UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2023

Commission File Number: 001-40258

HIGH TIDE INC.

(Registrant)

11127 - 15 Street N.E., Unit 112

Calgary, Alberta

Canada T3K 2M4

(Address of Principal Executive Offices)

Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F           Form 40-F 

Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): 

Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

HIGH TIDE INC.

 

(Registrant)

Date: September 14, 2023

By

    

/s/ Raj Grover

 

 

 

Raj Grover

 

 

 

President and Chief Executive Officer

 

 

 

 


Exhibit 99.1

Graphic

Condensed Interim Consolidated
Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Stated in thousands of Canadian dollars, except share and per share amounts)

(Unaudited)


Graphic

High Tide Inc.

Condensed Interim Consolidated Financial Statement

For the three and nine months ended July 31, 2023 and 2022

Condensed Interim Consolidated Financial Statements for the three and nine months ended July 31, 2023 and 2022.

The accompanying unaudited condensed interim consolidated financial statements of High Tide Inc. (“High Tide” or the “Company”) have been prepared by and are the responsibility of the Company’s management and have been approved by the Audit Committee and Board of Directors of the Company.

Approved on behalf of the Board:

(Signed) “Harkirat (Raj) Grover”

(Signed) “Nitin Kaushal”

President and Chair of the Board

Director and Chair of the Audit Committee


Graphic

High Tide Inc.

Condensed Interim Consolidated Statements of Financial Position

As at July 31, 2023 and October 31, 2022

(Unaudited – In thousands of Canadian dollars)

    

Notes

    

2023

    

2022

$

$

Assets

Current assets

Cash and cash equivalents

25,697

25,084

Marketable securities

164

195

Trade and other receivables

11

9,713

8,200

Inventory

10

26,622

23,414

Prepaid expenses and deposits

9

5,083

7,167

Total current assets

67,279

64,060

Non-current assets

Property and equipment

7

27,448

31,483

Net Investment - Lease

179

203

Right-of-use assets, net

25

27,805

30,519

Long term prepaid expenses and deposits

9

3,120

2,988

Intangible assets and goodwill

8

139,330

145,490

Total non-current assets

197,882

210,683

Total assets

265,161

274,743

Liabilities

Current liabilities

Accounts payable and accrued liabilities

13

20,571

26,246

Deferred revenue

2,110

641

Current portion of notes payable

14

140

-

Interest bearing loans and borrowings

15

16,902

16,393

Current portion of convertible debentures

16

8,808

2,696

Current portion of lease liabilities

25

6,524

7,629

Current Portion of Derivative liability

12

3,130

6,336

Total current liabilities

58,185

59,941

Non-current liabilities

Notes payable

14

12,385

12,257

Convertible debentures

16

-

4,770

Lease liabilities

25

24,866

26,139

Deferred tax liability

7,436

9,603

Total non-current liabilities

44,687

52,769

Total liabilities

102,872

112,710

Shareholders’ equity

Share capital

18

287,479

279,513

Warrants

20

12,739

15,497

Contributed surplus

19

31,034

23,051

Convertible debentures – equity

717

717

Accumulated other comprehensive income

3,808

5,665

Accumulated deficit

(176,615)

(168,093)

Equity attributable to owners of the Company

159,162

156,350

Non-controlling interest

28

3,127

5,683

Total shareholders’ equity

162,289

162,033

Total liabilities and shareholders’ equity

265,161

274,743

3


Graphic

High Tide Inc.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars)

    

    

Three months ended

    

Nine months ended

Notes

2023

    

2022

    

2023

    

2022

$

$

$

$

  

  

  

  

  

Revenue

 

6, 23

 

124,352

 

95,354

 

360,564

248,604

Cost of sales

 

(89,774)

 

(69,599)

 

(262,234)

 

(177,170)

Gross profit

 

34,578

 

25,755

 

98,330

 

71,434

Expenses

 

  

 

 

  

 

  

Salaries, wages and benefits

 

(13,830)

 

(11,453)

 

(42,071)

 

(30,933)

Share-based compensation

 

19

 

(2,350)

 

(1,734)

 

(5,318)

 

(5,988)

General and administration

 

(6,452)

 

(6,267)

 

(20,140)

 

(18,798)

Professional fees

 

(1,791)

 

(1,170)

 

(6,900)

 

(3,249)

Advertising and promotion

 

(1,011)

 

(1,871)

 

(3,548)

 

(6,368)

Depreciation and amortization

 

7,8,25

 

(8,493)

 

(7,182)

 

(24,179)

 

(21,920)

Impairment loss

-

-

-

(89)

Interest and bank charges

 

(1,313)

 

(748)

 

(3,395)

 

(2,483)

Total expenses

 

(35,240)

 

(30,425)

 

(105,551)

 

(89,828)

Loss from operations

 

(662)

 

(4,670)

 

(7,221)

 

(18,394)

Other income (expenses)

 

 

  

 

  

 

  

 

  

Loss on extinguishment of financial liability

 

 

-

 

(784)

 

-

 

(784)

Gain on extinguishment of debenture

-

140

-

255

Gain (loss) on revaluation of marketable securities

-

(146)

18

(409)

Finance and other costs

 

17

(2,732)

 

(2,484)

 

(7,404)

 

(7,154)

Gain on revaluation of derivative liability

 

12

 

73

 

6,078

 

2,477

 

7,331

Other losses

(18)

-

(68)

-

Foreign exchange loss

 

(31)

 

(120)

 

(18)

 

(324)

Total other (expenses) income

 

(2,708)

 

2,684

 

(4,995)

(1,085)

Income (loss) before taxes

 

(3,370)

 

(1,986)

 

(12,216)

 

(19,479)

Income tax recovery (expense)

 

1,459

 

(731)

 

2,850

 

1,133

Deferred income tax (expense) recovery

(1,663)

-

219

-

Net loss

 

(3,574)

 

(2,717)

 

(9,147)

 

(18,346)

Other comprehensive income (loss)

 

  

 

  

 

  

 

  

Translation difference on foreign subsidiary

 

317

 

1,095

 

(1,857)

 

623

Total comprehensive loss

 

(3,257)

 

(1,622)

 

(11,004)

 

(17,723)

 

  

 

  

 

  

 

  

Net loss attributed to:

Owners of company

(2,864)

(2,331)

(8,522)

(17,825)

Non-controlling interest

28

(710)

(386)

(625)

(521)

(3,574)

(2,717)

(9,147)

(18,346)

Comprehensive loss attributed to:

Owners of company

(1,680)

(1,920)

(8,609)

(18,667)

Non-controlling interest

(1,577)

298

(2,395)

944

(3,257)

(1,622)

(11,004)

(17,723)

Loss per share

Basic and diluted

21

(0.04)

(0.04)

(0.12)

(0.29)

4


Graphic

High Tide Inc.

Condensed Interim Consolidated Statements of Changes in Equity

For the nine and twelve months ended July 31, 2023 and October 31, 2022

(Unaudited – In thousands of Canadian dollars)

    

    

    

    

    

Equity

    

Accumulated

    

    

    

    

    

    

portion of

other

Attributable

Contributed

convertible

comprehensive

Accumulated

to owners of

  

  

Note

Share capital

Warrants

surplus

debt

income (loss)

deficit

the Company

NCI

Total

    

    

$

    

$

    

$

    

$

    

$

$

    

$

    

$

    

$

Opening balance, November 1, 2021

 

 

208,904

 

10,724

 

15,162

 

859

 

(648)

(87,792)

 

147,209

 

4,795

 

152,004

Acquisition - FABCBD

 

5

 

313

 

-

 

-

 

-

 

-

-

 

313

 

-

 

313

Acquisition - NuLeaf

 

5

 

35,527

 

-

 

-

 

-

 

-

(8,326)

 

27,201

 

1,726

 

28,927

Acquisition - Budroom

 

5

 

3,738

 

-

 

-

 

-

 

-

-

 

3,738

 

-

 

3,738

Acquisition - Boreal Cannabis

 

5

 

2,203

 

-

-

-

-

-

 

2,203

 

-

 

2,203

Acquisition - Crossroads Cannabis

 

5

 

2,189

 

-

-

-

-

-

 

2,189

 

-

 

2,189

Acquisition - Choom

5

3,940

 

-

-

-

-

-

 

3,940

 

-

 

3,940

Issuance of shares through ATM

18

8,807

 

-

-

-

-

-

 

8,807

 

-

 

8,807

Issued to pay fees in shares

18

100

-

-

-

-

-

100

-

100

Share-based compensation

19

-

-

8,080

-

-

-

8,080

-

8,080

Equity portion of convertible debentures

-

-

-

(142)

-

-

(142)

-

(142)

Exercise options

19

526

-

(217)

-

-

-

309

-

309

Warrants expired

20

-

 

(273)

273

 

-

 

-

-

 

-

 

-

 

-

Warrants exercised

 

20

 

4,352

 

(6)

-

 

-

 

-

-

 

4,346

 

-

 

4,346

Share issuance costs

 

18

 

(974)

 

-

 

-

 

-

 

-

-

 

(974)

 

-

 

(974)

Vesting of RSUs

 

19

 

247

 

-

 

(247)

 

-

 

-

-

 

-

 

-

 

-

Issued warrants

 

 

-

 

5,052

 

-

 

-

 

-

-

 

5,052

 

-

 

5,052

Acquisition - Budheaven

 

5

 

1,986

 

-

 

-

 

-

 

-

-

 

1,986

 

-

 

1,986

Shares issued through equity financing

18

6,768

 

-

 

-

 

-

 

-

-

 

6,768

 

-

 

6,768

Daily High Club Escrow cancellation

19

(53)

 

-

 

-

 

-

 

-

-

 

(53)

 

-

 

(53)

Smoke Cartel Earnout

18

940

 

-

 

-

 

-

 

-

-

 

940

 

-

 

940

Partner distributions

28

-

 

-

 

-

 

-

 

-

-

 

-

 

(1,961)

 

(1,961)

Cumulative translation adjustment

-

 

-

 

-

 

-

 

6,313

-

 

6,313

 

-

 

6,313

Comprehensive (loss) gain for the period

 

 

-

 

-

 

-

 

-

 

-

(71,975)

 

(71,975)

 

1,123

 

(70,852)

Opening balance, November 1, 2022

 

 

279,513

 

15,497

 

23,051

 

717

 

5,665

(168,093)

 

156,350

 

5,683

 

162,033

Issuance of shares through ATM

18

1,894

-

-

-

-

-

1,894

-

1,894

Issued to pay fees in shares

 

18

 

278

-

-

-

-

-

278

-

278

Share-based compensation

19

-

-

5,318

-

-

-

5,318

-

5,318

Acquisition - Jimmy's Cannabis

5

4,932

-

-

-

-

-

4,932

-

4,932

Share issuance costs

18

(28)

-

-

-

-

-

(28)

-

(28)

Exercise options

19

161

-

(93)

-

-

-

68

-

68

Warrants expired

20

-

(2,758)

2,758

-

-

-

-

-

-

Partner distributions

28

-

-

-

-

-

-

-

(461)

(461)

Acquisition of FABCBD

12,28

729

-

-

-

-

-

729

(1,470)

(741)

Cumulative translation adjustment

-

-

-

-

(1,857)

-

(1,857)

-

(1,857)

Comprehensive loss (gain) for the period

-

-

-

-

-

(8,522)

(8,522)

(625)

(9,147)

Balance, July 31, 2023

 

 

287,479

12,739

31,034

717

3,808

(176,615)

159,162

 

3,127

 

162,289

5


Graphic

High Tide Inc.

Condensed Interim Consolidated Financial Statements of Cash Flows

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

    

Notes

    

2023

    

2022

$

$

Operating activities

  

  

  

Net loss

 

 

(9,147)

 

(18,346)

Adjustments for items not effecting cash and cash equivalents

 

 

Income tax recovery

 

 

(2,850)

 

(1,133)

Deferred income tax recovery

(219)

-

Accretion expense

 

17

 

3,168

 

3,951

Fee for services and interest paid in shares and warrants

 

18

 

278

 

-

Depreciation and amortization

 

7,8,25

 

24,179

 

21,920

Revaluation of derivative liability

 

12

 

(2,477)

 

(7,331)

Gain on extinguishment of debenture

-

 

(255)

Impairment loss

 

 

-

 

89

Foreign exchange loss

 

 

18

 

324

Other losses

68

-

Share-based compensation

 

19

 

5,318

5,988

Revaluation of marketable securities

(18)

 

409

 

 

18,318

 

5,616

Changes in non-cash working capital

 

 

Trade and other receivables

 

 

(1,513)

 

(6,130)

Inventory

 

 

(3,515)

 

(4,156)

Loan receivable

-

(2,429)

Prepaid expenses and deposits

 

 

1,941

 

(2,194)

Accounts payable and accrued liabilities

 

 

(5,675)

 

5,518

Deferred revenue

1,469

-

Net cash provided by (used in) operating activities

 

 

11,025

 

(3,775)

 

Investing activities

 

 

Purchase of property and equipment

 

7

 

(3,615)

 

(6,880)

Purchase of intangible assets

 

8

 

(291)

 

(1,060)

Proceeds from the sale of marketable securities

49

-

Business Combinations, net of cash acquired

 

5

 

270

 

616

Net cash used in investing activities

 

 

(3,587)

 

(7,324)

 

Financing activities

 

 

Repayment of interest bearing loans and borrowings

15

(2,164)

(932)

Proceeds from interest bearing loans net of issue costs

 

15

 

2,673

 

-

Proceeds from notes payable

 

 

-

 

9,500

Repayment of notes payable

-

 

(4,040)

Repayment of convertible debentures

 

 

-

 

(2,325)

Lease liability payments

(8,195)

 

(7,233)

Share issuance costs

 

18

 

(28)

 

(966)

Partner distributions

28

(461)

-

Proceeds from equity financing

-

10,645

Proceeds from equity financing through ATM

18

1,894

8,307

Warrants exercised

-

2,141

Options exercised

18

161

309

Net cash (used in) provided by financing activities

 

 

(6,120)

 

15,406

 

Effect of foreign exchange on cash

(705)

-

Net increase in cash

 

 

613

 

4,307

Cash and cash equivalents, beginning of period

 

 

25,084

 

14,014

Cash and cash equivalents, end of period

 

 

25,697

 

18,321

6


Graphic

High Tide Inc.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

1.

Nature of Operations

High Tide Inc. (the “Company” or “High Tide”) is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company’s shares are listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol “HITI”(listed as of June 2, 2021), the TSX Venture Exchange (“TSXV”) under the symbol “HITI”, and on the Frankfurt Stock Exchange (“FSE”) under the securities identification code ‘WKN: A2PBPS’ and the ticker symbol “2LYA”. The address of the Company’s corporate and registered office is # 120 – 4954 Richard Road SW, Calgary, Alberta T3E 6L1.

High Tide does not engage in any U.S. cannabis-related activities as defined by the Canadian Securities Administrators Staff Notice 51-352.

2. Basis of Preparation

A.Statement of compliance

These condensed interim consolidated financial statements (“Financial Statements”) have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). They are condensed as they do not include all of the information required for full annual financial statements, and they should be read in conjunction with the audited consolidated financial statements of the Company for the year ended October 31, 2022 which are available on SEDAR at www.sedarplus.ca.

These condensed interim consolidated financial statements were approved and authorized for issue by the Board of Directors on September 14, 2023.

B.Basis of measurement

These condensed interim consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. The accounting policies set out below have been applied consistently by the Company and its wholly owned subsidiaries for the periods presented.

C.Currencies and Foreign Exchange

The Company’s condensed interim consolidated financial statements are presented in Canadian dollars, which is the functional and presentation currency of the Company and its Canadian subsidiaries. The functional currency of the Company’s United States (“U.S.”) subsidiaries is the U.S. dollar (“USD”), of the Company’s European subsidiaries is the Euro (“EUR”), and of the Company’s United Kingdom subsidiaries is the British Pound Sterling (“GBP”). Transactions denominated in currencies other than the functional currency are translated at the rate prevailing at the date of transaction. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rate prevailing at each reporting date. Income and expense amounts are translated at the dates of the transactions.

In preparing the Company’s condensed interim consolidated financial statements, the financial statements of the foreign subsidiaries are translated into Canadian dollars. The assets and liabilities of foreign subsidiaries are translated into Canadian dollars using exchange rates at the reporting date. Revenues and expenses of foreign operations are translated into Canadian dollars using average foreign exchange rates. Translation gains and losses resulting from the consolidation of operations into the Company’s functional currency, are recognized in other comprehensive income in the statement of loss and other comprehensive loss and as a separate component of shareholders’ equity on the consolidated statement of changes in equity.

7


Graphic

High Tide Inc.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

D.Basis of Consolidation of Subsidiaries

Subsidiaries are entities controlled by High Tide Inc. Control is achieved when the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the consolidated statements of loss and other comprehensive loss from the effective date of acquisition and up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the consolidated financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. Intra‐group balances and transactions, and any unrealized gains or losses or income and expenses arising from intra‐group transactions are eliminated in preparing the consolidated financial statements.

On May 24, 2023, the remaining shares within Fab Nutrition, LLC were acquired through exercise of the minority interest’s put option. As at July 31, 2023, High Tide owns 100% of all shares within Fab Nutrition, LLC. (Note 12)

Subsidiaries

    

Percentage Ownership

    

Functional Currency

Canna Cabana Inc.

100%

Canadian Dollar

2680495 Ontario Inc.

100%

Canadian Dollar

Saturninus Partners GP

50%

Canadian Dollar

Valiant Distribution Canada Inc.

100%

Canadian Dollar

META Growth Corp.

100%

Canadian Dollar

NAC Thompson North Ltd. Partnership

49%

Canadian Dollar

NAC OCN Ltd. Partnership

49%

Canadian Dollar

HT Global Imports Inc.

100%

Canadian Dollar

2049213 Ontario Inc.

100%

Canadian Dollar

1171882 B.C. Ltd.

100%

Canadian Dollar

High Tide BV (Grasscity)

100%

European Euro

Valiant Distribution Inc.

100%

U.S. Dollar

Smoke Cartel USA, Inc.

100%

U.S. Dollar

Fab Nutrition, LLC

100%

U.S. Dollar

Halo Kushbar Retail Inc.

100%

Canadian Dollar

Nuleaf Naturals LLC

80%

U.S. Dollar

DHC Supply, LLC

100%

U.S. Dollar

DS Distribution Inc.

100%

U.S. Dollar

Enigmaa Ltd.

80%

British Pound Sterling

3.

Accounting Policies

The significant accounting policies applied in the preparation of the unaudited condensed interim consolidated financial statements for the three and nine months ended July 31, 2023, and 2022 are consistent with those applied and disclosed in Note 3 of the Company’s Consolidated Financial Statements for the years ended October 31, 2022 and 2021.

For comparative purposes, the Company has reclassified certain items on the comparative condensed interim consolidated statements of loss and comprehensive loss to conform with current period’s presentation.

4. Significant accounting judgement, estimates and assumptions

The estimates and assumptions are reviewed on an ongoing basis. Revisions in accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years. Significant judgements, estimates, and assumptions within these condensed interim consolidated financial statements are consistent as those applied to the Consolidated Financial Statements for the year ended October 31, 2022 in Note 4.

8


Graphic

High Tide Inc.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

5.

Business Combinations

In accordance with IFRS 3, Business Combinations, these transactions meet the definition of a business combination and, accordingly, the assets acquired, and the liabilities assumed have been recorded at their respective estimated fair values as of the acquisition date.

A.Jimmy’s Cannabis Acquisition

Total consideration

    

$

Common shares

4,932

Working Capital Adjustment

352

 

5,284

Purchase price allocation

 

  

Cash

 

622

Inventory

307

Prepaid expenses

11

Property, plant and equipment

111

Right of use asset

129

Intangible assets - business license rights

1,547

Goodwill

 

3,116

Accounts payable and accrued liabilities

 

(319)

Lease liabilities

 

(130)

Income tax payable

 

(110)

 

5,284

On December 29, 2022, the Company closed the acquisition of 100% of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC (“Jimmy’s”) which operates two retail cannabis stores in British Columbia. Pursuant to the terms of the Arrangement, the consideration was comprised of 2,595,533 common shares of the Company having an aggregate value of (i) $4,932 in shares and (ii) working capital adjustments of $352.

In accordance with IFRS 3, Business Combinations (“IFRS 3”), the substance of this transaction constituted a business combination. Management gathered the relevant information that existed at the acquisition date to determine the fair value of the net identifiable assets acquired. As such, the initial purchase price was allocated based on the Company’s estimated fair value of the identifiable assets acquired on the acquisition date. Management finalized its purchase price allocation for the fair value of identifiable intangible assets, income taxes and the allocation of goodwill. The goodwill is primarily related to the opportunities to grow the business, expanded access to capital and greater financial flexibility. Goodwill is not deductible for tax purposes. For the period ended July 31, 2023, Jimmy accounted for $3,022 in revenues and $389 in net loss. If the acquisition had been completed on November 1, 2022, the Company estimates it would have recorded an increase of $3,841 in revenues and a decrease of $494 in net loss for the period ended July 31, 2023.

9


Graphic

High Tide Inc.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

6.

Revenue from Contracts with Customers

For the three months ended July 31

    

2023

    

2022

    

2023

    

2022

    

2023

    

2022

    

2023

    

2022

Retail

Retail

Wholesale

Wholesale

Corporate

Corporate

Total

Total

$

$

$

$

$

$

$

$

Primary geographical markets (i)

Canada

111,662

80,436

192

215

62

45

111,916

80,696

USA

11,844

12,012

144

727

-

-

11,988

12,739

International

448

1,919

-

-

-

-

448

1,919

Total revenue

123,954

94,367

336

942

62

45

124,352

95,354

Major products and services

Cannabis

106,952

79,140

-

-

-

-

106,952

79,140

Consumption accessories

 

10,399

9,427

325

941

-

-

10,724

10,368

Data analytics services

 

6,535

5,475

-

-

-

-

6,535

5,475

Other revenue

 

68

325

11

1

62

45

141

371

Total revenue

 

123,954

94,367

336

942

62

45

124,352

95,354

Timing of revenue recognition

 

Transferred at a point in time

 

123,954

94,367

336

942

62

45

124,352

95,354

Total revenue

 

123,954

94,367

336

942

62

45

124,352

95,354

For the nine months ended July 31

    

2023

    

2022

    

2023

    

2022

    

2023

    

2022

    

2023

    

2022

Retail

Retail

Wholesale

Wholesale

Corporate

Corporate

Total

Total

$

$

$

$

$

$

$

$

Primary geographical markets (i)

Canada

314,654

195,007

389

1,492

241

97

315,284

196,596

USA

41,197

44,484

1,525

1,636

-

-

42,722

46,120

International

2,558

5,888

-

-

-

-

2,558

5,888

Total revenue

358,409

245,379

1,914

3,128

241

97

360,564

248,604

Major products and services

Cannabis

304,666

197,581

-

-

-

-

304,666

197,581

Consumption accessories

 

33,977

30,991

1,868

3,112

-

-

35,845

34,103

Data analytics services

 

19,488

15,275

-

-

-

-

19,488

15,275

Other revenue

 

278

1,532

46

16

241

97

565

1,645

Total revenue

 

358,409

245,379

1,914

3,128

241

97

360,564

248,604

Timing of revenue recognition

 

Transferred at a point in time

 

358,409

245,379

1,914

3,128

241

97

360,564

248,604

Total revenue

 

358,409

245,379

1,914

3,128

241

97

360,564

248,604

(i)

Represents revenue based on geographical locations of the customers who have contributed to the revenue generated in the applicable segment.

10


Graphic

High Tide Inc.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and nine months ended July 31, 2023 and 2022

(Unaudited – In thousands of Canadian dollars, except share and per share amounts)

7.

Property and Equipment

    

Office equipment

Production

    

Leasehold 

    

    

    

and computers

equipment

improvements

Vehicles

Buildings

Total

Cost

$

$

$

$

$

$

Opening balance, November 1, 2021

3,100

-

27,224

16

2,800

33,140

Additions

541

34

7,163

21

-

7,759

Additions from business combinations

854

2,692

3,960

-

-

7,506

Foreign currency translation

19

189

4

-

-

212

Balance, October 31, 2022

 

4,514

2,915

38,351

37

2,800

48,617

Additions and reclasses

 

180

-

3,435

-

-

3,615

Additions from business combinations (Note 5)

 

-

-

111

-

-

111

Foreign currency translation

255

734

(60)

1

-

930

Balance, July 31, 2023

 

4,949

3,649

41,837

38

2,800

53,273

Accumulated depreciation

Opening balance, November 1, 2021

 

1,206

-

7,113

9

56

8,384

Depreciation

 

925

486

7,117

5

217

8,750

Balance, October 31, 2022

 

2,131

486

14,230

14

273

17,134

Depreciation

 

602

386

6,090

3

163

7,244

Foreign currency translation

675

638

134

-

-

1,447

Balance, July 31, 2023

 

3,408

1,510

20,454

17

436

25,825

Balance, October 31, 2022

2,383

2,429

24,121