RIV Capital (RIV) investor relations material

Executive summary

• Quarterly revenue reached $3.8 million, up 112% year-over-year and 77% quarter-over-quarter, driven by the rollout of adult-use operations in New York and expanded retail presence.

• The business combination with Cansortium is on track for completion later in 2024, aiming to leverage a $57.7 million cash balance for multi-state growth.

• Management highlighted strong customer response and operational improvements, including enhanced retail experiences and plans to open two more adult-use locations in New York.

Financial highlights

• Net revenue for Q2 2024 was $3.8 million, compared to $1.8 million in Q2 2023; retail revenue was $3.7 million, with $0.2 million from wholesale.

• Cost of goods sold increased to $4.9 million from $1.6 million, partly due to a $2.4 million inventory reserve, including $2.0 million for intermediate oil.

• Gross profit was negative at $(1.6) million, down from $0.4 million in Q2 2023; net loss was $8.3 million, an improvement from $9.1 million in Q2 2023.

• SG&A expenses rose to $5.8 million, mainly due to advisory fees for the Cansortium deal and increased marketing, offset by lower personnel and insurance costs.

• Cash at period end was $57.7 million, down from $81.9 million at December 31, 2023; total assets were $199.0 million, with total liabilities of $170.1 million.

Outlook and guidance

• Plans to open two additional adult-use retail locations in New York later in 2024 and introduce Fluent's brands to expand consumer reach.

• Anticipates leveraging Cansortium's best practices and brands to boost operational efficiency and national brand recognition post-merger.

• Monitoring potential federal cannabis rescheduling, which could remove 280E taxes and expand institutional investment opportunities.