This call is being recorded on Thursday, May 23, 2024. I would now like to turn the conference over to Niel Marotta, CEO of Indiva. Please go ahead. Thank you, operator. Welcome, everyone. Thank you for joining us this morning to discuss Indiva's financial results for the first quarter ended March 31, 2024. Matters discussed in this conference call include forward-looking statements. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Certain material factors and assumptions were considered and applied in making these forward-looking statements. Additional information regarding these forward-looking statements, factors, and assumptions is available in our earnings press release issued today, as well as in the Risk Factors section of the annual MD&A and other public disclosure documents available on Indiva's SEDAR+ profile. We're pleased to announce our first quarter results, including positive Adjusted EBITDA in our seasonally weakest quarter. Indiva remains the leader in edibles, and greater than 30% of our net revenue was derived from in-house brands, including No Future gummies and vapes, Indiva Blips tablets, Doppio sandwich cookies, and 1432 chocolate. Q1 results were driven by continued growth in Pearls gummies, as well as the introduction of new products, including No Future gummies and vapes. On a year-over-year basis, we overcame a 50% drop in net revenue from the loss of all of our lozenges revenue and a very large decline in Wana revenue as it transitioned to contract manufacturing. Specifically, the decline in net revenue contribution from moving to contract manufacturing of Wana, combined with the loss of lozenges revenue due to Health Canada's regulatory ruling on lozenges, $4.9 million, or 52% of net revenue in the first quarter when compared with the same period last year. This decline was more than offset by a $ 5.2 million incremental net revenue contribution from Pearls and No Future. I'm very proud of the resiliency of the Indiva team and our ability to overcome adversity, particularly driven by events out of our control. When we compare our core brands year over year and exclude the impact from lozenges and Wana, our net revenue is up 124% compared to Q1 2023, and on a year-over-year basis, net revenue from Pearls gummies, our largest contributor to net revenue, increased by 166%. The strength in Pearls continued into Q2 as depletions of provincial wholesalers continued to grow by more than 100% versus last year. We also continued to see strength in No Future Gummies, where weekly depletions continued to trend higher sequentially. Gross profit in the quarter improved by 18% versus last year. Lower impairments and write-downs also helped gross profit margin, which improved to 30% of net revenue, up from 25% of net revenue in the year-ago period. The result was driven by process improvements at our production facility in London, Ontario. Turning to market share, data from provincial wholesalers for the first quarter of 2024 show Indiva's leadership in the edibles category continues. Indiva holds the number one ranking in market share by dollars and units sold in the edibles category across British Columbia, with 31.5% share, Alberta, and Ontario, with 27.6% share. I'll now turn to a review of some key operational highlights for the first quarter ended March 31, 2024. For new product introductions, No Future, under No Future rather, Indiva shipped a new gummy called No Future Stupidly Sour gummies to Alberta and British Columbia, with Ontario set to launch in August and September. Stupidly Sour gummies come in three flavors, including Arctic Meltdown Blues, Key Lime Cherry Revolt, and Citrus Chaos. These additions bring total No Future gummy SKUs in market to 10. We also introduced new Blips under the Indiva brand. Indiva broadened its offering of Indiva Blip tablets with two new 20-count SKUs, one with a cannabinoid ratio of 1:2 THC to CBG, which will ship to British Columbia and Alberta in May, and the other with a 1:1 THC to CBD ratio, which will also ship to Alberta in the month of May. For Pearls Gummies, Indiva shipped a new five-pack Pearls SKU called Red Razzleberry, with a cannabinoid ratio of 1:1:1 THC, CBD to CBG. This piggybacks on the success of the best-selling cannabis product in Canada, namely Pearls Blue Razzleberry. Subsequent to quarter end, Indiva announced a further loan amendment with Sundial. Indiva repaid $2 million of the principal amount outstanding pursuant to the promissory note and shall work to reduce other current liabilities in the near term. Consideration for the repayment of the $ 2 million, the lending agreement removed the company's covenant under the promissory note to ensure a $ 2 million minimum unrestricted cash balance at all times. Maturity date of the promissory note continues to be February 24, 2026. The company has also retained SSC Advisors as its financial advisor to assist the company in the evaluation of potential strategic alternatives intended to maximize shareholder value, including financing alternatives, merger, amalgamation, plan of arrangement, consolidation, reorganization, or other similar transactions. Please note, we will not be providing any further update on this process at this time. We will provide further updates when appropriate. Looking ahead to Q2 2024, we're off to a great start. Indiva's business has never been stronger. We achieved record net revenue of $ 4.3 million in the month of April 2024, and we achieved positive net income in the month as well. On a year-over-year basis, net revenue to date through April and May is already ahead of the $ 7.5 million we achieved in the full quarter in Q2 of 2023, with one full month to go. We're confident that our second quarter net revenue will be higher year over year and sequentially. We expect to see improved margins in Q2 as well, and we remain on track for record net revenue and margins for the full year of 2024.... Finally, I'd like to thank all of Indiva's employees, including our dedicated staff at our facility in London, Ontario, our sales and marketing staff, as well as our talented innovation team, who have all worked tirelessly to support the launch of new Indiva brands and products across Canada. Thank you, and I'm sure cannabis enthusiasts everywhere in Canada thank you, too. I'll now turn it over to Indiva's Chief Financial Officer, Jennifer Welsh, to review the financial results in greater detail. Thank you, Niel. I'll review Indiva's financial performance for fiscal Q1, ended March 31, 2024. Gross revenue in the first quarter increased 2.6% year-over-year to $ 10.6 million. Net revenue decreased 0.9% year-over-year to $ 9.3 million in the quarter, driven mainly by the strength in Pearls gummies and No Future gummies and vapes, offset by lower revenue from Wana and the loss of lozenge revenue. Overall, edibles accounted for 90% of net revenue in the quarter. In Q1 2024, Indiva sold products containing 186 million milligrams of cannabinoids, which represents a 66% increase when compared to the 112 million milligrams in products sold in Q1 2023. Gross profit increased 18% to $ 2.8 million, or 30% of net revenue, compared to CAD 2.3 million, or 25% of net revenue in Q1 2023, due to lower impairments of inventory and a positive mix impact. Impairment charges in the quarter totaled CAD 17,000, a record low driven by process improvements and an impairment recovery related to raw materials. Operating expenses in the quarter remained flat year-over-year at $ 3.2 million, or 34.4% of net revenue, versus a slight increase compared to $ 3.1 million, or 28.9% of net revenue in Q4 2023. Adjusted EBITDA decreased to, in Q1 2024, to a profit of $ 120,000 versus a profit of $415,000 in Q1 2023. Comprehensive net loss in Q1 2024 was $ 1.8 million and included one-time expenses and non-cash charges, including inventory impairments of $200,000. This is an improvement from a loss of $ 2.3 million in Q1 2023. Excluding these charges, comprehensive net loss declined to $ 1.6 million in Q1 2024 versus a loss of $ 1.3 million in Q1 2023. The cash balance at the end of the quarter was $ 3 million. Thank you, Jen. Operator, I think with that, we'll open it up to questions, please. Thank you. Ladies and gentlemen, should you have a question, please press the star followed by the one on your touchtone phone. If you'd like to withdraw your question, please press the star followed by the two. Again, to ask a question, press star one. One moment, please, for your first question. Again, to ask a question, press star one. There are no questions at this time. I will turn the call back over to Niel for closing remarks. Okay, thank you, everyone, for attending the call. We're gonna get back to work and look forward to speaking to you all again in August, when we release our second quarter results for 2024. Thank you, everybody. Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines. Thank you.
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