Stem Holdings, Inc.

CIK:0001697834|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating expenses:
Consulting fees	$ 299	$ 682
Professional fees	775	2,585
General and administrative	2,673	3,425
Impairment expense		538
Total operating expenses	3,747	7,230
Loss from operations	(3,747)	(7,230)
Other income (expenses), net
Interest expense	(1,238)	(650)
Change in fair value of derivative liability	(78)	(31)
Change in fair value of warrant liability	(79)	2,327
Foreign currency exchange gain (loss)	(46)
Other income	18	1,997
Gain on extinguishment of debt		803
Other loss		(30)
Total other income (expense)	(1,423)	4,416
Loss from continuing operations	(5,170)	(2,814)
Loss from discontinued operations, net of tax	(14,239)	(14,716)
Net income (loss)	(19,409)	(17,530)
Net loss attributable to non-controlling interest	(391)	(162)
Net loss attributable to Stem Holdings	$ (19,018)	$ (17,368)
Net income (loss) per share:
Basic net income (loss) from continuing operations, per share	$ (2.04)	$ (1.24)
Diluted net income (loss) from continuing operations, per share	(2.04)	(1.24)
Basic net income (loss) from discontinued operations, per share	(5.63)	(6.51)
Diluted net income (loss) from discontinued operations, per share	(5.63)	(6.51)
Basic net income (loss), per share	(7.67)	(7.75)
Diluted net income (loss), per share	$ (7.67)	$ (7.75)
Weighted-average shares outstanding
Basic	2,531,668	2,261,682
Diluted	2,531,668	2,261,682

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net loss	$ (19,409)	$ (17,530)
Loss from discontinued operations, net of tax	(14,239)	(14,716)
Loss from continuing operations	(5,170)	(2,814)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	313	797
Issuance of common stock in connection with consulting agreements	189	263
Amortization of debt discount	817	96
Non-cash interest and rent	220
Gain on extinguishment of debt		(803)
Change in fair value of warrant liability and derivative liability	158	(2,296)
Foreign currency adjustment	(50)	4
Gain on sale of equity method investments		(488)
Gain on sale of property		(1,370)
Prepaid expenses and other current assets	138	390
Accounts payable and accrued expenses	195	287
Net cash used in continuing operating activities	(3,190)	(5,934)
Net cash provided by discontinued operating activities	1,955	987
Net cash used in operating activities	(1,235)	(4,947)
Cash flows from investing activities
Investments		(82)
Cash received related to sale of equity method investment and note recievable		1,651
Net cash provided by investing activities		1,569
Cash flows from financing activities
Proceeds from the issuance of common stock		285
Notes payable and advanced proceeds	1,350
Repayments of notes payable	(133)	(847)
Net cash provided by (used in) financing activities from continuing operations	1,217	(562)
Net increase (decrease) in cash and cash equivalents	(18)	(3,940)
Cash, cash equivalents, and restricted cash at the beginning of the period	1,524	5,464
Cash, cash equivalents, and restricted cash at the end of the period	1,506	1,524
Supplemental disclosure of cash flow information:
Cash paid for interest	262	308
Cash paid for taxes
Supplemental disclosure of noncash activities:
Non-cash repayment of finance liability		1,092
Non-cash repayment of mortgages	1,150
Financed Insurance		449
Interest paid in the form of common stock		67
Beneficial conversion of debt discount	816
Refinancing of mortgage		1,100
Conversion of debt to equity	$ 250

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Current assets
Cash and cash equivalents	$ 961	$ 1,524
Restricted cash	545
Note receivable	1,300
Prepaid expenses and other current assets	278	416
Assets held for sale	10,235	29,013
Total current assets	13,319	30,953
Total assets	13,347	30,981
Current liabilities
Accounts payable and accrued expenses	1,399	1,267
Convertible notes, net	2,111	1,073
Short term notes and advances	229	438
Derivative liability	448	370
Warrant liability	134	55
Liabilities held for sale	9,657	10,741
Total current liabilities	13,978	13,944
Total liabilities	13,978	13,944
Commitments and contingencies (Note 17)
Shareholders’ equity
Preferred stock value
Common stock, $0.001 par value; 750,000,000 shares authorized; 2,810,094 and 2,270,140 shares issued, issuable and outstanding as of September 30, 2023 and September 30, 2022, respectively	3	2
Additional paid-in capital	150,471	148,675
Distribution	(56)
Accumulated deficit	(152,136)	(133,118)
Total Stem Holdings stockholder’s equity	(1,718)	15,559
Noncontrolling interest	1,087	1,478
Total shareholders’ equity (deficit)	(631)	17,037
Total liabilities and shareholders’ equity	13,347	30,981
Series A Preferred Stock [Member]
Shareholders’ equity
Preferred stock value
Series B Preferred Stock [Member]
Shareholders’ equity
Preferred stock value
Related Party [Member]
Current assets
Due from related party	$ 28	$ 28