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美国
证券交易委员会
华盛顿特区20549
________________________________
表格 10-Q
________________________________
（标记一）

[X] 根据1934年证券交易所法第13或第15(d)条款的季度报告

截至季度结束日期的财务报告2024年9月30日
or
[ ]ITEm 5.

对于从 到的过渡期

佣金档案编号 000-56468

聚实控股有限公司
stfrtryh.jpg
(根据其章程规定的注册人准确名称)
________________________________________________________________________________________________         
    
不列颠哥伦比亚省98-1547061
（设立或组织的其他管辖区域）（美国国内国税局雇主
唯一识别号码）
301 Yamato Road, 3250楼
佛罗里达州, 佛罗里达州。
，（主要行政办公地址）
(561) 617-9100
(注册人电话号码，包括区号)
33431
(邮政编码)

不适用
（如果自上次报告以来发生了更改，请提供公司名称、地址和财政年度的更改。）
在法案第12(b)条的规定下注册的证券：
每一类的名称交易标志在其上注册的交易所的名称
N/A
N/A
N/A
         
请在检查标记处注明注册人（1）是否已在证券交易法第13或15（d）条所规定的过去12个月（或注册人需要提交此类报告的较短期间）内提交了所有必须提交的报告，并且（2）自过去90天以来一直受到此类提交要求的限制。 是 ☒ 无 □



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勾选以下选框，指示申报人是大型加速评估提交人、加速评估提交人、非加速评估提交人、小型报告公司或新兴成长型公司。关于“大型加速评估提交人”、“加速评估提交人”、“小型报告公司”和“新兴成长型公司”的定义，请参见《交易所法规》第12亿.2条。

大型加速申报人 ☐加速文件提交人         ☒
非加速提档人 ☐                         较小报告公司     ☒     
新兴成长企业☒

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请通过复选标记表示公司是否为空壳公司（定义见《证交法规120亿.2》）。 是 ☐ 否 ☒

截至2024年11月1日，注册人持有 196,696,597 普通股，每股无面值，无多重表决权股份，每股无面值，无超级表决权股份没有每股无面值，也没有每股无面值的优先股未发行。



聚实控股有限公司
目录
截至2024年9月30日的季度期


关于前瞻性声明的注意事项
本季度10-Q表格中可能包含根据适用证券法，包括加拿大证券法和美国（"美国"）证券法（统称"前瞻信息"）作出的"前瞻性陈述"和"前瞻性信息"，这些信息基于公司当前的内部期望、估计、预测、假设和信念。除历史事实陈述外，本报告中包含的所有信息，涉及公司预期将会发生或可能发生的活动、事件或进展构成前瞻性信息。前瞻性信息通常由"可能"、"将"、"可能会"、"应该"、"将"、"打算"、"计划"、"预计"、"相信"、"估计"、"期望"或类似表达方式识别，并包括但不限于以下信息：未来业务策略；公司业务、运营和计划的竞争优势、目标、拓展和增长，包括新的营收来源；最近收购的企业或资产的整合和益处；新业务的推出；公司实施某些产品线；某些研发的实施；申请额外许可证和已申请或将要申请的许可证的授予；某些设施的拓展或建设；我们雇员数量的减少；扩展到其他美国和国际市场；任何未来美国联邦法律下成人使用和/或医用大麻的潜在合法化；预计美国及公司运营所在州市场规模和增长的期望；与公司或大麻行业一般相关的其他经济、商业、监管和/或竞争因素的预期；以及未来可能发生的其他事件或条件。

读者应注意，前瞻性信息不基于历史事实，而是基于公司管理层在提供或制作这些信息时做出的合理假设和估计，此类信息涉及已知和未知的风险、不确定性，包括我们作为持续经营实体的能力，以及可能导致公司的实际结果、活动水平、表现或业绩与任何未来结果、表现或业绩在本质上存在重大差异的其他因素。这些因素包括：与美国大麻监管环境和执行有关的风险，包括政治风险；涉及反洗钱法律和法规的风险；其他政府和环境规定；公众对大麻行业的意见和看法；与经济有关的风险；通胀、资本成本上升和股市不稳定性相关的风险；与大流行病和自然力量有关的风险；与第三方服务提供商签订合同的风险；与合同可执行性有关的风险；公司的有限经营历史；公司的经营亏损和负面经营现金流历史；依赖公司高级管理层的专业知识和判断的风险；农产品业务固有的风险；与与公司利益不同的各方共同投资有关的风险；与专有知识产权及可能遭第三方侵权扯上关系的风险；关于公司当前债务额度的风险；需要通过债务或股权融资筹集额外资金的风险；与管理增长相关的风险；作为一家上市公司和美国及加拿大申报公司所面临的费用；行业竞争加剧的风险；与为人类消费制造的大麻产品相关的风险，包括可能的产品召回；对关键投入、供应商和熟练劳动力的依赖；对制造商和承包商的依赖；供应短缺或供应链中断的风险；网络安全概念风险；产品营销受限的风险；雇员、承包商和顾问的欺诈行为风险；税收和保险相关风险；诉讼风险；利益冲突；与某些补救措施受限及在加拿大以外执行判决和效劳的困难相关的风险；涉及已完成、正在进行或将来进行的收购或处置的风险，包括未来潜在商誉或已收购的无形资产可能减值和/或成交后的争端；现有股东大量出售股份的风险；公司证券有限的市场；关于公司在加州、伊利诺伊州、马萨诸塞州、内华达州、俄亥俄州、宾夕法尼亚州和弗吉尼亚州持续运营的风险；涉及计划开设更多药店或迁移现有药店的风险；涉及在马萨诸塞州、内华达州、俄亥俄州、宾夕法尼亚州和弗吉尼亚州扩展和优化种植和/或加工设施的风险；涉及开设新设施的风险，需获得许可审批；涉及大麻的有限研究和数据的风险；涉及与公司税收抵免有关的政府机构挑战的风险；由于即将到来的2024年美国总统选举，可能导致联邦政策和监管机构发生改变的风险；以及与公司关键会计政策和估计有关的风险。有关更多信息，请参阅公司于2024年4月1日向美国证券交易委员会提交的10-K表格中的第一部分-项目1A。风险因素。


虽然公司已经尝试辨识可能导致实际结果有所不同的重要因素，但可能有其他因素导致结果不如预期、估计或意图。不能保证这样的前瞻性资讯会被证实准确，因为实际结果和未来事件可能与该资讯中预期的有所不同。因此，读者不应过度依赖本报告中包含的前瞻性资讯，也不应过度依赖公司发出的其他前瞻性声明。前瞻性资讯是根据本第10-Q表格季度报告日期提供的，公司不承诺除适用法律要求外修订或更新任何前瞻性资讯或声明。
除非上下文另有要求，本报告中对「Jushi」、「公司」、「我们」、「我们的」及「我们的」的指称均指Jushi Holdings Inc.及我们的子公司。

内容表
第I部分 - 财务资讯
1项目1. 财务报表
聚时控股有限公司。
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)
September 30, 2024 (unaudited)December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$20,741 $26,027 
Restricted cash - current— 3,128 
Accounts receivable, net2,311 3,380 
Inventory, net41,359 33,586 
Prepaid expenses and other current assets17,124 15,514 
Total current assets81,535 81,635 
NON-CURRENT ASSETS:
Property, plant and equipment, net145,418 159,268 
Right-of-use assets - finance leases60,263 63,107 
Other intangible assets, net91,915 95,967 
Goodwill 30,910 30,910 
Other non-current assets
30,135 30,358 
Restricted cash - non-current2,150 2,150 
Total non-current assets 360,791 381,760 
Total assets $442,326 $463,395 
LIABILITIES AND EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable$20,112 $15,383 
Accrued expenses and other current liabilities35,769 44,070 
Income tax payable2,660 5,190 
Debt, net - current portion (including related party principal amounts of $400 and $3,298 as of September 30, 2024 and December 31, 2023, respectively)
1,781 86,514 
Finance lease obligations - current9,305 8,885 
Derivative liabilities - current
156 2,418 
Total current liabilities69,783 162,460 
NON-CURRENT LIABILITIES:
Debt, net - non-current (including related party principal amounts of $36,501 and $19,788 as of September 30, 2024 and December 31, 2023, respectively)
183,710 126,041 
Finance lease obligations - non-current51,994 52,839 
Derivative liabilities - non-current
6,407 220 
Unrecognized tax benefits
136,088 100,343 
Other liabilities - non-current33,030 29,111 
Total non-current liabilities411,229 308,554 
Total liabilities481,012 471,014 
COMMITMENTS AND CONTINGENCIES (Note 16)
EQUITY (DEFICIT):
Common stock, no par value: authorized shares - unlimited; issued and outstanding shares - 196,696,597 and 196,631,598 Subordinate Voting Shares as of September 30, 2024 and December 31, 2023, respectively
— — 
Paid-in capital507,467 503,612 
Accumulated deficit(546,153)(509,844)
Total Jushi shareholders' deficit
(38,686)(6,232)
Non-controlling interests— (1,387)
Total deficit
(38,686)(7,619)
Total liabilities and equity (deficit)
$442,326 $463,395 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Table of Contents
JUSHI HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In thousands of U.S. dollars, except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
REVENUE, NET$61,611 $65,377 $191,665 $201,675 
COST OF GOODS SOLD(33,612)(36,863)(98,770)(112,666)
GROSS PROFIT27,999 28,514 92,895 89,009 
OPERATING EXPENSES27,819 25,688 80,192 85,294 
INCOME FROM OPERATIONS180 2,826 12,703 3,715 
OTHER INCOME (EXPENSE):
Interest expense, net (9,382)(9,345)(27,997)(27,655)
Fair value gain (loss) on derivatives
2,628 (7,460)2,840 1,660 
Other, net(477)1,368 4,186 1,887 
Total other income (expense), net
(7,231)(15,437)(20,971)(24,108)
LOSS BEFORE INCOME TAX
(7,051)(12,611)(8,268)(20,393)
Income tax expense
(8,965)(8,011)(28,041)(26,705)
NET LOSS AND COMPREHENSIVE LOSS
$(16,016)$(20,622)$(36,309)$(47,098)
LOSS PER SHARE - BASIC AND DILUTED
$(0.08)$(0.11)$(0.19)$(0.24)
Weighted average shares outstanding - basic and diluted
195,165,913 195,128,096 195,145,417 194,649,053 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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JUSHI HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
(In thousands of U.S. dollars, except share amounts)
Nine Months Ended September 30, 2024
Paid-In CapitalAccumulated Deficit
Total Jushi Shareholders' Equity (Deficit)
Non-Controlling Interests
Total Equity (Deficit)
Subordinate Voting Shares
Balances - January 1, 2024196,631,598 $503,612 $(509,844)$(6,232)$(1,387)$(7,619)
Shares issued upon exercise of stock options
3,333 2 — 2 — 2 
Share-based compensation (including related parties)— 1,524 — 1,524 — 1,524 
Issuance of warrants
— 863 — 863 — 863 
Net loss— — (18,355)(18,355)— (18,355)
Balances - March 31, 2024196,634,931 $506,001 $(528,199)$(22,198)$(1,387)$(23,585)
Shares issued upon exercise of stock options8,333 5 — 5 — 5 
Share-based compensation (including related parties)— 347 — 347 — 347 
Deconsolidation of Jushi Europe
— — — — 1,387 1,387 
Net loss
— — (1,938)(1,938)— (1,938)
Balances - June 30, 2024196,643,264 $506,353 $(530,137)$(23,784)$— $(23,784)
Shares issued upon exercise of stock options53,333 32 — 32 — 32 
Share-based compensation (including related parties)— 1,082 — 1,082 — 1,082 
Net loss
— — (16,016)(16,016)— (16,016)
Balances - September 30, 2024196,696,597 $507,467 $(546,153)$(38,686)$— $(38,686)

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JUSHI HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
(In thousands of U.S. dollars, except share amounts)
Nine Months Ended September 30, 2023
Paid-In CapitalAccumulated Deficit
Total Jushi Shareholders' Equity (Deficit)
Non-Controlling Interests
Total Equity (Deficit)
Subordinate Voting Shares
Balances - January 1, 2023196,686,372 $492,020 $(444,742)$47,278 $(1,387)$45,891 
Shares canceled upon forfeiture of restricted stock, net of restricted stock grants
(53,001)— — — — — 
Share-based compensation (including related parties)
— 2,311 — 2,311 — 2,311 
Net loss— — (12,440)(12,440)— (12,440)
Balances - March 31, 2023196,633,371 $494,331 $(457,182)$37,149 $(1,387)$35,762 
Modification and reclassification of warrants— 3,391 — 3,391 — 3,391 
Share-based compensation (including related parties)— 2,363 — 2,363 — 2,363 
Net loss— — (14,036)(14,036)— (14,036)
Balances - June 30, 2023196,633,371 $500,085 $(471,218)$28,867 $(1,387)$27,480 
Shares canceled upon forfeiture of restricted stock, net of restricted stock grants(1,773)— — — — — 
Share-based compensation (including related parties)— 1,056 — 1,056 — 1,056 
Cashless exercise of options— (282)— (282)— (282)
Issuance of warrants— 200 — 200 — 200 
Net loss— — (20,622)(20,622)— (20,622)
Balances - September 30, 2023196,631,598 $501,059 $(491,840)$9,219 $(1,387)$7,832 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

JUSHI HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
Nine Months Ended
September 30,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(36,309)$(47,098)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization, including amounts in cost of goods sold
21,981 19,780 
Share-based compensation2,953 5,730 
Fair value changes in derivatives(2,840)(1,660)
Non-cash interest expense, including amortization of deferred financing costs
5,062 4,603 
Deferred income taxes and uncertain tax positions25,652 19,831 
Loss on debt extinguishment
362 — 
Gain on deconsolidation of Jushi Europe
(1,896)— 
Other non-cash items, net(247)2,910 
Changes in operating assets and liabilities:
Accounts receivable1,662 (1,511)
Inventory(9,148)(8,080)
Prepaid expenses and other current and non-current assets
(2,109)564 
Accounts payable, accrued expenses and other current liabilities9,292 (2,896)
Net cash flows provided by (used in) operating activities
14,415 (7,827)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for property, plant and equipment(2,534)(8,385)
Proceeds from sale of property, plant and equipment
2,723 2,321 
Net cash flows provided by (used in) investing activities
189 (6,064)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of options
39 — 
Payments on promissory notes
(6,350)— 
Proceeds from term loans, net of debt discount of $970
47,530 — 
Payments on acquisition related credit facility
(60,125)(2,438)
  Payments of finance leases
(1,661)(2,761)
Proceeds from mortgage loans— 21,900 
Payments of loan financing costs(2,357)(250)
Payments of mortgage loans
(270)(160)
Proceeds from other financing activities
1,585 3,295 
Payments of other financing activities
(1,409)(2,372)
Net cash flows (used in) provided by financing activities
(23,018)17,214 
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(8,414)3,323 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD31,305 27,146 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$22,891 $30,469 
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JUSHI HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands of U.S. dollars)
Nine Months Ended
September 30,
20242023
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest (excluding capitalized interest)$22,798 $22,159 
Cash (received) paid for income taxes
$(3,829)$3,145 
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Capital expenditures
$1,944 $1,920 
Right-of-use assets from finance lease liabilities
$703 $1,001 
Issuance of second lien notes for settlement of accrued bonus$1,382 $750 
Issuance of second lien notes for debt exchange
$4,750 $— 
Warrants issued for debt exchange
$863 $— 
Warrants issued for term loans
$6,765 $— 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
stfrtryh.jpg

 1. NATURE OF OPERATIONS
Jushi Holdings Inc. (the “Company” or “Jushi”) is incorporated under the British Columbia’s Business Corporations Act. The Company is a vertically integrated, multi-state cannabis operator engaged in retail, distribution, cultivation, and processing in both medical and adult-use markets. As of September 30, 2024, Jushi, through its subsidiaries, owns or manages cannabis operations and/or holds licenses in the adult-use and/or medicinal cannabis marketplace in California, Illinois, Massachusetts, Nevada, Ohio, Pennsylvania and Virginia. The Company’s head office is located at 301 Yamato Road, Suite 3250, Boca Raton, Florida 33431, United States of America, and its registered address is Suite 1700, Park Place, 666 Burrard Street, Vancouver, British Columbia V6C 2X8, Canada.
The Company is listed on the Canadian Securities Exchange (“CSE”) and trades its subordinate voting shares (“SVS”) under the ticker symbol “JUSH”, and trades on the United States Over the Counter Stock Market (“OTCQX”) under the symbol “JUSHF”.
 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Consolidation
The financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates.
In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, of a normal recurring nature, that are necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on April 1, 2024 (the “2023 Form 10-K”), and was also filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) on April 1, 2024. Consolidated balance sheet information as of December 31, 2023 presented herein is derived from the Company’s audited consolidated financial statements for the year ended December 31, 2023.
Going Concern and Liquidity
As reflected in the 2023 Form 10-K, the Company used net cash of $3,318 for operating activities for the year ended December 31, 2023, and as of that date, the Company’s current liabilities exceeded its current assets by $80,825. As of December 31, 2023 absent a refinancing, the Company would not meet its obligations within the next year and management believed that with a refinancing, the Company would meet its obligations. As a result, Management concluded, as stated in the 2023 Form 10-K, that substantial doubt existed about the Company’s ability to continue as a going concern within the next twelve months from the date the 2023 financial statements were issued.
For the nine months ended September 30, 2024, cash provided by operating activities was $14,415, and as of September 30, 2024, the Company’s current assets exceeded its current liabilities by $11,752. Consistent with Management’s conclusion as of June 30, 2024, substantial doubt about the Company’s ability to continue as a going concern no longer exists as of September 30, 2024.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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The unaudited condensed consolidated financial statements contained herein have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty.

Summary of Significant Accounting Policies
The Company’s significant accounting policies are described in Note 2 in the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, which is included in the 2023 Form 10-K. Except as disclosed below, there have been no material changes to the Company’s significant accounting policies.

Change in Accounting Estimate
In accordance with ASC 350, Intangibles - Goodwill and Other, the Company evaluates the remaining useful lives of intangible assets that are not being amortized each reporting period to determine whether events or circumstances continue to support an indefinite useful life. In May 2024, the Company sold one of its business licenses which was previously deemed to have an indefinite life. Furthermore, the Company continually evaluates its footprint and non-core assets, including licenses, as it executes its long-term strategies. In light of this, the Company determined that its business licenses no longer have indefinite useful lives. Additionally, the Company performed an impairment assessment immediately prior to the change and concluded that the business licenses were not impaired. As such, the Company commenced amortizing its business licenses with a gross value of $82,401 effective June 1, 2024 on a straight-line basis over a 15-year period. Annual amortization is expected to be approximately $5,493.

Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
September 30, 2024 (unaudited)December 31, 2023
Cash and cash equivalents
$20,741 $26,027 
Restricted cash - current (1)
— 3,128 
Restricted cash - non-current
2,150 2,150 
Cash, cash equivalents and restricted cash$22,891 $31,305 
(1)Restricted cash - current primarily relates to the Manassas Mortgage. In April 2024, the lender released the entire $3,128 of current restricted cash to the Company. Consequently, such cash is now unrestricted. Refer to Note 8 - Debt for more information.

Recent Accounting Pronouncements
Adoption of New Accounting Standards
In June 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06 Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. This ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. There was no impact to the consolidated financial statements upon adoption.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The FASB issued guidance requires that an entity (acquirer)
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with generally accepted accounting principles). The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. There was no impact to the consolidated financial statements upon adoption.
In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The FASB issued guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. There was no impact to the Company’s consolidated financial statements upon adoption.
In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements. The FASB issued guidance clarifies the accounting for leasehold improvements associated with common control leases, by requiring that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease. Additionally, leasehold improvements associated with common control leases should be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023. There was no impact to the Company’s consolidated financial statements upon adoption.
Accounting Standards Issued But Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on incomes taxes paid. For public business entities, the new requirement will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.
 3. INVENTORY, NET
The components of inventory, net, are as follows:
September 30, 2024 (unaudited)December 31, 2023
Cannabis plants$6,357 $4,478 
Harvested cannabis and packaging10,424 10,994 
Total raw materials16,781 15,472 
Work in process6,143 4,293 
Finished goods18,435 13,821 
Total inventory, net$41,359 $33,586 

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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS
The components of prepaid expenses and other current assets are as follows:
September 30, 2024 (unaudited)December 31, 2023
Employee retention credit receivable$10,140 $10,140 
Prepaid expenses and deposits4,672 2,716 
Assets held for sale
611 1,647 
Other current assets1,701 1,011 
Total prepaid expenses and other current assets$17,124 $15,514 
The Coronavirus Aid, Relief, and Economic Security Act, passed in March 2020 and subsequently amended in 2021, allowed eligible employers to take credits on certain amounts of qualified wages if the Company experienced either a full or partial suspension of operations due to COVID related government orders. During the year ended December 31, 2023, the Company, with guidance from a third-party specialist, determined it was entitled to employee retention credit (“ERC”) claims of $10,140 for previous business interruptions related to COVID and filed for such claims with the Internal Revenue Service (“IRS”). The ERC claims, which will be recognized in the consolidated statements of operations and comprehensive income (loss) when the Company receives the refunds of such claims from the IRS, were recorded as deferred income in Accrued expenses and other current liabilities, with an offsetting receivable amount in Prepaid expenses and other current assets within the consolidated balance sheets as of September 30, 2024 and December 31, 2023.
As of December 31, 2023, the Company determined that one of its grower processor facilities located in Nevada, with total carrying value of $1,647, met the criteria to be classified as assets held for sale, and therefore was reclassified from Property, plant and equipment, net to Assets held for sale, which was included in Prepaid expenses and other current assets in the consolidated balance sheets. In June 2024, the Company sold the grower processor facility in Nevada for a net gain of $104. This amount was recorded in operating expenses in the consolidated statements of operations and comprehensive income (loss).
As of September 30, 2024, the Company determined that certain assets relating to one of its dispensaries located in Nevada, with total carrying value of $611, met the criteria to be classified as assets held for sale, and therefore was reclassified from Property, plant and equipment, net to Assets held for sale, which is included in Prepaid expenses and other current assets in the consolidated balance sheet. The sale of the dispensary is expected to be completed within nine months of the balance sheet date.
Additionally, during the nine months ended September 30, 2024, the Company sold one of its business licenses in California which was previously written off, for a net gain of $750. This amount was recorded in operating expenses in the consolidated statements of operations and comprehensive income (loss).
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 5. PROPERTY, PLANT AND EQUIPMENT
The components of property, plant and equipment (“PPE”) are as follows:
September 30, 2024 (unaudited)December 31, 2023
Buildings and building components$88,158 $88,527 
Land12,956 12,956 
Leasehold improvements46,778 46,660 
Machinery and equipment24,449 27,050 
Furniture, fixtures and office equipment (including computer)21,793 21,146 
Construction-in-process1,700 1,968 
Property, plant and equipment, gross195,834 198,307 
Less: Accumulated depreciation(50,416)(39,039)
Property, plant and equipment, net$145,418 $159,268 
Construction-in-process represents assets under construction for manufacturing and retail build-outs not yet ready for use.
Depreciation was $4,520 and $3,815 for the three months ended September 30, 2024 and 2023, respectively, and $14,403 and $13,110 for the nine months ended September 30, 2024 and 2023, respectively. Interest expense capitalized to PPE totaled $0 and $54 for the three months ended September 30, 2024 and 2023, respectively, and $0 and $464 for the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024, the Company reclassified $611 from Property, plant and equipment, net to Assets held for sale. Refer to Note 4 - Prepaid Expenses and Other Current Assets for additional information.

 6. OTHER NON-CURRENT ASSETS
The components of other non-current assets are as follows:
September 30, 2024 (unaudited)December 31, 2023
Operating lease assets
$17,077 $18,265 
Indemnification assets7,361 6,906 
Net deferred tax assets3,493 2,772 
Deposits and escrows - properties1,723 1,723 
Deposits - equipment422 422 
Equity investment (1)
— 200 
Other59 70 
Total other non-current assets$30,135 $30,358 
(1)The Company owns a 23.08% ownership interest in PV Culver City, LLC (“PVLLC”). The Company does not have significant influence over, and the Company does not have the right to vote or participate in the management of PVLLC and therefore the investment is measured at its fair value. Refer to Note 17 - Financial Instruments for more information relating to the fair value of this equity investment as of September 30, 2024, as well as loss on investment recorded.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
The components of accrued expenses and other current liabilities are as follows:
September 30, 2024 (unaudited)December 31, 2023
Deferred income - ERC (1)
$10,140 $10,140 
Goods received not invoiced5,221 5,019 
Accrued employee related expenses and liabilities5,225 4,175 
Operating lease obligations4,641 4,693 
Accrued sales and excise taxes1,791 2,388 
Accrued interest (2)
1,529 4,106 
Deferred revenue (loyalty program)1,320 1,407 
Accrued capital expenditures739 702 
Accrued professional and management fees398 986 
Acquisition-related milestone accrual (2)
— 4,167 
Contingent consideration liabilities (2)
— 817 
Other accrued expenses and current liabilities4,765 5,470 
Total accrued expenses and other current liabilities
$35,769 $44,070 
(1)Refer to Note 4 - Prepaid Expenses and Other Current Assets for more information.
(2)This amount is related to Sammartino in connection with the acquisition of Nature's Remedy in September 2021. The acquisition-related milestone accrual of $5,000 and accrued interest of $3,030 as of September 30, 2024 was classified as other liabilities - non-current in the consolidated balance sheets, since the Company currently has no obligation to pay these amounts within the next 12 months from the balance sheet date. See further discussion of the Sammartino Matter in Note 16 - Commitments and Contingencies.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 8. DEBT
The components of the Company’s debt are as follows:
Effective Interest RateMaturity DateSeptember 30, 2024 (unaudited)December 31, 2023
Principal amounts:
Second Lien Notes15%December 2026$81,253 $75,497 
Term Loans
26%
September 2026 (2)
48,500 — 
Acquisition Facilityn/an/a— 60,125 
Acquisition-related promissory notes payable
8% - 12%
April 2027
22,114 35,716 
Mortgage loans
6% - 11%
January 2027 - April 2028
29,192 29,456 
Total debt subject to scheduled repayments181,059 200,794 
Promissory notes payable to Sammartino (1)
10%
September 2024 - September 2026
21,500 21,500 
Jushi Europe debt
n/a
n/a
— 3,298 
Total debt202,559 225,592 
Less: debt issuance costs and original issue discounts(17,068)(13,037)
Total debt, net$185,491 $212,555 
Debt, net - current portion$1,781 $86,514 
Debt, net - non-current portion$183,710 $126,041 
(1)This amount is related to the promissory notes issued to Sammartino in connection with the acquisition of Nature's Remedy in September 2021. The Company currently has no obligation to pay the principal and interest. See further discussion of the Sammartino Matter in Note 16 - Commitments and Contingencies for more information.
(2)Matures the earlier of (a) January 31, 2027 and (b) the date that is 91 days prior to the final maturity of the Second Lien Notes.
Term Loans
In July 2024, a syndicate of lenders provided $48,500 in secured term loans (“Term Loans”) to the Company. The Term Loans were issued with a 2% original issue discount, bear interest at a rate of 12.25% per annum and mature the earlier of (a) January 31, 2027 and (b) the date that is 91 days prior to the final maturity of the Second Lien Notes. Beginning August 1, 2025, the Company will commence quarterly payments of $1,213 on the first business day of each calendar quarter with a final payment of $42,438 at maturity date, plus a 4% exit premium on such amounts.
Additionally, the Company issued 19,400,000 five-year warrants to purchase SVS of the Company (the “Warrants”) at a strike price of $1.00 per SVS. The Warrants were issued by the Company in connection with, but were detached from, the Term Loans. Refer to Note 9 - Derivative Liabilities for additional information.
An entity affiliated with James Cacioppo, the Company’s Chief Executive Officer, Chairman and Founder, is a Term Loan lender in the principal amount of $9,000, and received 3,600,000 Warrants. Denis Arsenault, a Founder and significant equity holder of the Company, participated as a Term Loan lender in the principal amount of $7,000, and received 2,800,000 Warrants.

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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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Acquisition Facility
The Company’s senior secured credit facility from Roxbury, LP, (the “Acquisition Facility”) was repaid in full in July 2024 with the net proceeds from the Term Loans in the principal amount of $47,530 and the remaining amount from cash on hand, resulting in a loss on extinguishment of $900, which was recorded in other income (expense), net in the consolidated statements of operations and comprehensive income (loss) during the three and nine months ended September 30, 2024.

Promissory Note
In July 2024, the Company extinguished one of its acquisition-related promissory notes which had a principal balance of $3,750 and a maturity date of August 11, 2024. The promissory note was redeemed at 96% of the principal amount and 50% of accrued and unpaid interest, resulting in a gain on extinguishment of $140, which is recorded in other income (expense), net in the consolidated statements of operations and comprehensive income (loss) during the three and nine months ended September 30, 2024.
Jushi Europe
On February 16, 2022, Jushi Europe filed a notice of over-indebtedness with the Swiss courts, and on May 19, 2022, the Swiss courts declared Jushi Europe’s bankruptcy. As a result, the Company lost control of Jushi Europe’s assets and liabilities since they are subject to oversight by the Geneva, Switzerland bankruptcy office. During the second quarter of 2024, Jushi Europe was deconsolidated and its respective assets and liabilities were derecognized from the Company’s consolidated financial statements, as the Company determined that it no longer has any obligation in relation to this subsidiary. Upon deconsolidation, the Company has no retained interest in Jushi Europe. As a result of these actions, the Company recognized a gain of $1,896 in other income (expense), net in its consolidated statements of operations and comprehensive income (loss).

Second Lien Notes
On January 24, 2024, the Company entered into two Note Exchange Agreements (the “Note Exchange Agreements”) with holders of approximately $9,850 of the Company’s unsecured debt (the “Existing Notes”). Upon closing of the transactions contemplated in the Note Exchange Agreements (the “Debt Exchange”) on February 6, 2024, the holders of the Existing Notes delivered the Existing Notes to the Company for cancellation, and the Company: (1) issued to certain direct and beneficial holders of the Existing Notes an aggregate of $4,750 principal amount of Second Lien Notes; (2) issued to certain direct and beneficial holders of the Existing Notes fully-detached warrants to purchase an aggregate of 1,800,000 of the Company’s SVS, with each warrant having an exercise price of $1.00 per SVS and an expiration of December 7, 2026; and (3) paid to the direct holders of the Existing Notes an aggregate of $2,750 in cash. Refer to Note 10 - Equity for more information.
The Debt Exchange was accounted for as a debt extinguishment, and resulted in the Company recording a non-cash gain on debt extinguishment of $399, which represents the difference between the reacquisition price of the Existing Notes and the net carrying amount of the Existing Notes prior to redemption. This amount was recorded in other income (expense), net in the consolidated statements of operations and comprehensive income (loss) during the first quarter of 2024.

In September 2024, the Company, JMGT, LLC, and the Company’s CEO entered into an amendment to his existing employment agreement (the “Fourth Amendment”) pursuant to which the CEO received the $950 annual cash bonus for the year 2024 in the following alternative form: (i) a lump sum cash payment of $238, which was paid in October 2024, (ii) $1,382 aggregate principal amount of Second Lien Notes due December 7, 2026 (the “Second Lien Notes”), which was issued in September 2024, and (iii) stock options granted under the 2019 Plan, expiring five years from the date of grant to purchase up to 1,062,732 of the Company’s SVS at an exercise price of $0.65.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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Mortgage Loans
Arlington Mortgage
In December 2021, the Company entered into a $6,900 mortgage loan agreement (the “Arlington Mortgage”), which is principally secured by the Company’s retail property in Arlington, Virginia. The Arlington Mortgage bears a fixed interest rate of 5.875% per annum, payable monthly, and will mature in January 2027.
Dickson City Mortgage
In July 2022, the Company entered into a $2,800 mortgage loan agreement (the “Dickson City Mortgage”), which is principally secured by the Company’s retail property in Dickson City, Pennsylvania. The Dickson City Mortgage matures in July 2027 and bears interest at a variable rate equal to prime rate plus 2%. The interest rate as of September 30, 2024 was 10.5%.
Manassas Mortgage
In April 2023, the Company entered into a $20,000 mortgage loan agreement (the “Manassas Mortgage”), which is principally secured by the Company’s cultivation and manufacturing facility located in Manassas, Virginia. The Manassas Mortgage is payable monthly and will mature in April 2028. The interest rate is variable and determined based on the 30-day average secured overnight financing rate plus 3.55%, with a floor rate of not less than 8.25%. The interest rate as of September 30, 2024 was 8.891%.
Financial Covenants

Term Loans

The Term Loans include a financial covenant that requires the Company to maintain a minimum unrestricted cash balance as of the last day of each calendar month during the term of the Term Loans, with an initial minimum cash balance of $8,000, subject to certain “step-ups” for succeeding periods. As of September 30, 2024, the Company was in compliance with this financial covenant.

Mortgage loans
The Company’s three mortgage loan agreements contain certain financial and other covenants with which the Company is required to comply. As of September 30, 2024, the Company was in compliance with all financial covenants contained in each of the mortgage loan agreements.
Annual Maturities
As of September 30, 2024, aggregate future scheduled repayments of the Company’s debt were as follows:
Remainder of the year2025202620272028Total
Second Lien Notes$— $— $81,253 $— $— $81,253 
Acquisition-related promissory notes payable— — — 22,114 — 22,114 
Mortgage loans160 647 658 9,440 18,287 29,192 
Term Loans
— 2,425 46,075 — — 48,500 
Total debt subject to scheduled repayments$160 $3,072 $127,986 $31,554 $18,287 $181,059 
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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The above table excludes the maturities of the Company’s promissory notes payable to Sammartino, as the repayment of these notes, if any, would arise in the context of a non-appealable final judgment by a court. Refer to Note 16 - Commitments and Contingencies for more information. Specifically, the promissory notes that were payable to Sammartino are as follows: $16,500 in 2024 and $5,000 in 2026. However, these balances were classified as long-term debt as of September 30, 2024 since the Company does not expect to repay these amounts within the next 12 months.
Interest Expense
Interest expense, net is comprised of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest expense
Interest and accretion - Second Lien Notes$2,838 $2,640 $8,513 $7,568 
Interest and accretion - Term Loans
1,832 — 1,832 — 
Interest and accretion - Finance lease liabilities2,478 2,335 7,550 7,282 
Interest and accretion - Promissory notes
1,043 1,547 3,699 4,625 
Interest and accretion - Acquisition Facility658 2,298 4,845 7,265 
Interest and accretion - Mortgage loans and other financing activities661 612 2,037 1,422 
Capitalized interest— (54)— (464)
Total interest expense9,510 9,378 28,476 27,698 
Interest income(128)(33)(479)(43)
Total interest expense, net$9,382 $9,345 $27,997 $27,655 
 9. DERIVATIVE LIABILITIES
The following table summarizes the change in the Company’s derivative liabilities for the nine months ended September 30, 2024.
Total Derivative Liabilities (1)
Balance as of January 1, 2024$2,638 
Derivative warrants issued (2)
6,765 
Fair value changes(2,840)
Balance as of September 30, 2024$6,563 
(1)Refer to Note 10 - Equity for the change in number of warrants during the nine months ended September 30, 2024.
(2)Represents the fair value of 19,400,000 derivative warrants issued in connection with the Term Loans in July 2024. Refer to Note 8 - Debt for more information.
The Company’s derivative liabilities are primarily comprised of derivative warrants (“Derivative Warrants”). These are warrants to purchase SVS of the Company and were issued in connection with the 10% senior secured notes, and the Term Loans. The Derivative Warrants may be net share settled. As of September 30, 2024 there were 57,262,922 Derivative Warrants outstanding, which consisted of (i) 29,972,000 warrants with exercise price of $1.25 per warrant and expiration date in December 2024, (ii) 5,890,922 warrants with exercise price of $1.00 per warrant and expiration date of December 2024, (iii) 2,000,000 warrants with an exercise price of $2.086 per warrant and expiration date in December 2026, and (iv) 19,400,000 warrants with an exercise price of $1.00 per warrant and expiration date in July 2029. As of December 31, 2023, there were 37,862,922 Derivative Warrants outstanding, which consisted of (i) 29,972,000 warrants with exercise price of $1.25 per warrant and expiration date in December 2024, (ii) 5,890,922 warrants with exercise price
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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of $1.00 per warrant and expiration date of December 2024, and (iii) 2,000,000 warrants with an exercise price of $2.086 per warrant and expiration date in December 2026.
Derivative Warrants are considered derivative financial liabilities measured at fair value with all gains or losses recognized in profit or loss as the settlement amount for the Derivative Warrants may be adjusted during certain periods for variables that are not inputs to standard pricing models for forward or option equity contracts, i.e., the “fixed for fixed” criteria under ASC 815-40. The estimated fair value of the Derivative Warrants is measured at the end of each reporting period and an adjustment is reflected in fair value changes in derivatives in the consolidated statements of operations and comprehensive income (loss). These are Level 3 recurring fair value measurements. The estimated fair value of the Derivative Warrants was determined using the Black-Scholes model with stock price based on the OTCQX closing price of the Derivative Warrants issue date as of September 30, 2024 and December 31, 2023.

The assumptions used in the fair value calculations as of the balance sheet dates presented include the following:
July 2024 (New Issuances) (unaudited)September 30, 2024 (unaudited)December 31, 2023
Stock price$0.57$0.53$0.46
Risk-free annual interest rate3.97%
3.58% - 4.77%
4.01% - 4.79%
Range of estimated possible exercise price$1.00
$1.00 - $2.086
$1.00 - $2.086
Weighted average volatility88%91%101%
Remaining life5 years
0.23 - 4.84 years
1.00 - 2.90 years
Forfeiture rate
0%0%0%
Expected annual dividend yield0%0%0%
Volatility was estimated by using a weighting of the Company’s historical volatility. The risk-free interest rate for the expected life of the Derivative Warrants was based on the yield available on government benchmark bonds with an approximate equivalent remaining term. The expected life is based on the contractual term. If any of the assumptions used in the calculation were to increase or decrease, this could result in a material or significant increase or decrease in the estimated fair value of the derivative liability. For example, the following table illustrates an increase or decrease in certain significant assumptions as of the balance sheet dates:
As of September 30, 2024As of December 31, 2023
(unaudited)
InputEffect of 10% IncreaseEffect of 10% DecreaseInputEffect of 10% IncreaseEffect of 10% Decrease
Stock price$0.53$973 $(910)$0.46$637 $(574)
Volatility91 %745 (772)101 %680 (643)
 10. EQUITY
Authorized, Issued and Outstanding
The authorized share capital of the Company consists of an unlimited number of SVS, Multiple Voting Shares, Super Voting Shares, and Preferred Shares. As of September 30, 2024, the Company had 196,696,597 SVS issued and outstanding and no Multiple Voting Shares, Super Voting Shares or Preferred Shares issued and outstanding.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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Warrants
Each warrant entitles the holder to purchase one SVS. Certain warrants may be net share settled. The following table summarizes the status of warrants and related transactions:
Non-Derivative (Equity) Warrants
Derivative Liabilities Warrants
Total Number of WarrantsWeighted - Average Exercise Price
Balance as of January 1, 2024
49,068,63637,862,92286,931,558$1.12 
Granted (1)
2,500,000 19,400,000 21,900,000 $0.99 
Cancelled/forfeited/expired(416,667)— (416,667)$1.56 
Balance as of September 30, 2024
51,151,96957,262,922108,414,891$1.09 
Exercisable as of September 30, 2024
49,241,96957,262,922106,504,891$1.10 
(1)In July 2024, 19,400,000 warrants were issued in connection with the Term Loans. In February 2024, 1,800,000 warrants were issued in connection with the Debt Exchange. Refer to Note 8 - Debt for more information.
The grant date fair value of the non-derivative warrants issued was determined using the Black-Scholes option-pricing model. The following assumptions were used for the calculation at date of issuance:
Weighted average stock price$0.60
Weighted average expected stock price volatility87.1%
Expected annual dividend yield0%
Weighted average expected life of warrants
4.8 years
Weighted average risk-free annual interest rate4.0%
Weighted average grant date fair value$0.36
Share-based Payment Award Plans
Plan summary and description
Under the Company’s 2019 Equity Incentive Plan, as amended, (the “2019 Plan”), non-transferable options to purchase SVS and restricted SVS of the Company may be issued to directors, officers, employees, or consultants of the Company. The 2019 Plan authorizes the issuance of up to 15% (plus an additional 2% inducements for hiring employees and senior management) of the number of outstanding shares of common stock (of all classes) of the Company (the “Share Reserve”). Incentive stock options are limited to the Share Reserve, and the maximum number of incentive awards available for issuance under the 2019 Plan, including additional awards available for certain new hires, was 5,784,004 as of September 30, 2024.

Stock Options
The stock options issued by the Company are options to purchase SVS of the Company. All stock options issued have been issued to directors and employees under the Company’s 2019 Plan. Such options generally expire ten years from the date of grant and generally vest ratably over three years from the grant date. The options generally may be net share settled.

On August 12, 2024, the Company’s board of directors approved a limited stock option cancellation and regrant program in which a limited number of the Company’s senior management team and the Company’s non-employee directors (the “Eligible Participants”) could elect to cancel each stock option held with an exercise price per SVS equal to $1.91, $1.93, $2.00 and $5.71, and to be granted a replacement option to purchase an identical number of SVS. The Eligible
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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Participants cancelled a total of 9,136,758 stock options under this program, and were regranted the same number of stock options on September 13, 2024 at an exercise price of $0.54, with an expiration date of ten years from the grant date.

The following table summarizes the status of stock options and related transactions:
Number of Stock OptionsWeighted-Average Per Share Exercise Price
Issued and Outstanding as of January 1, 202427,653,184 $1.40 
Granted12,954,490 $0.57 
Exercised
(64,999)$0.60 
Cancelled/forfeited/expired(12,888,258)$1.85 
Issued and Outstanding as of September 30, 202427,654,417 $0.80 
Exercisable as of September 30, 202410,587,967 $1.05 

The fair value of the stock options granted was determined using the Black-Scholes option-pricing model. The following assumptions were used for the calculation at date of grant:
Nine Months Ended September 30,
20242023
Weighted average stock price$0.56$0.51
Weighted average expected stock price volatility86.9%76.9%
Expected annual dividend yield0%0%
Weighted average expected life5.0 years6.0 years
Weighted average risk-free annual interest rate3.6%3.6%
Weighted average grant date fair value$0.21$0.34

Restricted Stock

During the nine months ended September 30, 2024, 1,861 restricted stock vested and were released. There was no unvested restricted stock as of September 30, 2024.
Share-based Compensation Cost

The components of share-based compensation expense are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Stock options$982 $712 $2,931 $4,170 
Restricted stock— — 2 293 
Warrants100 344 20 1,267 
Total share-based compensation expense$1,082 $1,056 $2,953 $5,730 
As of September 30, 2024, the Company had $3,781 of unrecognized share-based compensation cost related to unvested stock options and warrants, which is expected to be recognized as share-based compensation cost over a weighted average period of 1.9 years.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 11. EARNINGS (LOSS) PER SHARE
The reconciliations of the net loss and the weighted average number of shares used in the computations of basic and diluted loss per share are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Numerator:
Net loss and comprehensive loss$(16,016)$(20,622)$(36,309)$(47,098)
Denominator:
Weighted-average shares of common stock - basic and diluted
195,165,913 195,128,096 195,145,417 194,649,053 
Loss per common share:
Basic and diluted
$(0.08)$(0.11)$(0.19)$(0.24)
The following table summarizes weighted average instruments that may, in the future, have a dilutive effect on earnings (loss) per share, but were excluded from consideration in the computation of diluted net loss per share for the three and nine months ended September 30, 2024 and 2023, because the impact of including them would have been anti-dilutive:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Stock options26,537,311 29,664,683 27,402,967 29,185,375 
Warrants (derivative liabilities and equity)101,726,848 86,241,092 92,766,898 86,110,330 
Unvested restricted stock awards1,679 4,177 1,800 496,567 
128,265,838 115,909,952 120,171,665 115,792,272 
 12. REVENUE
The Company has two revenue streams: (i) retail and (ii) wholesale. The Company’s retail revenues are comprised of cannabis sales from its dispensaries. The Company’s wholesale revenues are comprised of cannabis sales to its wholesale customers for resale through their dispensaries. Any intercompany revenue and costs are eliminated to arrive at consolidated totals.
The following table summarizes the Company’s revenue from external customers, disaggregated by revenue stream:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Retail$55,441 $58,535 $169,802 $180,461 
Wholesale6,170 6,842 21,863 21,214 
Total revenue, net$61,611 $65,377 $191,665 $201,675 
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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 13. OPERATING EXPENSES
The major components of operating expenses are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Salaries, wages and employee related expenses$14,498 $13,251 $42,837 $43,839 
Depreciation and amortization expense3,985 2,962 11,090 7,202 
Rent and related expenses3,053 3,387 8,928 8,784 
Professional fees and legal expenses1,320 1,420 5,501 6,066 
Share-based compensation expense1,082 1,056 2,953 5,730 
Other expenses (1)
3,881 3,612 8,883 13,673 
Total operating expenses$27,819 $25,688 $80,192 $85,294 
(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, gain/loss on lease terminations, gain/loss on asset disposals, entertainment and conferences and other.
 14. INCOME TAXES
The following table summarizes the Company’s income tax expense and effective tax rates for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Loss before income tax
$(7,051)$(12,611)$(8,268)$(20,393)
Income tax expense
$8,965 $8,011 $28,041 $26,705 
Effective income tax rate127.1 %63.5 %339.2 %131.0 %
The Company has computed its provision for income taxes based on the actual effective rate for the three and nine months ended September 30, 2024 and 2023 as the Company believes this is the best estimate for the annual effective tax rate. Therefore, the Company’s effective income tax rates for the three and nine months ended September 30, 2024 and 2023 are not indicative of the effective income tax rate for each respective fiscal year of 2024 and 2023. The Company’s effective income tax rate is significantly higher than the statutory income tax rates due in part to (i) an increase in the uncertain tax position liability due to tax positions based on legal interpretations that challenge the Company’s tax liability under IRC Section 280E (“280E”), (ii) interest and penalties accrual for tax liabilities, and (iii) state income taxes.
The IRS has taken the position that cannabis companies are subject to the limitation of 280E, a position held by state tax regulators in Nevada, Ohio and Virginia. Under the IRS’s interpretation of 280E, cannabis companies are only allowed to deduct expenses directly and indirectly related to the production of inventory.

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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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In July 2024, the state of Pennsylvania enacted legislation permitting medical cannabis cultivators to deduct ordinary and necessary business expenses for state income tax purposes, which are disallowed under 280E. This legislation was effective July 1, 2024, and applies to tax years beginning after December 31, 2023. The legislation was also meant to include dispensary licensees, but were unintentionally left out of the initial legislation. This oversight was corrected with new legislation in October 2024. As of September 30, 2024, the tax balances reflect the law as enacted at that time, and uncertain tax positions have been recorded for our Pennsylvania dispensaries related to the entities’ 2024 activity. The Company estimates that the inclusion of dispensary licenses will result in the release of $3,266 of uncertain tax position liabilities in the fourth quarter.
In connection with the preparation and filing of the fiscal 2022 income tax return, the Company changed its previous application of 280E to exclude certain parts of its business. In regards to fiscal years 2023 and 2024, the Company has taken the position that it does not owe taxes attributable to the application of 280E. However, since the Company’s tax positions on 280E may be challenged by taxing authorities, the Company elected to treat the deductibility of these related expenses as an uncertain tax position. As of September 30, 2024, the balances in income tax payable and unrecognized tax benefits on the consolidated balance sheets include the impact of the tax position on 280E, which decreased current liabilities with a corresponding increase in non-current liabilities. There is no material impact to the consolidated statements of operations and comprehensive income (loss).
The Company has a liability for unrecognized tax benefits of $136,088 and $100,343 as of September 30, 2024 and December 31, 2023, respectively, inclusive of interest and penalties. The Company anticipates that it is reasonably possible that its new tax position on 280E may require changes to the balance of unrecognized tax benefits within the next 12 months. However, an estimate of such changes cannot reasonably be made.
The total amount of interest and penalties related to the liability for unrecognized tax benefits recorded in income tax expense during the three and nine months ended September 30, 2024 was $2,618 and $7,070, respectively. The total amount of interest and penalties related to the liability for unrecognized tax benefits recorded in income tax expense during the three and nine months ended September 30, 2023 was $2,569 and $5,583, respectively.
 15. RELATED PARTY TRANSACTIONS
The Company had the following related party transactions:
Three Months Ended September 30,Nine Months Ended September 30,As of
2024202320242023September 30, 2024 (unaudited)December 31, 2023
Nature of transactionRelated Party ExpenseRelated Party ExpenseRelated Party Payable
12% Second Lien Notes - interest expense and principal amount (1)
$(608)$(538)$(1,760)$(1,622)$(20,901)$(19,788)
Term Loans - interest expense and principal amount (2)
$(328)$— $(328)$— $(16,000)$— 
Other debt (3)
$— $— $— $— $— $(3,298)
(1)For the periods ended September 30, 2024 and December 31, 2023, the Second Lien Notes payable and the related interest expense includes amounts related to the Company’s Chief Executive Officer, as well as a significant investor.
(2)For the period ended September 30, 2024, the Term Loans payable and the related interest expense includes amounts related to the Company’s Chief Executive Officer, as well as a significant investor, who each participated as Term Loan lenders in the Company’s senior secured term loan refinancing completed in July 2024 in the principal amounts of $9,000 and $7,000 respectively, and also received 3,600,000 Warrants and 2,800,000 Warrants, respectively. Refer to Note 8 - Debt for more information.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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(3)Other debt relates to Jushi Europe which was deconsolidated during the three months ended June 30, 2024. Refer to Note 8 - Debt for more information.
 16. COMMITMENTS AND CONTINGENCIES
Contingencies
Although the possession, cultivation and distribution of cannabis for medical and recreational use is permitted in certain states, cannabis is classified as a Schedule-I controlled substance under the U.S. Controlled Substances Act and its use remains a violation of federal law. The Company’s operations are subject to a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations. While management believes that the Company is in material compliance with applicable local and state regulations as of September 30, 2024, marijuana regulations continue to evolve and are subject to differing interpretations. As a result, the Company could be subject to regulatory fines, penalties or restrictions at any time. Since federal law criminalizing the use of cannabis preempts state laws that legalize its use, strict enforcement of federal law regarding cannabis would likely result in the Company’s inability to proceed with the Company’s business plans. A change in administration due to the upcoming United States presidential election presents a risk of a change in federal policy. In addition, the Company’s assets, including real property, cash and cash equivalents, equipment, inventory and other goods, could be subject to asset forfeiture because cannabis is still federally illegal.
Refer to Note 14 - Income Taxes for certain tax-related contingencies.
Claims and Litigation
From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of September 30, 2024, except as set forth below, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the Company’s financial results. There are also no proceedings in which any of the Company’s directors, officers or affiliates is an adverse party or has a material interest adverse to the Company’s interest.
MJ’s Market Matter
On March 31, 2023, MJ’s Market, Inc. (“MJ’s”) filed a complaint in federal district court in Massachusetts adverse to Jushi Holdings Inc. and certain of its subsidiaries, including Jushi MA, Inc., Jushi Inc. and Nature’s Remedy of Massachusetts, as well as the former owners and affiliates of Nature’s Remedy of Massachusetts (the “Complaint”). The Complaint centrally claims that the structure of the Nature’s Remedy of Massachusetts transaction providing for increased purchase price consideration if there is no competing dispensary within 2,500 foot radius by certain time periods, and the Company’s filing with the Massachusetts Superior Court an appeal of the Town of Tyngsborough’s decision to approve MJ’s facility in contradiction of its own zoning bylaws are violations of the Sherman Antitrust Act, Massachusetts Antitrust Act, and Massachusetts Consumer Protection Act, as well as interference with contractual relations and abuse of process. MJ is seeking legal and equitable remedies including compensatory and other damages. The Company disputes such allegations, believes it has substantial defenses and is vigorously defending against the Complaint.
Sammartino Matter
On February 28, 2023, the Company informed Sammartino, the former owner of Nature’s Remedy and certain of its affiliates, that Sammartino had breached several provisions of the Merger and Membership Interest Purchase Agreement between the Company, Sammartino and certain other parties thereto (as amended, the “MIPA”) and/or fraudulently induced the Company to enter into, and not terminate, the MIPA. As a consequence of these breaches and the fraudulent inducement, the Company informed Sammartino that the Company had incurred significant damages, and pursuant to the terms of the MIPA the Company had elected to offset these damages against certain promissory notes and shares the Company was to pay and issue, respectively, to Sammartino, and that Sammartino would be required to pay the remainder
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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in cash. On March 13, 2023, Sammartino responded to the Company by alleging various procedural deficiencies with the Company’s claim and provided the Company with a notice that the Company was in default of the MIPA for failing to issue certain shares of the Company to Sammartino. On March 21, 2023, Sammartino sent a second notice that the Company was in default of the promissory notes for failing to pay interest pursuant to their specified schedule. On March 23, 2023, the Company sent a second letter to Sammartino disputing each procedural deficiency claimed by Sammartino and disputing that the Company is in default of the MIPA or the promissory notes and that it properly followed the terms of the various agreements in electing to set off the damages.
Pacific Collective Matter
On October 24, 2022, Pacific Collective, LLC (“Pacific Collective”) filed a complaint in state court in California against Jushi subsidiaries TGS CC Ventures, LLC (“TGS”), and Jushi Inc. Pacific Collective alleges that the Jushi subsidiaries breached a commercial property lease and lease guaranty and that Pacific Collective is entitled to recover in excess of $20,000 in damages. TGS believes it lawfully rescinded the lease based on Pacific Collective’s failure to purchase the property that was the subject of the lease and to construct and deliver the building contemplated by the lease and is of the position that no damages are owed to Pacific Collective. The Referee assigned to the matter ruled in favor of and awarded fees and costs to TGS and Jushi. Pacific Collective filed an appeal on July 3, 2024.
Commitments
In addition to the contractual obligations outlined in Note 8 - Debt, the Company has commitments as of September 30, 2024 related to property and construction.
In connection with various license applications, the Company may enter into conditional leases or other property commitments which will be executed if the Company is successful in obtaining the applicable license and/or resolving other contingencies related to the license or application.
In addition, the Company expects to incur capital expenditures for leasehold improvements and construction of buildouts of certain locations, including for properties for which the lease is conditional on obtaining the applicable related license or for which other contingencies exist.
 17. FINANCIAL INSTRUMENTS
The following table sets forth the Company’s financial assets and liabilities, subject to fair value measurements on a recurring basis, by level within the fair value hierarchy:
September 30, 2024 (unaudited)December 31, 2023
Financial assets: (1)
Equity investment (2)
$— $200 
Total financial assets$— $200 
Financial liabilities: (1)
Derivative liabilities (3)
$6,563 $2,638 
Contingent consideration liabilities
— 817 
Total financial liabilities$6,563 $3,455 
(1)The Company has no financial assets or liabilities in Level 1 or 2 within the fair value hierarchy as of September 30, 2024 and December 31, 2023, and there were no transfers between hierarchy levels during the nine months ended September 30, 2024 or year ended December 31, 2023.
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JUSHI HOLDINGS INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)
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(2)The Company adjusted its equity investment carrying value to reflect its equity balance of the investee, resulting in the recording of a loss on investment of $0 and $200 for the three and nine months ended September 30, 2024, respectively, and $0 for the three and nine months ended September 30, 2023. The loss on investment is included within other income (expense), net in the consolidated statements of operations and comprehensive income (loss).
(3)Refer to Note 9 - Derivative Liabilities.

The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses, and certain other assets and liabilities held at amortized cost, approximate their fair values due to the short-term nature of these instruments. The equity investment approximates its fair value at September 30, 2024 and December 31, 2023. The carrying amounts of the promissory notes approximate their fair values as the effective interest rates are consistent with market rates. The carrying amount of the Second Lien Notes approximates their fair values as of September 30, 2024 and December 31, 2023, respectively.
 18. SEGMENT INFORMATION
The Company operates a vertically integrated cannabis business in one reportable segment for the cultivation, manufacturing, distribution and sale of cannabis in the U.S. All of the Company’s revenues were generated within the U.S., and substantially all long-lived assets are located within the U.S. The accounting policies for the Company’s reportable segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker is the Chief Executive Officer. The chief operating decision maker assesses performance and decides how to allocate resources based on operating results that are reported on the income statement as consolidated net income/(loss). The measure of segment assets is reported on the balance sheet as total consolidated assets. Refer to Note 13 - Operating Expenses for significant expenses for the reportable segment.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Management’s Discussion and Analysis (“MD&A”) covers the consolidated financial statements of Jushi Holdings Inc. and its controlled subsidiaries as of and for the three and nine months ended September 30, 2024 (the “Financial Statements”). Unless the context indicates or requires otherwise, the terms “Jushi”, “the Company”, “we”, “us” and “our” refers to Jushi Holdings Inc. and its controlled entities. This MD&A should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto for the three and nine months ended September 30, 2024 (the “Quarterly Financial Statements”). The Quarterly Financial Statements have been prepared by management and are in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on April 1, 2024 (the “2023 Form 10-K”) and was also filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”). All amounts are expressed in U.S. dollars unless otherwise noted.
Company Overview
We are a vertically integrated, multi-state cannabis operator engaged in retail, distribution, cultivation, and processing operations in both medical and adult-use markets. We are focused on building a diverse portfolio of cannabis assets through opportunistic investments and pursuing application opportunities in attractive limited license jurisdictions and capitalizing on such assets through strategic deployment in our day-to-day operations. We have targeted assets in highly populated, limited license medical markets on a trajectory toward adult-use legalization, including Pennsylvania, markets that are in the process of transitioning to adult-use, namely Virginia, and limited license, fast-growing, large adult-use markets, such as Illinois, Nevada, Massachusetts and Ohio, and certain municipalities of California.
Factors Affecting our Performance and Related Trends
Competition and Pricing Pressure
The cannabis industry is subject to significant competition and pricing pressures, which is often market specific and can be caused by an oversupply of cannabis in the market, and may be transitory from period to period. We may experience significant competitive pricing pressures as well as competitive products and service providers in the markets in which we operate. Several significant competitors may offer products and/or services with prices that may match or are lower than ours. We believe that the products and services we offer are generally competitive with those offered by other cannabis companies. It is possible that one or more of our competitors could develop a significant research advantage over us that allows them to provide superior products or pricing, which could put us at a competitive disadvantage. Continued pricing pressure due to competition, increased cannabis supply or shifts in customer preferences could adversely impact our customer base or pricing structure, resulting in a material impact on our results of operations, or asset impairments in future periods.
Recent Developments
(Amounts expressed in thousands of U.S. dollars, except share and per share amounts)
Appointment
Our President, Jon Barack, was given the additional title of Chief Revenue Officer, effective November 5, 2024 and will assume his additional role immediately. In this role, he will oversee our commercial channels and focus on enhancing product selection. This role will allow us to realize operating expense savings due to recent senior management changes and our commitment to maintain a streamlined leadership team. In connection with assuming the role of Chief Revenue Officer, the Company entered into an amendment to Mr. Barack’s existing employment agreement pursuant to which Mr. Barack’s discretionary performance-based bonus to be determined by the Compensation Committee of the Board of Directors was replaced with a performance bonus with a target of up to 80% of his then base salary and the duration that severance payments will be owed to Mr. Barack was increased from six (6) months to twelve (12) months.
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Amendment Number 4 to CEO Employment Agreement
On September 13, 2024, the Company, JMGT, LLC, and the Company’s CEO entered into an amendment to his existing employment agreement (the “Fourth Amendment”) pursuant to which the CEO agreed to receive the $950 annual cash bonus for the year 2024 in the following alternative form: (i) a lump sum cash payment of $238, which was paid in October 2024, (ii) $1,382 aggregate principal amount of Second Lien Notes due December 7, 2026 (the “Second Lien Notes”), which were issued in September 2024, and (iii) stock options granted under the Company’s 2019 Equity Incentive Plan, as amended, (the “2019 Plan”), expiring five years from the date of grant to purchase up to 1,062,732 of the Company’s subordinate voting shares (“SVS”) at an exercise price of $0.65.
Stock Option Cancellation and Regrant Program
On August 12, 2024, a limited stock option cancellation and regrant program was approved, pursuant to which a limited number of the Company’s senior management team, including the Company’s Chief Executive Officer James Cacioppo, the Company’s President Jon Barack, the Company’s Chief Legal Officer Tobi Lebowitz, and the Company’s non-employee directors (the “Eligible Participants”) may elect to cancel each option held by the Eligible Participants with an exercise price per SVS equal to $1.91, $1.93, $2.00 and $5.71, and to be granted a replacement option to purchase an identical number of SVS. Mr. Cacioppo’s option to purchase 5,385,000 SVS, Mr. Barack’s option to purchase 1,793,000 SVS, Mrs. Lebowitz’s option to purchase 590,000 SVS and options to purchase up to an aggregate of 394,758 SVS held by the Company’s non-employee directors were eligible for the program, in addition to options to purchase up to an aggregate of 974,000 SVS held by other members of senior management. The Eligible Participants all elected to participate in this program, and were regranted the same number of options on September 13, 2024, at an exercise price of $0.54.
Additionally, on September 13, 2024, Michelle Mosier, our Chief Financial Officer, was granted 300,000 stock options under the 2019 Plan at an exercise price of $0.54 per share.
Ohio
We entered into two definitive agreements to purchase assets in the state of Ohio. These agreements will ultimately increase our footprint in Ohio with the addition of four dispensaries. The agreements are subject to regulatory approvals. We expect to transfer ownership of three of the dispensaries in the first half of 2025 with the fourth transfer of ownership in the back half of 2025.

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Results of Operations
(Amounts expressed in thousands of U.S. dollars, except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change20242023% Change
REVENUE, NET$61,611 $65,377 (6)%$191,665 $201,675 (5)%
COST OF GOODS SOLD(33,612)(36,863)(9)%(98,770)(112,666)(12)%
GROSS PROFIT27,999 28,514 (2)%92,895 89,009 4 %
OPERATING EXPENSES27,819 25,688 8 %80,192 85,294 (6)%
INCOME FROM OPERATIONS180 2,826 (94)%12,703 3,715 242 %
OTHER INCOME (EXPENSE):
Interest expense, net(9,382)(9,345)— %(27,997)(27,655)1 %
Fair value gain (loss) on derivatives2,628 (7,460)(135)%2,840 1,660 71 %
Other, net(477)1,368 (135)%4,186 1,887 122 %
Total other income (expense), net(7,231)(15,437)(53)%(20,971)(24,108)(13)%
LOSS BEFORE INCOME TAX(7,051)(12,611)(44)%(8,268)(20,393)(59)%
Income tax expense(8,965)(8,011)12 %(28,041)(26,705)5 %
NET LOSS AND COMPREHENSIVE LOSS$(16,016)$(20,622)(22)%$(36,309)$(47,098)(23)%
LOSS PER SHARE - BASIC AND DILUTED$(0.08)$(0.11)(27)%$(0.19)$(0.24)(21)%
Weighted average shares outstanding - basic and diluted195,165,913 195,128,096 — %195,145,417 194,649,053 — %
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Three Months Ended September 30, 2024 Compared with the Three Months Ended September 30, 2023
(Amounts expressed in thousands of U.S. dollars, unless otherwise stated)
Revenue, Net
The following table presents revenue by type for the periods indicated:
Three Months Ended September 30,
20242023$ Change% Change
Retail$55,441 $58,535 $(3,094)(5)%
Wholesale6,170 6,842 (672)(10)%
Total revenue, net$61,611 $65,377 $(3,766)(6)%
Revenue, net, was $61,611 compared to $65,377, a decrease of $3,766 or 6%.

Retail revenue decreased $3,094 primarily due to:
•A decline in sales in Illinois of $2,007 - the number of units sold decreased approximately 6%, and the average price per unit declined due to increased competition with competitors opening new stores in our markets;
•A decline in sales in Pennsylvania of $1,538 and in Nevada of $961 - the number of units sold decreased approximately 2% in Pennsylvania and approximately 8% in Nevada, and the average price per unit declined as we increased our use of promotions due to continued competition; and
•A decline in sales in Massachusetts of $677 - while the number of units sold increased approximately 4%, the average price per unit declined due to market price compression and continued competition.
These declines were partially offset by an increase in sales in Virginia of $1,430 primarily due to the opening of one new store in August 2023, and an increase in sales in Ohio of $1,130 due to the transition to adult-use during the current quarter. The Company ended the quarter with thirty-five operating dispensaries in seven states, as compared to thirty-four in seven states on September 30, 2023.

Wholesale revenue decreased $672. The decrease is primarily attributable to a $845 decline in wholesale revenue in Massachusetts and a $786 decline in Pennsylvania, due to continued competition and limited availability of products available to third parties through our wholesale channel as we prioritized supplying our retail stores. These decreases were partially offset by wholesale revenue growth in Virginia of $601 as the cultivation and processing facility in Virginia matured and had more product available for sale to third-parties.
Gross Profit
Gross profit was $27,999 compared to $28,514, a decrease of $515 or 2%. Gross profit margin increased to 45% compared to 44%. The increase in gross profit margin was driven by continued efficiencies at our cultivation and processing facilities which have enabled us to reduce cost, partially offset by additional expenses in Ohio, including inventory write downs, as we ramp up our facilities in Ohio to support the transition to adult-use. In our retail channel, gross profit and gross profit margin declined due to competition which resulted in increased utilization of sales promotions. Jushi branded product sales as a percentage of total retail revenue were 55% across the Company’s five vertical markets compared to 52% in the prior year.
Operating Expenses
Operating expenses were $27,819 compared to $25,688, an increase of $2,131 or 8%. The following table presents information on our operating expenses for the periods indicated:
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Three Months Ended September 30,
20242023$ Change% Change
Salaries, wages and employee related expenses$14,498 $13,251 $1,247 9 %
Depreciation and amortization expense3,985 2,962 1,023 35 %
Rent and related expenses3,053 3,387 (334)(10)%
Professional fees and legal expenses1,320 1,420 (100)(7)%
Share-based compensation expense1,082 1,056 26 2 %
Other expenses (1)
3,881 3,612 269 7 %
Total operating expenses
$27,819 $25,688 $2,131 8 %
(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and application fees, software and technology costs, travel, gain/loss on lease terminations, gain/loss on asset disposals, entertainment and conferences and other.

Salaries, wages and employee related expenses increased due to merit increase, as well as higher employee bonuses. Depreciation and amortization expense increased primarily due to amortization of our business licenses which commenced during the second quarter of 2024, as we concluded that our business licenses no longer have indefinite useful lives.

Other Income (Expense)
Interest Expense, Net
Interest expense, net was $9,382 compared to $9,345, an increase of $37, or 0%.
Fair Value gain (loss) on Derivatives
Fair value gain on derivatives was $2,628, compared to a loss of $7,460. Fair value gain (loss) on derivatives include the fair value changes relating to the derivative warrants. The derivative warrants are required to be remeasured at fair value at each reporting period. The fair value changes in derivatives were primarily attributable to the movement in our stock price during the corresponding period.
Other, Net
Other, net was an expense of $477, compared to an income of $1,368, a change of $1,845, which was primarily due to losses of $760 related to debt modifications in the current quarter, $667 lower foreign exchange translation adjustment mainly relating to certain Second Lien Notes denominated in Canadian dollars, and $563 lower indemnification asset gains related to acquisitions in the prior year.

Income Tax Expense
Total income tax expense was $8,965 compared to $8,011 in the prior year, an increase of $954 or 12%. The increase in income tax expense is primarily due to an increase in taxable income.


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Nine Months Ended September 30, 2024 Compared with the Nine Months Ended September 30, 2023
(Amounts expressed in thousands of U.S. dollars, unless otherwise stated)
Revenue, Net
The following table presents revenue by type for the periods indicated:
Nine Months Ended September 30,
20242023$ Change% Change
Retail$169,802 $180,461 $(10,659)(6)%
Wholesale21,863 21,214 649 3 %
Total revenue, net$191,665 $201,675 $(10,010)(5)%
Revenue, net, was $191,665 compared to $201,675, a decrease of $10,010 or 5%. Retail revenue decreased $10,659 primarily due to:
•A decline in sales in Illinois of $5,791 - while the number of units sold increased approximately 3%, the average price per unit declined as a result of pricing pressures due to the state of Missouri moving to recreational use, as well as increased competition with competitors opening new stores in our markets;
•A decline in sales in Massachusetts of $1,597 - while the number of units sold increased approximately 4%, the average price per unit declined as we increased our use of promotions due to continued competition; and
•A decline in sales in Nevada of $3,073 and in Pennsylvania of $5,743 - the number of units sold decreased by approximately 5% and 11% in Nevada and Pennsylvania, respectively, driven by increased competition. The decline in Nevada was also impacted by price compression, but the average price per unit remained stable in Pennsylvania.

These declines were partially offset by an increase in sales in Virginia of $5,300 primarily due to the opening of one new store in August 2023, and an increase in sales in Ohio of $1,102 due to the transition to adult-use during the current year.
Wholesale revenue increased $649. The increase is primarily attributable to wholesale revenue growth in Virginia of $3,735 as the cultivation and processing facility in Virginia matured and had more product available for sale to third-parties. The growth in Virginia was partially offset by $1,295 decline in wholesale revenue in Nevada and $1,586 decline in Massachusetts due to continued competition and product availability to sell to third parties through our wholesale channel.
Gross Profit
Gross profit was $92,895 compared to $89,009, an increase of $3,886 or 4%. Gross profit margin increased to 48% compared to 44%. The increase in gross profit and gross profit margin was driven by efficiencies at our cultivation and processing facilities which have enabled us to reduce cost, partially offset by additional expenses in Ohio, including inventory write downs, as we ramp up our facilities in Ohio to support the transition to adult-use. In our retail channel, gross profit declined due to lower sales; however, gross profit margin improved 38 basis points as a result of increased sell-through of Jushi branded products at our retail stores. Jushi branded product sales as a percentage of total retail revenue were 55% across the Company’s five vertical markets compared to 49% in the prior year.

Operating Expenses
Operating expenses were $80,192 compared to $85,294, a decrease of $5,102 or 6%. The following table presents information on our operating expenses for the periods indicated:
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Nine Months Ended September 30,
20242023$ Change% Change
Salaries, wages and employee related expenses$42,837 $43,839 $(1,002)(2)%
Depreciation and amortization expense11,090 7,202 3,888 54 %
Rent and related expenses8,928 8,784 144 2 %
Professional fees and legal expenses5,501 6,066 (565)(9)%
Share-based compensation expense2,953 5,730 (2,777)(48)%
Other expenses (1)
8,883 13,673 (4,790)(35)%
Total operating expenses
$80,192 $85,294 $(5,102)(6)%
(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and application fees, software and technology costs, travel, gain/loss on lease terminations, gain/loss on asset disposals, entertainment and conferences and other.

Depreciation and amortization expense increased due to the expansion of our retail operations which resulted in certain fixed assets being placed into service, as well as amortization of our business licenses which commenced during the second quarter of 2024, as we concluded that our business licenses no longer have indefinite useful lives. Lower share-based compensation expense reflects lower value of share-based compensation granted as well as forfeitures. Other expenses decreased primarily due to gains on the sale of certain non-core assets and operating lease terminations, and lower expenses relating to administrative fees and software and technology costs.

Other Income (Expense)
Interest Expense, Net
Interest expense, net was $27,997 compared to $27,655, an increase of $342, or 1%.
Fair Value gain (loss) on Derivatives
Fair value gain on derivatives was $2,840, compared to $1,660. Fair value gain (loss) on derivatives include the fair value changes relating to the derivative warrants. The derivative warrants are required to be remeasured at fair value at each reporting period. The fair value changes in derivatives were primarily attributable to the movement in our stock price during the corresponding period.
Other, Net
Other, net was an income of $4,186, compared to $1,887, a change of $2,299. The increase in income was primarily due to $1,896 gain on Jushi Europe deconsolidation.
Income Tax Expense
Total income tax expense was $28,041 compared to $26,705 in the prior year, an increase of $1,336 or 5%. The increase in income tax expense is primarily due to an increase in taxable income.
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Non-GAAP Measures and Reconciliation
In addition to providing financial measurements based on GAAP, we provide additional financial metrics that are not prepared in accordance with GAAP. We use non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate our financial performance. These non-GAAP financial measures are EBITDA and Adjusted EBITDA (each as defined below). We believe that these non-GAAP financial measures reflect our ongoing business by excluding the effects of expenses that are not reflective of our operating business performance and allow for meaningful comparisons and analysis of trends in our business. These non-GAAP financial measures also facilitate comparing financial results across accounting periods and to those of peer companies. As there are no standardized methods of calculating these non-GAAP measures, our methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness. Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are financial measures that are not defined under GAAP. We define EBITDA as net income (loss), or “earnings”, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before: (i) non-cash share-based compensation expense; (ii) inventory-related adjustments; (iii) fair value changes in derivatives; (iv) other (income)/expense items; (v) transaction costs; (vi) asset impairment; (vii) gain/loss on debt extinguishment; and (viii) start-up costs. These financial measures are metrics that have been adjusted from the GAAP net income (loss) measure in an effort to provide readers with a normalized metric in making comparisons more meaningful across the cannabis industry, as well as to remove non-recurring, irregular and one-time items that may otherwise distort the GAAP net income measure. Other companies in our industry may calculate this measure differently, limiting their usefulness as comparative measures.
Reconciliation of EBITDA and Adjusted EBITDA (Non- GAAP Measures)

Adjusted EBITDA for the three months ended September 30, 2024 and 2023, was $10,345 and $9,710, respectively, resulting in an increase of $635 or 7%.

Adjusted EBITDA for the nine months ended September 30, 2024 and 2023, was $38,172 and $29,933, respectively, resulting in an increase of $8,239 or 28%. The increase in EBITDA was primarily due to operating efficiencies at our grower processor facilities, lower payroll cost due to a decrease in the number of employees, and lower operating expenses relating to professional fees, administrative expenses, software and technology cost.
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The table below reconciles net loss to EBITDA and Adjusted EBITDA for the periods indicated.
(Amounts expressed in thousands of U.S. dollars)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
NET LOSS
$(16,016)$(20,622)$(36,309)$(47,098)
Income tax expense
8,965 8,011 28,041 26,705 
Interest expense, net9,382 9,345 27,997 27,655 
Depreciation and amortization (1)
7,768 5,816 21,981 19,780 
EBITDA (Non-GAAP)10,099 2,550 41,710 27,042 
Non-cash share-based compensation
1,082 1,056 2,953 5,730 
Fair value changes in derivatives(2,628)7,460 (2,840)(1,660)
Gain on deconsolidation of Jushi Europe
— — (1,896)— 
Tangible long-lived asset impairment
275 — 432 — 
Other (income) expense, net (2)
756 (1,356)(2,549)(1,449)
Loss on debt extinguishment
761 — 362 — 
Inventory charge adjustments (3)
— — — 251 
Transaction costs
— — — 19 
Adjusted EBITDA (Non-GAAP)$10,345 $9,710 $38,172 $29,933 
(1)
Includes amounts that are included in cost of goods sold and in operating expenses.
(2)
Includes: (i) remeasurement of contingent consideration related to acquisitions; (ii) losses (gains) on legal settlements; (iii) losses (gains) on lease terminations; (iv) losses (gains) on asset disposals; and (v) severance costs.
(3)
Includes inventory recall write-offs of $251 in the first quarter of 2023.
Liquidity and Capital Resources
(Amounts expressed in thousands of U.S. dollars, unless otherwise stated)

Sources and Uses of Cash
We had cash, cash equivalents and restricted cash of $22,891 as of September 30, 2024.
The major components of our statements of cash flows for the nine months ended September 30, 2024 and 2023, are as follows:
Nine Months Ended September 30,
20242023$ Change% Change
Net cash flows provided by (used in) operating activities
$14,415 $(7,827)$22,242 284 %
Net cash flows provided by (used in) investing activities
189 (6,064)6,253 103 %
Net cash flows (used in) provided by financing activities
(23,018)17,214 (40,232)(234)%
Net change in cash, cash equivalents and restricted cash$(8,414)$3,323 $(11,737)(353)%
Operating activities
Cash provided by operations was $14,415, as compared to cash used in operations of $7,827. The change to cash provided by operating activities in the current year compared to cash used in operating activities in the prior year was primarily due to improved operating results, as well as an improvement in cash flow from working capital.
Investing activities
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Net cash provided by investing activities was $189 compared to cash used in investing activities of $6,064. The current year includes $2,534 for the payments of property, plant and equipment for use in our operations, which was more than offset by $2,723 in proceeds from the sale of non-core assets. The prior year includes $8,385 for the payments of property, plant and equipment for use in our operations partially offset by $2,321 in proceeds from the sale of property, plant and equipment.
Financing activities
Net cash used in financing activities was $23,018 compared to net cash provided by financing activities of $17,214. In July 2024, we refinanced our Acquisition Facility debt with proceeds from the issuance of Term Loans and cash on hand. Refer to Note 8 - Debt of our Quarterly Financial Statements contained in Part I. Item 1 of this report for more information.
The current year cash used in financing activities includes the following cash outflows:
•$2,750 in payments on promissory notes in the Debt Exchange,
•$3,600 in payments to extinguish one of our acquisition-related promissory note,
•$60,125 payments related to the Acquisition Facility debt which was extinguished in July 2024,
•$1,661 in net finance lease obligation payments,
•$2,357 in payments of loan financing costs,
•$1,409 in payments of other financing activities, and
•$270 in payments of mortgage-related debt.
The current year cash outflows used in financing activities were partially offset by:
•$47,530 of net proceeds from the issuance of Term Loans,
•$1,585 of proceeds from other financing activities, and
•$39 in issuance of options from exercise.

The prior year net cash flows provided by financing activities includes $21,900 in proceeds from mortgage loans and $3,295 in proceeds from other financing activities, partially offset by $2,761 in net finance lease obligation payments, $2,438 payments related to the Acquisition Facility debt, $2,372 in payments of other financing activities, $250 in payments of loan financing costs, and $160 in payments of mortgage-related debt.
Liquidity
As reflected in our 2023 Form 10-K, we used net cash of $3,318 for operating activities for the year ended December 31, 2023, and as of that date, our current liabilities exceeded our current assets by $80,825. As of December 31, 2023 absent a refinancing, we would not meet our obligations within the next year and we believed that with a refinancing, we would meet our obligations. As a result, we concluded, as stated in the 2023 Form 10-K, that substantial doubt existed about our ability to continue as a going concern within the next twelve months from the date the 2023 financial statements were issued.
For the nine months ended September 30, 2024, cash provided by operating activities was $14,415, and as of September 30, 2024, our current assets exceeded our current liabilities by $11,752. Consistent with our conclusion as of June 30, 2024, substantial doubt about our ability to continue as a going concern no longer exists as of September 30, 2024.
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We believe that our existing cash and cash equivalents and cash from operations will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months, although we may choose to take advantage of opportunistic capital raising or refinancing transactions at any time. Depending on our future results of operations, we may need to engage in additional equity financing or other debt refinancing transactions in the longer term beyond twelve months, although there can be no assurances that such additional debt or equity financing may be obtained on favorable terms when required, if at all.
The Quarterly Financial Statements contained herein have been prepared on a going concern basis which assumes we will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty.
Off-Balance Sheet Arrangements and Contractual Obligations
As of September 30, 2024, we do not have any off‐balance sheet arrangements. For our contractual obligations, refer to Note 8 - Debt and Note 16 - Commitments and Contingencies of our Quarterly Financial Statements contained in Part I. Item 1 of this report.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the risks disclosed in Item 7A of our 2023 Form 10-K.
Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
Our management carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2024, our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
For a description of our legal proceedings, refer to Claims and Litigation in Note 16 - Commitments and Contingencies in the Notes to the Unaudited Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.
Item 1A. Risk Factors
The Company is subject to numerous risks and uncertainties, any of which could have a significant or material adverse effect on our business, financial condition, liquidity or consolidated financial statements. You should carefully consider the risk factors disclosed under the heading “Risk Factors”, which are included in the 2023 Form 10-K, which was also filed on SEDAR. The risks described therein and herein are not the only ones we face. Other than set forth herein, there have been no material changes from the risk factors previously disclosed.
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds
On July 31, 2024, the Company issued 19,400,000 five-year warrants to purchase SVS of the Company (the “Warrants”) at a strike price of $1.00 per SVS. We issued the warrants in reliance on the exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”), in Section 4(a)(2) of the Securities Act and/or Regulation D thereunder. The Warrants were issued by the Company in connection with, but were detached from, the Term Loans. Refer to Note 9 - Derivative Liabilities for additional information. An entity affiliated with James Cacioppo, the Company’s Chief Executive Officer, Chairman and Founder, is a term loan lender and received 3,600,000 Warrants, and Denis Arsenault, a Founder and significant equity holder of the Company, is a term loan lender and received 2,800,000 Warrants.
In September 2024, the Company issued 450,000 warrants to a consultant for consultancy services. Each warrant entitles the consultant to purchase one Subordinate Voting Share at an exercise price of $0.54. Subject to any vesting requirements, the warrants may be exercised for cash or through a net settlement mechanism until the expiration date.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(c) and (e)
Our President, Jon Barack, was given the additional title of Chief Revenue Officer, effective November 5, 2024 and will assume his additional role immediately. In this role, he will oversee our commercial channels and focus on enhancing product selection. This role will allow us to realize operating expense savings due to recent senior management changes and our commitment to maintain a streamlined leadership team. In connection with assuming the role of Chief Revenue Officer, the Company entered into an amendment to Mr. Barack’s existing employment agreement (the “Second Amendment”) pursuant to which Mr. Barack’s discretionary performance-based bonus to be determined by the Compensation Committee of the Board of Directors was replaced with a performance bonus with a target of up to 80% of his then base salary and the duration that severance payments will be owed to Mr. Barack was increased from six (6) months to twelve (12) months.
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The foregoing summary is not complete and qualified in its entirety by reference to the Second Amendment, a copy of which is attached hereto as Exhibit 10.6 to this Quarterly Report on Form 10-Q.
(c)
Insider trading arrangements
During the three months ended September 30, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).







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Item 6. Exhibits
10.1*
Credit Agreement, dated as of July 31, 2024, by and among Jushi Holdings Inc., the other loan parties that are parties thereto, the lenders that are party thereto, and Argent Institutional Trust Company, as agent for the lenders.
10.2*
Form of Common Stock Purchase Warrant.
10.3*
Second Amendment to Trust Indenture, dated July 31, 2024, by and between Jushi Holdings Inc. and Odyssey Trust Company.
10.4**#
Amendment No. 3 to CEO Employment Agreement, dated as of August 14, 2024, by and among the Company, JMGT, LLC and Jim Cacioppo.
10.5***#
Amendment No. 4 to CEO Employment Agreement, dated as of September 13, 2024, by and among the Company, JMGT, LLC and Jim Cacioppo.
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (embedded with Inline XBRL File)

#
Management contract or compensatory plan or arrangement
*
Incorporated by reference to our Form 8-K filed August 6, 2024
**
Incorporated by reference to our Form 8-K filed August 14, 2024
***
Incorporated by reference to our Form 8-K filed September 17, 2024



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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
JUSHI HOLDINGS INC.
Date: November 7, 2024
By:/s/ Michelle Mosier
Michelle Mosier
Chief Financial Officer and Chief Accounting Officer
(principal financial and accounting officer)
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