Greenway Announces First Quarter Financial Statements

Executive Summary

• Greenway Greenhouse Cannabis Corporation released its unaudited financial statements for the first quarter ended June 30, 2025, highlighting significant improvements in gross margins and a narrowing of net losses despite lower revenue volumes.
• The company announced a new international supply agreement with 4C LABS in the United Kingdom to supply high-quality dried flower, marking a strategic expansion into the UK medical cannabis market.
• Operational metrics show a record-high spread between sales price and cash costs, with finished goods inventory increased to over 1.2 million grams to support international sales cycles.

Key Details

• Financial Performance (Q1 2025 vs Q1 2024):
  • Net Cannabis Revenue: $1,621,062 (down from $2,394,159 in Q1 2024).
  • Gross Profit: $841,227 (up from $342,922 in Q1 2024).
  • Gross Margin: Improved to 50% (up from 14% in Q1 2024); gross margin before fair value adjustments rose to 30% (up from 14% in Q1 2024).
  • Net Loss: Narrowed to $166,453, an improvement of $375,025 (69%) compared to Q1 2024.
  • Adjusted EBITDA: $78,723 (down from $316,431 in Q1 2024).
• Operational Metrics:
  • Average Net Sales Price: Increased to $1.71 per gram (up from $1.11 in Q1 2024), a 54% increase.
  • Cash Cost per Gram: Decreased to $0.70 in finished goods (down from $0.92 in Q4 2024), representing the highest difference in sales price to cash cost in the company's history.
  • Inventory: Finished goods inventory totaled 1,274,617 grams valued at $1,174,581.
  • Cash Position: Cash balance of $2,192,005 with positive working capital (excluding related party amounts) of $4,203,627.
• Strategic Developments:
  • International Agreement: Entered into a supply agreement on July 31, 2025, with 4C LABS, a leading UK medical cannabis company, to supply high-quality dried flower.
  • Inventory Strategy: Increased finished goods inventory to accommodate longer sales cycles associated with international cannabis sales and to meet upcoming purchase orders.
• Non-IFRS Reconciliation (Q1 2025):
  • Net Loss: $(166,453)
  • Amortization - Cost of sales: $197,821
  • Fair value adjustment on sale of inventory: $20,539
  • Fair value adjustment on growth of biological assets: $(349,943)
  • Amortization – Operating expenses: $82,883
  • Interest expense: $293,876
  • Adjusted EBITDA: $78,723

Notable Quotes

• "This quarter demonstrates the resiliency of our model and the discipline of our team... Despite lower volumes, we achieved significantly higher pricing, improved gross margins, and a substantial reduction in net loss." — Jamie D'Alimonte, CEO
• "Importantly, we strengthened our balance sheet position while reducing cash costs per gram... Greenway is well-positioned to fulfill upcoming purchase orders and capitalize on both domestic and international opportunities..." — Carl Mastronardi, President