Schwazze Q4 Revenue Declines 7% Sequentially

  • Record 2022 Revenue Increases 47% to $159.4 Million Compared to $108.4 Million in 2021
  • Company Continues to Grow Positive Cash Flow from Operations in Fourth Quarter and Year-End 2022
  • Expansion into New Mexico Market as well as Colorado Acquisitions Add 23 Retail Dispensaries, One Manufacturing and Four Operating Cultivation Facilities
  • Conference Call & Webcast Scheduled for Today – 5:00 pm ET

DENVER, March 29, 2023 /PRNewswire/ – Medicine Man Technologies Inc. operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced financial results for the fourth quarter (“Q4 2022”) and for the year ended December 31, 2022 (“2022”).

Full Year 2022 Financial Summary:

  • Revenues of $159.4 million, an increase of 47% compared to $108.4 million in 2021
  • Gross Profit of $85.0 million, an increase of 72% compared to $49.4 million in 2021
  • Net Loss of ($18.5) million compared to Net Income of $14.5 million for 2021, driven by an impairment charge of $8.0 million, interest expense of $30.1 million, and loss on disposition of assets of $4.7 million
  • Adjusted EBITDA of $52.0 million was 33% of revenue, compared to $32.2 million and 30% of revenue in 2021
  • Cash Flow from operations was $11.4 million compared to $8.4 million in 2021
  • Retail Sales of $141.3 million, an increase of 92% compared to $73.8 million in 2021
  • Two-year stacked identical retail sales (“Stacked IDs”)“ for Colorado and New Mexico were 7.9%

Q4 2022 Financial Summary:

  • Revenues of $40.1 million, an increase of 51% compared to $26.5 million in Q4 2021
  • Gross Profit of $23.0 million, an increase of 89% compared to Q4 2021
  • Net Loss of ($27.3) compared to Net Income of $12.8 million for Q4 2021
  • Adjusted EBITDA of $13.3 million was 33% of revenue, compared to $7.5 million and 28% of revenue for Q4 2021
  • Cash Flow from operations for the quarter was $5.4 compared to $3.6 million for Q4 2021
  • Retail sales of $36.9 million, an increase of 87% over $19.7 million for Q4 2021
  • Stacked IDs× for Colorado and New Mexico were 5.3%

Accomplishments for 2022 and Q1 2023

In 2022, the Company completed seven acquisitions and opened six new stores not related to acquisitions, which increased the Company’s retail presence from 18 dispensaries as of December 31, 2021 to 41 dispensaries as of December 31, 2022. The Company now has five operating cultivation facilities and two manufacturing assets in Colorado and New Mexico. In Q1 2023, the Company subsequently announced the opening of two additional New Mexico retail locations and entry into a definitive agreement to acquire two retail dispensaries in Colorado from Smokey’s Cannabis, which will bring the total dispensary count to 45.

Recent Developments

  • Rolled out enhanced custom eCommerce platform in New Mexico for R.Greenleaf
  • Opened two new R.Greenleaf locations in New Mexico – Paseo and Carlsbad
  • Signed definitive agreement to acquire two retail dispensaries in Garden City and Fort Collins, Colorado, two attractive markets currently not served

2022 Business Highlights and Significant Achievements

  • Entered the New Mexico market with the acquisition of ten retail locations, four indoor cultivation facilities and one manufacturing facility, establishing Schwazze as a regionally focused multi-state operator (MSO)
  • Opened six new stores in New Mexico under R.Greenleaf banner located in or near the University of New Mexico, Los Lunas, Clovis, Ruidoso, Sunland Park and Alamogordo
  • Acquired two retail dispensaries in Boulder, Colorado
  • Acquired an indoor cultivation facility in Denver, Colorado
  • Acquired two Emerald Field retail dispensaries in Glendale and Manitou Springs, Colorado
  • Acquired one retail dispensary and one indoor cultivation facility in Denver, Colorado
  • Acquired two retail dispensaries in Aurora and Denver, Colorado
  • Negotiated exclusive licensing, manufacturing and distribution agreement with Lowell Farms and launched premium pre-rolls in both Colorado and New Mexico
  • Launched new and enhanced custom eCommerce platform for Star Buds

“In 2022, Schwazze continued to execute its strategy to “go deep” in our operating states and build customer loyalty and share,” stated Justin Dye, CEO of Schwazze.

To date, we have opened, acquired, or announced pending acquisitions of 45 dispensaries with five operating cultivation and two manufacturing facilities across Colorado and New Mexico. We believe our retail brands are really connecting with customers.

Justin Dye, CEO of Schwazze

Schwazze is well-positioned to play offense in this challenging environment. As market forces become more favorable, we believe Schwazze will emerge with a much stronger position which will reward shareholders. For now, we will keep executing our strategy and playbook.

“While we had seasonally lower quarter over quarter revenues, we recorded a solid fourth quarter and outpaced retail sales in the state of Colorado by 11%, despite a challenging environment and continued price compression,” said Nirup Krishnamurthy, President of Schwazze. “Along with our New Mexico operations, revenue for the year increased by 47%, with retail sales growing 92% over the prior year with solid execution. In addition, we are focused on building a high-quality house of product brands that deliver good value to our customers. These results could not be achieved without the hard work and dedication of the entire Schwazze team.”

2022 Results of Operations

Consolidated revenues for 2022, totaled $159.4 million, increasing $51.0 million or 47% over 2021 revenues of $108.4 million. This increase was influenced by several factors, including consummation of identified acquisitions, new store openings, entrance into the New Mexico market, and adult-use legalization taking effect in New Mexico in 2022. Based on publicly available sales data, management estimates that overall cannabis sales in the New Mexico market increased approximately 75% as compared to 2021 sales because of increased adult-use recreational cannabis sales following its legalization in April 2022.

Cost of goods and services for 2022, totaled $74.3 million compared to cost of goods and services of $59.1 million in 2021, representing an increase of $15.2 million, or approximately 26%. This increase is primarily due to the New Mexico acquisition and subsequent opening of six new stores in 2022.

Gross profit increased to $85.0 million for the year compared to $49.4 million in 2021. Gross profit margin rose as a percentage of revenue from 46% to 53%, with improvements in our cost structure, buying power and retail playbook.

Operating expenses for 2022, totaled $72.2 million, compared to operating expenses of $38.9 million during 2021, representing an increase of $33.2 million or approximately 85%. This increase was largely due to increased selling, general and administrative expenses related to acquisition growth, the New Mexico market entry, and includes certain one-time impairment charges for 2022.

Other expense for 2022 was ($16.4) million, compared to other income of $8.5 million in 2021. This is largely driven by non-cash debt related interest obligations and a one-time disposition of assets.

As a result of the factors discussed above, Schwazze generated a net loss of ($18.5) million for 2022 compared to net income of $14.5 million for 2021.

Adjusted EBITDA for the year was $52.0 million representing 33% of revenue, compared to $32.2 million and 30% in 2021. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below for details and a reconciliation to net income (loss).

For 2022, the Company generated positive operating cash flow of $11.4 million compared to $8.4 million for 2021 and had $38.9 million in cash and cash equivalents as of December 31, 2022.

Forrest Hoffmaster, CFO for Schwazze commented, “Despite the challenging economic backdrop, we’ve delivered an excellent year resulting in the continued generation of operating cash flows from our acquired businesses. This allows us to not only meet our borrowing obligations but reinvest in infrastructure improvements and in our strategy to go deep in both Colorado and New Mexico.”

¹Stacked IDs are presented as a percentage that indicates the relative increase or decrease to revenue for certain retail stores from the previous two years. Stacked IDs are calculated by comparing revenue from sales for all dispensaries owned by the Company and open for operations for more than one year against the revenue from the sales for the same dispensaries for the previous two years. When the Company reports Stacked IDs for stores that it has not owned for more than one year, the comparison is made against validated sales data from prior owners of such stores provided to the Company upon acquisition and/or publicly available sales and revenue data. The Company did not own all the assets and entities in part of 2022, 2021 and 2020 and is using unaudited numbers for this comparison.

Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition and capital raise related costs, and other one-time expenses, such as severance, retention, and employee relocation. The Company uses adjusted EBITDA as it believes it better explains the results of its core business.

Webcast – March 29, 2023 – 5:00 pm ET

Investors and stakeholders may participate in the conference call by dialing 416-764-8650 or by dialing North American toll free 1-888-664-6383 or listen to the webcast from the Company’s website at The webcast will be available on the Company’s website and on replay until April 5, 2023, and may be accessed by dialing 1-416-764-8677 or North American toll free 1-888-390-0541 / 592815 #.

Following their prepared remarks, Company management will answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at

About Schwazze

Schwazze (OTCQX: SHWZ; NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Original press release

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

Get Our Sunday Newsletter