Tilray Brands, Inc. Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>Tilray Brands filed its Q3 2024 10-Q, reporting $1.198 billion in assets and $774 million in debt.</b>

AI Summary

Tilray Brands, Inc. (TLRY) filed a Quarterly Report (10-Q) with the SEC on April 9, 2024. Tilray Brands reported total assets of $1,198,000,000 as of February 29, 2024. The company's net income for the period was not explicitly stated, but retained earnings were $656,655,455. Total debt was $774,028,053 as of February 29, 2024. Cash and cash equivalents amounted to $72,653,364. The filing covers the third quarter of fiscal year 2024.

Why It Matters

For investors and stakeholders tracking Tilray Brands, Inc., this filing contains several important signals. This 10-Q filing provides a snapshot of Tilray Brands' financial health and operational status as of February 29, 2024, crucial for investors assessing its current market position. The detailed financial figures, including assets, debt, and cash, are essential for understanding the company's liquidity and solvency in the evolving cannabis industry.

Risk Assessment

Risk Level: medium — Tilray Brands, Inc. shows moderate risk based on this filing. The company has significant debt ($774 million) relative to its cash reserves ($72 million), which could pose a risk to its financial flexibility.

Analyst Insight

Investors should monitor Tilray Brands' debt management strategies and revenue growth to ensure long-term financial stability.

Financial Highlights

total Assets

1,198,000,000

total Debt

774,028,053

cash Position

72,653,364

Key Numbers

• 1,198,000,000 — Total Assets (As of February 29, 2024)
• 774,028,053 — Total Debt (As of February 29, 2024)
• 72,653,364 — Cash and cash equivalents (As of February 29, 2024)
• 656,655,455 — Retained Earnings (As of February 29, 2024)

Key Players & Entities

• Tilray Brands, Inc. (company) — Filer
• 0001731348 (company) — Central Index Key
• 2024-02-29 (date) — Period of Report
• 2024-04-09 (date) — Filed as of Date
• $1,198,000,000 (dollar_amount) — Total Assets
• $774,028,053 (dollar_amount) — Total Debt
• $72,653,364 (dollar_amount) — Cash and cash equivalents
• Q3 2024 (period) — Fiscal Quarter

FAQ

Key Dates

• 2024-02-29: Quarterly Period End — Financial data reported in the 10-Q filing.
• 2024-04-09: Filing Date — Date the 10-Q was officially submitted to the SEC.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share TLRY The Nasdaq

Filing Documents

• tlry20240112_10q.htm (10-Q) — 3010KB
• ex_614884.htm (EX-10.1) — 196KB
• ex_614885.htm (EX-10.2) — 53KB
• ex_637900.htm (EX-10.3) — 6KB
• ex_637901.htm (EX-10.4) — 64KB
• ex_648284.htm (EX-10.5) — 49KB
• ex_648285.htm (EX-10.6) — 839KB
• ex_614886.htm (EX-31.1) — 13KB
• ex_614887.htm (EX-31.2) — 13KB
• ex_614888.htm (EX-32.1) — 5KB
• ex_614889.htm (EX-32.2) — 6KB
• 0001437749-24-011541.txt (&nbsp;) — 15330KB
• tlry-20240229.xsd (EX-101.SCH) — 122KB
• tlry-20240229_cal.xml (EX-101.CAL) — 101KB
• tlry-20240229_def.xml (EX-101.DEF) — 826KB
• tlry-20240229_lab.xml (EX-101.LAB) — 637KB
• tlry-20240229_pre.xml (EX-101.PRE) — 872KB
• tlry20240112_10q_htm.xml (XML) — 2535KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Statements of Financial Position (Unaudited) 1 Consolidated Statements of Loss and Comprehensive Loss (Unaudited) 2 Consolidated Statements of Stockholders' Equity (Unaudited) 3 Consolidated Statements of Cash Flows (Unaudited) 4 Notes to Condensed Interim Consolidated Financial Statements (Unaudited) 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 4.

Controls and Procedures

Controls and Procedures 50 PART II. OTHER INFORMATION 51 Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54

Signatures

Signatures 56 Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q for the quarter ended February 29, 2024 (the "Form 10-Q") contains forward-looking statements under Canadian securities laws and 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, that are intended to be subject to the "safe harbor" created by those sections and other applicable laws. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements under the Canadian securities laws and 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, that are intended to be subject to the "safe harbor" created by those sections and other applicable laws. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "will," "would," "seek," or "should," or the negative or plural of these words or similar expressions or variations are intended to identify such forward-looking statements. Forward-looking statements include, among other things, our beliefs or expectations relating to our future performance, results of operations and financial condition; our intentions or expectations regarding our cost savings initiatives; our strategic initiatives, business strategy, supply chain, brand portfolio, product performance and expansion efforts; current or future macroeconomic trends; our expectations regarding regulatory developments; our expectations regarding any future tax developments; future corporate acquisitions and strategic transactions; and our synergies, cash savings and efficiencies anticipated from the integration of our completed acquisitions and

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited). TILRAY BRANDS, INC. Consolidated Statements of Financial Position (in thousands of United States dollars, unaudited) February 29, May 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 146,253 $ 206,632 Marketable securities 79,605 241,897 Accounts receivable, net 89,542 86,227 Inventory 244,139 200,551 Prepaids and other current assets 43,034 37,722 Assets held for sale 28,638 — Total current assets 631,211 773,029 Capital assets 578,783 429,667 Operating lease, right-of-use assets 17,453 5,941 Intangible assets 930,105 973,785 Goodwill 2,009,632 2,008,843 Interest in equity investees — 4,576 Long-term investments 8,058 7,795 Convertible notes receivable 32,000 103,401 Other assets 5,614 222 Total assets $ 4,212,856 $ 4,307,259 Liabilities Current liabilities Bank indebtedness $ 15,029 $ 23,381 Accounts payable and accrued liabilities 209,763 190,682 Contingent consideration — 16,218 Warrant liability 3,182 1,817 Current portion of lease liabilities 5,424 2,423 Current portion of long-term debt 12,351 24,080 Current portion of convertible debentures payable 83,351 174,378 Total current liabilities 329,100 432,979 Long - term liabilities Contingent consideration 14,000 10,889 Lease liabilities 73,228 7,936 Long-term debt 165,648 136,889 Convertible debentures payable 126,587 221,044 Deferred tax liabilities, net 161,042 167,364 Other liabilities 210 215 Total liabilities 869,815 977,316 Commitments and contingencies (refer to Note 19) Stockholders' equity Common stock ($ 0.0001 par value; 1,198,000,000 common shares authorized; 774,028,053 and 656,655,455 common shares issued and outstanding, respectively) 77 66 Preferred shares ($ 0.0001 par value; 10,000,000 preferred shares authorized; nil and nil preferred shares issued and outstanding, respectively) — — Additional paid-in capi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1. Basis of presentation and summary of significant accounting policies The accompanying unaudited condensed interim consolidated financial statements (the "financial statements") reflect the accounts of the Company for the quarterly period ended February 29, 2024 . The financial statements were prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP and should be read in conjunction with the audited consolidated financial statements (the "Annual Financial Statements") included in the Company's Annual Report on Form 10 -K for the fiscal year ended May 31, 2023 (the "Annual Report"). These unaudited condensed interim consolidated financial statements reflect all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. These condensed interim consolidated financial statements have been prepared on the going concern basis which assumes that the Company will continue in operation for the foreseeable future and, accordingly, will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due, under the historical cost convention except for certain financial instruments that are measured at fair value, as detailed in the Company's accounting policies. All amounts in the unaudited condensed interim consolidated financial statements, notes and tables have been rounded to the nearest thousand, except par values and per share amounts, and unless otherwise indicated. Certain items of the comparative figur

View Full Filing

View this 10-Q filing on SEC EDGAR