MariMed Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>MariMed Inc. filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

MARIMED INC. (MRMD) filed a Annual Report (10-K) with the SEC on March 7, 2024. MariMed Inc. reported its 2023 fiscal year results on March 7, 2024. The company is incorporated in Delaware and headquartered in Norwood, MA. The filing covers the fiscal year ending December 31, 2023. MariMed Inc. was formerly known as Worlds Online Inc. The SIC code for MariMed Inc. is 2833 (Medicinal Chemicals & Botanical Products).

Why It Matters

For investors and stakeholders tracking MARIMED INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of MariMed's financial health and strategic direction for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance in the medicinal chemicals and botanical products sector.

Risk Assessment

Risk Level: — MARIMED INC. shows moderate risk based on this filing. The company operates in the highly regulated cannabis industry, which presents significant legal and compliance risks that could impact its financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess MariMed's operational performance and future growth prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-07 — Filing Date (Date the report was filed)
• 2833 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• MARIMED INC. (company) — Filer name
• MRMD (company) — Ticker symbol
• 10-K (filing) — Form type
• 20231231 (date) — Period of report
• 20240307 (date) — Filed as of date
• Norwood, MA (location) — Business address city and state
• Worlds Online Inc. (company) — Former company name
• 2833 (industry) — Standard Industrial Classification

FAQ

Risk Factors

• Regulatory Risks [high — regulatory]: The cannabis industry is subject to extensive and evolving regulations at federal, state, and local levels, which could adversely affect operations and profitability.
• Financial Performance [medium — financial]: The company's financial results are subject to market demand, competition, and operational efficiency, which can impact revenue and profitability.
• Operational Challenges [medium — operational]: Maintaining efficient operations, supply chain management, and product quality are critical for success in the highly competitive cannabis market.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date MariMed Inc. filed its 10-K report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document for investors to understand a company's financial health and operations for the past fiscal year.)

SIC Code

Standard Industrial Classification code, used to classify businesses based on their primary activity. (Helps categorize MariMed Inc. within the broader economic landscape, specifically in the medicinal chemicals and botanical products sector.)

Key Financial Figures

• $0.001 — ection 12(g) of the Act: Common Stock, $0.001 par value (Title of Class) Indicate b
• $58.7 million — mber 2023 we announced the closing of a $58.7 million secured credit facility with a United S
• $1.8 billion — bis market was expected to total nearly $1.8 billion in sales in 2023, a number that is expe
• $2.6 billion — number that is expected to increase to $2.6 billion by 2025 (source: MJ Biz Factbook). We
• $1.9 billion — essional Regulation, the state reported $1.9 billion in total legal cannabis sales in 2023.
• $787 million — abis Administration, the state reported $787 million in medical and adult-use cannabis sales
• $1.3 billion — partment of Health and Senior Services, $1.3 billion worth of legal cannabis was sold in Mis
• $802 million — total cannabis sales in Ohio will reach $802 million in 2025. We expect that our Thrive -b
• $5.25 m — orge's County, Maryland in exchange for $5.25 million, adjusted for certain items. The
• $2.0 million — purchase consideration is comprised of $2.0 million of cash in the aggregate, a $2.0 millio
• $1.25 million — f our common stock with a fair value of $1.25 million based on a formulaic calculation, to be
• $0.5 million — ayments to the Medleaf Sellers totaling $0.5 million. Completion of the acquisition is depen

Filing Documents

• mrmd-20231231.htm (10-K) — 1612KB
• ex211subsidiariesoftheregi.htm (EX-21.1) — 12KB
• ex231consentofmkcpaspllc.htm (EX-23.1) — 3KB
• mrmd-20231231xex311.htm (EX-31.1) — 10KB
• mrmd-20231231xex321.htm (EX-32.1) — 6KB
• mk_image.jpg (GRAPHIC) — 68KB
• mrmd-20231231_g1.jpg (GRAPHIC) — 7KB
• 0001522767-24-000007.txt (&nbsp;) — 10934KB
• mrmd-20231231.xsd (EX-101.SCH) — 97KB
• mrmd-20231231_cal.xml (EX-101.CAL) — 124KB
• mrmd-20231231_def.xml (EX-101.DEF) — 502KB
• mrmd-20231231_lab.xml (EX-101.LAB) — 1073KB
• mrmd-20231231_pre.xml (EX-101.PRE) — 796KB
• mrmd-20231231_htm.xml (XML) — 1253KB

Business

Business 2 Item 1A

Risk Factors

Risk Factors 7 Item 1B Unresolved Staff Comments 18 Item 1C C ybersecurity 18 Item 2

Properties

Properties 19 Item 3

Legal Proceedings

Legal Proceedings 20 Item 4 Mine Safety Disclosures 21 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6 Reserved 22 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 33 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 73 Item 9A

Controls and Procedures

Controls and Procedures 73 Item 9B Other Information 74

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 74 Part III Item 10 Directors, Executive Officers and Corporate Governance 75 Item 11

Executive Compensation

Executive Compensation 75 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 75 Item 13 Certain Relationships and Related Transactions, and Director Independence 75 Item 14 Principal Accountant Fees and Services 75 Part IV Item 15 Exhibits and Financial Statement Schedules 76 Item 16 Form 10-K Summary 76 S ignatures 81 CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION This Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties, and our actual results could differ significantly from those discussed herein. These include statements about our expectations, beliefs, intentions or strategies for the future, which the Company indicates by words or phrases such as "anticipate," "expect," "estimate," "could," "should," "would," "project," "predict," "intend," "plan," "will," "believe," and similar language, including those set forth in the discussion under "Description of Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" as well as those discussed elsewhere in this Annual Report on Form 10-K. The Company bases its forward-looking statements on information currently available to it, and the Company believes that the assumption and expectations reflected in such forward-looking statements are reasonable. The Company assumes no obligation to revise or update any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Statements contained in this Form 10-K that are not historical facts are forward-looking statements that are subject to the "safe harbor" created by the Private Securities Litigation Reform Act of 1995. Unles

Business

Item 1. Business Company Overview We are a multi-state cannabis operator in the United States, headquartered in Norwood, Massachusetts, dedicated to improving lives every day through our high-quality products, our actions, and our values. We develop, own, and manage seed to sale state-licensed, state-of-the-art, regulatory-compliant facilities for the cultivation, production, and dispensing of medicinal and adult-use cannabis. We have created and continue to develop our own brands of premium cannabis flower, concentrates, edibles, and other precision-dosed products utilizing our proprietary strains and formulations. We also license our proprietary brands, along with other top cannabis products, in domestic markets. Our common stock trades on both the OTCQX and the Canadian Securities Exchange under the ticker symbol MRMD. Company History In 2014, we entered the cannabis industry as an advisory and real estate management firm that procured state-issued cannabis licenses on behalf of our clients, developed cannabis facilities that we leased to these newly licensed companies, and provided industry-leading expertise and oversight in all aspects of their cannabis operations. In 2018, we made the strategic decision to transition from an advisory business to a direct owner and operator of cannabis licenses in high-growth states. Key to this transition was the acquisition and consolidation of our clients for whom we had played a key role in their success, including securing their cannabis licenses, developing facilities that are models of excellence, funding their operations, and providing operational and corporate guidance. We have successfully acquired and integrated certain client businesses in several states and believe that our prior experience in managing these businesses has provided us with the skills and expertise required to manage the continuing growth of these operations. Throughout our history, we have created our own brands of craft-quality canna

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