 2023 from $54,136 million in 2022, reflecting cost-cutting measures[257]. - Operating expenses decreased to $22,150 for the year ended December 31, 2023, from $54,136 for the year ended December 31, 2022, a reduction of $31,986 or 59%[306]. Certifications and Compliance - The company received multiple certifications, including the Brazilian Certificate of Good Manufacturing Practice in May 2023 and the Australian Certificate of GMP Compliance in December 2023, enhancing its global operational capabilities[220][229]. - The company has received EU GMP certification, which is essential for the commercialization of pharmaceutical products in Europe, and was re-certified in September 2023[389]. - The company has been granted GMP certifications from multiple regulatory bodies, including ANVISA in Brazil and TGA in Australia, allowing it to manufacture cannabis products for patients in those markets[387]. Strategic Initiatives - The company plans to expand its operations in Colombia and invest in advanced processing capabilities to match growth in cannabis sales[236]. - The company aims to develop a low-cost global supply chain for high-quality cannabis and wellness products, leveraging its strategic locations and certifications[226]. - The company is focused on geographic diversification and optimization, distinguishing itself from many Canadian licensed producers and U.S. operators[413]. Financial Position and Future Outlook - The company is actively seeking financing sources to fund continued operations, with uncertainties regarding the ability to raise additional capital[317]. - The company has raised concerns regarding its ability to continue as a going concern due to uncertainties in raising additional capital[336]. - The company anticipates continuing to incur net losses due to commercialization, marketing, and administrative costs[338]. - Cash and cash equivalents at the end of the period decreased to $6,901 million in 2023 from $12,888 million in 2022, a decrease of 46.5%[334]. - The company plans to issue and sell common shares with an aggregate offering price of up to $50,000 million under an Equity Distribution Agreement[337]. Operational Changes - The company sold its non-cannabinoid business segment, which included nutraceutical and wellness products, after the year-end, focusing on its cannabinoid operations[230]. - The Company ceased all operations in Portugal in January 2023 to focus on cannabis cultivation and production in Colombia[261]. - The company has engaged in the sale of certain laboratory and processing equipment in Portugal as part of its wind-down process, completing the shutdown of its operations in Portugal by January 2024[405]. - The company disposed of its Portugal assets, which is expected to reduce operating losses going forward, with discontinued operations net of tax showing a gain of $1,898 for the year ended December 31, 2023, compared to a loss of $(28,361) in the prior year[300].