Debra BorchardtTILT Holdings (OTCQB: TLLTF) reported its financial results for the three and twelve months ending Dec. 31, 2023. Revenue for the multistate operator fell to $37.5 million in the quarter from $44.3 million in the prior year. This missed the Zuanic and Associates estimate for sales of $44.1 million.
The company attributed the decline to the timing of Jupiter order shipments from Smoore, a portion of which was recovered in the first quarter of 2024. In January, Tilt entered into an agreement with Smoore to expand its existing trade payable credit line. The company said it is currently working with noteholders on a forbearance agreement to assist it in achieving the short-term goal of placing the Smoore trade payable on a more sustainable footing.
Tilt also reported its net loss was trimmed to $22 million in the quarter versus a net loss of $73.1 million in the prior year period. The company said these results included a non-cash impairment charge of $7.5 million in the fourth quarter of 2023, as well as a $54.6 million non-cash impairment charge in the fourth quarter of 2022.
Full-year results
For 2023, Tilt reported that revenue declined to $166 million versus 2022’s $174.2 million. This missed the estimate of $170 million by Zuanic & Associates. The company said that the decrease was primarily driven by the same shipment timing issue mentioned above and lower average price in certain Jupiter product lines.
Tilt delivered a net loss of $62.4 million versus 2022’s net loss of $107.5 million. Tilt said the improvement was primarily driven by a decrease in operating expenses, which in turn was predominantly due to a reduced non-cash impairment loss compared to the prior year. That reduction was partially offset by a decrease in gross profit.
“It has been less than one year since my return to TILT, and we have made foundational progress in that time,” CEO Tim Conder said. “Despite the many challenges we faced throughout the year, our team has meaningfully improved operating efficiency, reduced operating expenses, and begun to restructure our debt to strengthen our balance sheet.
“Further, we have executed a refined brand partnership strategy in our plant-touching business, and now offer a more concentrated portfolio of strong, inhalation-focused brands that better align with our Jupiter hardware platform.”
As of Dec. 31, 2023, the company had $3.3 million in cash, cash equivalents, and restricted cash compared to $3.5 million at the end of 2022.
“In the fourth quarter, we experienced one of the largest periods of order volume in Jupiter’s history ahead of Chinese New Year,” Conder added. “To support this volume and in anticipation of future growth, we came to an agreement with our primary supplier, Smoore Technology Limited, to expand our trade payable line and provided a guarantee to secure the continued shipment of product on credit, which is necessary to meet our customer needs and grow our business.”
Looking ahead, Conder said that cost savings have led to approximately $8 million in annualized savings in 2023. He said the company would focus on revenue growth in 2024.
