Glass House Brands Inc.

Loss-making cannabis grower with declining revenue, high leverage and a disclosed material weakness in internal controls.

Strengths

• Positive operating cash margin (6.3%, 70.6th pct) and adequate liquidity (current ratio 1.78, 67th pct)
• Gross margin near sector median (47th pct)

Risks

• Deeply negative returns (ROE -40%, 20.5th pct) and net margin -16% with net income down 58% (2.6th pct)
• High debt/equity 0.93 (88.9th pct) and negative FCF (-$15.7M, 11th pct)
• Management concluded disclosure controls not effective due to material weakness

Notable findings

• Net lossNet loss (net margin -16.3%)
• Cash burnNegative free cash flow (-15.7M)
• Material weaknessBased on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures, as a result of the m
• Insider sellingInsider selling — 3 open-market sale(s) by 1 insider(s) (~$323,103, last 6mo) Form 4 ↗