Tilray Brands 10-Q: Assets, Liabilities, and Debt Maturities

TL;DR

Tilray's 10-Q shows $980M assets vs $723M liabilities, with significant debt due through 2033.

AI Summary

Tilray Brands, Inc. filed its 10-Q for the period ending August 31, 2023. The company reported total assets of $980,000,000 and total liabilities of $723,292,600. Key financial instruments include various debt obligations with maturity dates ranging from December 31, 2023, to July 31, 2033, with principal amounts up to $70,000,000.

Why It Matters

This filing provides insight into Tilray Brands' financial health and its debt structure, which can impact its ability to fund operations and future growth.

Risk Assessment

Risk Level: medium — The company has substantial liabilities relative to its assets, and a significant portion of its debt matures over the next decade.

Key Numbers

• $980.0M — Total Assets (As of August 31, 2023)
• $723.3M — Total Liabilities (As of August 31, 2023)
• $70.0M — Largest Debt Principal (Due October 31, 2030)

Key Players & Entities

• Tilray Brands, Inc. (company) — Filer of the 10-Q
• August 31, 2023 (date) — End of the reporting period
• $980,000,000 (dollar_amount) — Total assets
• $723,292,600 (dollar_amount) — Total liabilities
• July 31, 2033 (date) — Maturity date of a debt instrument
• $70,000,000 (dollar_amount) — Principal amount of a debt instrument

FAQ

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share TLRY The Nasdaq
• $1,613 — cash flows cash and cash equivalents is $1,613 of restricted cash as of August 31, 202

Filing Documents

• tlry20230731_10q.htm (10-Q) — 2092KB
• ex_572058.htm (EX-10.1) — 6KB
• ex_572059.htm (EX-10.4) — 58KB
• ex_552167.htm (EX-31.1) — 13KB
• ex_552168.htm (EX-31.2) — 13KB
• ex_552169.htm (EX-32.1) — 5KB
• ex_552170.htm (EX-32.2) — 6KB
• 0001437749-24-031040.txt ( ) — 11081KB
• tlry-20230831.xsd (EX-101.SCH) — 107KB
• tlry-20230831_cal.xml (EX-101.CAL) — 87KB
• tlry-20230831_def.xml (EX-101.DEF) — 702KB
• tlry-20230831_lab.xml (EX-101.LAB) — 551KB
• tlry-20230831_pre.xml (EX-101.PRE) — 747KB
• tlry20230731_10q_htm.xml (XML) — 1939KB

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 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 4.

Controls and Procedures

Controls and Procedures 52 PART II. OTHER INFORMATION 53 Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 54 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55 Item 3. Defaults Upon Senior Securities 55 Item 4. Mine Safety Disclosures 55 Item 5. Other Information 55 Item 6. Exhibits 56

Signatures

Signatures 58 Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q for the quarter ended August 31, 2023 (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; future corporate acquisitions and strategic transactions; and our synergies, cash savings and efficiencies anticipated from the integration of our completed acquisitions and strategic transactions. Risks and uncertainties that may cause actual results to differ materially from forw

— 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) August 31, May 31, 2023 2023 Assets Current assets Cash and cash equivalents $ 177,519 $ 206,632 Restricted cash 1,613 — Marketable securities 287,333 241,897 Accounts receivable, net 82,076 86,227 Inventory 232,075 200,551 Prepaids and other current assets 44,943 37,722 Assets held for sale 3,696 — Total current assets 829,255 773,029 Capital assets 494,619 429,667 Right-of-use assets 5,605 5,941 Intangible assets 967,568 973,785 Goodwill 2,009,673 2,008,843 Interest in equity investees 4,638 4,576 Long-term investments 7,564 7,795 Convertible notes receivable 74,681 103,401 Other assets 8,647 222 Total assets $ 4,402,250 $ 4,307,259 Liabilities Current liabilities Bank indebtedness $ 14,594 $ 23,381 Accounts payable and accrued liabilities 238,081 190,682 Contingent consideration 7,181 16,218 Warrant liability 10,015 1,817 Current portion of lease liabilities 2,324 2,423 Current portion of long-term debt 13,489 24,080 Current portion of convertible debentures payable 251,590 174,378 Total current liabilities 537,274 432,979 Long - term liabilities Contingent consideration 13,000 10,889 Lease liabilities 7,462 7,936 Long-term debt 152,390 136,889 Convertible debentures payable 120,861 221,044 Deferred tax liabilities 169,633 167,364 Other liabilities 74 215 Total liabilities 1,000,694 977,316 Commitments and contingencies (refer to Note 18) Stockholders' equity Common stock ($ 0.0001 par value; 980,000,000 common shares; 723,292,600 and 656,655,455 common shares issued and outstanding, respectively) 72 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 capital

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 August 31, 2023 . 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, unless otherwise indicated. Basis of consolidation Subsidiaries are en

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