Company Quick10K Filing
Greenlane Holdings
Price3.48 EPS-2
Shares10 P/E-1
MCap35 P/FCF-1
Net Debt-44 EBIT-12
TEV-9 TEV/EBIT1
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-16
10-Q 2020-06-30 Filed 2020-08-11
10-Q 2020-03-31 Filed 2020-06-09
10-K 2019-12-31 Filed 2020-04-24
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-13
10-Q 2019-03-31 Filed 2019-05-09
S-1 2019-03-20 Public Filing
8-K 2021-01-26 Sale of Shares
8-K 2021-01-05 Sale of Shares
8-K 2020-11-16
8-K 2020-09-08
8-K 2020-08-07
8-K 2020-07-24
8-K 2020-06-29
8-K 2020-06-04
8-K 2020-06-04
8-K 2020-05-12
8-K 2020-04-30
8-K 2020-03-30
8-K 2020-03-30
8-K 2020-02-20
8-K 2019-11-08
8-K 2019-09-23
8-K 2019-08-12
8-K 2019-05-09
8-K 2019-05-09
8-K 2019-04-23

GNLN 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Note 1. Business Operations and Organization
Note 2. Summary of Significant Accounting Policies
Note 3. Fair Value of Financial Instruments
Note 4. Leases
Note 5. Long Term Debt
Note 6. Commitments and Contingencies
Note 7. Supplemental Financial Statement Information
Note 8. Stockholders' Equity
Note 9. Compensation Plans
Note 10. Income Taxes
Note 11. Segment Reporting
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.2 q3indemnificationagree.htm
EX-10.3 william_motexformxarxexe.htm
EX-10.4 williambine_formarexecut.htm
EX-10.5 jsseparationagreementand.htm
EX-10.6 dfischer_formarexecutive.htm
EX-10.7 michaelcellucciexecutive.htm
EX-31.1 q32020-0930xexx311.htm
EX-31.2 q32020-0930exx312.htm
EX-32.1 q32020-0930exx321.htm

Greenlane Holdings Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
185142995613-302018201820192020
Assets, Equity
55412713-1-152018201820192020
Rev, G Profit, Net Income
806142234-152018201820192020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to         
001-38875
(Commission file number)
Greenlane Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware83-0806637
State or other jurisdiction of
incorporation or organization
(I.R.S. Employer
Identification No.)

1095 Broken Sound Parkway,Suite 300
Boca Raton, FL33487
(Address of principal executive offices)(Zip Code)
(877) 292-7660
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par value per shareGNLNNasdaq Global Market
Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
£
Accelerated filer
£
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  ☒
As of November 13, 2020, Greenlane Holdings, Inc. had 13,072,416 shares of Class A common stock outstanding, 3,590,909 shares of Class B common stock outstanding and 76,489,218 shares of Class C common stock outstanding.




TABLE OF CONTENTS




PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value per share amounts)

September 30,
2020
December 31,
2019
Assets(Unaudited)
Current assets
Cash$39,993 $47,773 
Accounts receivable, net of allowance of $1,324 and $936 at September 30, 2020 and December 31, 2019, respectively
6,438 8,091 
Inventories, net36,919 43,060 
Vendor deposits8,775 11,120 
Assets held for sale1,177  
Other current assets8,924 4,924 
Total current assets102,226 114,968 
Property and equipment, net12,392 13,165 
Intangible assets, net5,930 6,301 
Goodwill3,128 11,982 
Operating lease right-of-use assets3,085 4,695 
Other assets2,053 2,091 
Total assets$128,814 $153,202 
Liabilities and stockholders' equity
Current liabilities
Accounts payable$17,963 $11,310 
Accrued expenses and other current liabilities15,956 10,600 
Customer deposits2,593 3,152 
Current portion of operating leases725 1,084 
Current portion of finance leases208 116 
Total current liabilities37,445 26,262 
Notes payable, less current portion and debt issuance costs, net7,886 8,018 
Operating leases, less current portion2,708 3,844 
Finance leases, less current portion277 194 
Other liabilities1,038 620 
Total long-term liabilities11,909 12,676 
Total liabilities49,354 38,938 
Commitments and contingencies (Note 6)
Stockholders’ Equity
Preferred stock, $0.0001 par value, 10,000 shares authorized, none issued and outstanding
  
Class A common stock, $0.01 par value per share, 125,000 shares authorized; 13,072 shares issued and outstanding as of September 30, 2020; 9,999 shares issued and 9,812 shares outstanding as of December 31, 2019
131 98 
Class B common stock, $0.0001 par value per share, 10,000 shares authorized; 3,591 and 5,975 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
1 1 
Class C Common stock, $0.0001 par value per share, 100,000 shares authorized; 76,489 and 77,791 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
8 8 
Additional paid-in capital39,194 32,108 
Accumulated deficit(20,732)(9,727)
Accumulated other comprehensive loss(154)(72)
Total stockholders’ equity attributable to Greenlane Holdings, Inc.
18,448 22,416 
Non-controlling interest61,012 91,848 
Total stockholders’ equity79,460 114,264 
Total liabilities and stockholders’ equity$128,814 $153,202 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1



GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per share amounts)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Net sales$35,764 $44,886 $102,032 $147,770 
Cost of sales33,297 38,448 85,419 123,194 
Gross profit2,467 6,438 16,613 24,576 
Operating expenses:
Salaries, benefits and payroll taxes5,010 6,562 17,745 21,673 
General and administrative10,673 4,751 25,758 15,549 
Goodwill impairment charge  8,996  
Depreciation and amortization599 650 1,959 1,980 
Total operating expenses16,282 11,963 54,458 39,202 
Loss from operations(13,815)(5,525)(37,845)(14,626)
Other income (expense), net:
Change in fair value of convertible notes   (12,063)
Interest expense(115)(119)(335)(862)
Other income, net357 7,746 1,483 8,670 
Total other income (expense), net242 7,627 1,148 (4,255)
(Loss) income before income taxes(13,573)2,102 (36,697)(18,881)
Provision for income taxes220 11,063 147 10,966 
Net loss(13,793)(8,961)(36,844)(29,847)
Less: Net loss attributable to non-controlling interest
(9,300)(2,563)(25,839)(4,016)
Net loss attributable to Greenlane Holdings, Inc.
$(4,493)$(6,398)$(11,005)$(25,831)
Net loss attributable to Class A common stock per share - basic and diluted (Note 8)
$(0.35)$(0.64)$(0.95)$(0.67)
Weighted-average shares of Class A common stock outstanding - basic and diluted (Note 8)
12,798 9,998 11,559 9,998 
Other comprehensive income (loss):
Foreign currency translation adjustments285 (13)130 38 
Unrealized gain (loss) on derivative instrument35 (310)(525)(310)
Comprehensive loss
(13,473)(9,284)(37,239)(30,119)
Less: Comprehensive loss attributable to non-controlling interest
(9,066)(2,809)(26,152)(4,238)
Comprehensive loss attributable to Greenlane Holdings, Inc.
$(4,407)$(6,475)$(11,087)$(25,881)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2



GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)

Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-
Controlling
Interest
Total
Stockholders’
Equity
SharesAmountSharesAmountSharesAmount
Balance, December 31, 20199,812 $98 5,975 $1 77,791 $8 $32,108 $(9,727)$(72)$91,848 $114,264 
Net loss— — — — — — — (4,461)— (12,278)(16,739)
Equity-based compensation— — — — — — 64 — — 206 270 
Issuance of Class A common stock for the acquisition of Conscious Wholesale480 5 — — — — 1,496 — — — 1,501 
Cancellation of Class B common stock due to equity-based compensation award forfeitures— — (105)— — — 223 — — (223) 
Joint venture consolidation— — — — — — — — — 189 189 
Other comprehensive loss— — — — — — — — (267)(853)(1,120)
Balance, March 31, 202010,292 103 5,870 1 77,791 8 33,891 (14,188)(339)78,889 98,365 
Net loss— — — — — — — (2,051)— (4,261)(6,312)
Equity-based compensation— — — — — — 220 — — 672 892 
Issuance of Class A common stock for the acquisition of Conscious Wholesale171 2 — — — — 485 — — — 487 
Cancellation of Class B common stock due to equity-based compensation award forfeitures— — (6)— — — 9 — — (9) 
Exchanges of non-controlling interest for Class A common stock2,140 21 (2,140)— — — 3,896 — — (3,917) 
Other comprehensive income— — — — — — — — 99 306 405 
Balance, June 30, 202012,603 $126 3,724 $1 77,791 $8 $38,501 $(16,239)$(240)$71,680 $93,837 
Net loss— — — — — — — (4,493)— (9,300)(13,793)
Equity-based compensation— — — — — — (298)— — (682)(980)
Issuance of Class A common stock 35 1 — — — — 75 — — — 76 
Cancellation of Class B common stock due to equity-based compensation award forfeitures— — (133)— — — 221 — — (221) 
Exchanges of non-controlling interest for Class A common stock434 4 — — (1,302)— 695 — — (699) 
Other comprehensive income— — — — — — — — 86 234 320 
Balance, September 30, 202013,072 $131 3,591 $1 76,489 $8 $39,194 $(20,732)$(154)$61,012 $79,460 


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3



GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)
Redeemable
Class B
Units
Members’
Deficit
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-
Controlling
Interest
Total
Stockholders’
Equity
SharesAmountSharesAmountSharesAmount
Balance, December 31, 2018$10,033 $(10,773) $  $  $ $ $ $(286)$ $(11,059)
Activity prior to the initial public offering and related organizational transactions (Note 1):
Issuance of redeemable Class B units, net of issuance costs6,514 — — — — — — — — — — — — 
Redemption of Class A and Class B units(416)(2,602)— — — — — — — — — — (2,602)
Equity-based compensation2,304 191 — — — — — — — — — — 191 
Net loss(3,045)(14,619)— — — — — — — — — — (14,619)
Member distributions— (21)— — — — — — — — — — (21)
Other comprehensive income— — — — — — — — — — 28 — 28 
Balance, March 31, 201915,390 (27,824)        (258) (28,082)
Net loss(246)(1,179)— — — — — — — — — — (1,179)
Equity-based compensation113 137 — — — — — — — — — — 137 
Member distributions(76)(801)— — — — — — — — — — (801)
Other comprehensive income— — — — — — — — — — (8)— (8)
Effects of the initial public offering and related organizational transactions (Note 1):
Effects of the organizational transactions(15,181)29,667 — — — — — — (114,094)— 203 99,404 15,180 
Issuance of Class A common stock in the IPO, net of underwriting discount— — 5,250 53 — — — — 82,950 — — — 83,003 
Issuance of Class A common stock to convertible notes holders— — 3,548 35 — — — — 60,277 — — — 60,312 
Issuance of Class A common to stock selling stockholders— — 750 8 (106)— (1,935)— (7)— — — 1 
Issuance of Class A common stock to underwriter upon exercise of overallotment option— — 450 4 (63)— (1,161)— (4)— — —  
Issuance of Class B common stock— — — — 6,157 1 — — (1)— — —  
Issuance of Class C common stock— — — — — — 80,887 8 (8)— — —  
Capitalization of initial public offering costs— — — — — — — — (3,523)— — — (3,523)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis— — — — — — — — 5,173 — — — 5,173 
Joint venture consolidation— — — — — — — — — — — 60 60 
Activity subsequent to the initial public offering and related organizational transactions (Note 1):
Net loss— — — — — — — — — (343)— (1,453)(1,796)
Equity-based compensation— — — — — — — — 709 — — 1,122 1,831 
Other comprehensive income— — — — — — — — — — 7 24 31 
Balance June 30, 2019  9,998 100 5,988 1 77,791 8 31,472 (343)(56)99,157 130,339 
Net loss— — — — — — — — — (6,398)— (2,563)(8,961)
Equity-based compensation— — — — — — — — 360 — — 1,148 1,508 
Other comprehensive loss— — — — — — — — — — (77)(246)(323)
Effects of the organizational transactions— — — — — — — — 297 — — (297)— 
Balance September 30, 2019$ $ 9,998 $100 5,988 $1 77,791 $8 $32,129 $(6,741)$(133)$97,199 $122,563 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4



GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
20202019
Cash flows from operating activities:
Net loss (including amounts attributable to non-controlling interest)$(36,844)$(29,847)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization1,959 1,980 
Reversal of tax receivable agreement liability (5,721)
Change in deferred tax asset, net 10,879 
Equity-based compensation expense182 6,083 
Unrealized gain on equity investment (1,537)
Goodwill impairment charge8,996  
Change in fair value of contingent consideration(719) 
Change in fair value of convertible notes 12,063 
Change in provision for doubtful accounts766 91 
Loss on disposal of assets569  
Loss related to indemnification asset not probable of recovery2,200 — 
Other242 37 
Changes in operating assets and liabilities, net of the effects of acquisitions:
Decrease in accounts receivable886 1,396 
Decrease (increase) in inventories6,140 (15,764)
Decrease (increase) in vendor deposits2,543 (778)
Decrease (increase) in deferred offering costs 2,284 
(Increase) in other current assets(6,217)(1,720)
Increase (decrease) in accounts payable6,653 (13,182)
Increase in accrued expenses9,558 465 
(Decrease) in customer deposits(670)(272)
Net cash used in operating activities(3,756)(33,543)
Cash flows from investing activities:
Purchase consideration paid for acquisitions, net of cash acquired(1,841)(1,283)
Purchases of property and equipment, net(1,438)(1,268)
Purchase of intangible assets(300)(58)
Investment in equity securities (