Greenlane Holdings, Inc. (NASDAQ:GNLN), a producer of cannabis accessories and vaporization products, reported its first-quarter financial results of revenue of $4.9 million, compared to $24 million in the same period last year.
On Monday, the company's CEO, Barbara Sher, issued a corporate update in a letter to shareholders discussing the current market state, Greenlane's milestones in the first half of the year, future initiatives, debt updates and more.
"We see an outstanding opportunity to drive long-term profitable growth and during the second quarter we intensified our strategy to drive high efficiency and productivity by significantly reducing SG&A costs," stated Sher, who became CEO in May 2024. "The ongoing substantial cost reduction progress has been coupled with further simplification and streamlining of the organization. These initiatives have created a new, more focused business approach and simplified organizational structure. Ultimately, we believe this new operating structure will create even greater flexibility, efficiency, and intelligence to unlock value for customers, team members, and stockholders."
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Q1 Financial Summary
- Gross profit amounted to $1.51 million, compered to $5.52 million a year ago.
- Net loss was $4.49 million, compared to a net loss of $8.75 million in the same period of 2023.
- Operating expenses were $5.49 million, compared to $13.54 million in the corresponding quarter of the prior year.
- At the end of the reporting period, on March 31, the company had $157,000 in cash, comapred to $463,000 at the end of the previous quarter.
Among important milestones, Sher noted that the company regained compliance with Nasdaq listing requirements after filing delayed financial reports, and is actively working on restructuring its existing debt obligations with a group of its key creditors.
"These transactions, if consummated, are expected to significantly increase our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash burn and interest expense as we continue to execute our plan of driving profitability and returning to growth," Sher continued. "I am confident that these agreements could provide us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a stronger global omni-channel distribution platform."
Sher added that the company also realigned its sales and marketing organization and that it will be recruiting more experienced sales experts in densely populated areas.
Price Action
Greenlane shares closed Monday's market session 3.48% higher at 29 cents per share.
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