SLANG Worldwide Announces Second Quarter 2024 Financial Results

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]