UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

001-38875

(Commission file number)

Greenlane Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

83-0806637

State or other jurisdiction of

incorporation or organization

(I.R.S. Employer

Identification No.)

1095 Broken Sound Parkway, Suite 100
Boca Raton, FL		33487
(Address of principal executive offices)		(Zip Code)

(877) 292-7660

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share		GNLN		Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 14, 2024, Greenlane Holdings, Inc. had 1,337,516 shares of Class A common stock outstanding

Greenlane Holdings, Inc.

Form 10-Q

For the Quarterly Period Ended September 30, 2024

TABLE OF CONTENTS

		Page
PART I	Financial Information
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37

PART II	Other Information
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities	40
Item 5.	Other Information	40
Item 6.	Exhibits	40
Signatures		41

PART I

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

GREENLANE HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value per share amounts)

	September 30, 2024			December 31, 2023
	(unaudited)
ASSETS
Current assets
Cash	$	2,309		$	463
Accounts receivable, net of allowance of $2,251 and $2,209 at September 30, 2024 and December 31, 2023, respectively		2,313			1,693
Inventories, net		16,013			20,529
Vendor deposits		3,725			3,765
Other current assets (Note 8)		2,279			3,319
Total current assets		26,639			29,769

Property and equipment, net		2,015			2,476
Operating lease right-of-use assets		1,271			1,936
Other assets		3,894			3,912
Total assets	$	33,819		$	38,093

LIABILITIES
Current liabilities
Accounts payable	$	10,885		$	12,103
Accrued expenses and other current liabilities (Note 8)		2,521			3,056
Customer deposits		1,255			2,775
Notes payable, net of debt discount		8,626			7,283
Current portion of operating leases		886			866
Current portion of finance leases		—			7
Total current liabilities		24,173			26,090

Operating leases, less current portion		326			1,010
Other liabilities		—			1
Total long-term liabilities		326			1,011
Total liabilities		24,499			27,101
Commitments and contingencies (Note 7)		-			-

STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value, 10,000 shares authorized, none issued and outstanding		—			—
Class A common stock, $0.01 par value per share, 600,000 shares authorized, 972 shares issued and outstanding as of September 30, 2024; 600,000 shares authorized, 339 shares issued and outstanding as of December 31, 2023*		8			3
Class B common stock, $0.0001 par value per share, 30,000 shares authorized, and 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023*		—			—
Common stock, value		—			—

Additional paid-in capital*		275,365			268,165
Accumulated deficit		(266,152	)		(257,289	)
Accumulated other comprehensive income		248			245
Total stockholders’ equity attributable to Greenlane Holdings, Inc.		9,469			11,124
Non-controlling interest		(149	)		(132	)
Total stockholders’ equity		9,320			10,992
Total liabilities and stockholders’ equity	$	33,819		$	38,093

*	After giving effect to the Reverse Stock Splits - See Note 9 - Stockholders’ Equity.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

GREENLANE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except per share amounts)

	2024			2023			2024			2023
	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023

Net sales	$	4,038		$	11,800		$	11,616		$	55,384
Cost of sales		1,011			8,671			6,066			42,162
Gross profit		3,027			3,129			5,550			13,222
Operating expenses:
Salaries, benefits and payroll taxes		1,609			4,059			6,066			14,586
General and administrative		1,771			5,433			6,864			20,209
Depreciation and amortization		185			524			635			1,492
Total operating expenses		3,565			10,016			13,565			36,287
(Loss) from operations		(538	)		(6,887	)		(8,015	)

SEC Form 10-Q filed by Greenlane Holdings Inc.