Q1 2024 Gross Margin Remains Strong at 46.5% Gains in Cultivation Output and Market Share Amidst Successful Cost Reductions Now Positioned as 4th Largest Cannabis Brand Operator in California Kevin K. Albert Appointed to the Board of Directors SAN DIEGO and TORONTO, Aug. 01, 2024 (GLOBE NEWSWIRE) -- StateHouse Holdings Inc. ("StateHouse" or the "Company") (CSE:STHZ) (OTCQB:STHZF), a California-focused, vertically integrated cannabis company, today announced its financial results for the three-month period ended March 31, 2024 ("Q1 2024"), and the three-month ("Q4 2023") and twelve-month ("FY 2023") periods ended December 31, 2023, as well as provided additional business updates. The unaudited condensed interim consolidated financial statements for Q1 2024, as well as the corresponding management's discussion and analysis and the audited consolidated financial statements for FY 2023, as well as the corresponding management's discussion and analysis, are available for download from the Company's investor website, statehouseholdings.com, and on the Company's SEDAR profile. The delay in filing arose as a result of the Company's prior auditor unexpectedly discontinuing certain services to publicly traded companies and the subsequent engagement and onboarding of a new auditor, which involved the extensive review of prior financials, acquisitions and tax returns dating back to 2019 that has now been completed. Unless otherwise indicated, all dollar amounts in this press release are denominated in U.S. currency. Q1 2024 Financial Highlights Q1 2024 net revenues were $25.4 million, compared with $24.7 million in Q1 2023. Retail revenues were $12.0 million representing 47.1% of total sales for Q1 2024, compared to $14.4 million or 47.2 of total sales in Q1 2023.  Branded wholesale manufacturing revenues were $11.5 million, representing 45.2% of total sales for Q1 2024, compared to $9.4 million or 38.3% of total sales in Q1 2023. Cultivation revenues were $2.0 million, representing 7.7% of total sales for Q1 2024, compared to $0.8 million or 3.2% of total sales in Q1 2023. Gross profit before adjustments for biological assets1 was $11.8 million in Q1 2024, compared with $10.9 million in Q1 2023. Consolidated gross margins improved to 46.5% in Q1 20241, compared to 44.3% for Q1 2023. Adjusted EBITDA1 improved to $0.8 million in Q1 2024 compared with Adjusted EBITDA1 loss of $2.4 million in Q1 2023. Q4 2023 Financial Highlights Q4 2023 net revenues were $25.1 million, compared with $25.5 million in Q4 2022. Retail revenues were $13.0 million representing 51.8% of total sales for Q4 2023, compared to $16.4 million or 64.3% of total sales in Q4 2022.  Branded wholesale manufacturing revenues were $11.7 million, representing 46.5% of total sales for Q4 2023, compared to $8.6 million or 33.7% of total sales in Q4 2022. Cultivation revenues were $0.4 million, representing 1.5% of total sales for Q4 2023, compared to $0.5 million or 1.9% of total sales in Q4 2022. Gross profit before adjustments for biological assets1 was $10.4 million in Q4 2023, compared with $10.8 million in Q4 2022. Consolidated gross margins1 declined to 41.6% in Q4 2023, compared to 42.4% for Q4 2022. FY 2023 Financial Highlights FY 2023 net revenues were $101.0 million, compared with $108.2 million in FY 2022. Retail revenues were $53.6 million representing 53.0% of total sales for FY 2023, compared to $63.0 million or 58.2% of total sales in FY 2022.  Branded wholesale manufacturing revenues were $44.0 million, representing 42.5% of total sales for FY 2023, compared to $40.7 million or 37.6% of total sales in FY 2022. Cultivation revenues were $2.9 million, representing 3.5% of total sales for FY 2023, compared to $4.6 million or 4.2% of total sales in FY 2022. Gross profit before adjustments for biological assets1 was $45.1 million in FY 2023, compared with $42.1 million in FY 2022. Consolidated gross margins1 improved to 44.9% in FY 2023, compared to 36.2% for FY 2022. Management Commentary "The team at StateHouse has focused on improving margins and reducing our operating expenses to generate cash. Our adjusted EBITDA was positive in Q1 2024 and has improved further in Q2, despite the overall California market's decline," said Ed Schmults, Chief Executive Officer of StateHouse. "As an organization we are focused on enhancing our customer experience across both our stores and products, while improving the quality and speed of our operations to lower costs. These efforts are having the desired impacts and have kept our gross margin steady at 46.5% in Q1 2024 while maintaining strong revenue of $25 million." Mr. Schmults added, "Our efforts are not only improving our financial results but also helping to advance our market presence. We've climbed from the 8th largest California cannabis brand operator in 2023 to the 4th in 2024, driven by our commitment to bringing the products and brands customers want to market. Over the past 12 months we introduced 23 new products as well as 40 in-house developed strain formulations, driving new product sales to approximately 15% of total sales in 2024. We are extremely proud to have won gold and silver awards at the California State Fair for our potency and terpene profile for the third consecutive year." Mr. Schmults concluded, "Our influence in California continues to grow as we set new benchmarks for success and drive innovation across the market. In 2023, we established a strong foundation, and in 2024, we're witnessing the positive benefits of these strategic advancements towards achieving our goals. Thanks to these efforts and our incredibly popular brands and products we have solidified our foothold in California's dynamic cannabis industry and are well-positioned ahead of potential future market expansion." Brands and Products Highlights Introduced 23 new products across 7 brands, along with over 40 new in-house developed strain formulations over the last twelve months. New products account ...