RYTHM (RYM) Investor presentation summary

Market trends and consumer behavior

• THC is becoming mainstream in the U.S., with demand expanding across product formats and retail channels.

• Generational shift shows younger adults increasingly choosing THC over alcohol, with more daily THC consumers than alcohol consumers since 2022.

• THC is a $35B+ legal industry, projected to grow further as legal channels expand.

• 1 in 3 Gen Z and Millennials now regularly consume THC-based beverages, marking a shift away from alcohol.

Regulatory landscape and market access

• Medical cannabis was rescheduled to Schedule III in April 2026, creating a federal DEA registration pathway for state-licensed operators.

• Federal hemp restrictions effective November 2026 will close Farm Bill-enabled access to hemp-derived THC, restricting products outside state-licensed systems.

• Adult-use cannabis remains under a separate federal process, with a decision expected by end of 2026.

• State programs continue to drive legal THC access, favoring operators with licensing and compliance expertise.

Business model and brand portfolio

• Operates a portfolio of leading THC brands distributed nationally through both state-regulated and hemp-derived channels.

• Generates $70M+ in annual licensing revenue from regulated cannabis channels.

• Brands are available in over 1,600 dispensaries across 14 states and 7,500+ mainstream retail locations.

• Brand ownership enables flexibility as regulations evolve, with a focus on trusted, consistent consumer experiences.