Finance

Lifeist Studies First Quarter 2022 Monetary Outcomes

Lifeist Wellness Inc.

Lifeist Wellness Inc.

Continued Concentrate on Gross Margin Growth Displaying Success

TORONTO, April 29, 2022 (GLOBE NEWSWIRE) — Lifeist Wellness Inc. (“Lifeist” or the “Firm”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF), a health-tech firm that leverages developments in science and expertise to construct breakthrough corporations that rework human wellness, as we speak reported its monetary outcomes for the three months ended February 28, 2022 (“Q1 2022”) in comparison with the identical interval final yr (“Q1 2021”). All monetary figures are in Canadian {dollars} except in any other case indicated.

First Quarter 2022 Highlights

  • Web income decreased 1% to $5.45 million in Q1 2022 (in comparison with $5.51 million in Q1 2021), totally attributable to declines in {hardware} gross sales in Europe and medical hashish gross sales in Canada, each operations having since been discontinued1. Excluding these two companies, income elevated 20% in Q1 2022 (in comparison with Q1 2021), led by Canadian leisure hashish, Australian Vaporizers Pty Ltd (“Australian Vapes”) and Findify AB (“Findify”).

  • Gross revenue earlier than stock adjustment tripled to $1.4 million in Q1 2022 as in comparison with $0.5 million in Q1 2021, the best prior to now two years, with margins increasing to 26% from 8%.

  • EBITDA improved considerably by narrowing losses to $4.2 million in Q1 2022 (in comparison with a $7.0 million loss in Q1 2021), representing the sixth consecutive quarter of EBITDA loss enhancements. The Q1 2022 EBITDA loss was web of incremental investments into rising companies together with roughly $650,000 in nutraceuticals.

  • Working capital place of $12.4 million at quarter finish stays sturdy.

“Our first quarter outcomes replicate progress and momentum in our transition to a wellness-driven firm,” mentioned Meni Morim, CEO of Lifeist. “Now we have sharpened our focus inside hashish on our B2B platform and this in flip is fueling significant will increase in gross revenue for all of Lifeist. We achieved a tripling of gross revenue versus the identical quarter final yr whereas concurrently winding down unprofitable companies and investing in our wellness future. This contains scaling our progressive health-tech firm Mikra, which goes after the big and rising nutraceuticals market, and seeing promising early shopper curiosity for its first product which commenced pre-sales final month.”

Mr. Morim continued, “Now we have additionally been optimizing the wellness portfolio with strikes designed to enhance our financials and supply worth for shareholders. Along with exiting the consumer-focused medical hashish by transferring sufferers to a third-party, we formally ceased operations of Lifeist Bahamas which bought {hardware} in Europe by means of the everyonedoesit.uk ecommerce web site. As we execute on our wellness technique, we’re assured that the property on the coronary heart of the Lifeist worth proposition will ship sustained and tangible shareholder worth.”

Working Highlights

Hashish (CannMart Inc. (“CannMart”) and CannMart Labs Inc. (“CannMart Labs”))

  • Leisure hashish continues to be Lifeist’s largest driver of efficiency accounting for 58% of the Firm’s web income in Q1 2022, with rising gross margins, improved stock administration, an expanded distribution community, and bringing an award successful model to market.

  • CannMart accomplished the profitable switch of registered medical sufferers to Medicibis, operators of Mendocannabis.ca, in February 2022. The settlement is a part of the Firm’s strategic initiative to sharpen its deal with B2B leisure hashish and nutraceuticals.

  • The hashish B2B gross margin elevated to $0.7 million in Q1 2022 as in comparison with a detrimental gross margin of $0.9 million in Q1 2021, persevering with the optimistic development seen all through 2021 (Q1 -$0.9 million, Q2 -$0.4 million, Q3 $0.2 million, This fall $0.5 million), pushed by gross sales of higher-margin Roilty merchandise and improved overhead efficiencies.

  • After establishing a provide settlement with the Société Québécoise du Hashish (“SQDC”) in March 2022, CannMart is now authorized for the sale of hashish and cannabis-derived merchandise from provincial and territorial our bodies in Ontario, Alberta, British Columbia, Quebec, Manitoba, New Brunswick, Saskatchewan, Yukon, Nunavut and the Northwest Territories, which offers it with entry to 95% of Canada’s inhabitants.

  • CannMart Labs’ state-of-the-art BHO extraction facility commenced manufacturing and delivery product in November 2021, and in January 2022, its in-house model “Roilty”, launched earlier in 2021, received the distinguished “Canadian LP Model of the Yr” award on the 2021 ADCANN Awards. Roilty product is now reside in Alberta, Saskatchewan, Manitoba, Yukon, the Northwest Territories and Nunavut with buy orders in place for distribution in Ontario.

Nutraceuticals (Mikra)

  • Mikra launched its first product, CELLF, a novel mobile therapeutic compound concentrating on systemic fatigue, and after launching pre-sales in March 2022, started delivery and deliveries in April 2022. In partnership with InVivo Biosystems, Mikra has commenced its genomic and transcriptomic medical research to assemble proof for CELLF™ at a molecular and mobile stage. These in vivo research will exhibit how CELLF™ impacts wholesome growing older and irritation pathways at a mobile stage.

  • In April 2022, Mikra expanded its skilled athlete roster with Olympic medalists Ashley Wagner and Cullen Jones. Ashley and Cullen be part of baseball hero Jose Bautista who joined Mikra in November 2021 to ideate and launch a brand new athletic therapeutic.

Australian Vapes

  • The main flooding that considerably disrupted Australian Vapes didn’t happen till the ultimate days of February such that the enterprise continued to have one other sturdy quarter in Q1 2022. The strong efficiency was characterised by web site site visitors progress and optimistic unit economics, which drove the best Q1 income ever of $1.7 million in comparison with $1.5 million in Q1 2021, representing a rise of 12%, with EBITDA margins increasing to 14% from 9% in Q1 2021.

  • Australian Vapes has moved rapidly to revive regular operations after the flooding rendered its leased warehouse facility in Brisbane unviable. On April 1, the workforce executed a five-year lease at a brand new location in Banyo, Queensland, which is bigger, has an improved structure, supply bay and general situation, and re-launched gross sales on April 25, 2022. Ends in the few days for the reason that re-launch have seen common order values (AOVs) and conversion charges return to pre-shutdown ranges, supporting our view that Australian Vapes will rapidly resume its extremely steady, predictable monetary efficiency.

Findify

  • Findify delivered one other report quarter, with income of $588,000 in Q1 2022 in comparison with $401,000 in Q1 2021, representing a rise of 47%. The accelerated progress is coming from the strategic plan, which was launched in mid-2021, sharpening Findify’s deal with product innovation and catering to larger tier clients. Probably the most important launch is a brand new infrastructure that permits for actual time synchronization of any product knowledge with Shopify.

  • EBITDA loss elevated to $447,000 in Q1 2022 as in comparison with $265,000 in Q1 2021 attributable to strategic investments in varied innovation initiatives to assist drive long-term income progress.

Monetary Abstract of Q1 2022

Web income decreased 1% to $5.45 million in Q1 2022 in comparison with $5.51 million in Q1 2021. The lower was pushed by the deliberate wind down of {hardware} gross sales in Europe by means of Lifeist Bahamas and medical hashish gross sales in Canada by means of CannMart, with these operations successfully ceasing in 2022. This was offset by the continued progress in gross sales of Canadian leisure hashish, Findify SaaS income which elevated 47%, and Australian Vapes {hardware} income which elevated 12%. Excluding Lifeist Bahamas {hardware} and CannMart medical hashish, web income elevated 20%.

Gross margin was 26% of web income in Q1 2022 in comparison with 8% in Q1 2021. The advance was attributable to manufacturing efficiencies throughout all segments and the deal with larger value-added income streams within the B2B and leisure markets. Inside leisure hashish, gross margins improved to $1.4 million in Q1 2022 in comparison with a $0.5 million detrimental margin in Q1 2021, significantly attributable to Roilty product gross sales.

EBITDA loss narrowed to $4.2 million in Q1 2022 in comparison with $7.0 million in Q1 2021, attributable to larger gross margins and improved efficiency throughout most enterprise items, and represented the sixth consecutive quarter of EBITDA loss enhancements. The decreased EBITDA loss was web of incremental investments in rising companies together with roughly $650,000 in nutraceuticals.

Web loss was $4.6 million in Q1 2022 in comparison with $7.4 million in Q1 2021, attributable to improved gross margins and decrease non-operating write-downs, as in comparison with Q1 2021.

Steadiness Sheet and Money Circulate

Money and money equivalents have been $9.2 million as of February 28, 2022, in comparison with $12.7 million as of November 30, 2021.

Inventories elevated to $6.4 million at February 28, 2022 in comparison with $5.4 million at November 30, 2021, primarily attributable to new stock bought for CannMart Labs and Mikra, each which began their very own manufacturing in Q1 2022.

Web money utilized in operations was $3.4 million in Q1 2022 in comparison with $2.5 million in Q1 2021. The rise was largely attributable to investments in rising companies together with CannMart Labs and Mikra.

Different Merchandise

Throughout the quarter, Hearth & Flower Holdings Corp. (“Hearth & Flower”) bought Pineapple Specific Supply Inc. (“PED”), a holder of the Firm’s convertible mortgage payable. As a part of the acquisition, Hearth & Flower assumed and repaid a $2,040,077 convertible mortgage receivable owed to the Firm by PED. As well as, the Firm obtained 75,100 frequent shares in Hearth & Flower, with an additional 258,478 frequent shares in Hearth & Flower having been positioned into escrow pending completion of customary working capital changes and topic to achievement of sure performance-based milestones in its fiscal 2022 yr.

Further Info

The Firm’s full monetary statements and administration’s dialogue & evaluation (“MD&A”) for Q1 2022 can be found on Lifeist’s web site (www.lifeist.com) and SEDAR (www.sedar.com).

About Lifeist Wellness Inc.

Sitting on the forefront of the post-pandemic wellness revolution, Lifeist leverages developments in science and expertise to construct breakthrough corporations that rework human wellness. Portfolio enterprise items embrace: CannMart, which operates a B2B wholesale distribution enterprise facilitating leisure hashish gross sales to Canadian provincial authorities management boards; CannMart Labs, a BHO extraction facility for the manufacturing of excessive margin hashish 2.0 merchandise; the CannMart.com market, which offers U.S. clients with entry to hemp-derived CBD and smoking equipment; Australian Vapes, Australia’s largest on-line retailer of vaporizers and equipment; Findify, a number one AI-powered search and discovery platform; and Mikra, a biosciences and shopper wellness firm looking for to develop progressive therapies for mobile well being.

Info on Lifeist and its companies could be accessed by means of the hyperlinks beneath:

www.lifeist.com
www.cannmart.com
www.australianvaporizers.com.au
www.wearemikra.com

Contacts
Lifeist Wellness Inc.
Meni Morim, CEO
Matt Chesler, CFA, Investor Relations
Ph: 647-362-0390
E mail: [email protected]

Neither the TSX Enterprise Change nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts duty for the adequacy or accuracy of this launch or has in any means authorized or disapproved of the contents of this press launch.

Non-IFRS Monetary Measures

Administration evaluates the Firm’s efficiency utilizing quite a lot of measures, together with “Web loss earlier than revenue tax, depreciation and amortization” and “Adjusted EBITDA”. The non-IFRS measures mentioned beneath shouldn’t be thought-about as an alternative choice to or to be extra significant than income or web loss. These measures do not need a standardized which means prescribed by IFRS and due to this fact they is probably not akin to equally titled measures offered by different publicly traded corporations and shouldn’t be construed as an alternative choice to different monetary measures decided in accordance with IFRS.

The Firm believes these non-IFRS monetary measures present helpful data to each administration and traders in measuring the monetary efficiency and monetary situation of the Firm.

Administration makes use of these and different non-IFRS monetary measures to exclude the influence of sure bills and revenue that have to be acknowledged underneath IFRS when analyzing consolidated underlying working efficiency, because the excluded objects usually are not essentially reflective of the Firm’s underlying working efficiency and make comparisons of underlying monetary efficiency between durations tough. Now and again, the Firm could exclude extra objects if it believes doing so would end in a more practical evaluation of underlying working efficiency. The exclusion of sure objects doesn’t suggest that they’re non-recurring.

(i) Present and deferred revenue taxes, depreciation and amortization, and share-based compensation have been excluded from the Adjusted EBITDA calculation as they don’t characterize money expenditures.
(ii) Different revenue consisting of achieve on disposal of subsidiary, curiosity revenue, realized achieve on disposition of AFS investments, unrealized achieve on derivatives and different miscellaneous non-recurring revenue have been excluded from Adjusted EBITDA calculation.
(iii) Non-recurring prices associated to restructuring and legacy points have been excluded from Adjusted EBITDA calculation.
(iv) Impairment loss regarding goodwill, buyer listing, domains and model names have been excluded from Adjusted EBITDA calculation.
(v) Impairment loss regarding receivable is a provision for anticipated credit score loss to an affiliate and was excluded from Adjusted EBITDA calculation.
(vi) Share of associates loss, web of tax, is excluded attributable to lack of management.

Ahead Trying Info

This information launch accommodates “forward-looking data” throughout the which means of relevant securities legal guidelines. All statements contained herein that aren’t historic in nature include forward-looking data. Ahead-looking data could be recognized by phrases or phrases similar to “could”, “anticipate”, “seemingly”, “ought to”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “imagine” or the detrimental of those phrases, or different related phrases, expressions and grammatical variations thereof, or statements that sure occasions or situations “could” or “will” occur.

The forward-looking data contained herein, together with, with out limitation, statements associated to: the Firm’s persevering with deal with B2B leisure hashish and nutraceuticals and its expectations from such companies to ship sustained and tangible shareholder worth are made as of the date of this press launch and is predicated on assumptions administration believed to be affordable on the time such statements have been made, together with, with out limitation, Lifeist’s skill to proceed to extend income by means of its B2B leisure hashish enterprise and to keep up momentum of increasing its nutraceutical enterprise, its skill to broaden its complete addressable market and to evolve right into a acknowledged wellness firm, the Firm’s expectation that the nutraceutical and wellness market will develop as at the moment anticipated, the nutraceutical market will proceed to be a multi-billion greenback high-margin market, the introduction of recent merchandise and types will generate extra income, expectations that CELLF and different mobile well being merchandise and equipment to be developed by the Firm will achieve market acceptance together with the growth of the marketplace for nutraceutical merchandise, in addition to different issues which are believed to be applicable within the circumstances. Whereas we think about these assumptions to be affordable primarily based on data at the moment accessible to administration, there is no such thing as a assurance that such expectations will show to be right. By its nature, forward-looking data is topic to inherent dangers and uncertainties that could be basic or particular and which give rise to the likelihood that expectations, forecasts, predictions, projections or conclusions won’t show to be correct, that assumptions is probably not right and that aims, strategic objectives and priorities won’t be achieved. A wide range of components, together with identified and unknown dangers, lots of that are past our management, may trigger precise outcomes to vary materially from the forward-looking data on this press launch. Such components embrace, with out limitation: the shortcoming of the Firm to develop its enterprise as anticipated and to extend revenues and/or its worthwhile margin on such revenues, unanticipated adjustments to present rules that will adversely influence the Firm’s companies, the unanticipated decline in demand for hashish merchandise, competitors from others, unexpected developments that will delay Mikra’s skill to promote CELLF and some other developed nutraceutical product as anticipated and in a well timed method, the chance that pre-clinical trials regarding CELLF usually are not as profitable as anticipated and don’t exhibit the anticipated therapeutic advantages and/or fail to strengthen the Firm’s patent declare, the chance that the anticipated demand for nutraceutical merchandise usually and people of Mikra particularly doesn’t develop as anticipated, the failure to transform the present variety of subscribers on the pre-sales waitlist to precise gross sales, regulatory threat, dangers regarding the Firm’s skill to execute its enterprise technique and the advantages realizable therefrom and dangers particularly associated to the Firm’s operations. Further threat components may also be discovered within the Firm’s present MD&A and annual data type, each of which have been filed underneath the Firm’s SEDAR profile at www.sedar.com. Readers are cautioned to not put undue reliance on forward-looking data. The Firm undertakes no obligation to replace or revise any forward-looking data, whether or not on account of new data, future occasions or in any other case, besides as required by relevant regulation. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion.

Supply: Lifeist Wellness Inc.

1 The Firm has discontinued operations of: CannMart Inc.’s medical hashish enterprise together with on-line gross sales of {hardware} and equipment in Canada; CannMartMD Inc. (reserving platform for Canadian medical hashish consultations); and Lifeist Bahamas ({hardware} gross sales in Europe), as a part of its technique to focus assets on rising current companies and its new nutraceuticals and biosciences division.

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