MariMed Reports Third Quarter 2023 Earnings

NORWOOD, Mass., Nov. 08, 2023 (GLOBE NEWSWIRE) -- MariMed Inc. (“MariMed” or the “Company”) (CSE: MRMD) (OTCQX: MRMD), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial results for the third quarter ended September 30, 2023.

“I am pleased to report another solid quarter of strong revenue growth on both a year-over-year and a sequential basis as we continue to outperform the greater industry,” said Jon Levine, Chief Executive Officer. “We reported our 15th consecutive quarter of positive adjusted EBITDA. Our wholesale business continued to set quarterly sales records, which will continue for the remainder of this year and next. Our balance sheet remains one of the strongest in the industry, and we were particularly pleased with the exponential growth of our Maryland operations with the commencement of adult-use sales on July 1st.”

Financial Highlights1

The following table summarizes the Company's consolidated financial highlights (in millions, except percentage amounts):

 Three months ended
September 30,
 Nine months ended
September 30,
 2023 2022 2023 2022
Revenue$38.8  $33.9  $109.7  $98.2 
GAAP Gross margin 43%  48%  44%  49%
Non-GAAP Gross margin 45%  48%  45%  49%
GAAP Net (loss) income$(4.3) $2.7  $(5.9) $8.9 
Non-GAAP Net (loss) income$(3.1) $4.7  $(2.2) $17.0 
Non-GAAP Adjusted EBITDA$6.1  $8.6  $19.4  $27.9 
Non-GAAP Adjusted EBITDA margin 16%  25%  18%  28%

1 See the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” below and in the financials information included herewith.


MariMed management will host a conference call on Thursday, November 9, 2023 at 8:00 a.m. Eastern time, to discuss these results. The conference call may be accessed through MariMed’s Investor Relations website, or by clicking the following link: MRMD Q323 Earnings Call.


During the third quarter, the Company announced the following developments in the implementation of its strategic growth plan:

  • July 1: MariMed commenced adult-use retail and wholesale operations in Maryland. The Company's retail sales, which began in Q422, grew 88% sequentially, while its wholesale business grew 161% year-over-year.
  • July 13: MariMed staged the ‘Boston 280E THC Party’ in Boston Harbor to protest unfair cannabis industry tax laws. Inspired by its 250th anniversary, the Company reenacted the Boston Tea Party.   Onboard a schooner in Boston Harbor, MariMed management and employees dressed in colonial outfits and decried unfair IRS Code 280E on behalf of the entire cannabis industry.


Subsequent to the end of the third quarter, the Company announced the following developments:

  • October 11: MariMed announced the opening of Thrive Dispensary in Casey, Illinois, marking the fifth dispensary owned or managed in that state, and the twelfth dispensary it owns or manages across five states. In response to the state’s request to open as soon as possible, the Company operates Thrive Dispensary from a temporary mobile facility until construction of a permanent building is completed. MariMed continues to build its processing and cultivation facility in Mt. Vernon, Illinois. The processing facility is expected to open during the fourth quarter, at which time MariMed will produce its award-winning edibles for sale through retail and wholesale channels. The Company expects the cultivation facility construction to be completed in early 2024.


MariMed remains committed to its proven strategic growth plan and continues to operate some of the best facilities in the cannabis industry. Delayed openings of new revenue generating assets, input cost inflation, and increased competition continue to have a bigger impact than anticipated on operational and financial results. As such, the Company's guidance for full year 2023 is now:

  • Revenue of $148 million to $150 million;
  • Gross margin of approximately 45%;
  • Non-GAAP Adjusted EBITDA of $27 million to $32 million;
  • Capital expenditures of $22 million to $25 million;


MariMed’s management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, and making operating decisions, planning and forecasting future periods. The Company has provided in this release several non-GAAP financial measures: Non-GAAP Gross margin, Non-GAAP Net income (loss), Non-GAAP Adjusted EBITDA and non-GAAP Adjusted EBITDA margin, as supplements to Revenue, Gross margin, Net income (loss) and other financial measures prepared in accordance with GAAP.

Management believes these non-GAAP financial measures are useful in reviewing and assessing the performance of the Company, and when planning and forecasting future periods, as they provide meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance. In addition, the Company’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods and for financial and operational decision-making. The presentation of these non-GAAP measures is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP.

Management believes that investors and analysts benefit from considering non-GAAP financial measures in assessing the Company’s financial results and its ongoing business, as it allows for meaningful comparisons and analysis of trends in the business. In particular, non-GAAP adjusted EBITDA is used by many investors and analysts themselves, along with other metrics, to compare financial results across accounting periods and to those of peer companies.

As there are no standardized methods of calculating non-GAAP financial measures, the Company’s calculations may differ from those used by analysts, investors and other companies, even those within the cannabis industry, and therefore may not be directly comparable to similarly titled measures used by others.

Management defines non-GAAP Adjusted EBITDA as income (loss) from operations, determined in accordance with GAAP, excluding the following items:

  • depreciation of fixed assets;
  • amortization of acquired intangible assets;
  • Impairment or write-downs of intangible assets;
  • stock-based compensation;
  • legal settlements; and
  • acquisition-related and other expenses.

For further information, please refer to the publicly available financial filings available on MariMed's Investor Relations website, as filed with the U.S. Securities and Exchange Commission, or as filed with the Canadian securities regulatory authorities on the SEDAR website.


MariMed Inc., a multi-state cannabis operator, is dedicated to improving lives every day through its high-quality products, its actions, and its values. The Company develops, owns, and manages seed to sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and dispensary operations. MariMed has an experienced management team that has produced consistent growth and success for the Company and its managed business units. Proprietary formulations created by the Company’s technicians are embedded in its top-selling and award-winning products and brands, including Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy, which are trademarks of MariMed Inc. For additional information, visit


The information in this release contains “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to several risks and uncertainties.   All statements other than statements of historical facts contained in this release, including without limitation statements regarding projected financial results for 2023, including management’s belief that it will have its fourth consecutive year of positive operating cash flow, anticipated openings of dispensaries and facilities, timing of regulatory approvals, plans and objectives of management for future operations, are forward-looking statements.   Without limiting the foregoing, the words “anticipates”, “believes”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are based on our current beliefs and assumptions regarding our business, timing of regulatory approvals, the ability to obtain new licenses, business prospects and strategic growth plan, and other future conditions.   Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict.   Our actual results may differ materially from those contemplated in these forward-looking statements due to various risks, uncertainties, and other important factors, including, among others, reductions in customer spending, our ability to recruit and retain key personnel, and disruptions from the integration efforts of acquired companies.

These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect our business and results of operations.   These statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company’s services and products, changes in the law and its enforcement, and changes in the economic environment. Additional information regarding these and other factors can be found in our reports filed with the U.S. Securities and Exchange Commission.   In providing these forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

All trademarks and service marks are the property of their respective owners.

For More Information Contact:

Investor Relations:
Steve West, Vice President, Investor Relations
Phone: (781) 277-0007

Company Contact:
Howard Schacter, Chief Communications Officer
Phone: (781) 277-0007

MariMed Inc.
Condensed Consolidated Balance Sheets
(in thousands)
 September 30,
 December 31,
Current assets:   
Cash and cash equivalents$13,259  $9,737 
Accounts receivable, net 6,352   4,157 
Inventory 24,206   19,477 
Deferred rents receivable 649   704 
Notes receivable, current portion 52   2,637 
Investments, current portion 161   123 
Due from related parties 87   29 
Other current assets 6,026   7,282 
Total current assets 50,792   44,146 
Property and equipment, net 85,195   71,641 
Intangible assets, net 17,856   14,201 
Goodwill 11,993   8,079 
Notes receivable, net of current portion 814   7,467 
Investments, net of current portion 164    
Operating lease right-of-use assets 9,679   4,931 
Finance lease right-of-use assets 2,717   713 
Other assets 11,607   1,024 
Total assets$190,817  $152,202 
Liabilities, mezzanine equity and stockholders’ equity   
Current liabilities:   
Term loan$3,600  $ 
Mortgages and notes payable, current portion 1,009   3,774 
Accounts payable 8,494   6,626 
Accrued expenses and other 5,347   3,091 
Income taxes payable 14,014   11,489 
Operating lease liabilities, current portion 1,865   1,273 
Finance lease liabilities, current portion 963   237 
Total current liabilities 35,292   26,490 
Term loan, net of current portion 18,895    
Mortgages and notes payable, net of current portion 27,444   25,943 
Operating lease liabilities, net of current portion 8,449   4,173 
Finance lease liabilities, net of current portion 1,775   461 
Other liabilities 100   100 
Total liabilities 91,955   57,167 
Commitments and contingencies   
Mezzanine equity   
Series B convertible preferred stock 14,725   14,725 
Series C convertible preferred stock 4,275   23,000 
Total mezzanine equity 19,000   37,725 
Stockholders’ equity   
Common stock 376   341 
Common stock subscribed but not issued    39 
Additional paid-in capital 170,922   142,365 
Accumulated deficit (89,786)  (83,924)
Noncontrolling interests (1,650)  (1,511)
Total stockholders’ equity 79,862   57,310 
Total liabilities, mezzanine equity and stockholders’ equity$190,817  $152,202 

MariMed Inc.
Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
 Three months ended Nine months ended
 September 30, September 30,
 2023 2022 2023 2022
Revenue$38,800  $33,912  $109,699  $98,180 
Cost of revenue 21,962   17,748   61,097   50,035 
Gross profit 16,838   16,164   48,602   48,145 
Gross margin 43.4%  47.7%  44.3%  49.0%
Operating expenses:       
Personnel 5,916   3,746   16,191   10,170 
Marketing and promotion 1,585   1,402   4,397   2,854 
General and administrative 6,135   5,097   15,520   16,890 
Acquisition-related and other 32   143   647   897 
Bad debt (122)  40   (127)  54 
Total operating expenses 13,546   10,428   36,628   30,865 
Income from operations 3,292   5,736   11,974   17,280 
Interest and other (expense) income:       
Interest expense (2,482)  (518)  (7,627)  (1,271)
Interest income 29   239   243   720 
Other (expense) income, net (646)  (251)  (1,556)  24 
Total interest and other expense, net (3,099)  (530)  (8,940)  (527)
Income before income taxes 193   5,206   3,034   16,753 
Provision for income taxes 4,462   2,484   8,902   7,894 
Net (loss) income (4,269)  2,722   (5,868)  8,859 
Less: Net (loss) income attributable to noncontrolling interests (10)  16   (6)  142 
Net (loss) income attributable to common stockholders$(4,259) $2,706  $(5,862) $8,717 
Net (loss) earnings per share attributable to common stockholders:       
Basic$(0.01) $0.01  $(0.02) $0.03 
Diluted$(0.01) $0.01  $(0.02) $0.02 
Weighted average common shares outstanding:       
Basic 373,081   339,025   359,156   337,111 
Diluted 373,081   381,071   359,156   379,868 

MariMed Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
 Nine months ended
 September 30,
 2023 2022
Cash flows from operating activities:   
Net (loss) income attributable to common stockholders$(5,862) $8,717 
Net (loss) income attributable to noncontrolling interests (6)  142 
Adjustments to reconcile net (loss) income to cash provided by operating activities:   
Depreciation and amortization of property and equipment 3,838   2,469 
Amortization of intangible assets 2,181   854 
Stock-based compensation 801   6,396 
Amortization of original debt issuance discount 206    
Amortization of debt discount 1,840    
Payment-in-kind interest 301    
Present value adjustment of notes payable 719    
Bad debt (income) expense (127)  54 
Obligations settled with common stock 463   637 
Write-off of disposed assets 906    
Gain on finance lease adjustment (31)   
(Gain) loss on changes in fair value of investments (16)  930 
Write-down of prepaid purchase consideration 200    
Other investment income    (954)
Changes in operating assets and liabilities:   
Accounts receivable, net (2,065)  (4,856)
Deferred rents receivable 55   111 
Inventory (4,728)  (4,215)
Other current assets 2,040   (1,973)
Other assets (300)  (113)
Accounts payable 1,868   2,372 
Accrued expenses and other (132)  (193)
Income taxes payable 2,525   (4,804)
Net cash provided by operating activities 4,676   5,574 
Cash flows from investing activities:   
Purchases of property and equipment (14,749)  (9,985)
Business acquisitions, net of cash acquired (2,987)  (12,746)
Advances toward future business acquisitions (250)  (800)
Purchases of investments (187)   
Purchases of cannabis licenses (626)  (330)
Issuance of notes receivable (879)   
Proceeds from notes receivable 99   130 
Due from related party (58)   
Net cash used in investing activities (19,637)  (23,731)
Cash flows from financing activities:   
Proceeds from term loan 29,100    
Payment of third-party debt issuance costs in connection with term loan (1,798)   
Principal payments of term loan (1,500)   
Principal payments of mortgages and promissory notes (519)  (1,033)
Repayment and retirement of mortgage (778)   
Repayment and retirement of promissory notes (5,503)   
Proceeds from mortgages    3,000 
Proceeds from exercise of stock options 109   10 
Principal payments of finance leases (500)  (166)
Redemption of minority interests    (2,000)
Distributions (128)  (224)
Net cash provided by (used in) financing activities 18,483   (413)
Net increase (decrease) in cash and cash equivalents 3,522   (18,570)
Cash and equivalents, beginning of year 9,737   29,683 
Cash and cash equivalents, end of period$13,259  $11,113 

MariMed Inc.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except percentages)
 Three months ended Nine months ended
 September 30, September 30,
 2023 2022 2023 2022
Non-GAAP Adjusted EBITDA       
GAAP Income from operations$3,292  $5,736  $11,974  $17,280 
Depreciation and amortization of property and equipment 1,591   917   3,838   2,469 
Amortization of acquired intangible assets 844   429   2,181   854 
Stock-based compensation 296   1,372   801   6,396 
Acquisition-related and other 32   143   647   897 
Adjusted EBITDA$6,055  $8,597  $19,441  $27,896 
Non-GAAP Adjusted EBITDA Margin (Non-GAAP adjusted EBITDA as a percentage of revenue)       
GAAP Income from operations 8.5%  16.9%  10.9%  17.6%
Depreciation and amortization of property and equipment 4.0%  2.7%  3.5%  2.5%
Amortization of acquired intangible assets 2.2%  1.3%  2.0%  0.9%
Stock-based compensation 0.8%  4.1%  0.7%  6.5%
Acquisition-related and other 0.1%  0.4%  0.6%  0.9%
Adjusted EBITDA margin 15.6%  25.4%  17.7%  28.4%
GAAP Gross margin 43.4%  47.7%  44.3%  49.0%
Amortization of acquired intangible assets 1.1%  0.5%  1.0%  0.3%
Non-GAAP Gross margin 44.5%  48.2%  45.3%  49.3%
GAAP Net income (loss)$(4,269) $2,722  $(5,868) $8,859 
Amortization of acquired intangible assets 844   429   2,181   854 
Stock-based compensation 296   1,372   801   6,396 
Acquisition-related and other 32   143   647   897 
Non-GAAP Net income$(3,097) $4,666  $(2,239) $17,006 

MariMed Inc.
Supplemental Information
Revenue Components
(in thousands)
 Three months ended Nine months ended
 September 30, September 30,
Product revenue:       
Product revenue - retail 24,121   23,593   71,640   68,121 
Product revenue - wholesale 13,643   9,009   35,050   23,029 
Total product revenue 37,764   32,602   106,690   91,150 
Other revenue 1,036   1,310   3,009   7,030 
Total revenue$38,800  $33,912  $109,699  $98,180