Clever Leaves Holdings Inc (CLVR) 2023 Q3 法說會逐字稿

Good day, and welcome Clever Leaves Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions)

美好的一天，歡迎 Clever 離開 2023 年第三季財報電話會議。所有參與者將處於僅聽模式。 （操作員說明）

Please note that this event is being recorded. I would like to turn the call over two as Jackie tester, Director of Investor Relations. Please go ahead.

請注意，該事件正在被記錄。我想以投資者關係總監 Jackie 測試員的身份將電話轉交給兩位。請繼續。

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clever Leaves' financial results for the third quarter ended September 30, 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 9 月 30 日的第三季度財務業績。今天加入我們的是 Clever Leaves 首席執行官 Andres Fajardo 和公司首席財務官 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.

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。

Actual outcomes and results may differ materially from what is expressed in or implied by the forward looking statements. Specifically, please refer to the company's Form 10-Q for the quarter ended September 30, 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.

實際結果和結果可能與前瞻性陳述中表達或暗示的內容有重大差異。具體而言，請參閱該公司在本次電話會議之前提交的截至 2023 年 9 月 30 日的季度的 10-Q 表，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有重大差異的因素。

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.

另請注意，在本次電話會議中，管理層將揭露調整後的 EBITDA、調整後的毛利和調整後的毛利率。這些是 SEC G 條例定義的非 GAAP 財務指標。

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and 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 condition and results of operations are included in today's press release that is posted on the company's website.

這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表，以及披露公司管理層認為調整後EBITDA、調整後毛利和調整後毛利率的原因的聲明，為投資者提供了有關公司財務狀況和經營業績的有用資訊包含在今天發佈在公司網站上的新聞稿中。

With that, I will 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. In the third quarter, we continued to make progress on our strategic commercial production and capital efficiency initiatives. We supported ongoing demand strength for our cannabinoid extracts, and continue refining our Colombian flower, driving 135% year-over-year growth in our cannabinoid revenues.

謝謝你，傑基，大家下午好。第三季度，我們在策略商業生產和資本效率措施方面繼續取得進展。我們支持大麻素萃取物的持續需求強勁，並繼續精煉我們的哥倫比亞花，推動我們的大麻素收入年增 135%。

in our non-cannabinoid business, we have maintained our margin performance and delivered 6% year-over-year revenue growth. Within this segment, we have continued to strengthen our relationship with the food drug mass channel, optimize our go-to-market model for the specialty channel, and grow our direct-to-consumer sales.

在我們的非大麻素業務中，我們保持了利潤率表現並實現了 6% 的同比收入成長。在此細分市場中，我們持續加強與食品藥品大眾通路的關係，優化專業通路的上市模式，並增加直接面向消費者的銷售。

We further reinforced our leaner, more efficient cost and capital structure in Q3, benefiting from the sale of our Portuguese processing asset, and the cost reduction initiatives we've put in place over the past year. Our performance through the first three quarters of 2023 is a testament to the strategic improvements we've made to strengthen our position in the global medical cannabis supply chain.

受益於葡萄牙加工資產的出售以及我們在過去一年中實施的成本削減舉措，我們在第三季進一步強化了更精簡、更有效率的成本和資本結構。我們到 2023 年前三個季度的業績證明了我們為加強我們在全球醫用大麻供應鏈中的地位而做出的戰略改進。

I will discuss each of our three key strategic areas of profitable growth -- our optimized cash management, our focused commercial strategy, and our low cost, high-quality production in Colombia.

我將討論我們獲利成長的三個關鍵策略領域——我們優化的現金管理、我們集中的商業策略以及我們在哥倫比亞的低成本、高品質生產。

Starting with cash management, our quarter end balance represents a net gain relative to the end of last quarter. We closed the third quarter with $6.5 million compared to $5.1 million at the end of Q2 of this year, demonstrating our success with reducing our quarter-to-quarter cash burn, and creating a leaner expense structure for the business.

從現金管理開始，我們的季末餘額代表了相對於上季末的淨收益。我們第三季的收入為 650 萬美元，而今年第二季末為 510 萬美元，這證明了我們在減少季度現金消耗以及為業務創建更精簡的費用結構方面取得了成功。

In addition, our debt obligations have remained low since the second quarter of last year, in which the company's debt was reduced from $22.6 million in Q1 2022 to $2.1 million in Q2 2022, thereby yielding annual cash interest expense savings in future years. At September 30 of this year, our total debt was $1.3 million.

此外，自去年第二季以來，我們的債務義務一直保持在較低水平，公司債務從2022 年第一季的2,260 萬美元減少到2022 年第二季的210 萬美元，從而在未來幾年節省年度現金利息費用。截至今年 9 月 30 日，我們的總債務為 130 萬美元。

On an ongoing basis, we are seeing the improved savings generated by our work to right-size our labor force, transition our production operations solely to Colombia, and leverage our expensive and fully built-out Colombian operation infrastructure. In fact, our progress on this front has helped facilitate the positive adjustments we have made to the full year CapEx expectation for 2023, which we will discuss later in the call.

在持續的基礎上，我們看到我們透過調整勞動力規模、將我們的生產業務完全轉移到哥倫比亞以及利用我們昂貴且完全建成的哥倫比亞營運基礎設施而產生的節省。事實上，我們在這方面取得的進展有助於促進我們對 2023 年全年資本支出預期做出的積極調整，我們將在稍後的電話會議中討論這一點。

As a reminder, a significant contributor to our third quarter balance sheet improvement was the July 5 sale of our Portuguese post-harvest asset to Terra Verde, LDA, an affiliate of Curaleaf Holdings. The transaction resulted in gross proceeds of $2.7 million.

提醒一下，我們第三季資產負債表改善的一個重要貢獻因素是 7 月 5 日將我們的葡萄牙收穫後資產出售給 Curaleaf Holdings 的附屬公司 Terra Verde, LDA。此次交易的總收益為 270 萬美元。

We're presenting both an infusion of additional non-dilutive capital, and an important milestone in the wind-down of our Portuguese operations. The broader wind-down process has been substantially completed, positioning us to drive continued expense improvements through the remainder of Q4.

我們不僅注入了額外的非稀釋性資本，而且在關閉葡萄牙業務方面取得了重要的里程碑。更廣泛的縮減流程已基本完成，這使我們能夠在第四季度剩餘時間內推動費用持續改善。

At October 31, 2023, we had a cash balance of $6.2 million. As Hank will describe in greater detail, we have since further enhanced our liquidity through the post-Q3 sale of our remaining stake in Cansativa, which we disclosed on October 23.

截至 2023 年 10 月 31 日，我們的現金餘額為 620 萬美元。正如漢克將更詳細地描述的那樣，我們透過在第三季後出售 Cansativa 的剩餘股份進一步增強了我們的流動性，我們在 10 月 23 日披露了這一點。

One of our wholly-owned subsidiaries, Norton Swan Deutschland Holdings, has agreed to sell its remaining Cansativa shares back to Cansativa and to EIP, Entrepreneurial Investments GmbH, or EIP. This sale resulted in proceeds of approximately $1.9 million.

我們的全資子公司之一 Norton Swan Deutschland Holdings 已同意將其剩餘的 Cansativa 股份出售給 Cansativa 和 EIP（Entrepreneurial Investments GmbH 或 EIP）。此次出售所得收益約 190 萬美元。

We would like to thank Cansativa and EIP for their partnership in the transaction, and we look forward to leveraging our other strong pathways to the German market as we develop our commercial opportunities in the region.

我們要感謝 Cansativa 和 EIP 在此次交易中的合作，我們期待在開發該地區的商業機會時利用我們進入德國市場的其他強大途徑。

Turning to our commercial strategy, we have maintained our focus on our core target markets, which continue to be Australia, Germany, Brazil, Israel, the United Kingdom, and Colombia. In July, we announced that we expanded our agreement with Australian Natural Therapeutics Group, or ANTG, to include our Colombian flower. The flower products are now available to Australian medical patients through pharmacy outlets throughout the country under ANTG's Global Selects brand portfolio.

談到我們的商業策略，我們仍然專注於我們的核心目標市場，其中仍然是澳洲、德國、巴西、以色列、英國和哥倫比亞。 7 月，我們宣布擴大與澳洲自然療法集團 (ANTG) 的協議，將我們的哥倫比亞花納入其中。澳洲醫療患者現在可以透過 ANTG 的 Global Selects 品牌組合在全國各地的藥房購買這些花卉產品。

As a whole, the Australian cannabis market has seen robust growth through the first half of this year. With authorized prescriber medical cannabis approvals growing over 120% year-over-year according to data from Australia's medicine and therapeutic regulatory agency, the Therapeutic Goods Administration.

總體而言，今年上半年澳洲大麻市場出現了強勁成長。根據澳洲藥品和治療監管機構治療產品管理局的數據，授權處方藥醫用大麻核准量年增超過 120%。

We are proud of how we have built upon our flower's traction in the Australian market, and we continue to see positive reception from our most recent strains. Our next strain is currently on track to launch in Australia during the fourth quarter.

我們對我們如何在澳洲市場上建立我們的花卉吸引力感到自豪，我們繼續看到我們最新品種的積極反響。我們的下一個品種目前預計在第四季度在澳洲推出。

Australia and Brazil have continued to be the strongest markets for our extract products, building upon our approved product shipments under RDC-327 in Brazil, on a growing base of supply partnerships in the other markets.

澳洲和巴西仍然是我們萃取物產品最強勁的市場，以我們在巴西 RDC-327 批准的產品出貨為基礎，以及其他市場不斷增長的供應合作夥伴關係基礎。

In our work to support our partners and mitigate any potential business impacts, we are closely monitoring news surrounding the Israel-Hamas war. Current conditions have both shipping, transportation, and related logistic challenges in the region that we are navigating with our partners in real time. While our collective visibility remains limited, we are working to stay flexible for our partners and ensure that patients receive the medicine they need. Our thoughts are with everyone who is affected by the war.

在支持合作夥伴並減輕任何潛在業務影響的過程中，我們正在密切關注以色列-哈馬斯戰爭的新聞。目前，我們正在與合作夥伴即時應對該地區的航運、運輸和相關物流挑戰。雖然我們的集體知名度仍然有限​​，但我們正在努力為我們的合作夥伴保持靈活性，並確保患者獲得他們需要的藥物。我們的心與所有受戰爭影響的人同在。

We are also working diligently to grow our commercial footprint in the United Kingdom and Germany. Similar to Australia, the UK has seen strong growth in its medical cannabis market this year, with the government's Home Office reporting that medical cannabis imports have tripled in volume year-over-year.

我們也努力擴大我們在英國和德國的商業足跡。與澳洲類似，英國今年的醫用大麻市場成長強勁，英國內政部報告稱，醫用大麻進口量比去年同期增加了兩倍。

In Germany, we continue to view our branded flower product and our existing B2B partnerships in the region as key entry points for our Colombian flower shipments. We are focused on positioning our product along these lines as we monitor further developments in the regulatory evolution of the country's cannabis market.

在德國，我們繼續將我們的品牌花卉產品和我們在該地區現有的 B2B 合作夥伴關係視為我們哥倫比亞花卉運輸的關鍵切入點。當我們監測該國大麻市場監管演變的進一步發展時，我們專注於按照這些路線定位我們的產品。

To conclude by reviewing our Colombian production operations, we have continued to focus our harvest on putting a THC flower for export, while planting some new CBD hemp crops to ensure we have the inventory to address demand for our extract products. We continue to keep our harvest skewed towards THC flower, and keep overall output more closely aligned with demand.

最後，透過檢視我們在哥倫比亞的生產業務，我們繼續將收穫重點放在出口 THC 花上，同時種植一些新的 CBD 大麻作物，以確保我們有庫存來滿足對提取產品的需求。我們繼續保持我們的收成以 THC 花為主，並使總產量與需求更加緊密地一致。

From a strain development perspective, we believe we remain on track to complete two additional strains by the end of this year, and have made solid progress in our early cultivation work with Pretorian Global. The strains we developed in this partnership are expected to benefit our market penetration strategy across our target markets.

從菌株開發的角度來看，我們相信我們仍有望在今年年底前完成另外兩個菌株，並且我們與 Pretorian Global 的早期培育工作已取得紮實進展。我們在這次合作中開發的菌株預計將有利於我們在目標市場的市場滲透策略。

More broadly, we expect to continue expanding our flower portfolio throughout 2024 as we work to refine THC levels, organ-elective characteristics, and other key flower qualities in line with patient needs.

更廣泛地說，我們預計在 2024 年繼續擴大我們的花卉產品組合，努力根據患者需求完善 THC 水平、器官選擇性特徵和其他關鍵花卉品質。

With our mature production operations in Colombia, we have worked to build and sustain our industry reputation for high-quality products and pharmaceutical-grade production standards. Importantly, many of the practices that maximize the quality and efficiency of our operations have also demonstrated our commitment to sustainability. For example, the environmental advantages from receiving12 hours of natural sunlight and cultivating at high elevations have not only benefited our production costs, but also allowed us to optimize our energy and water usage, as well as entirely eliminate the need for pesticides.

憑藉我們在哥倫比亞成熟的生產運營，我們致力於建立和維持高品質產品和醫藥級生產標準的行業聲譽。重要的是，許多最大限度提高我們營運品質和效率的實踐也體現了我們對永續發展的承諾。例如，接受12小時自然陽光和在高海拔地區種植的環境優勢不僅有利於我們的生產成本，而且使我們能夠優化能源和水的使用，並完全消除對農藥的需求。

As evidence of our leadership on this front, we were awarded the International Declaration of Carbon Neutrality by the 100% carbon neutral program for our active commitment to environmental sustainability and climate change mitigation in late August. To date, we believe we are one of the first known vertically-integrated medicinal cannabis companies worldwide to have achieved international certification for carbon neutrality.

作為我們在這方面領導地位的證明，我們在 8 月下旬獲得了 100% 碳中和計劃頒發的《國際碳中和宣言》，以表彰我們對環境永續性和減緩氣候變遷的積極承諾。迄今為止，我們相信我們是全球首批獲得碳中和國際認證的已知垂直整合藥用大麻公司之一。

In addition to leveraging our environmental advantages, we have implemented various measures to curb carbon emissions and preserve natural resources, including methods of harnessing solar energy, and optimizing waste management practice. In fact, we can repurpose or recycle more than 50% of waste into productive process. Our dedication to, and track record in, environmental sustainability demonstrates the high quality standards of our products and processes.

除了利用我們的環境優勢外，我們還採取了各種措施來抑制碳排放和保護自然資源，包括利用太陽能和優化廢物管理實踐。事實上，我們可以將 50% 以上的廢棄物重新利用或回收到生產過程中。我們對環境永續發展的奉獻和記錄證明了我們產品和流程的高品質標準。

Producing medical-grade cannabinoid products at scale for a global base of patients requires a careful strategic matrix. We have had to be nimble in adapting to market-specific requirements; decisive in implementing key capital optimization measures; and comprehensive in ramping our Colombian operations to support existing extract momentum while building traction for our flower exports. The work to strengthen this foundation has been gradual yet steady.

為全球患者大規模生產醫用級大麻素產品需要仔細的策略矩陣。我們必須靈活地適應市場的具體要求；果斷實施關鍵資本優化措施；並全面提升我們在哥倫比亞的業務，以支持現有的提取勢頭，同時為我們的花卉出口提供動力。鞏固這基礎的工作是漸進而穩定的。

As we move further into Q4 and prepare for the year ahead, we aim to continue building upon our growing base of international partnerships, as well as the advantages of our extensive Colombian production base, and leaner corporate infrastructure.

隨著我們進入第四季度並為未來一年做好準備，我們的目標是繼續擴大我們不斷增長的國際合作夥伴關係基礎，以及我們廣泛的哥倫比亞生產基地和更精簡的企業基礎設施的優勢。

I am proud of the progress we have made through the third quarter of this year, and we expect to continue leveraging our significantly improved capital efficiencies and growing commercial traction through the end of this year into the next. I'd now like to turn the call over to our CFO, Hank Hague, who will discuss our third quarter financial performance. Hank?

我對今年第三季的進展感到自豪，我們預計從今年年底到明年，我們將繼續利用顯著提高的資本效率和不斷增長的商業吸引力。我現在想將電話轉給我們的財務長漢克·黑格，他將討論我們第三季的財務表現。漢克？

Thank you, Andres. As a reminder, we have continued to account for Portugal as a discontinued operation in our financial results for the year-ago period. As a result, our condensed consolidated balance sheet, the condensed consolidated statement of operations, and the notes for the consolidated financial statements had been restated for all periods presented to reflect the discontinuation of these operations in accordance with ASC 205.

謝謝你，安德烈斯。提醒一下，我們在去年同期的財務表現中繼續將葡萄牙視為終止業務。因此，我們的簡明合併資產負債表、簡明合併業務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。

This presentation will continue through the fourth quarter of this year, and further explanatory notes are available in our third quarter 10-Q filing. Please also note that on August 24, we implemented a 1-for-30 reverse split of our common shares, which reduced the number of issued and outstanding common shares from approximately $45.7 million to approximately $1.5 million. The reverse split helped facilitate our compliance with the Nasdaq minimum bid price requirement which we have regained as of September 8.

本次演示將持續到今年第四季度，更多解釋性說明可在我們第三季度的 10-Q 備案中找到。另請注意，8 月 24 日，我們對普通股實施了 30 股反向分割，這將已發行和流通在外的普通股數量從約 4570 萬美元減少到約 150 萬美元。反向分割有助於我們遵守納斯達克最低買入價要求，我們已於 9 月 8 日恢復了該要求。

Moving into our quarterly results, our revenue in the third quarter of 2023 increased 33% to $3.8 million compared to $2.9 million in the year ago period. The increase reflects growth in our cannabinoid segment revenues during the quarter, generated from continued extract sales strength in Australia and Brazil.

進入我們的季度業績，我們 2023 年第三季的營收成長了 33%，達到 380 萬美元，而去年同期為 290 萬美元。這一增長反映了我們的大麻素部門收入在本季度的增長，這是由於澳大利亞和巴西的提取物銷售持續強勁而產生的。

On a sequential basis, compared to the second quarter of this year, we had some variability in the timing of certain regulatory approvals in Brazil, which delayed some of our expected shipments. However, we believe these are now on track to be delivered by the end of Q4.

從環比來看，與今年第二季度相比，我們在巴西某些監管部門批准的時間存在一些變化，這延遲了我們的一些預期發貨。然而，我們相信這些現在預計將在第四季度末交付。

Our non-cannabinoid segment revenues increased 6% year-over-year, as we work to mitigate the specialty channel softness that has pressured our top line growth through the first half of the year. We have also continued to support traction with our online marketplace partners.

我們的非大麻素部門營收年增 6%，因為我們致力於緩解今年上半年對我們營收成長構成壓力的專業管道疲軟狀況。我們也繼續支持我們的線上市場合作夥伴的吸引力。

From late Q3 into early Q4, we began to generate some incremental channel improvements as customer buying patterns have adjusted to current economic conditions. To further support these patterns, we are working to optimize our product mixes across certain channels and invest in marketing efforts geared towards enhancing customer education. In particular, we are making packaging and marketing improvements around our relaunch of our premium herbal clean product, Ultra Eliminex, with positive reception thus far.

從第三季末到第四季初，隨著顧客購買模式適應當前的經濟狀況，我們開始進行一些漸進的通路改善。為了進一步支援這些模式，我們正在努力優化某些管道的產品組合，並投資於旨在加強客戶教育的行銷工作。特別是，我們正在圍繞我們重新推出的優質草本清潔產品 Ultra Eliminex 進行包裝和行銷改進，迄今為止獲得了積極的反響。

Our all-in cost per gram of dried flower equivalent in the third quarter of 2023, was $0.75 per gram compared to $0.52 per gram in the year ago period. During the quarter, 1,210 kilograms were harvested, compared to 1,211 kilograms in the year ago period.

2023 年第三季度，我們每克乾花當量的總成本為每克 0.75 美元，而去年同期為每克 0.52 美元。本季收穫了 1,210 公斤，而去年同期為 1,211 公斤。

We also made some meaningful changes in our cultivation techniques to improve the quality and properties of the flower, as well as the more stringent market and regulatory requirements. We have continued to add new CBD hemp crops to our harvest cycle to replenish our inventory for cost advantages over time as we continue to optimize our harvest mix, and scale our Colombian flower operation with the aim of bringing our production cost per gram closer to their historical levels.

我們也對栽培技術進行了一些有意義的改變，以提高花卉的品質和特性，以及更嚴格的市場和監管要求。我們繼續在我們的收穫週期中添加新的CBD 大麻作物，以補充我們的庫存，隨著時間的推移，我們將獲得成本優勢，同時我們繼續優化我們的收穫組合，並擴大我們的哥倫比亞花卉業務，旨在使我們的每克生產成本更接近他們的水平歷史水平。

Our gross profit in the third quarter of 2023, which included an inventory provision of $0.3 million, increased 49% to $1.9 million, compared to $1.3 million in the year-ago period, which included a $0.6 million inventory provision.

我們 2023 年第三季的毛利（包括 30 萬美元的庫存撥備）成長了 49%，達到 190 萬美元，而去年同期為 130 萬美元，其中包括 60 萬美元的庫存撥備。

Our adjusted gross profit, which excluded the inventory provisions, increased 19%, to $2.2 million in the third quarter of 2023, compared to $1.9 million in the year ago period. This reflects an adjusted gross margin of 57.7% compared to 64.7% in the year ago period. The increase in our gross profit reflects the revenue growth we generated during the quarter, along with stabilized pricing for both raw materials and labor in our non-cannabinoid segment.

2023 年第三季度，我們的調整後毛利（不含庫存撥備）成長了 19%，達到 220 萬美元，而去年同期為 190 萬美元。這反映出調整後的毛利率為 57.7%，去年同期為 64.7%。我們毛利的成長反映了我們在本季產生的收入成長，以及我們非大麻素領域原材料和勞動力價格的穩定。

Operating expenses in the third quarter of 2023 improved to $5.3 million compared to $25.6 million in the year ago period. Note that our OpEx in the third quarter of 2022 included a $19 million intangible asset impairment charge related to our Colombian cannabis licenses. Excluding the year-ago impairment charge, our operating expenses decreased 20% year over year, reflecting increased savings as we benefit from the cost reduction and restructuring initiatives we have previously implemented.

2023 年第三季的營運費用從去年同期的 2,560 萬美元增至 530 萬美元。請注意，我們 2022 年第三季的營運支出包括與哥倫比亞大麻許可證相關的 1,900 萬美元無形資產減損費用。除去去年的減損費用，我們的營運費用年減了 20%，反映出我們受益於先前實施的成本削減和重組舉措，節省了更多費用。

Net loss in the third quarter of 2023 was $5.1 million compared to a net loss of $20.2 million in the year ago period. Net loss in the year ago quarter reflects the impact of the $19 million asset impairment charge I just mentioned. Net loss in the third quarter of this year includes a $3.7 million investment impairment related to the sale of our remaining stake in Cansativa.

2023 年第三季的淨虧損為 510 萬美元，而去年同期的淨虧損為 2,020 萬美元。去年同期的淨虧損反映了我剛才提到的 1,900 萬美元資產減損費用的影響。今年第三季的淨虧損包括與出售 Cansativa 剩餘股份相關的 370 萬美元投資減損。

Subsequent to the quarter, our wholly owned subsidiary entered into a first share purchase and transfer agreement with Cansativa and EIP as Andres mentioned earlier. Per the agreement, Cansativa and EIP purchased our remaining 3,648 shares for a total purchase price of approximately $1.9 million.

正如 Andres 先前提到的，本季結束後，我們的全資子公司與 Cansativa 和 EIP 簽訂了首次股份購買和轉讓協議。根據協議，Cansativa 和 EIP 購買了我們剩餘的 3,648 股股票，總購買價約為 190 萬美元。

While the Cansativa investment does not have a readily determinable fair value, we have determined that the sale price of the investment represents a discounted price as compared to the value of the investment at the historical cost shown in the books. Upon comparing the subsequent transaction value of the shares sold for the carrying value, we recorded a $3.7 million impairment loss provision during the third quarter.

雖然 Cansativa 投資沒有易於確定的公允價值，但我們確定該投資的銷售價格是與帳簿中以歷史成本計算的投資價值相比的折扣價格。透過比較所售股票的後續交易價值與帳面價值，我們在第三季記錄了 370 萬美元的減損損失撥備。

Adjusted EBITDA in the third quarter of 2023 improved to negative $2.6 million compared to negative $3.7 million in the year ago period. This was mainly due to the benefits of the cost reduction and restructuring activities we have previously implemented.

2023 年第三季調整後 EBITDA 增至負 260 萬美元，去年同期為負 370 萬美元。這主要是由於我們先前實施的成本削減和重組活動的好處。

At September 30, 2023, cash, cash equivalents, and restricted cash were $6.5 million compared to $12.9 million at December 31st, 2022. The decrease was primarily attributable to continued operating losses and working capital means.

截至 2023 年 9 月 30 日，現金、現金等價物和限制性現金為 650 萬美元，而 2022 年 12 月 31 日為 1,290 萬美元。減少的主要原因是持續經營虧損和營運資金手段。

Our third quarter cash balance reflects the $2.7 million in proceeds from the sale of our Portuguese post harvest assets, along with the approximate $0.8 million in net proceeds we raised from our at-the-market stock offering during the third quarter. This program remains available for us to leverage where applicable, and we will continue to evaluate other potential pathways for additional capital.

我們第三季的現金餘額反映了出售葡萄牙收穫後資產的 270 萬美元收益，以及我們第三季透過市場股票發行籌集的約 80 萬美元淨收益。我們仍然可以在適用的情況下利用該計劃，並且我們將繼續評估其他潛在的額外資本途徑。

With our improved revenue performance and increased cost savings, we have continued to drive significant improvements in our cash burn. The wind-down of our Portuguese operations has given us an even leaner, go-forward operational foundation, and we are still working towards selling our remaining agricultural assets by the end of Q1 2024. Additionally, we have received the approximate $1.9 million in net proceeds from the sale of the Cansativa shares, which is not included in the $6.2 million cash balance we recorded at October 31, 2023.

隨著收入績效的改善和成本節約的增加，我們繼續推動現金消耗的顯著改善。我們葡萄牙業務的逐步結束為我們提供了更精簡、不斷前進的營運基礎，我們仍在努力在 2024 年第一季末之前出售剩餘的農業資產。此外，我們還收到了約 190 萬美元的淨收益出售Cansativa 股票的收益，不包含在我們截至2023 年10 月31 日記錄的620 萬美元現金餘額中。

As noted in our public filings, including our 10-Q for the third quarter of 2023, there continues to be substantial doubt about our ability to continue as a going concern. Our operational execution continues to be dependent on our ability to obtain additional funding, which could include several initiatives such as raising capital, reducing working capital, and monetizing noncore assets. We aim to continue enhancing our liquidity position by reducing working capital investments and driving additional efficiencies in our overall cost structure.

正如我們的公開文件（包括 2023 年第三季的 10-Q 報告）中所指出的，人們對我們持續經營的能力仍然存在很大疑問。我們的營運執行仍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措施。我們的目標是透過減少營運資本投資並提高整體成本結構的效率來持續增強我們的流動性狀況。

With the phasing and mix of our revenues across both business segments, along with the improvements we have made in our cost and capital structure, we have adjusted our full year 2023 financial forecast across all metrics. On the top line, we now expect our full year 2023 revenue to be within the range of $17 million to $18 million, compared to the prior range of $19 million to $22 million.

隨著我們兩個業務部門收入的分階段和組合，以及我們在成本和資本結構方面的改進，我們調整了所有指標的 2023 年全年財務預測。在營收方面，我們現在預計 2023 年全年收入將在 1,700 萬美元至 1,800 萬美元之間，而先前的範圍為 1,900 萬美元至 2,200 萬美元。

We also expect our adjusted gross margin to range between 55% to 57%, compared to our prior expectation of 58% to 63%. The revisions primarily reflect timing variability across our cannabinoid markets, mainly Brazil, as a result of the timing in the issuance of internal quotas, and Israel as a result of the recent geopolitical complexities facing the nation.

我們也預期調整後的毛利率將在 55% 至 57% 之間，而先前的預期為 58% 至 63%。這些修訂主要反映了我們大麻素市場的時間變化，主要是巴西，由於內部配額發放的時間，以及以色列，由於該國最近面臨的地緣政治複雜性。

In our non-cannabinoid business, which is our higher margin segment, the revisions also reflect the softness in our specialty channel during the first half of the year, which pressured our segment level top line performance.

在我們的非大麻素業務（這是我們利潤率較高的細分市場）中，這些修正也反映了我們上半年專業管道的疲軟，這為我們的細分市場層面的營收業績帶來了壓力。

For full year adjusted EBITDA, we have reduced the loss and narrowed our expected range, which is now between minus $11 million and minus $10 million compared to our prior range of minus $13.6 million to minus $10.6 million. This adjustment reflects the strong cost reductions we have driven throughout the year.

對於全年調整後的 EBITDA，我們減少了虧損並縮小了預期範圍，目前預期範圍為負 1,100 萬美元至負 1,000 萬美元，而之前的範圍為負 1,360 萬美元至負 1,060 萬美元。這項調整反映了我們全年推動的成本大幅削減。

We also further reduced our expected 2023 capital expenditures to a range of $0.2 million to $0.3 million, compared to our prior range of $0.5 million to $0.7 million. This resulted from the minimal CapEx needs of our mature Colombian production operations, and the new range represents a nearly 80% reduction relative to our full year 2022 CapEx.

我們也將 2023 年預期資本支出進一步減少至 20 萬美元至 30 萬美元，而先前的範圍為 50 萬美元至 70 萬美元。這是由於我們成熟的哥倫比亞生產業務的資本支出需求極低，而新系列相對於我們 2022 年全年的資本支出減少了近 80%。

This concludes my prepared remarks, and I will now turn the call back over to Andres.

我準備好的演講到此結束，現在我將把電話轉回給安德烈斯。

Thank you, Hank. Through the end of the third quarter, we have made demonstrable strides on all three of our key strategic funds. By substantially reducing our cash burn relative to historical levels, and working to optimize our products and processes to meet evolving commercial dynamics across our core markets, we believe we have strengthened our positioning and efficiency as a global medical cannabis operator.

謝謝你，漢克。截至第三季末，我們的所有三個關鍵策略基金都取得了明顯的進步。透過大幅減少我們相對於歷史水平的現金消耗，並努力優化我們的產品和流程以滿足我們核心市場不斷變化的商業動態，我們相信我們已經加強了我們作為全球醫用大麻營運商的定位和效率。

Focusing our commercial efforts on a concentrated set of core markets, which we have done since early last year, has allowed us to deepen and ramp our existing sale agreements more effectively, while positioning us to address new opportunities as several nascent markets develop further around the world. Our work to accelerate cannabinoid sales momentum has been supported by improving our balance sheet and leveraging our low cost unit economics in Colombia.

自去年初以來，我們將商業努力集中在一組集中的核心市場上，這使我們能夠更有效地深化和擴大現有的銷售協議，同時使我們能夠在幾個新興市場進一步發展的過程中抓住新的機會。世界。我們加速大麻素銷售動能的工作得到了改善我們的資產負債表和利用我們在哥倫比亞的低成本單位經濟效益的支持。

Taken together, we believe we are nearing an inflection point for our business in 2024, benefiting from our revenue and profitability optimization initiatives, and the high-quality reputation we have built in the international cannabis supply chain.

總而言之，我們相信，受益於我們的收入和盈利能力優化舉措以及我們在國際大麻供應鏈中建立的高品質聲譽，我們的業務在 2024 年即將迎來拐點。

We would like to thank our shareholders for their support as we make additional progress on our growth trajectory. We will now open up the call for Q&A.

我們要感謝股東在我們的成長軌跡上取得更多進展時所給予的支持。我們現在將開放問答環節。

Thank you. We'll now begin the question and answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Bobby Burleson, Canaccord.

鮑比·伯勒森，Canaccord。

Hi guys. Unfortunately, I'm going to have to drop off this call quickly because I have another call overlapping with it, but I wanted to squeeze a question in here. So just curious, in terms of how you prioritize things, given what's happening in Israel, what can you do kind of mid-strokes, midstream here, to make adjustments where possible in terms of backfilling demand or backfilling programs that were underway and dedicating those resources elsewhere, if at all possible? Thanks.

嗨，大家好。不幸的是，我必須盡快掛斷這個電話，因為我還有另一個電話與之重疊，但我想在這裡提出一個問題。因此，我很好奇，考慮到以色列正在發生的情況，您可以在中途做些什麼，以便在回填需求或正在進行的回填計劃以及致力於這些項目方面盡可能做出調整其他地方的資源，如果可能的話？謝謝。

Hello, Bobby. Thank you very much for the question and for being in the call. And yes, certainly that's a topic we have been monitoring very closely, first and foremost, because we have a series of clients and partners over there, so we have been in continued conversations with them.

你好，鮑比。非常感謝您提出問題並參加電話會議。是的，當然這是我們一直在密切關注的話題，首先也是最重要的，因為我們在那裡有一系列客戶和合作夥伴，所以我們一直在與他們進行持續對話。

I would say that we know after a few weeks have passed, we are now actually starting to move ahead with potentially reinitiating some of the planned shipments and sales we had into the country. There's still, you know, some logistic challenges as flights are extremely limited for products to get there.

我想說的是，幾週過去了，我們現在實際上開始著手可能重新啟動我們在該國的一些計劃發貨和銷售。您知道，仍然存在一些物流挑戰，因為到達那裡的航班極其有限。

But there are some signs that probably in the first weeks of December, that's going to be our resolve to some extent, and some of the product can be flowing there. So we have been focusing on first and foremost, making sure that the patients in Israel have access to the products and somehow find ways to fill orders from our former clients over there.

但有一些跡象表明，可能在 12 月的前幾週，這將在某種程度上成為我們的決心，並且一些產品可能會流向那裡。因此，我們首先關注的是確保以色列的患者能夠獲得這些產品，並以某種方式找到方法來滿足我們在那裡的前客戶的訂單。

Beyond that, as we've always said, we have a very specific set of countries we're focusing on, so basically, you know, as some of the product is not flowing into Israel or is delayed at some degree, we're basically finding new homes for it in other geographies. For example, for the APIs, so we're are shifting some of that volume to Australia where demand has been increasing quite significantly. We're placing more effort in our in the launch of our flowers in Australia, Germany and the UK, and strengthening our our work, of course, in Brazil.

除此之外，正如我們一直所說的，我們有一組非常具體的國家，我們重點關注，所以基本上，你知道，由於一些產品沒有流入以色列或在某種程度上被延遲，我們基本上是在其他地區為其尋找新家。例如，對於 API，我們正在將部分產量轉移到澳大利亞，那裡的需求一直在大幅增加。我們正在加強在澳洲、德國和英國推出我們的鮮花，並加強我們在巴西的工作。

So we keep focusing on the core markets. And as I said, we keep making sure that the Israeli patients have access to the products, and we believe that the logistics are going to be solved and the supply can start hopefully as soon as this quarter, but if not, hopefully early Q1 of next year.

所以我們繼續專注於核心市場。正如我所說，我們一直確保以色列患者能夠獲得這些產品，我們相信物流將得到解決，供應預計將最早在本季度開始，但如果沒有，希望第一季初開始明年。

Great.

偉大的。

Thank you. I have to hop off the call, but thank you so much for that color, and looking forward to talking to you soon.

謝謝。我必須掛斷電話，但非常感謝你的顏色，並期待很快與你交談。

Thank you, Bobby.

謝謝你，鮑比。

Thank you. That concludes the question and answer session. I'll turn the call back over to Andres Fajardo for closing remarks.

謝謝。問答環節到此結束。我會將電話轉回給安德烈斯法哈多 (Andres Fajardo) 作結束語。

Well, thank you, Nick, and thanks all of our shareholders, and others on the call. I'd like to thank everyone who attended the call today and we look forward to speaking with our investors and analysts when we report our fourth quarter and full year results in March.

好吧，謝謝你，尼克，並感謝我們所有的股東和其他參加電話會議的人。我要感謝今天參加電話會議的所有人，我們期待在三月報告第四季和全年業績時與投資者和分析師交談。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。