TREES Corp Files 10-Q for Q2 2024

TL;DR

TREES Corp (Colorado) filed its Q2 2024 10-Q. Formerly GENERAL CANNABIS CORP.

AI Summary

TREES Corp (Colorado) filed its 10-Q for the quarterly period ended June 30, 2024. The company, formerly known as GENERAL CANNABIS CORP, is incorporated in Colorado and operates in the drug stores and proprietary stores sector. Its principal business address is in Lakewood, CO.

Why It Matters

This filing provides investors with an update on TREES Corp's financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing and does not contain immediate, high-impact news.

Key Numbers

• 20240630 — Quarter End Date (The filing covers the period ending on this date.)
• 000-54457 — SEC File Number (Identifies the company's filing with the SEC.)

Key Players & Entities

• TREES Corp (Colorado) (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• GENERAL CANNABIS CORP (company) — Former company name
• Lakewood, CO (location) — Principal business address
• 000-54457 (other) — Commission file number

FAQ

Filing Documents

• ea0210208-10q_trees.htm (10-Q) — 753KB
• ea021020801ex31-1_trees.htm (EX-31.1) — 8KB
• ea021020801ex31-2_trees.htm (EX-31.2) — 8KB
• ea021020801ex32-1_trees.htm (EX-32.1) — 4KB
• 0001213900-24-067167.txt ( ) — 4748KB
• cann-20240630.xsd (EX-101.SCH) — 44KB
• cann-20240630_cal.xml (EX-101.CAL) — 43KB
• cann-20240630_def.xml (EX-101.DEF) — 226KB
• cann-20240630_lab.xml (EX-101.LAB) — 421KB
• cann-20240630_pre.xml (EX-101.PRE) — 225KB
• ea0210208-10q_trees_htm.xml (XML) — 557KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 Item 1. Financial 1 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3. Quantitative and Qualitative Disclosures about Market Risk 20 Item 4. Controls and Procedures 20 PART II. OTHER INFORMATION 21 Item 1. Legal Proceedings 21 Item 1A. Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 22

Signatures

Signatures 23 i PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS TREES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (unaudited) (audited) Assets Current assets Cash and cash equivalents $ 383,029 $ 969,676 Accounts receivable, net of allowance of $ 53,098 and $ 42,000 , respectively 191,441 111,863 Inventories, net 1,020,306 860,918 Prepaid expenses and other current assets 197,758 411,911 Total current assets 1,792,534 2,354,368 Right-of-use operating lease asset 1,724,897 1,979,833 Property and equipment, net 1,277,900 1,395,104 Intangible assets, net 1,377,440 1,637,491 Goodwill 15,880,097 15,880,097 Total assets $ 22,052,868 $ 23,246,893 Liabilities and Stockholders' Equity (Deficit) Current liabilities Accounts payable and accrued expenses $ 2,522,589 $ 2,617,536 Interest payable 1,961,350 1,570,077 Income tax payable 1,719,835 392,765 Operating lease liability, current 843,229 846,201 Finance lease liability, current 84,746 205,400 Accrued stock payable 60,900 60,900 Accrued dividends 123,900 106,200 Warrant derivative liability — 4,716 Accrued legal fees 72,000 102,000 Notes payable - current 157,763 1,092,382 Contingent Earnout Liability — 367,056 Total current liabilities 7,546,312 7,365,233 Operating lease liability, non-current 996,525 1,218,392 Finance lease liability, non-current 586,722 501,248 Notes payable - non-current (net of unamortized discount) 15,037,637 14,013,861 Total liabilities 24,167,196 23,098,734 Commitments and contingencies (Note 6) Stockholders' equity (deficit) Preferred stock, no par value; 5,000,000 and 5,000,000 shares authorized; 1,180 and 1,180 issued and outstanding, respectively 1,073,446 1,073,446 Common stock, $ 0.001 par value; 200,000,000 and 200,000,000 shares authorized; 108,746,520 and 108,746,520 shares issued and outstanding, respectiv

financial statements do not include any adjustments that might result from the outcome of this uncertainty

financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's ability to continue as a going concern is dependent upon its ability to raise additional capital to fund operations, support our planned investing activities, and repay its debt obligations as they become due. If the Company is unable to obtain additional funding, the Company would be forced to delay, reduce, or eliminate some or all of our acquisition efforts, which could adversely affect its growth plans. Summary of Significant Accounting Policies See our Annual Report on Form 10-K for the year ended December 31, 2023, as amended, for discussion of the Company's significant accounting policies. Recently Issued Accounting Standards The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations. NOTE 2. INVENTORIES Our inventories consisted of the following: June 30, December 31, 2024 2023 Raw materials $ — $ 351,241 Work-in-progress and finished goods 1,020,306 509,677 Inventories $ 1,020,306 $ 860,918 NOTE 3. LEASES The Company's leases consist primarily of real estate leases for retail and cultivation facilities. All but one of the Company's leases are classified as operating leases. The lease for the retail dispensary acquired in the Green Man transaction is classified as a finance lease. The current and non-current portions of the operating lease liabilities and finance lease liabilities are disclosed separately on the accompanying condensed balance sheets. The finance lease ROU asset is included in property and equipment, net and the operating lease ROU asset is disclosed separately on the accompanying condensed balance sheets. As the rate implicit in the Company's leases is not readily determinable, we used an estimated incremental borrowing rate of 20 % in determining the

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