StateHouse (STHZ) investor relations material

Executive summary

• Q2 2024 net revenue rose 10% year-over-year to $27.8 million, with gross margin at 50.8%.

• Achieved positive net income of $0.2 million, reversing a net loss of $2.1 million in Q2 2023.

• Adjusted EBITDA improved to $4.9 million from $0.9 million in Q2 2023, driven by cost-saving measures and new product launches.

• 24 new products launched in the past year now account for 15% of 2024 year-to-date sales.

Financial highlights

• Retail revenues were $13.5 million (48.5% of sales), branded wholesale/manufacturing $10.7 million (38.5%), and cultivation $3.6 million (12.9%).

• Gross profit before biological asset adjustments was $14.1 million, up from $12.3 million in Q2 2023.

• Consolidated adjusted gross margin increased to 50.8% from 48.6% year-over-year.

• Cultivation revenue surged 203.5% year-over-year, driven by higher yields and premium product quality.

Outlook and guidance

• Management expects to maintain momentum with continued focus on cost reduction and product innovation.

• Plans to leverage expertise as California's cannabis market expands.

• Board and management are developing a strategy to strengthen the balance sheet and negotiate debt restructuring.