Clever Leaves Holdings Inc (CLVR) 2023 Q1 法說會逐字稿

Good day, and welcome to the Clever Leaves first-quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Jackie Keshner, Gateway Group, Director of Investor Relations. Please go ahead.

美好的一天，歡迎參加 Clever Leaves 2023 年第一季度收益電話會議。 （操作員說明）請注意此事件正在被記錄。現在我想將會議交給 Gateway Group 投資者關係總監 Jackie Keshner。請繼續。

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clever Leaves' financial results for the first quarter ended March 31, 2023. Joining us today are Clever Leaves' CEO, Andres Fajardo; and the company's CFO, Hank Hague.

大家下午好，感謝大家參加今天的電話會議，討論 Clever Leaves 截至 2023 年 3 月 31 日的第一季度財務業績。今天加入我們的是 Clever Leaves 首席執行官 Andres Fajardo；以及該公司的首席財務官漢克·黑格(Hank Hague)。

Before I introduce Andres, I remind you that during today's call, including the question-and-answer session, statements that are not historical facts, including any projections or guidance, statements regarding future events or future financial performance or statements of intent or belief are forward-looking statements and are covered by the safe harbor disclaimers contained in today's press release and the company's public filings with the SEC. Actual outcomes and results may differ materially from what is expressed in or implied by these forward-looking statements. Specifically, please refer to the company's Form 10-Q for the quarter ended March 31, 2023, which was filed prior to this call as well as other filings made by Clever Leaves with the SEC from time to time. These filings identify factors that could cause results to differ materially from those forward-looking statements.

在介紹安德烈斯之前，我提醒大家，在今天的電話會議中，包括問答環節，非歷史事實的陳述，包括任何預測或指導、有關未來事件或未來財務業績的陳述或意圖或信念的陳述，均屬於非歷史事實的陳述。前瞻性陳述，並包含在今天的新聞稿和公司向美國證券交易委員會提交的公開文件中包含的安全港免責聲明中。實際結果和結果可能與這些前瞻性陳述中表達或暗示的內容存在重大差異。具體而言，請參閱該公司截至 2023 年 3 月 31 日的季度的 10-Q 表格（該表格是在本次電話會議之前提交的）以及 Clever Leaves 不時向 SEC 提交的其他文件。這些文件確定了可能導致結果與前瞻性陳述存在重大差異的因素。

Please also note that during this call, management will be disclosing adjusted EBITDA, adjusted gross profit, and adjusted gross margin. These are non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the statement disclosing the reasons why company management believes that adjusted EBITDA, adjusted gross profit, and adjusted gross margin provide useful information to investors regarding the company's financial conditions and results of operations are included in today's press release that is posted on the company's website.

另請注意，在本次電話會議中，管理層將披露調整後的 EBITDA、調整後的毛利潤和調整後的毛利率。這些是 SEC 法規 G 定義的非 GAAP 財務指標。聲明中這些非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬，披露了公司管理層認為調整後 EBITDA、調整後毛利潤和調整後毛利潤的原因保證金為投資者提供有關公司財務狀況和經營業績的有用信息，這些信息包含在公司網站上發布的今天的新聞稿中。

With that, I'll turn the call over to Andres.

這樣，我會將電話轉給安德烈斯。

Thank you, Jackie, and good afternoon, everyone. During the first quarter, we continued to execute on our strategic growth objectives, leveraging our commercial momentum in our core cannabinoid markets and our meaningfully improved cost structure. We generated particular sales strength in Brazil and Israel, and we drove sequential and year-over-year margin improvement in our non-cannabinoid segments.

謝謝你，傑基，大家下午好。在第一季度，我們繼續執行我們的戰略增長目標，利用我們在核心大麻素市場的商業勢頭和顯著改善的成本結構。我們在巴西和以色列產生了特別的銷售強勁，並且我們推動了非大麻素細分市場的連續和同比利潤率改善。

In addition, we have progress on ramping our Colombian smokable dry flower shipments and completing the wind down of our operations in Portugal. Importantly, we have reduced our operating expenses by 48% year over year, reflecting the benefits of our restructuring and cost optimization initiatives. With these changes, we are able to reduce net loss by 75% and reduce adjusted EBITDA loss by 35% as we continue to navigate our path to cash flow positivity.

此外，我們在增加哥倫比亞可吸乾花出貨量以及完成葡萄牙業務的逐步結束方面取得了進展。重要的是，我們的運營費用同比減少了 48%，反映了我們重組和成本優化舉措的好處。通過這些變化，隨著我們繼續走向正現金流，我們能夠將淨虧損減少 75%，調整後 EBITDA 損失減少 35%。

We came into 2023 with an emphasis on three key strategic areas of growth: our focused commercial strategy; our low-cost, high-quality production in Colombia; and our optimized cash management. I will share a brief update on our recent progress in each of these areas starting with our Colombian production operations.

進入 2023 年，我們重點關註三個關鍵戰略增長領域：我們的重點商業戰略；我們在哥倫比亞進行低成本、高品質的生產；以及我們優化的現金管理。我將分享我們在每個領域最近取得的進展的簡要更新，首先是我們在哥倫比亞的生產業務。

As we previously disclosed, we are now exclusively cultivating and producing our products out of Colombia from supporting our existing extract business to progressing early launch and ramp efforts for our flower exports. To optimize our cultivation process, we have maintained reduced harvest levels relative to the year-ago quarter, reflecting our continued focus on cultivating THC flower for export and processing our existing CBD inventory for extract sales. We ultimately expect to leverage these operations' expansive mature capacity, advantageous cost structure, and optimal agricultural climate to drive greater operational efficiencies and cost reductions over time.

正如我們之前所披露的，我們現在完全在哥倫比亞境外種植和生產我們的產品，從支持我們現有的提取物業務到推進早期推出和擴大我們的花卉出口工作。為了優化我們的種植過程，與去年同期相比，我們保持了較低的收成水平，這反映出我們繼續專注於種植 THC 花以供出口和加工現有 CBD 庫存以進行提取物銷售。我們最終希望利用這些業務廣泛的成熟產能、有利的成本結構和最佳的農業氣候，隨著時間的推移提高運營效率並降低成本。

To further catalyze these efforts, we partner with Praetorian Global, a leading US-based brand owner that operates the Binske brand, and an intellectual property provider to the global cannabis and hemp industry. Under the terms of this agreement, we will work with Praetorian to select specific flower strains for initial cultivation trials at our Colombia facility, with the goal of producing premium quality cannabis flowers and downstream products for distribution to the European Union, United Kingdom, and Australia by Q2 of 2024.

為了進一步促進這些努力，我們與 Praetorian Global 合作，Praetorian Global 是一家運營 Binske 品牌的美國領先品牌所有者，也是全球大麻和大麻行業的知識產權提供商。根據該協議的條款，我們將與 Praetorian 合作，選擇特定的花品種在我們的哥倫比亞工廠進行初步種植試驗，目標是生產優質大麻花和下游產品，銷往歐盟、英國和澳大利亞到 2024 年第二季度。

From an R&D perspective, this partnership allows us to combine our cultivation and development know-how with Praetorian's production efficient, high yield, and flavor forward genetics. Developing and launching these products also enables us to build on our existing traction in Australia and Europe while establishing our early pathways into the UK.

從研發角度來看，這種合作關係使我們能夠將我們的種植和開發專業知識與 Praetorian 的生產效率、高產量和風味前向遺傳學相結合。開發和推出這些產品還使我們能夠在澳大利亞和歐洲現有的吸引力的基礎上，同時建立進入英國的早期途徑。

From a production standpoint, one of our key operational priorities has been completing and supporting the launch of our Colombian dry flower exports. We have already sent our first commercial shipments of our Colombian grow flower product to both Australia and Germany. The completion of our flower shipments to both of these core markets represent a key operational milestone. We soon expect to complete sales to pharmacies, and from there, we continue to target ramping flower shipments to the UK and Israel by end of 2023.

從生產的角度來看，我們的主要運營重點之一是完成和支持哥倫比亞乾花出口的啟動。我們已經將第一批哥倫比亞種植花卉產品商業發貨到澳大利亞和德國。我們向這兩個核心市場的鮮花運輸的完成是一個重要的運營里程碑。我們預計很快就會完成對藥店的銷售，並在此基礎上繼續目標是到 2023 年底增加向英國和以色列的花卉出貨量。

We will further fine tune our product and processes in response to the respective market feedback we received from these shipments. As we have discussed in relation to our prior flower production in Portugal, adapting our products to the evolving requirements of the core markets is an imperative and ongoing step towards scaling our Colombian flower shipments.

我們將根據從這些發貨中收到的相應市場反饋進一步調整我們的產品和流程。正如我們之前在葡萄牙的花卉生產所討論的那樣，使我們的產品適應核心市場不斷變化的需求是擴大哥倫比亞花卉出貨量的必要且持續的一步。

With these market specific evaluations underway, we are maintaining a focused approach to strain development to ensure we are prioritizing the highest quality and most commercially viable genetics. At present, we are focused on refining two or three individual strains, and we will provide updates on new strain launches in our target markets as they reach completion.

隨著這些市場特定評估的進行，我們將繼續採用集中的菌株開發方法，以確保我們優先考慮最高質量和最具商業可行性的遺傳學。目前，我們的重點是完善兩到三個單獨的菌株，當新菌株完成後，我們將在目標市場上發布新菌株的最新信息。

Moving into our focused commercial strategy, we have continued to activate and ramp our commercial pathways across the core markets we identified for 2023, which comprise Australia, Germany, Brazil, Israel, the United Kingdom, and Colombia. This work includes both building upon the inroads we have already established and signing new partnerships to take on deeper into our earlier stage markets, and I will share some recent developments on these drugs.

進入我們的重點商業戰略後，我們繼續激活和加強我們為 2023 年確定的核心市場的商業途徑，其中包括澳大利亞、德國、巴西、以色列、英國和哥倫比亞。這項工作包括在我們已經取得的進展的基礎上再接再厲，並簽署新的合作夥伴關係，以更深入地進入我們的早期市場，我將分享這些藥物的一些最新進展。

In Brazil, our largest market during Q1, sales of our approved products under RDC 327 have continued to ramp, and they served as a strong driver of our cannabinoid revenues in Q1. Most recently, we announced a five-year agreement to supply CBD dominant products to Hypera, one of the largest Brazilian multinational pharmaceutical companies. Through our partnerships with GreenCare and Hypera, we expect to significantly grow in the Brazilian cannabis markets.

在我們第一季度最大的市場巴西，我們根據 RDC 327 批准的產品銷量持續增長，它們成為我們第一季度大麻素收入的強勁推動力。最近，我們宣布了一項為期五年的協議，向巴西最大的跨國製藥公司之一 Hypera 供應 CBD 主導產品。通過與 GreenCare 和 Hypera 的合作，我們預計在巴西大麻市場將顯著增長。

The CBD products manufactured under these agreements are registered under RDC 327, and they are already being sold into drugstores and pharmaceutical distribution channels. We look forward to further supporting these partnerships and expanding our presence in the Brazilian market.

根據這些協議生產的 CBD 產品已在 RDC 327 下註冊，並且已經銷往藥店和藥品分銷渠道。我們期待進一步支持這些合作夥伴關係並擴大我們在巴西市場的影響力。

In Australia, we were able to sell the vast majority of our remaining Portuguese flower inventory. As we've previously shared, our Portuguese flower has historically received strong market feedback in Australia given its high THC content, bud size, and terpene profile. We aim to build upon this track record as we launch and scale our Colombian flower exports in Australia.

在澳大利亞，我們能夠出售絕大多數剩餘的葡萄牙花卉庫存。正如我們之前所分享的，我們的葡萄牙花歷來在澳大利亞收到了強烈的市場反饋，因為它具有高 THC 含量、花蕾大小和萜烯成分。我們的目標是在這一業績記錄的基礎上，在澳大利亞推出並擴大哥倫比亞花卉出口。

The sales of our Portuguese flower to Australia also made the progression of our wind down process. However, even our Portuguese production operations have fully ceased, please note that we are now accounting for items related to our Portugal operations including these sales under discontinued operations. You will see this change reflected in Q1 2023 financial presentation and year-over-year comparisons, as Hank will describe in the detail shortly.

我們向澳大利亞銷售葡萄牙花卉也使我們的停業進程取得了進展。然而，即使我們的葡萄牙生產業務已完全停止，請注意，我們現在正在核算與葡萄牙業務相關的項目，包括已終止業務下的這些銷售。您將在 2023 年第一季度的財務報告和同比比較中看到這一變化，漢克將很快對此進行詳細描述。

In Israel, we have continued to sell APIs in the form of isolates and extracts, and we are in the process of preparing our flower to be launched later in the year. Finally, we continue to expect our first shipments of cannabinoid products to the UK in the coming months.

在以色列，我們繼續以分離物和提取物的形式銷售原料藥，並且我們正在準備今年晚些時候推出的花。最後，我們仍然預計在未來幾個月內向英國運送第一批大麻素產品。

To touch on our third growth objective, optimized cash management, our wind down process in Portugal has continued to proceed smoothly. We undertook this process as part of our ongoing restructuring initiatives with the aim of capturing greater cost and capital efficiencies as we leverage our existing production advantages and minimal CapEx needs in Colombia.

為了實現我們的第三個增長目標，即優化現金管理，我們在葡萄牙的關閉過程繼續順利進行。我們將這一過程作為我們正在進行的重組計劃的一部分，旨在利用哥倫比亞現有的生產優勢和最低的資本支出需求，實現更高的成本和資本效率。

As of the end of the first quarter, our Portuguese flower cultivation, post-harvest processes, and manufacturing activity have all ceased in full. And we have completed the bulk of our workforce reductions. We continue to track towards the completion of our wind down activities, and we expect our operational transition to drive increased savings by end of this year.

截至第一季度末，我們的葡萄牙花卉種植、採後加工和製造活動已全部停止。我們已經完成了大部分勞動力裁員。我們將繼續跟踪逐步結束活動，並預計我們的運營轉型將在今年年底前推動節省更多資金。

With our strategic progress during the first quarter, we believe we have built a solid foundation for continued execution on these objectives for the remainder of 2023. I will describe our opportunities and objectives in greater detail later in the call, but first, I'd like to turn the call over to our CFO, Hank Hague, who will discuss our first-quarter financial performance. Hank?

隨著第一季度我們的戰略進展，我們相信我們已經為 2023 年剩餘時間繼續執行這些目標奠定了堅實的基礎。我將在稍後的電話會議中更詳細地描述我們的機會和目標，但首先，我會我想將電話轉給我們的首席財務官漢克·黑格，他將討論我們第一季度的財務業績。漢克？

Thank you, Andres. Before I discuss our Q1 performance, I wanted to provide some additional context on how we're accounting for Portugal in our financials, which Andres mentioned earlier.

謝謝你，安德烈斯。在討論我們第一季度的業績之前，我想提供一些有關我們如何在財務中考慮葡萄牙的額外背景信息，安德烈斯之前提到過。

With the cessation of our core operational activities in Portugal and the associated ongoing wind down process, we have determined that the nature and extent of our restructuring measures in Portugal meet the discontinued operations criteria as of March 31, 2023 per Accounting Standards Codification 205, Presentation of Financial Statements.

隨著我們在葡萄牙的核心業務活動的停止以及相關的持續縮減流程，我們已確定我們在葡萄牙的重組措施的性質和範圍符合截至 2023 年 3 月 31 日《會計準則編纂》第 205 號演示文稿中的終止業務標準財務報表。

As a result, our condensed consolidated balance sheet, our condensed consolidated statement of operations, and the notes to the consolidated financial statements have been restated for all periods presented to reflect the discontinuation of these operations in accordance with ASC 205. We will maintain this presentation during the coming quarters of this fiscal year, and further explanatory notes are available in our Q1 2023 10-Q as filed today.

因此，我們的簡明合併資產負債表、簡明合併運營報表以及合併財務報表附註已針對所列的所有期間進行了重述，以反映根據​​ ASC 205 規定的這些業務的終止。我們將保留此列報在本財年接下來的幾個季度中，進一步的解釋性說明可在我們今天提交的 2023 年第一季度 10-Q 中找到。

Moving on to our quarterly results. Our revenue in the first quarter of 2023 was $4 million compared to $5 million in the year-ago period. For our cannabinoid revenues, the decrease reflects the benefits of a one-time influx of pipeline shipments to Brazil in the year-ago quarter that did not repeat in the first quarter of this year, as well as the discontinuation of Portuguese flower and the ramp up of Colombian flower.

接下來是我們的季度業績。我們 2023 年第一季度的收入為 400 萬美元，而去年同期為 500 萬美元。對於我們的大麻素收入而言，下降反映了去年同期一次性湧入巴西的管道運輸量（今年第一季度沒有重複）以及葡萄牙花和斜坡的停產帶來的好處哥倫比亞花。

With that said, we have maintained a strong and steady cadence of Brazilian shipments, and this market has continued to be a strong revenue driver for us in Q1 and into the second quarter. We also had solid contributions from Israel during the quarter. While we have also continued to generate traction in Australia, note that approximately $300,000 in revenues from the sale of our remaining Portuguese flower inventory have been categorized under our discontinued operations classification.

話雖如此，我們在巴西的出貨量保持了強勁而穩定的節奏，該市場在第一季度和第二季度繼續成為我們強勁的收入驅動力。本季度我們還得到了以色列的大量貢獻。雖然我們在澳大利亞也繼續產生吸引力，但請注意，我們剩餘的葡萄牙花卉庫存銷售產生的約 300,000 美元的收入已歸入我們已停止運營的類別。

Our non-cannabinoid segment revenues declined due to marketplace adjustments with onboarding a new online marketplace partner, as well as implementing new sales terms in our specialty channel. Inflationary pressures impacted the specialty channel customer inventory levels during the quarter. Larger accounts including food, drug, and mass continued with solid point of sales results. Ordering has bounced back from the prior-quarter inventory adjustments, reflecting the measures we've taken to mitigate broader macroeconomic headwinds.

由於引入新的在線市場合作夥伴以及在我們的專業渠道中實施新的銷售條款，我們的非大麻素部門收入有所下降。通脹壓力影響了本季度專業渠道客戶的庫存水平。包括食品、藥品和大眾食品在內的較大客戶繼續保持穩定的銷售業績。訂單已從上一季度的庫存調整中反彈，反映出我們為緩解更廣泛的宏觀經濟阻力而採取的措施。

Our all-in cost per gram of dry flower equivalent in the first quarter of 2023 was $1.29 per gram compared to $0.12 per gram in the year-ago period. The increase was driven by our reduced harvest in Colombia relative to the year-ago period, as well as continued costs associated with processing our existing hemp and CBD inventory for extract sales.

2023 年第一季度，我們每克乾花當量的總成本為每克 1.29 美元，而去年同期為每克 0.12 美元。這一增長是由於我們在哥倫比亞的收成相對於去年同期有所減少，以及與加工我們現有的大麻和 CBD 庫存以進行提取物銷售相關的持續成本。

Consistent with our work over the past few quarters, we have remained focused on rightsizing and optimizing our Colombian harvest to support the ramp of our dry flower export as we expect our flower products to comprise a greater share of our product portfolio over the long term. As we continue exclusively producing our products out of Colombia, we believe we can leverage greater cost advantages over time as we scale our flower production and benefit from no longer having the higher cost associated with our Portugal operations. We ultimately expect to reduce our production cost per gram to their historical levels.

與我們過去幾個季度的工作一致，我們仍然專注於調整和優化哥倫比亞的收成，以支持我們乾花出口的增長，因為我們預計從長遠來看，我們的花卉產品將在我們的產品組合中佔據更大的份額。隨著我們繼續在哥倫比亞獨家生產我們的產品，我們相信，隨著時間的推移，我們可以利用更大的成本優勢，擴大花卉生產，並受益於不再與葡萄牙業務相關的較高成本。我們最終希望將每克生產成本降低至歷史水平。

Our gross profit in the first quarter of 2023, which included an inventory provision of $0.1 million was $2.2 million compared to $2.6 million in the year-ago period, which included a $0.3 million inventory provision. Our adjusted gross profit, which excluded the inventory provisions, was $2.4 million in the first quarter of 2023 compared to $2.9 million in the year-ago period.

我們 2023 年第一季度的毛利潤（其中包括 10 萬美元的庫存準備金）為 220 萬美元，而去年同期的毛利潤為 260 萬美元（包括 30 萬美元的庫存準備金）。 2023 年第一季度，我們調整後的毛利潤（不包括庫存撥備）為 240 萬美元，而去年同期為 290 萬美元。

This reflects an adjusted gross margin of 59.2% compared to 57.6% in the year-ago period. The decrease in our gross profit reflects the lower revenue generated during the quarter. This was partially offset by the lower inventory provision we recorded for our cannabinoid business and the improved margin performance of our non-cannabinoid business, both of which drove our gross margin improvements for the quarter.

這反映了調整後毛利率為 59.2%，而去年同期為 57.6%。我們毛利潤的下降反映了本季度收入的減少。這被我們為大麻素業務記錄的庫存準備金減少和非大麻素業務利潤率表現的改善所部分抵消，這兩者都推動了我們本季度毛利率的提高。

Operating expenses in the first quarter of 2023 improved significantly to $6.4 million compared to $12.3 million in the year-ago period. The 48% decrease reflects the significant benefits and diligence of our cost reduction initiative. And we expect to continue seeing these benefits through and beyond the second quarter. Note that our operating expenses in the year-ago quarter included a $3.8 million restructuring charge related to charging off certain excess extraction equipment for our Colombian operations as well as employee exit costs.

2023 年第一季度的運營支出大幅改善至 640 萬美元，而去年同期為 1,230 萬美元。 48% 的下降反映了我們成本削減計劃的顯著效益和努力。我們預計第二季度及之後將繼續看到這些好處。請注意，我們去年同期的運營支出包括 380 萬美元的重組費用，該費用與沖銷我們哥倫比亞業務的某些多餘開採設備以及員工退出成本有關。

Net loss in the first quarter of 2023 improved to $4.1 million compared to a net loss of $16.1 million in the year-ago period. The improvement was driven by our continued restructuring and cost reduction measures, as well as significantly lower interest expense and amortization of debt issuance costs compared to the year-ago period. Net loss in the first quarter of 2022 also included the $3.8 million restructuring charge I just mentioned, as well as loss on debt extinguishment of $2.3 million.

2023 年第一季度的淨虧損改善至 410 萬美元，而去年同期的淨虧損為 1610 萬美元。這一改善得益於我們持續的重組和成本削減措施，以及利息支出和債務發行成本攤銷較上年同期大幅降低。 2022 年第一季度的淨虧損還包括我剛才提到的 380 萬美元的重組費用，以及 230 萬美元的債務清償損失。

Adjusted EBITDA in the first quarter of 2023 improved to negative $3 million compared to negative $4.7 million in the year-ago period. This was mainly due to the benefits of cost reduction and restructuring initiatives we have previously implemented. The cost improvements we have put in place over the past year and maintained through these early months of 2023 have contributed towards our reduced adjusted EBITDA loss.

2023 年第一季度調整後 EBITDA 增至負 300 萬美元，而去年同期為負 470 萬美元。這主要得益於我們之前實施的成本削減和重組舉措的好處。我們在過去一年中實施並在 2023 年前幾個月維持的成本改進有助於減少調整後 EBITDA 損失。

At March 31, 2023, cash, cash equivalent, and restricted cash were $6.7 million compared to $12.9 million at December 31, 2022. The decrease was primarily attributable to operating losses, working capital needs, and cash expenditures related to the wind down of our Portugal operations.

截至 2023 年 3 月 31 日，現金、現金等價物和限制性現金為 670 萬美元，而 2022 年 12 月 31 日為 1,290 萬美元。減少的主要原因是運營虧損、營運資金需求以及與我們的業務縮減相關的現金支出。葡萄牙業務。

As we discussed on our March conference call, we believe our operational transition to Colombia and workforce reduction in Portugal will meaningfully reduce our cash burn going forward. While we expect our restructuring cash expenditures to persist through the first half of 2023, we anticipate that we will begin seeing cost savings and significantly reduce cash burn during the second quarter.

正如我們在三月份的電話會議上討論的那樣，我們相信我們向哥倫比亞的業務轉型和葡萄牙的勞動力裁員將有意義地減少我們未來的現金消耗。雖然我們預計重組現金支出將持續到 2023 年上半年，但我們預計第二季度將開始節省成本並顯著減少現金消耗。

As a reminder, we are also preparing to sell our Portuguese assets as part of our broader wind down process. We continue to target completing these asset sales during this calendar year, and we will provide further updates as they arise over the coming quarters.

提醒一下，我們還準備出售我們的葡萄牙資產，作為我們更廣泛的逐步結束過程的一部分。我們繼續目標是在本日曆年內完成這些資產銷售，並且我們將在未來幾個季度中提供進一步的更新。

Subsequent to the first quarter, we also raised approximately $273,000 in net proceeds from our at-the-market stock offering. We will continue to leverage this program where applicable and evaluate other potential pathways for additional capital throughout the year.

第一季度之後，我們還通過市場股票發行籌集了約 273,000 美元的淨收益。我們將繼續在適用的情況下利用該計劃，並評估全年額外資本的其他潛在途徑。

As noted in our public filings, including our 10-Q for the first quarter of 2023, there is substantial doubt about our ability to continue as a growing concern. Our ability to execute our operating plans through 2023 remains dependent on our ability to obtain additional funding, which may include several initiatives such as raising capital, reducing working capital, and monetizing non-core assets. We will continue working to enhance our liquidity position and reducing our investments in working capital and maintaining a lean expense structure across our business.

正如我們的公開文件（包括 2023 年第一季度的 10-Q 報告）中所指出的，人們對我們繼續成為日益增長的擔憂的能力存在很大疑問。我們執行 2023 年運營計劃的能力仍然取決於我們獲得額外資金的能力，其中可能包括籌集資金、減少營運資本和非核心資產貨幣化等多項舉措。我們將繼續努力增強流動性狀況，減少營運資本投資，並維持整個業務的精益費用結構。

With the momentum we have generated in our core markets and the cost improvements we have driven during the first quarter and over the past year, we remain comfortable with our previously stated full year 2023 financial targets. We continue to expect our full year 2023 revenue to range between $19 million and $22 million, with an expected adjusted gross margin of approximately 58% to 63%.

憑藉我們在核心市場產生的勢頭以及我們在第一季度和過去一年中推動的成本改善，我們對之前提出的 2023 年全年財務目標仍然感到滿意。我們仍然預計 2023 年全年收入將在 1900 萬美元至 2200 萬美元之間，預計調整後毛利率約為 58% 至 63%。

We also anticipate our 2023 adjusted EBITDA to be in the range of negative $13.6 million to negative $10.6 million. Reflecting our ongoing focus on improving our capital efficiency and driving additional expense reductions, our projected 2023 capital expenditures of $0.5 million to $0.7 million represent an approximately 50% reduction relative to our full year 2022 CapEx.

我們還預計 2023 年調整後 EBITDA 將在負 1,360 萬美元至負 1,060 萬美元之間。我們預計 2023 年資本支出為 50 萬至 70 萬美元，與 2022 年全年資本支出相比減少約 50%，這反映了我們對提高資本效率和推動額外費用削減的持續關注。

This concludes my prepared remarks. And now, I'll turn the call back over to Andres to review our market opportunities and catalysts in greater depth. Andres?

我準備好的發言到此結束。現在，我將把電話轉回安德烈斯，以更深入地審查我們的市場機會和催化劑。安德烈斯？

Thank you, Hank. Before we open the call to questions, I'd like to provide a quick overview of some additional regulatory catalysts in our core markets.

謝謝你，漢克。在我們開始提問之前，我想快速概述一下我們核心市場中的一些其他監管催化劑。

In Brazil, we recently received our GMP certification from ANVISA, the Brazilian Health Regulatory Agency. This certification is required for the manufacturing and commercialization of cannabis products in this market where we are one of the few companies outside of Brazil to receive it.

在巴西，我們最近獲得了巴西衛生監管機構 ANVISA 的 GMP 認證。在這個市場上生產和商業化大麻產品需要獲得該認證，我們是巴西以外少數獲得該認證的公司之一。

Being GMP certified in Brazil is a major milestone for our positioning within this market, which has the potential to become the largest cannabis market in Latin America. Further, it serves as a testament to the high quality and premium standard production practices we have hoped, and it complements the GMP certifications we have already received in the EU and Colombia.

在巴西獲得 GMP 認證是我們在該市場定位的一個重要里程碑，該市場有潛力成為拉丁美洲最大的大麻市場。此外，它證明了我們所希望的高質量和優質標準生產實踐，並且補充了我們已經在歐盟和哥倫比亞獲得的 GMP 認證。

As for broader catalysts, we are most closely monitoring trends and progress towards the adoption of Colombian flower across our target markets, both within our own shipments and in the overarching progress of these exports. According to a report from the New Century, overall legal medical cannabis exports from Colombia increased 96% last year relative to 2021, with four of our core markets, Brazil, Australia, Israel, and Germany comprising some of the top export destinations. These statistics highlight the traction that Colombia has continued to gain within the global medical cannabis market as well as our own strategic positioning within this backdrop.

至於更廣泛的催化劑，我們正在密切關注目標市場採用哥倫比亞花卉的趨勢和進展，無論是在我們自己的發貨範圍內還是在這些出口的總體進展中。根據 New Century 的一份報告，去年哥倫比亞合法醫用大麻出口總量較 2021 年增長了 96%，我們的四個核心市場巴西、澳大利亞、以色列和德國是一些最大的出口目的地。這些統計數據凸顯了哥倫比亞在全球醫用大麻市場中持續獲得的吸引力，以及我們在這一背景下的戰略定位。

We are also monitoring further regulatory and recreational developments in the Colombian domestic market. As of late March, a Recreational Legalization Bill has received approval from the House of Representatives, the Senate, and now the First Committee of the Chamber. And we will stay closely at two to further progress on this measure.

我們還在監測哥倫比亞國內市場的進一步監管和娛樂發展。截至 3 月底，一項娛樂合法化法案已獲得眾議院、參議院以及現在的眾議院第一委員會的批准。我們將密切關注兩點，以進一步推動這項措施的進展。

In Germany, we're following German Health Minister, Karl Lauterbach, on new two-phased approach to recreational cannabis legalization. While the first phase focuses on implementing cannabis social clubs for German citizens, a second five-year phase would allow certain municipalities to have licensed specialty shops that can sell recreational cannabis. The multiple avenues we currently occupy in Germany's cannabis supply chain places in a beneficial position to adapt to the country's recreational framework as it develops.

在德國，我們正在關注德國衛生部長卡爾·勞特巴赫（Karl Lauterbach）關於休閒大麻合法化的新的兩階段方法。雖然第一階段的重點是為德國公民建立大麻社交俱樂部，但第二個五年階段將允許某些城市擁有可以銷售休閒大麻的許可專賣店。我們目前在德國大麻供應鏈中佔據的多種渠道處於有利地位，可以適應該國發展的娛樂框架。

In Brazil where medical cannabis prescriptions have increased, individual states have moved to enact legislation that seeks to improve patients' access to the cannabis products they need. For example, São Paulo passed along in January the facilitates access to free medical cannabis as well as measures to increase public awareness and diagnosis surrounding cannabis medicines. With the products we have available under our RDC 327, we aim to continue supplying pharmaceutical quality cannabinoid products and ingredients for enhanced patient care.

在巴西，醫用大麻處方有所增加，各個州已採取行動頒布立法，旨在改善患者獲得所需大麻產品的機會。例如，聖保羅在一月份通過了促進免費醫用大麻的便利以及提高公眾對大麻藥物的認識和診斷的措施。憑藉我們在 RDC 327 下提供的產品，我們的目標是繼續提供醫藥品質的大麻素產品和成分，以加強患者護理。

We will continue to monitor and adapt to regulatory landscapes in our own markets as they evolve. And we remain confident in our overall strategy and commercial position. As we further activate and grow our global footprint and do so from a leaner and more efficient operational infrastructure, we aim to make additional progress on our commercial objectives, production advantages, and capital improvement initiatives through the remainder of 2023.

隨著我們自己市場的發展，我們將繼續監控和適應監管環境。我們對我們的整體戰略和商業地位仍然充滿信心。隨著我們進一步激活和擴大我們的全球足跡，並通過更精簡、更高效的運營基礎設施來實現這一目標，我們的目標是在 2023 年剩餘時間內在我們的商業目標、生產優勢和資本改善計劃方面取得更多進展。

We will now open up the call for Q&A.

我們現在將開放問答環節。

(Operator Instructions) Bobby Burleson, Canaccord.

（操作員說明）Bobby Burleson，Canaccord。

Hey, guys, so a couple of quick ones. If we look at all these different opportunities that you have in cannabinoid, you mentioned Australia, Germany, Brazil, Israel, UK, and Colombia. Maybe help prioritize those for us if you tier them in terms of -- maybe excluding the CBD activity that you're doing in Brazil, how would you kind of rank the THC opportunities timing-wise across those markets?

嘿，伙計們，有幾個快速的。如果我們看看大麻素領域的所有這些不同機會，您提到了澳大利亞、德國、巴西、以色列、英國和哥倫比亞。如果您根據以下方面對它們進行排序，也許可以幫助我們確定這些優先級——也許不包括您在巴西進行的 CBD 活動，您將如何在這些市場上對 THC 機會進行時間排序？

Bobby, thank you very much for your question. I think, definitely, our top markets are going to be Brazil. And just for clarity for everybody, the opportunities in Brazil are purely medical.

鮑比，非常感謝你的提問。我認為，毫無疑問，我們的最大市場將是巴西。需要澄清的是，巴西的機會純粹是醫療方面的。

It's really -- the products we're selling over there are treated like a narcotic. So the products we have right now which have a little THC, and the ones we're going to have in the future that includes higher levels of THC are going to be treated exactly the same as per the regulation there. And that's where we believe our significant part of our growth is going to come from.

確實——我們在那裡銷售的產品被當作麻醉劑對待。因此，我們現在擁有的含有少量 THC 的產品，以及我們將來將擁有的含有更高含量 THC 的產品，將按照那裡的法規進行完全相同的處理。我們相信這就是我們增長的重要部分將來自的地方。

We have very strong partnerships in GreenCare and Hypera. We recently announced the agreement with the latter.

我們在 GreenCare 和 Hypera 方面擁有非常牢固的合作夥伴關係。我們最近宣布了與後者的協議。

So we have partners, we have strength, we have been investing heavily into the market. We believe conversion of decisions actually prescribing the products is going to increase it, very significantly in a market that is very, very big. And we expect that market to become one of our greatest sources of growth for us. And most probably, Brazil is going to become one of the largest markets globally in the very near future.

所以我們有合作夥伴，我們有實力，我們一直在市場上進行大量投資。我們相信，實際處方產品的決策轉換將會增加它，在一個非常非常大的市場中非常顯著。我們預計該市場將成為我們最大的增長來源之一。最有可能的是，巴西將在不久的將來成為全球最大的市場之一。

I would say, after Brazil, we're looking with very positively at Australia. Our sales in Australia have been picking up consistently. As we mentioned earlier, we were able to sell the remaining portion of our Portuguese flower to Australia, which means the market has appetite for flower, flower like the one we know how to produce.

我想說，繼巴西之後，我們正在非常積極地看待澳大利亞。我們在澳大利亞的銷售額一直在持續增長。正如我們之前提到的，我們能夠將葡萄牙花卉的剩餘部分出售給澳大利亞，這意味著市場對花卉有需求，就像我們知道如何生產的花卉一樣。

We're in the process of getting our Colombian flower up to that spec. We've already shipped our first product. So we think flower in Australia is going to be one of our drivers of growth.

我們正在使我們的哥倫比亞花卉達到該規格。我們已經發貨了我們的第一個產品。因此，我們認為澳大利亞的花卉將成為我們的增長動力之一。

But I would say that extracts in Australia is becoming very, very important. The Australian authorities and the Australian market is becoming even more specific in the requirements of the quality of the products.

但我想說，澳大利亞的提取物正變得非常非常重要。澳大利亞當局和澳大利亞市場對產品質量的要求變得更加具體。

And as we mentioned, we have our ANVISA certification now, our EU GMP certification, our Colombian certifications where we're very, very well positioned to actually serve a market like Australia who's getting more and more tighter as time passes. So that means many suppliers are not going to be able to enter Australia. And we are confident that we, based on what we have built, are going to continue growing in that market, and we are seeing it already.

正如我們提到的，我們現在擁有 ANVISA 認證、歐盟 GMP 認證、哥倫比亞認證，我們非常非常有能力為像澳大利亞這樣隨著時間的推移變得越來越嚴格的市場提供實際服務。這意味著許多供應商將無法進入澳大利亞。我們相信，基於我們已經建立的基礎，我們將在該市場繼續增長，而且我們已經看到了這一點。

So Australia and Brazil, I would say, probably Tier 1. I would say, later in the year, definitely Germany, for us, through our ICANNA platform is going to be the third greatest driver of growth where we will see revenues from our flower are now our own branded flower into the market, growing significantly as our Colombia production ramps. As a reminder, in Germany, we have our own distributor, which means we are actually able to sell our own branded products directly to pharmacies, of course, at a very different margin profile than what we have when we sell to a wholesale business.

因此，我想說，澳大利亞和巴西可能是第一梯隊。我想說，今年晚些時候，對我們來說，肯定是德國，通過我們的 ICANNA 平台將成為第三大增長驅動力，我們將在其中看到我們的花卉收入現在我們自己的品牌花卉已進入市場，隨著我們哥倫比亞產量的增加而顯著增長。提醒一下，在德國，我們有自己的經銷商，這意味著我們實際上能夠直接向藥店銷售我們自己的品牌產品，當然，其利潤率與我們向批發企業銷售時的利潤率截然不同。

So I would say, those are our top markets. But having said that and you mentioned it, we continue to sell and focus on Israel, but we believe flower for Israel is going to be later in the year. The UK is a market where we see a lot of opportunity. It's opening up for us, and we expect [no] shipments in the coming months.

所以我想說，這些是我們的主要市場。但話雖如此，您也提到過，我們將繼續銷售並專注於以色列，但我們相信以色列的鮮花將在今年晚些時候上市。英國是一個我們看到很多機會的市場。它正在向我們開放，我們預計未來幾個月不會發貨。

And Colombia, we're working on it. The change regulation happened at the very beginning of this year, and we do expect that it's going to become increasingly an important market for us.

哥倫比亞，我們正在努力。法規的變化發生在今年年初，我們確實預計它將成為我們越來越重要的市場。

Great. And then maybe in Brazil at the state level. Obviously, in the US, the states are driving legalization in terms of really accelerating things like rec and more liberal medical programs. And I'm wondering what's the dynamic in Brazil, and how significant is the São Paulo action that you are seeing? Are there other opportunities where you are going to see state level activity really help pick up demand?

偉大的。然後也許是在巴西的州一級。顯然，在美國，各州正在推動合法化，真正加速諸如休閒和更自由的醫療計劃之類的事情。我想知道巴西的動態如何，以及您所看到的聖保羅行動有多重要？您是否還有其他機會看到州級活動真正有助於提振需求？

Absolutely. And I think it is going to be an important driver for growth. São Paulo, it's one of the -- it's a large state, it's a very influential state, and was hoping up this program, which basically addresses the issue of affordability of cannabis products for the Brazilian population and basically facilitates the access, and of course, the payment as it's for the [batches] here we reimburse. So definitely, it's a market catalyst.

絕對地。我認為這將成為增長的重要驅動力。聖保羅是其中之一——它是一個大州，是一個非常有影響力的州，並且希望實施該計劃，該計劃基本上解決了巴西人口負擔得起大麻產品的問題，並基本上促進了獲取大麻產品的機會，當然，我們在這里報銷[批次]的付款。所以毫無疑問，它是市場催化劑。

With our partners, we're looking very closely at what's happening in São Paulo. In other states, there start to become discussions about something similar. And we believe that we are very well positioned because we have our products, number one; already registered under RDC 327 which is going to, in any case, be a requirement for those standard we believe; and also, we have very, very strong partners which -- or who can help us participate and eventually be able to win those market tenders.

我們與合作夥伴一起密切關注聖保羅正在發生的事情。在其他州，人們開始討論類似的事情。我們相信我們處於非常有利的位置，因為我們擁有第一的產品；已在 RDC 327 下註冊，無論如何，我們認為這將成為這些標準的要求；而且，我們擁有非常非常強大的合作夥伴，這些合作夥伴可以幫助我們參與並最終贏得這些市場招標。

Of course, time is going to -- there some time still before that happens. But we think it's going to be a catalyst, and we think we are going to be very well positioned with our products for that.

當然，時間會過去——在那之前還需要一段時間。但我們認為這將成為催化劑，並且我們認為我們的產品將為此做好充分準備。

And then in terms of how ready some of these markets are to really turn on the spigot for more orders. Is there some hesitancy maybe that kind of goes away when you address the balance sheet concerns, whereby if you raise the capital or you, in various ways, selling assets or whatever it is? Do you think that will increase confidence in the part of some of these customers to turn on the orders some more?

然後，就其中一些市場是否準備好真正打開更多訂單的龍頭而言。當你解決資產負債表問題時，如果你籌集資金或者以各種方式出售資產或其他什麼，是否會有一些猶豫可能會消失？您認為這會增加其中一些客戶更多訂單的信心嗎？

I would say, what we have been discussing with customers which is basically the same. But we have been discussing today is, the company is lowering costs, improving margins. We've closed down an operation that was using significant amount of our cash; the revenues are increasing. We have lower CapEx, we have some non-core assets.

我想說，我們一直在與客戶討論的內容基本上是相同的。但我們今天一直討論的是，公司正在降低成本，提高利潤率。我們已經關閉了一項消耗大量現金的業務；收入正在增加。我們的資本支出較低，我們有一些非核心資產。

So I would say, at this point, we are not seeing that as a constraint on ordering. The constraints are mostly in general, regulatory, commercial, timing, et cetera. But I see some tailwinds where we're feeling some clear tailwinds.

所以我想說，目前我們並不認為這是對訂購的限制。限制主要是一般性的、監管的、商業的、時機的等等。但我看到了一些順風，我們感受到了一些明顯的順風。

In Brazil, again, we just got the ANVISA certification, which is a requirement. We had to have worked very hard for that with our partners; we got that. That's something that of course we are all waiting for. So that we believe is going to open volumes even beyond what we have today.

在巴西，我們剛剛獲得了 ANVISA 認證，這是一項要求。我們必須與我們的合作夥伴一起努力才能實現這一目標；我們明白了。這當然是我們都在等待的事情。因此，我們相信打開的數量甚至會超出我們今天的數量。

The changes in Australia come July 1. And the fact that we have all of these certifications in place are going to open up the marketplace, and we are seeing those orders come in and increase.

澳大利亞將於 7 月 1 日發生變化。事實上，我們擁有所有這些認證，這將打開市場，我們看到這些訂單不斷增加。

So I would say, Bobby, at this point, that's really not a clear concern such that it can reduce our revenues mainly because they are being addressed. And as we said, with all the actions that we're undertaking, we do see significant reduced use of cash in Q2 and going forward, which puts us in a much better position, and of course, that's a result of everything that we have done.

所以我想說，鮑比，在這一點上，這確實不是一個明確的問題，因為它會減少我們的收入，主要是因為這些問題正在得到解決。正如我們所說，通過我們正在採取的所有行動，我們確實看到第二季度和未來的現金使用量大幅減少，這使我們處於更好的位置，當然，這是我們所擁有的一切的結果完畢。

Okay, great. And could you just remind me on the guidance. Was every line item essentially reiterated, or was there some sifting around a little bit on the EBITDA line?

好的，太好了。你能提醒我一下指導嗎？是否基本上重申了每個項目，或者是否對 EBITDA 項目進行了一些篩選？

Yeah. Hi, Bobby. It's Hank. We maintained our guidance line by line, so no movement.

是的。嗨，鮑比。是漢克。我們一行一行地保持著我們的指導，所以沒有任何移動。

Line by line. Excellent. Okay, thanks, guys.

逐行。出色的。好的，謝謝大家。

Absolutely.

絕對地。

Thank you very much, Bobby.

非常感謝你，鮑比。

This concludes our question-and-answer session. I would like to turn the conference back over to Andres Fajardo for any closing mark

我們的問答環節到此結束。我想將會議轉回安德烈斯·法哈多 (Andres Fajardo) 詢問結束語

I just want to thank everyone who attended the call today, and we look forward to speaking with all of our investors and analysts when we report our second-quarter results in August.

我只想感謝今天參加電話會議的所有人，我們期待在八月份報告第二季度業績時與所有投資者和分析師交談。

The conference has not concluded. Thank you for attending today's presentation. You may now disconnect.

會議尚未結束。感謝您參加今天的演講。您現在可以斷開連接。