An anonymous director reports

IANTHUS REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS

iAnthus Capital Holdings Inc. has released its financial results for the fourth quarter and year ended Dec. 31, 2023. The company's annual report on Form 10-K, which includes its audited consolidated financial statements for the year ended Dec. 31, 2023, and the related management's discussion and analysis of financial condition and results of operations, can be accessed on the U.S. Securities and Exchange Commission's website, on SEDAR+ and on the company's website. The company's financial statements are reported in accordance with U.S. generally accepted accounting principles (GAAP). All currency is expressed in U.S. dollars.

2023 financial highlights:

• Revenue of $159.2-million, down 2.4 per cent from the prior year;
• Gross profit of $63.2-million, down 15.1 per cent from the prior year;
• Gross margin of 39.7 per cent, reflecting a decrease of 5.9 per cent from the prior year;
• Net loss of $76.6-million or a net loss of one cent per share, compared with a net loss of $449.4-million or a net loss of 13 cents per share in the prior year;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $8.3-million, down $100,000 from the prior year. EBITDA and adjusted EBITDA are non-GAAP (generally accepted accounting principles) measures. Reconciliation tables of EBITDA and adjusted EBITDA as used in this news release to GAAP are attached.

Fourth quarter 2023 financial highlights:

• Revenue of $40.9-million, a sequential decrease of 4.7 per cent from Q3 2023 and an increase of 8.8 per cent from the same quarter in the prior year;
• Gross profit of $15.9-million, a sequential increase of 19.3 per cent from Q3 2023 and a decrease of 1.1 per cent from the same quarter in the prior year;
• Gross margin of 38.9 per cent, reflecting a sequential increase of 782 basis points when compared with Q3 2023 and a decrease of 389 basis points from the same quarter in the prior year;
• Net loss of $18.7-million or a net loss of less than one cent per share, compared with a net loss of $19.2-million or a net loss of less than one cent per share in Q3 2023, and compared with a net loss of $43.7-million or a net loss of one cent per share in the same quarter in the prior year;
• Adjusted EBITDA (1) of $2.8-million, a sequential increase from an adjusted EBITDA of $800,000 in Q3 2023 and a decrease from an adjusted EBITDA of $3.5-million from the same quarter in the prior year. EBITDA and adjusted EBITDA are non-GAAP measures. Reconciliation tables of EBITDA and adjusted EBITDA as used in this news release to GAAP are attached.

Non-GAAP financial information

This news release includes certain non-GAAP financial measures as defined by the U.S. Securities Exchange and Commission (SEC) and the Canadian Securities Administrators. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the attached tables. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

In evaluating its business, the company considers and uses EBITDA and adjusted EBITDA as supplemental measures of operating performance. It defines EBITDA as earnings before interest, taxes, depreciation and amortization. It defines adjusted EBITDA as EBITDA before share-based compensation, accretion expense, write-downs and impairments, gains and losses from changes in fair values of financial instruments, income or losses from equity-accounted investments, the effect of changes in accounting policy, non-recurring costs related to the company's recapitalization transaction, litigation costs related to continuing legal proceedings, and other income. The company presents EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance of other similarly situated companies in the industry, and the company presents adjusted EBITDA because it removes non-recurring, irregular and one-time items that it believes may distort the comparability of EBITDA from period to period and with other industry participants.

About iAnthus Capital Holdings Inc.

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States.

We seek Safe Harbor.