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MariMed Reports Third Quarter 2022 Earnings

07 November 2022

NORWOOD, Mass., Nov. 07, 2022 (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, 2022.

“I am pleased to report we grew revenue both year-over-year and sequentially, despite continued headwinds facing the entire industry,” said Bob Fireman, Chief Executive Officer. “MariMed continues to outperform these industry dynamics on the strength of our outstanding retail and wholesale operations, high quality and innovative product mix, and exceptional customer service.”

Financial Highlights1

The following table summarizes the consolidated financial highlights for the three months ended September 30, 2022 and 2021 (in millions, except percentage amounts):

 Three months ended
September 30,
  2022   2021 
Revenue$33.9  $33.2 
Gross margin 48%  55%
GAAP Net income$2.7  $2.1 
Non-GAAP Adjusted EBITDA$8.6  $12.6 
Non-GAAP Adjusted EBITDA margin 25%  38%

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” in the attached schedules.

MariMed management will host a conference call on Tuesday, November 8, 2022, to discuss these results at 8:00 a.m. Eastern time. The conference call may be accessed through MariMed’s Investor Relations website by clicking the following link: MariMed Q322 Earnings Webcast.


During the third quarter, the Company announced the following facets of its strategic growth plan, including:

  • July 18: The approval of its expanded state-of-the-art kitchen in Maryland. The nearly ten-fold expansion allows the Company to produce all its award-winning branded products including Betty’s Eddies fruit chews, Bubby’s Baked baked goods, K Fusion chewable tablets, and Vibations High + Energy powdered drink mixes. The Company also introduced a line of gummies in the Maryland medical cannabis market, under the In-House brand.
  • August 4: The launch of its new Betty’s Eddies ice cream in partnership with Boston-based Emack & Bolio’s® ice cream company. Betty’s Eddies ice cream is currently available in select cannabis dispensaries in Massachusetts.
  • August 8: The acquisition of a conditional dispensary license in central eastern Illinois close to the Indiana border. Once open, it will mark the fifth Thrive branded dispensary the Company owns and operates in Illinois. MariMed currently owns and operates four adult-use dispensaries in Anna, Harrisburg, Metropolis, and Mt. Vernon.
  • August 30: The launch of its Nature's Heritage "LIVE Flower," the freshest cannabis available. The unparalleled freshness is made possible through MariMed's proprietary FreshCure curing process, which delivers buds that are bigger and brighter than conventional flower, bursting with more vibrant colors and stronger aromas while delivering a smoother smoke.
  • September 12: The agreement to develop and manage a state-of-the-art production kitchen to manufacture and wholesale its award winning branded products in Missouri. Voters are expected to approve an adult use measure on the ballot this fall, and the Company expects its branded products will be available on the wholesale market before adult-use sales commence.
  • September 13: The agreement with 42 Degrees, a Michigan licensed cannabis producer and distributor, to manufacture and distribute MariMed’s award-winning brands and products throughout the state. 42 Degrees currently wholesales products into 340 dispensaries, representing approximately 75 percent of the operating dispensaries in Michigan.


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

  • October 5: The opening of its first medical dispensary in Annapolis, Maryland, marking the beginning of the Company's fully vertical operations in that state. The Panacea Wellness dispensary is the eighth retail location across four states that MariMed either owns or manages. MariMed hosted a grand opening ceremony with several local, county, and state dignitaries in attendance to celebrate commencement of operations. Voters are expected to approve an adult use measure on the ballot this fall and MariMed expects to build out its footprint in Maryland to include the maximum allowable four dispensaries over time.
  • October 25: The evolution of its award-winning and top-selling Betty's Eddies fruit chews line to address consumer demand for cannabis edibles that meet specific needs. Each new or improved chew has been custom formulated to help aid sleep, relaxation, pain relief, heightened libido, and more.

"We remain bullish for continued revenue and earnings growth,” said Jon Levine, President. “Fueling our confidence are several new and expanded assets in our existing markets that will come online in 2023. Additionally, we look forward to our entry next year into additional high-growth cannabis markets, including Ohio, Missouri, and Michigan.”


MariMed remains committed to its proven strategic growth plan and continues to operate some of the best cannabis facilities with some of the highest margins and returns in the cannabis industry. Due to continued regulatory delays with opening dispensaries, the Company's guidance for full year 2022 has been revised and is as follows:

  • Revenue of $132 million to $135 million.
  • Gross margin of 48% to 49%.
  • Non-GAAP Adjusted EBITDA of $32 million to $35 million.
  • Capital expenditures of $16 million to $17 million.

“Our financial results remain some of the best in the industry, as we have improved gross margins and delivered positive adjusted EBITDA for the eleventh consecutive quarter,” said Susan Villare, Chief Financial Officer. “Our ability to generate positive cash flow from operations in this challenging macro environment is a testament to the outstanding asset base that MariMed has developed and maintained.”


The Company has provided in this release several non-GAAP financial measures: Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA and non-GAAP Adjusted EBITDA margin, as a supplement to Revenue, Gross margin, 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, 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 net income, determined in accordance with GAAP, excluding the following items:

  • interest income and interest expense;
  • income taxes;
  • depreciation of fixed assets;
  • amortization of acquired intangible assets;
  • Impairment or write-downs of intangible assets;
  • stock-based compensation;
  • legal settlements;
  • acquisition-related and other;
  • other income and other expense;
  • and discontinued operations.

For further information, please refer to the Company’s Quarterly Report on Form 10-Q for the three month period ended September 30, 2022 available on MariMed's Investor Relations website, on the SEC’s Edgar website in the U.S., or on the Canadian securities regulatory authorities’ SEDAR website in Canada.

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, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy. For additional information, visit


This release contains certain forward-looking statements and information relating to MariMed Inc. that are based on the beliefs of MariMed Inc.’s management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current view of the Company with respect to future events, including consummation of pending transactions, launch of new products, expanded distribution of existing products, obtaining new licenses, estimates and projections of revenue, EBITDA and Adjusted EBITDA and other information about its business, business prospects and strategic growth plan, which are based on certain assumptions of its management, including those described in this release. 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 risk factors are included in the Company’s public filings with the Securities and Exchange Commission. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “hoped,” “anticipated,” “believed,” “planned, “estimated,” “preparing,” “potential,” “expected,” “looks” or words of a similar nature. The Company does not intend to update these forward-looking statements. None of the content of any of the websites referred to herein (even if a link is provided for your convenience) is incorporated into this release and the Company assumes no responsibility for any of such content.

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

For More Information Contact:

Investor Relations:
Steve West, Vice President, Investor Relations
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (781) 277-0007

Media Contact:
Trailblaze PR
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Contact:
Howard Schacter, Chief Communications Officer
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (781) 277-0007


MariMed Inc.
Condensed Consolidated Balance Sheets
(in thousands)

 September 30,
 December 31,
Current assets:   
Cash and cash equivalents$11,113  $29,683 
Accounts receivable, net 6,560   1,666 
Deferred rents receivable 725   1,678 
Notes receivable, current portion 134   127 
Inventory 18,309   9,768 
Investments, current 274   251 
Other current assets 3,768   1,440 
Total current assets 40,883   44,613 
Property and equipment, net 70,396   62,150 
Intangible assets, net 9,469   162 
Goodwill 8,079   2,068 
Notes receivable, net of current 9,160   8,987 
Operating lease right-of-use assets 4,954   5,081 
Finance lease right-of-use assets 747   46 
Other assets 1,010   98 
Total assets$144,698  $123,205 
Liabilities, mezzanine equity and stockholders’ equity   
Current liabilities:   
Mortgages and notes payable, current portion$2,825  $1,410 
Accounts payable 7,973   5,099 
Accrued expenses and other 3,265   3,149 
Income taxes payable 11,663   16,467 
Operating lease liabilities, current portion 1,284   1,071 
Finance lease liabilities, current portion 241   27 
Total current liabilities 27,251   27,223 
Mortgages and notes payable, net of current 23,048   17,262 
Operating lease liabilities, net of current 4,214   4,574 
Finance lease liabilities, net of current 483   22 
Other liabilities 100   100 
Total liabilities 55,096   49,181 
Commitments and contingencies   
Mezzanine equity:   
Series B convertible preferred stock 14,725   14,725 
Series C convertible preferred stock 23,000   23,000 
Total mezzanine equity 37,725   37,725 
Stockholders’ equity   
Common stock 339   334 
Common stock subscribed but not issued 41    
Additional paid-in capital 141,652   134,920 
Accumulated deficit (88,675)  (97,392)
Noncontrolling interests (1,480)  (1,563)
Total stockholders’ equity 51,877   36,299 
Total liabilities, mezzanine equity and stockholders’ equity$144,698  $123,205 


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,
  2022   2021   2022   2021 
Revenue$33,912  $33,208  $98,180  $90,420 
Cost of revenue 17,748   15,027   50,035   39,647 
Gross profit 16,164   18,181   48,145   50,773 
Gross margin 47.7%  54.7%  49.0%  56.2%
Operating expenses:       
Personnel 3,746   1,481   10,170   5,266 
Marketing and promotion 1,402   563   2,854   1,058 
General and administrative 5,097   9,481   16,890   16,934 
Acquisition-related and other 143      897    
Bad debt 40   36   54   1,855 
Total operating expenses 10,428   11,561   30,865   25,113 
Income from operations 5,736   6,620   17,280   25,660 
Interest and other (expense) income:       
Interest expense (518)  (300)  (1,271)  (2,077)
Interest income 239   26   720   96 
Other (expense) income, net (251)  (214)  24   (631)
Total interest and other expense (530)  (488)  (527)  (2,612)
Income before income taxes 5,206   6,132   16,753   23,048 
Provision for income taxes 2,484   4,009   7,894   9,026 
Net income 2,722   2,123   8,859   14,022 
Less: Net income attributable to noncontrolling interests 16   103   142   289 
Net income attributable to common stockholders$2,706  $2,020  $8,717  $13,733 
Net income per share attributable to common stockholders:       
Basic$0.01  $0.01  $0.03  $0.04 
Diluted$0.01  $0.01  $0.02  $0.04 
Weighted average common shares outstanding:       
Basic 339,025   329,454   337,111   324,340 
Diluted 381,071   378,934   379,868   370,204 


MariMed Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

 Nine months ended
 September 30,
  2022   2021 
Cash flows from operating activities:   
Net income attributable to common stockholders$8,717  $13,733 
Net income attributable to noncontrolling interests 142   289 
Adjustments to reconcile net income to cash provided by operating activities:   
Depreciation and amortization of property and equipment 2,469   1,499 
Amortization of intangible assets 854   518 
Stock-based compensation 6,396   7,152 
Amortization of standalone warrant issuances    776 
Amortization of warrants attached to debt    539 
Amortization of beneficial conversion feature    177 
Amortization of original issue discount    52 
Bad debt expense 54   1,855 
Obligations settled with common stock 637   375 
Loss on obligations settled with equity    3 
Gain on sale of investment    (309)
Loss on changes in fair value of investments 930   937 
Other investment income (954)   
Changes in operating assets and liabilities:   
Accounts receivable, net (4,856)  (3,886)
Deferred rents receivable 111   192 
Inventory (4,215)  (4,163)
Other current assets (1,973)  (1,641)
Other assets (113)  (17)
Accounts payable 2,372   2,098 
Accrued expenses and other (193)  8,069 
Income taxes payable (4,804)   
Net cash provided by operating activities 5,574   28,248 
Cash flows from investing activities:   
Purchases of property and equipment (9,985)  (14,649)
Business acquisitions, net of cash acquired (12,746)   
Advances toward future business acquisitions (800)   
Purchases of cannabis licenses (330)  (638)
Proceeds from sale of investment    1,475 
Proceeds from notes receivable 130   407 
Net cash used in investing activities (23,731)  (13,405)
Cash flows from financing activities:   
Proceeds from issuance of preferred stock    23,000 
Equity issuance costs    (387)
Proceeds from issuance of promissory notes    35 
Principal payments of mortgages and promissory notes (1,033)  (16,248)
Proceeds from mortgages 3,000   2,700 
Proceeds from exercise of stock options 10   31 
Proceeds from exercise of warrants    93 
Repayment of loans from related parties    (1,158)
Principal payments of finance leases (166)  (26)
Redemption of minority interests (2,000)   
Distributions (224)  (301)
Net cash (used in) provided by financing activities (413)  7,739 
Net (decrease) increase in cash and cash equivalents (18,570)  22,582 
Cash and equivalents, beginning of year 29,683   2,999 
Cash and cash equivalents, end of period$11,113  $25,581 


MariMed Inc.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except percentages)

 Three months ended Nine months ended
 September 30, September 30,
  2022   2021   2022   2021 
Non-GAAP Adjusted EBITDA       
GAAP Net income$2,722  $2,123  $8,859  $14,022 
Interest expense, net 279   274   551   1,981 
Income tax provision 2,484   4,009   7,894   9,026 
Depreciation and amortization of property and equipment 917   536   2,469   1,499 
Amortization of acquired intangible assets 429   172   854   518 
EBITDA (earnings before interest, taxes, depreciation and amortization) 6,831   7,114   20,627   27,046 
Stock-based compensation 1,372   5,552   6,396   7,152 
Settlement of litigation    (266)     (266)
Acquisition-related and other 143      897    
Other expense (income), net 251   214   (24)  631 
Adjusted EBITDA$8,597  $12,614  $27,896  $34,563 
Non-GAAP Adjusted EBITDA Margin (Non-GAAP adjusted EBITDA as a percentage of revenue)       
GAAP Net income 8.0%  6.4%  9.0%  15.5%
Interest expense, net 0.8%  0.8%  0.6%  2.2%
Income tax provision 7.3%  12.1%  8.0%  9.9%
Depreciation and amortization of property and equipment 2.7%  1.6%  2.5%  1.7%
Amortization of acquired intangible assets 1.3%  0.5%  0.9%  0.6%
EBITDA margin 20.1%  21.4%  21.0%  29.9%
Stock-based compensation 4.1%  16.8%  6.5%  7.9%
Settlement of litigation %  (0.8%)  0.9%  (0.3%)
Acquisition-related and other 0.4%  %  %  %
Other expense (income), net 0.8%  0.6%  %  0.7%
Adjusted EBITDA margin 25.4%  38.0%  28.4%  38.2%


MariMed Inc.
Supplemental Information
Revenue Components
(in thousands)

 Three months ended Nine months ended
 September 30, September 30,
  2022  2021  2022  2021
Product revenue:       
Product revenue - retail 23,593  23,454  68,121  59,230
Product revenue - wholesale 9,009  6,633  23,029  20,536
Total product revenue 32,602  30,087  91,150  79,766
Other revenue 1,310  3,121  7,030  10,654
Total revenue$33,912 $33,208 $98,180 $90,420


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