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Greenlane Holdings Inc. (GNLN+0.70%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total net sales of approximately $13.3 million for 2024, a decrease from $65.4 million in 2023. This decline is attributed to a major restructuring in April 2023, transitioning from a gross sales to a commission model for certain product lines.
Cost of sales for the year was $7.0 million, leading to a gross profit of $6.3 million. The gross margin improved to 47.3% from 27.3% in 2023 due to the shift to a commission revenue model.
Operating expenses decreased significantly to $18.1 million from $43.9 million in 2023, reflecting a reduction in workforce and general administrative costs as part of the company's restructuring efforts.
The company reported a net loss of $17.7 million for 2024, an improvement from a net loss of $32.3 million in 2023. The reduction in net loss is primarily due to decreased operating expenses.
Greenlane's liquidity was supported by a private placement in February 2025, raising approximately $25.0 million. This capital is expected to fund operations into the second quarter of 2026.
The company continues to focus on profitability through cost reduction, new product introductions, and strategic partnerships aimed at improving margins and cash flow.
Greenlane's cash balance as of December 31, 2024, was $0.9 million, with working capital of $1.5 million, compared to $0.5 million in cash and $3.7 million in working capital at the end of 2023.
The filing highlights ongoing legal proceedings and contingencies, including a class action lawsuit and a civil investigation demand related to a subsidiary's 2020 PPP loan.
Greenlane's management plans to further align costs with revenue, seek additional capital, and enhance product offerings to improve the company's financial position.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Greenlane Holdings Inc. annual 10-K report dated March 21, 2025. To report an error, please email earnings@qz.com.