Jushi Holdings Inc 10-Q for FY2022 Q3

Jushi Holdings Inc. (JUSH)

10-Q 2022-11-21 For: 2022-09-30

Added on April 06, 2026

About this 10-Q

Jushi Holdings Inc filed this 10-Q on November 21, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $72.82M; up 34.9% from $53.98M a year earlier
Net loss: $54.7M; compared with net income of $39.74M a year earlier
Diluted EPS: -$0.30; compared with -$0.08 a year earlier

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Part I	FINANCIAL INFORMATION		Page
Item 1	Financial Statements
		Interim Condensed Consolidated Balance Sheets	1
		Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	2
		Unaudited Interim Condensed Consolidated Statements of Changes in Equity	3
		Unaudited Interim Condensed Consolidated Statements of Cash Flows	5
		Notes to the Unaudited Interim Condensed Consolidated Financial Statements	7
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		35
Item 3	Quantitative and Qualitative Disclosures About Market Risk		46
Item 4	Controls and Procedures		46

Part II	OTHER INFORMATION		49
Item 1	Legal Proceedings		49
Item 1A	Risk Factors		49
Item 2	Unregistered Sale of Equity Securities and Use of Proceeds		50
Item 3	Defaults Upon Senior Securities		51
Item 4	Mine Safety Disclosures		51
Item 5	Other Information		51
Item 6	Exhibits		51

Signatures			53


	September 30, 2022 (unaudited)		December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	31,063	$	94,962
Accounts receivable, net	3,375		3,200
Inventories, net	42,075		43,319
Prepaid expenses and other current assets	4,355		12,875
Total current assets	$	80,868	$	154,356
NON-CURRENT ASSETS:
Property, plant and equipment, net	$	181,134	$	137,280
Right-of use assets - finance leases	114,528		94,008
Other intangible assets, net	178,223		192,466
Goodwill	81,562		45,828
Other non-current assets	28,146		27,586
Non-current restricted cash	950		525
Total non-current assets	$	584,543	$	497,693
Total assets	$	665,411	$	652,049

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	18,062	$	10,539
Accrued expenses and other current liabilities	44,102		47,972
Income tax payable	15,808		6,614
Debt, net - current portion (including related party principal amounts of $3,476 as of September 30, 2022 and $3,384 as of December 31, 2021)	137,967		6,181
Finance lease obligations - current	12,735		12,620
Total current liabilities	$	228,674	$	83,926
NON-CURRENT LIABILITIES:
Non-current debt, net (including related party principal amounts of $0 as of September 30, 2022 and $1,194 as of December 31, 2021)	$	61,932	$	122,971
Finance lease obligations - non-current	98,089		88,297
Operating lease liabilities - non-current	15,637		15,163
Derivative liabilities	19,801		92,435
Income tax liabilities - non-current	62,402		60,051
Contingent consideration liabilities - non-current	1,418		8,223
Total non-current liabilities	$	259,279	$	387,140
Total liabilities	$	487,953	$	471,066
COMMITMENTS AND CONTINGENCIES (Note 21)
EQUITY:
Common stock, no par value; authorized shares - unlimited; issued and outstanding shares - 195,769,605 and 182,707,359 Subordinate Voting Shares as of September 30, 2022 and December 31, 2021, respectively	$	—	$	—
Paid-in capital	483,650		424,788
Accumulated deficit	(304,805)		(242,418)
Total Jushi shareholders' equity	$	178,845	$	182,370
Non-controlling interests	(1,387)		(1,387)
Total equity	$	177,458	$	180,983
Total liabilities and equity	$	665,411	$	652,049


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
REVENUE, NET	$	72,817	$	53,981	$	207,462	$	143,400
COST OF GOODS SOLD	(45,075)		(30,657)		(133,940)		(79,717)
GROSS PROFIT	$	27,742	$	23,324	$	73,522	$	63,683

OPERATING EXPENSES
Selling, general and administrative	$	40,590	$	25,147	$	117,048	$	73,415
Indefinite-lived asset impairment	37,600		—		37,600		—
Total operating expenses	$	78,190	$	25,147	$	154,648	$	73,415

LOSS FROM OPERATIONS	$	(50,448)	$	(1,823)	$	(81,126)	$	(9,732)

OTHER (EXPENSE) INCOME:
Interest expense, net	$	(13,111)	$	(7,442)	$	(34,174)	$	(21,145)
Fair value gains on derivatives	6,352		55,059		63,233		66,800
Other, net	(291)		221		(361)		(3,643)
Total other (expense) income, net	$	(7,050)	$	47,838	$	28,698	$	42,012

(LOSS) INCOME BEFORE INCOME TAX	$	(57,498)	$	46,015	$	(52,428)	$	32,280
Income tax benefit (expense)	2,802		(6,333)		(9,959)		(21,012)
NET (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME	$	(54,696)	$	39,682	$	(62,387)	$	11,268
Less: net loss attributable to non-controlling interests	—		(62)		—		(427)
NET (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO JUSHI SHAREHOLDERS	$	(54,696)	$	39,744	$	(62,387)	$	11,695
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO JUSHI SHAREHOLDERS - BASIC	$	(0.28)	$	0.23	$	(0.33)	$	0.07
Weighted average shares outstanding - basic	192,880,468		168,801,193		189,119,282		163,345,527
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO JUSHI SHAREHOLDERS - DILUTED	$	(0.30)	$	(0.08)	$	(0.61)	$	(0.28)
Weighted average shares outstanding - diluted	203,169,931		199,281,152		205,695,590		195,942,078


	Number of Shares			Paid-In Capital		Accumulated Deficit		Total Jushi Shareholders' Equity		Non-Controlling Interests		Total Equity
	Super Voting Shares	Multiple Voting Shares	Subordinate Voting Shares
Balances - January 1, 2022	—	—	182,707,359	$	424,788	$	(242,418)	$	182,370	$	(1,387)	$	180,983
Private placement offerings	—	—	3,717,392	13,680		—		13,680		—		13,680
Shares issued for Apothecarium acquisition	—	—	527,704	1,594		—		1,594		—		1,594
Shares issued for restricted stock grants	—	—	5,952	—		—		—		—		—
Shares issued upon exercise of warrants	—	—	2,676,303	9,693		—		9,693		—		9,693
Shares issued upon exercise of stock options	—	—	93,915	—		—		—		—		—
Share-based compensation	—	—	—	6,964		—		6,964		—		6,964
Net loss	—	—	—	—		(19,757)		(19,757)		—		(19,757)
Balances - March 31, 2022	—	—	189,728,625	$	456,719	$	(262,175)	$	194,544	$	(1,387)	$	193,157
Shares issued for NuLeaf acquisition	—	—	4,662,384	13,573		—		13,573		—		13,573
Shares issued for service received	—	—	101,082	294		—		294		—		294
Shares issued upon exercise of warrants	—	—	167,560	322		—		322		—		322
Shares issued upon exercise of stock options	—	—	1,294	—		—		—		—		—
Shares canceled upon forfeiture of non-vested restricted stock	—	—	(7,813)	—		—		—		—		—
Share-based compensation	—	—	—	4,684		—		4,684		—		4,684
Net income	—	—	—	—		12,066		12,066		—		12,066
Balances - June 30, 2022	—	—	194,653,132	$	475,592	$	(250,109)	$	225,483	$	(1,387)	$	224,096
Shares issued for settlement of NuLeaf contingent consideration	—	—	888,880	1,529		—		1,529		—		1,529
Shares issued for service received	—	—	13,334	23		—		23		—		23
Shares issued for restricted stock grants	—	—	81,000	—		—		—		—		—
Shares issued upon exercise of warrants	—	—	332,738	564		—		564		—		564
Shares issued upon exercise of stock options	—	—	20,000	26		—		26		—		26
Shares canceled upon forfeiture of non-vested restricted stock	—	—	(219,479)	—		—		—		—		—
Collection of note receivable from employee shareholder	—	—	—	450		—		450		—		450
Share-based compensation	—	—	—	5,466		—		5,466		—		5,466
Net loss	—	—	—	—		(54,696)		(54,696)		—		$	(54,696)
Balances - September 30, 2022	—	—	195,769,605	$	483,650	$	(304,805)	$	178,845	$	(1,387)	$	177,458



	Number of Shares			Paid-In Capital		Accumulated Deficit		Total Jushi Shareholders' Equity		Non-Controlling Interests		Total Equity
	Super Voting Shares	Multiple Voting Shares	Subordinate Voting Shares
















Balances - January 1, 2021	149,000	4,000,000	132,396,064	$	262,145	$	(262,669)	$	(524)	$	2,947	$	2,423
Public offerings	—	—	13,685,000	85,660		—		85,660		—		85,660
Purchase of non-controlling interests	—	—	500,000	1,562		—		1,562		(1,562)		—
Shares issued for Grover Beach acquisition	—	—	49,348	368		—		368		—		368
Shares issued upon exercise of warrants	—	—	3,898,180	13,135		—		13,135		—		13,135
Shares issued upon exercise of stock options	—	—	15,000	30		—		30		—		30
Share-based compensation	—	—	—	4,013		—		4,013		—		4,013
Net loss	—	—	—	—		(30,876)		(30,876)		(175)		(31,051)
Balances - March 31, 2021	149,000	4,000,000	150,543,592	$	366,913	$	(293,545)	$	73,368	$	1,210	$	74,578
Shares issued for restricted stock grants	—	—	34,815	—		—		—		—		—
Shares issued upon exercise of warrants	—	—	1,476,869	3,144		—		3,144		—		3,144
Shares issued upon exercise of stock options	—	—	14,173	20		—		20		—		20
Share-based compensation	—	—	—	2,733		—		2,733		—		2,733
Net income (loss)	—	—	—	—		2,826		2,826		(190)		2,636
Balances - June 30, 2021	149,000	4,000,000	152,069,449	$	372,810	$	(290,719)	$	82,091	$	1,020	$	83,111
Conversion of Super Voting Shares and Multiple Voting Shares	(149,000)	(4,000,000)	18,900,000	—		—		—		—		—
Acquisition of Nature’s Remedy	—	—	8,700,000	35,670		—		35,670		—		35,670
Shares issued upon exercise of warrants	—	—	2,437,974	5,189		—		5,189		—		5,189
Shares issued upon exercise of stock options	—	—	96,851	62		—		62		—		62
Share-based compensation	—	—	—	2,234		—		2,234				2,234
Net income (loss)	—	—	—	—		39,744		39,744		(62)		39,682
Balances - September 30, 2021	—	—	182,204,274	$	415,965	$	(250,975)	$	164,990	$	958	$	165,948


	Nine Months Ended September 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(62,387)	$	11,268
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization, including amounts in cost of goods sold	15,663		5,285
Share-based compensation	17,114		8,981
Fair value changes in derivatives	(63,233)		(66,800)
Non-cash interest expense, including amortization of deferred financing costs	15,599		11,593
Deferred income taxes	(13,155)		(6,571)
Loss on debt modification/extinguishment/redemption	—		3,815
Indefinite-lived asset impairment	37,600		—
Other non-cash items, net	1,890		(1,535)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(69)		(812)
Inventory	8,843		(16,202)
Prepaid expenses and other current assets	1,657		(435)
Other assets	966		601
Accounts payable, accrued expenses and other current liabilities	13,313		27,032
Net cash flows used in operating activities	$	(26,199)	$	(23,780)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for acquisitions, net of cash acquired	$	(20,892)	$	(47,308)
Payments for settlement of contingent consideration liability	(3,000)		—
Payments for property, plant and equipment	(49,230)		(55,285)
Proceeds from investments and financial asset	—		3,252
Net cash flows used in investing activities	$	(73,122)	$	(99,341)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares, net	$	13,680	$	85,660

Proceeds from exercise of warrants and options	1,248		16,438

Collection of note receivable from employee shareholder	450		—
Proceeds from acquisition facility, net of financing costs of $793	24,207		—
Redemptions of senior notes (including related party redemptions of $8 and $3,072 for nine months ended September 30, 2022 and 2021, respectively)	(258)		(8,134)
Payments of acquisition promissory notes	—		(1,689)
(Payments of) proceeds from finance leases, net of tenant allowance of $10,065 and $15,146 for the nine months ended September 30, 2022 and 2021, respectively	(7,948)		(3,343)
Proceeds from other debt	5,233		3,160
Repayments of other debt	(532)		(298)


Net cash flows provided by financing activities	$	36,080	$	91,794
Effect of currency translation on cash and cash equivalents	(233)		42
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	(63,474)	$	(31,285)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	95,487		85,857
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	32,013	$	54,572


JUSHI HOLDINGS INC. Notes to the Unaudited Interim Condensed Consolidated Financial Statements (Amounts Expressed in Thousands of United States Dollars, Unless Otherwise Stated)


2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


	December 31, 2021				March 31, 2022 (unaudited)				June 30, 2022 (unaudited)
	As Previously Reported		As Revised		As Previously Reported		As Revised		As Previously Reported		As Revised
Other intangible assets, net	$	182,466	$	192,466	$	189,931	$	199,931	$	206,742	$	216,742
Goodwill	$	52,920	$	45,828	$	61,392	$	54,300	$	88,654	$	81,562
Total non-current assets	$	494,785	$	497,693	$	534,011	$	536,919	$	610,586	$	613,494
Total assets	$	649,141	$	652,049	$	656,644	$	659,552	$	707,858	$	710,766
Income tax liabilities - non-current	$	57,143	$	60,051	$	58,372	$	61,280	$	68,193	$	71,101
Total non-current liabilities	$	384,232	$	387,140	$	315,148	$	318,056	$	327,186	$	330,094
Total liabilities	$	468,158	$	471,066	$	463,487	$	466,395	$	483,762	$	486,670
Total liabilities and equity	$	649,141	$	652,049	$	656,644	$	659,552	$	707,858	$	710,766


	September 30, 2022 (unaudited)		December 31, 2021
Cannabis plants	$	3,240	$	6,347
Harvested cannabis and packaging	11,948		5,180
Total raw materials	$	15,188	$	11,527
Work in process	9,468		8,756
Finished goods	17,419		23,036
Total inventories, net	$	42,075	$	43,319


	September 30, 2022 (unaudited)		December 31, 2021
Prepaid expenses and deposits	$	3,720	$	3,837
Landlord receivables for reimbursement of certain expenditures	—		7,357
Other current assets	635		1,681
Total prepaid expenses and other current assets	$	4,355	$	12,875


	September 30, 2022 (unaudited)		December 31, 2021
Buildings and building components	$	75,883	$	49,697
Land	14,167		12,380
Leasehold improvements	39,049		24,042
Machinery and equipment	21,492		12,656
Computer equipment	3,025		2,221
Furniture and fixtures	14,965		8,000
Construction-in-process	30,919		35,625
Total property, plant and equipment - gross	$	199,500	$	144,621
Less: Accumulated depreciation	(18,366)		(7,341)
Total property, plant and equipment - net	$	181,134	$	137,280




		NuLeaf		Apothecarium		Total
Assets Acquired:
	Cash and cash equivalents	$	618	$	25	$	643
	Prepaids and other assets	273		32		305
	Accounts receivable, net	39		—		39

	Inventory	5,791		699		6,490
	Indemnification assets (1)	4,145		—		4,145
	Property, plant and equipment	5,513		498		6,011
	Right-of-use assets - finance lease	4,598		2,553		7,151
	Right-of-use assets - operating lease	1,067		—		1,067
	Intangible assets (2)	17,440		8,200		25,640
	Deposits	110		301		411
	Total assets acquired	$	39,594	$	12,308	$	51,902

Liabilities Assumed:
	Accounts payable and accrued liabilities	$	604	$	502	$	1,106
	Finance lease obligations	4,598		2,544		7,142
	Operating lease obligations	1,067		—		1,067
	Deferred tax liabilities	10,247		2,601		12,848
	Total liabilities assumed	$	16,516	$	5,647	$	22,163

	Net assets acquired	$	23,078	$	6,661	$	29,739


	Goodwill (3)	27,262		8,472		35,734
	Total	$	50,340	$	15,133	$	65,473

Consideration:
	Consideration paid in cash, as adjusted for working capital adjustments	$	14,918	$	6,617	$	21,535
	Consideration payable in cash (customary hold back liability)	1,000		—		1,000
	Consideration paid in promissory notes (fair value) (4)	12,860		6,922		19,782
	Consideration paid in shares	13,573		1,594		15,167


	Contingent consideration	7,989		—		7,989
	Fair value of consideration	$	50,340	$	15,133	$	65,473


	Business Combinations				Asset Acquisitions
	Nature’s Remedy		OSD		OhiGrow		Grover Beach		Total
Assets Acquired:
Cash and cash equivalents	$	3,195	$	259	$	—	$	—	$	3,454
Prepaids	325		53		—		—		378
Accounts receivable, net	263		—		—		—		263
Inventory	15,882		184		—		—		16,066
Indemnification assets (1)	1,322		1,411		—		—		2,733
Property, plant and equipment	19,470		—		3,165		269		22,904
Right-of-use assets - finance leases	27,305		—		—		2,050		29,355
Right-of-use assets - operating leases	1,337		1,859		—		—		3,196
Intangible assets - license (2)(4)	56,000		2,160		1,817		3,654		63,631
Intangible assets - tradenames (2)	4,400		—		—		—		4,400
Intangible assets - customer database (2)	2,100		—		—		—		2,100
Deposits	20		6		—		19		45
Total assets acquired (3)(4)	$	131,619	$	5,932	$	4,982	$	5,992	$	148,525

Liabilities Assumed:
Accounts payable and accrued liabilities	$	7,004	$	1,601	$	—	$	—	$	8,605
Finance lease obligations	27,052		—		—		2,032		29,084
Operating lease obligations	1,267		1,859		—		—		3,126
Deferred tax liabilities (4)	22,784		648		—		—		23,432
Total liabilities assumed (3)(4)	$	58,107	$	4,108	$	—	$	2,032	$	64,247

Net assets acquired (3)(4)	$	73,512	$	1,824	$	4,982	$	3,960	$	84,278
Goodwill (3)(4)	26,086		2,432		—		—		28,518
Total	$	99,598	$	4,256	$	4,982	$	3,960	$	112,796
Consideration:
Consideration paid in cash, as adjusted for working capital adjustments	$	40,360	$	1,827	$	4,949	$	3,592	$	50,728
Consideration paid in promissory notes (fair value) (3)	15,345		2,429		—		—		17,774
Consideration paid in shares	35,670		—		—		368		36,038
Contingent consideration	8,223		—		—		—		8,223
Capitalized costs	—		—		33		—		33
Fair value of consideration (3)	$	99,598	$	4,256	$	4,982	$	3,960	$	112,796


Carrying amount as of	Goodwill		Other intangible assets
Cost
Balance at December 31, 2021 (1)	$	45,828	$	197,502
Additions from acquisitions	35,734		25,640
Impairment	—		(37,600)
Balance at September 30, 2022	$	81,562	$	185,542

Accumulated amortization
January 1, 2022	$	—	$	(5,036)
Amortization	—		(2,283)
Balance at September 30, 2022	$	—	$	(7,319)

Net book value
Balance at December 31, 2021 (1)	$	45,828	$	192,466
Balance at September 30, 2022	$	81,562	$	178,223


1. NATURE OF OPERATIONS


3. REVENUE


4. INVENTORIES


6. PROPERTY, PLANT AND EQUIPMENT


	September 30, 2022 (unaudited)		December 31, 2021
Accrued capital expenditures	$	13,381	$	17,599
Goods received not invoiced	6,887		8,007
Accrued employee related expenses and liabilities	6,728		6,062
Accrued professional and management fees	1,034		5,139
Accrued sales and excise taxes	1,562		2,535
Accrued interest	2,363		1,181
Deferred revenue (loyalty program)	1,873		1,427
Operating lease obligations - current portion	2,661		2,745
Contingent consideration liabilities - current portion(1)	3,253		—
Other accrued expenses and current liabilities	4,360		3,277
Total	$	44,102	$	47,972


	Effective Interest Rate	Maturity Date	September 30, 2022		December 31, 2021
Principal amounts:
Senior Notes	38%	January 2023	$	74,935	$	75,193
Acquisition Facility	14%	October 2026	65,000		40,000
Acquisition-related promissory notes payable	8% - 23%	November 2022 - April 2027	59,628		25,767
Other debt (1)	7% - 12%	March 2022 - July 2050	16,639		11,728
Total debt - principal amounts			$	216,202	$	152,688
Less: debt issuance costs and original issue discounts			(16,303)		(23,536)
Total debt - carrying amounts			$	199,899	$	129,152
Debt - current portion			$	137,967	$	6,181
Debt - non-current portion			$	61,932	$	122,971


	Remainder of the year		2023		2024		2025		2026		Thereafter		Total
Senior Notes	$	—	$	74,935	$	—	$	—	$	—	$	—	$	74,935
Acquisition Facility	—		—		4,875		6,500		53,625		—		65,000
Acquisition-related promissory notes payable (1)	2,411		3,449		22,385		1,970		6,971		22,442		59,628
Other debt	3,831		588		116		125		132		11,847		16,639
Total	$	6,242	$	78,972	$	27,376	$	8,595	$	60,728	$	34,289	$	216,202


Applicable Ratio			Fiscal Quarter Ending
6.00 to 1.00			March 31, 2023
5.00 to 1.00			June 30, 2023
4.00 to 1.00			September 30 and December 31, 2023
3.50 to 1.00			March 31, 2024 and all fiscal quarters ending thereafter


	September 30, 2022				December 31, 2021
	(unaudited)
	Finance Leases		Operating Leases		Finance Leases		Operating Leases
Weighted average discount rate	11.23	%	11.70	%	11.75	%	11.50	%
Weighted average remaining lease term (in years)	22.7		14.1		22.6		14.6


	Total Derivative Liabilities (1)(3)
Carrying amounts as of January 1, 2022	$	92,435
Fair value changes (2)	(63,233)
Derivative Warrants exercises	(9,401)
Carrying amounts as of September 30, 2022	$	19,801


	September 30, 2022 (unaudited)	December 31, 2021
Stock price	$1.23	$3.25
Risk-free annual interest rate	4.23%	0.97%
Range of estimated possible exercise price	$1.25	$0.04 - $1.25
Volatility	72%	73%
Remaining life	2.23 years	3 years
Forfeiture rate	0%	0%
Expected annual dividend yield	0%	0%


	As of September 30, 2022							As of December 31, 2021
	(unaudited)
	Input			Effect of 10% Increase		Effect of 10% Decrease		Input			Effect of 10% Increase		Effect of 10% Decrease
Stock price	$	1.23		$	3,281	$	(3,144)	$	3.25		$	12,781	$	(10,834)
Volatility	72		%	$	1,547	$	(1,591)	73		%	$	4,473	$	(3,210)


Expiration Date	Exercise Price ($)	Number of Warrants
2023	1.47 - 1.50	337,500
2024	1.25	35,862,922
2025	1.25 - 3.00	2,168,508
2026	4.18	300,000
2027	1.93	300,000
2029	0.50 - 2.00	26,367,627
Total warrants		65,336,557


	Non-Derivative Warrants	Derivative Warrants (2)	Total Number of Warrants	Weighted - Average Exercise Price






Balance as of January 1, 2022	29,156,048	40,124,355	69,280,403	$	1.19
Granted	400,000	—	400,000	$	2.20
Exercised (1)	(715,846)	(3,628,000)	(4,343,846)	$	1.26



Balance as of September 30, 2022	28,840,202	36,496,355	65,336,557	$	1.19
Exercisable as of September 30, 2022	26,940,202	36,496,355	63,436,557	$	1.15


	Number of Stock Options	Weighted-Average Per Share Exercise Price








Issued and Outstanding as of January 1, 2022	20,429,120	$	3.20
Granted (1)	10,311,000	$	2.01
Exercised (2)	(274,998)	$	1.66
Forfeited/expired/cancelled	(2,037,002)	$	4.58
Issued and Outstanding as of September 30, 2022	28,428,120	$	2.68
Exercisable as of September 30, 2022	11,863,260	$	2.44


Expiration Year	Stock Options Outstanding	Exercise Price	Stock Options Exercisable
2022	50,000	$1.35 - $2.00	50,000
2028	685,000	$1.00 - $1.35	685,000
2029	6,849,668	$1.26 - $2.75	6,689,665
2030	792,500	$0.91 - $3.98	426,660
2031	9,809,952	$3.70 - $6.53	2,837,941
2032	10,241,000	$1.60 - $4.20	1,173,994
	28,428,120		11,863,260


			Number of Restricted Subordinate Voting Shares




Unvested restricted stock as of January 1, 2022			2,859,151
Granted (1)			86,952
Cancelled			(7,813)
Vested			(1,701,221)
Unvested restricted stock as of September 30, 2022			1,237,069


	September 30,
	2022	2021
Stock options	28,428,120	10,921,452
Warrants	28,840,202	28,995,403
Unvested restricted stock awards	1,237,069	3,666,511
Convertible promissory notes	910,000	910,000
	59,415,391	44,493,366


	Three Months Ended September 30,				Nine Months Ended September 30,				As of
	(unaudited)
	2022		2021		2022		2021			September 30, 2022 (unaudited)		December 31, 2021
Nature of transaction	Related Party Income (Expense)				Related Party Income (Expense)				Related Party Prepaid/Receivable (Payable)
Management services agreements (1)	$	—	$	(10)	$	—	$	(30)		$	—	$	—

Senior Notes - interest expense and principal amount (2)	$	(9)	$	(50)	$	(26)	$	(150)		$	(342)	$	(1,194)
Other debt (3)	$	—	$	—	$	—	$	—		$	(3,134)	$	(3,384)
Loans to senior key management - interest charged and principal plus accrued interest outstanding (4)	$	—	$	30	$	—	$	91		$	—	$	—


	Level 1		Level 2		Level 3		Total
Financial assets:
Equity investment	$	—	$	—	$	1,500	$	1,500
	$	—	$	—	$	1,500	$	1,500
Financial liabilities:
Derivative liabilities (1)	$	—	$	—	$	19,801	$	19,801
Contingent consideration liabilities (2)	—		—		4,671		4,671
	$	—	$	—	$	24,472	$	24,472


(1)			Net (loss) income includes amounts attributable to non-controlling interests.
(2)			Includes amounts that are included in cost of goods sold and in operating expenses.
(3)			Includes: (i) inventory step-up on business combinations; (ii) inventory recall reserves; and (iii) reserves for discontinued products. The inventory step-up on business combinations relate to the fair value write-up on inventory acquired on the business acquisition date and then sold subsequent to the acquisition date. The inventory recall reserves relate to the estimated impact of the Pennsylvania Department of Health recall and ban of vape products containing certain cannabis concentrates. The ban was lifted in June 2022.
(4)			Includes: (i) remeasurement of contingent consideration related to acquisitions; (ii) losses (gains) on investments and financial assets; (iii) losses (gains) on legal settlements; and (iv) severance costs.
(5)			Expansion and start-up costs incurred in order to prepare a location for its intended use. Start-up costs are expensed as incurred and are not indicative of ongoing operations of each new location.
(6)			Transaction costs include: (i) registration statement costs such as professional fees and other costs relating to our SEC registration; and (ii) acquisition and deal costs.
(7)			During the second quarter of 2021, we revised our methodology for calculating Adjusted EBITDA to also adjust for the effects of acquisition and deal costs, severance costs and start-up costs. We revised our methodology for calculating Adjusted EBITDA because we believe that the fluctuations caused in our operating results from these items are not reflective of our core performance, and that the revised methodology provides management and investors more useful information to evaluate the operations of our business. The prior period data for these items has been added to conform to current period presentation.


31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d — 14(a)
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d — 14(a)
32.1			Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002
32.2			Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			Inline XBRL Instance Document
101.SCH			Inline XBRL Taxonomy Extension Schema Document
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File (embedded with Inline XBRL File)


	JUSHI HOLDINGS INC.

Date: November 21, 2022	By:	/s/ James Cacioppo
		James Cacioppo
		Chief Executive Officer and Chairman of the Board of Directors (principal executive officer)

Date: November 21, 2022	By:	/s/ Louis Jonathan Barack
		Louis Jonathan Barack
		President and Interim Chief Financial Officer (principal financial officer)


						/s/ James Cacioppo
						James Cacioppo
						Chief Executive Officer (principal executive officer)