Glass House Brands Inc · NEO:GLAS.A.U
Glass House Brands — Q4 2024 Earnings Presentation
41 slides from Glass House Brands's earnings presentation, Mar 23, 2025
Slide 1: Q4 2024 Investor Presentation
GLASS HOUSE BRANDS Q 4 2 0 2 4 I N V E S TO R P R E S E N TAT I O N CBOE CANADA: GLAS.A.U OTCQX: GLASF
Slide 2: GLASS HOUSE BRANDS
GLASS HOUSE BRANDS 2
Slide 3: The #1 Cannabis Company in the #1 Market in the World
GLASS HOUSE BRANDS GLASS HOUSE BRANDS THE #1 CANNABIS COMPANY IN THE #1 MARKET IN THE WORLD 3
Slide 4: California: Large Market with High Growth Potential
GLASS HOUSE BRANDS CALIFORNIA: LARGE MARKET WITH HIGH GROWTH POTENTIAL >30M ADULTS1 ~270M TOURISTS2 ~4,400 CULTIVATORS 3 ~1,000 DISTRIBUTORS 3 ~1,200 RETAILERS3 >600 BRANDS4 1. Source: https://www.census.gov/quickfacts/CA, the number of adults over 18 years of age. 2. Source: https://industry.visitc
Slide 5: Milestones
GLASS HOUSE BRANDS Milestones Q3 2021 Q2 2022 Q1 2023 Q4 2023 Q2 2024 Q4 2024 Glass House Farms Glass House Grand opening for two GHB closes $15M Allswell becomes becomes the #1-selling completes its new Farmacy locations Series D Stock Achieved fourth a Top 3 CA flower consecutive flower brand in J
Slide 6: Investment Highlights
GLASS HOUSE BRANDS INVESTMENT HIGHLIGHTS LARGEST CULTIVATION A BRAND-BUILDING CALL OPTION ON FOOTPRINT, UNMATCHED MACHINE IN THE INTERSTATE COMMERCE CAPACITY LARGEST US MARKET Strongly positioned to carry Up to 6m sq. ft. of best-in-class H i g h q u a l i t y, s u n - g r o w n c a n n a b i s lead
Slide 7: Vertical Integration Maximizes Quality and Protects Margin
VERTICAL INTEGRATION MAXIMIZES QUALITY AND PROTECTS GLASS HOUSE BRANDS MARGIN 3 1 10 CULTIVATION MANUFACTURING RETAIL Berkeley FACILITIES FACILITY LOCATIONS Turlock PADARO LOMPOC FARMACY Lemoore 350,000 ft2 License Type 5 Stores 6,7 & 11 CASITAS NHC Morro Bay 150,000 ft2 PLUS & Allswell 4 Stores Gro
Slide 8: Selling at the Highest Possible Price
GLASS HOUSE BRANDS SELLING AT THE HIGHEST POSSIBLE PRICE Internal CPG 3rd Party Distros External Brands OUR SCALE, CONSISTENT QUALITY AND VARIETY OF POPULAR STRAINS ENSURES WE COMMAND THE BEST PRICES
Slide 9: Vertically-Integrated Model Enabled Rapid Growth in Challenging Market
OUR VERTICALLY-INTEGRATED MODEL AND COST EFFICIENCY HAVE ENABLED GLASS HOUSE TO GROW RAPIDLY IN THE FACE OF A GLASS HOUSE BRANDS CHALLENGING MARKET CA Market vs. GHB Revenue 4Q Rolling Average (Millions) Glass House Brands CA Market Source: Glass House Brands, Headset
Slide 10: The Glass House Growing Advantage
GLASS HOUSE BRANDS THE GLASS HOUSE GROWING ADVANTAGE GLASS HOUSE CLIMATE AND LOCATION FACILITY CONSISTENTLY GROWS SoCal Sunshine is abundant The SoCal Greenhouse Farm was HIGH QUALITY and FREE! designed for tomatoes and cucumbers CANNABIS AT THE Temperature is consistent and in a – a single digit gr
Slide 11: Cannabis Grows Better in Camarillo California
GLASS HOUSE BRANDS CANNABIS GROWS BETTER IN CAMARILLO CALIFORNIA More Sunlight: Located in a geographic region with the Ideal Temperature Range: There are more days of highest amount of average daily sunlight in the entire US. weather within the ideal cannabis growing temperature Goldilocks Latitude
Slide 12: Key Features of Our SoCal Farm
GLASS HOUSE BRANDS KEY FEATURES OF OUR SOCAL FARM To 165-Acre Farm with 5.5M ft2 of cultivation footprint spread amongst six state-of-the-art greenhouses Less than a 6-hour drive San Francisco to the three largest markets in California ● San Francisco: 375 miles, 5hr 50min ■ Amazon Distribution Cent
Slide 13: Operations: Expanding Footprint
OPERATIONS: GLASS HOUSE BRANDS EXPANDING FOOTPRINT GREENHOUSE 3 GREENHOUSE 4 TBD Hemp Trials Gross Area (K ft2) 992 3 4 Gross Area (K ft2) 992 Estimated Cultivation Area (K ft2) 675 Same size as GH4, Currently growing hemp on an R&D Estimated Cultivation Area (K ft2) 675 Year 1 Estimated Production
Slide 14: Operations: Ancillary Features
OPERATIONS: GLASS HOUSE BRANDS ANCILLARY FEATURES WATER SOLAR ULTRA CLIMA ▪ On-site well water with a ▪ 1MW of Clean Solar to help power ▪ 400 fans per greenhouse backup well, fully self-sufficient GH5 & GH6 climate control functions create overpressure to keep ▪ 4 x 1M gallon irrigation ▪ Rainwater
Slide 15: Operations: The SoCal Greenhouse Farm
OPERATIONS: GLASS HOUSE BRANDS THE SOCAL GREENHOUSE FARM OUR FULL CAPACITY PRODUCTION ESTIMATE IS UNMATCHED CAPACITY 1.6M POUNDS & LOW-COST PRODUCTION Our total capacity estimate for when all retrofits to all greenhouses at the SoCal Farm are complete is 1.6M pounds, including production from our Pa
Slide 16: On Track to Produce 1.6M Lbs at Full Capacity
GLASS HOUSE IS ON TRACK TO PRODUCE 1.6M LBS AT FULL GLASS HOUSE BRANDS CAPACITY 1,600 Existing cultivation 1,200 footprint is expected Pounds of Production to produce 770K lbs 800 The remaining 3 Greenhouses plus ongoing 400 improvements generate the balance '- 2021 2022 2023 2024 Phase 2 Phase 3 Ph
Slide 17: Consistent Progress to Target Cost of $100 Per Pound
GLASS HOUSE IS MAKING CONSISTENT PROGRESS TO GLASS HOUSE BRANDS ITS TARGET COST OF $100 PER POUND Making Progress Towards Our Goal Roadmap To $100 Per $210 Pound $128 $190 ($10) 2021 (Casitas and Padaro only) Greenhouse $170 Efficiency Improvements ($10) Cost per Pound Process ($4) Improvements ($4)
Slide 18: Phase Expansion – Timing and Costs
GLASS HOUSE BRANDS PHASE 3 EXPANSION – TIMING AND COSTS ▪ Projected total spending for Phase 3 is $25M to high-pressure sodium lights and will provide the $30M option to implement positive pressure in the future. ▪ Phase 3 retrofit of GH2 will add 585k square feet ▪ There will be additional nursery,
Slide 19: Hemp-Derived Cannabis vs. Cannabis Cultivation
GLASS HOUSE BRANDS HEMP-DERIVED CANNABIS VS. CANNABIS CULTIVATION ▪ August 2024, Glass House announced that it ▪ Glass House has already acquired a hemp was analyzing the hemp-derived cannabis cultivation license and has begun initial testing market with the intent of potentially selling it includin
Slide 20: Strong Brands Across Key Market Segments
GLASS HOUSE BRANDS STRONG BRANDS ACROSS KEY MARKET SEGMENTS
Slide 21: The Farmacy
GLASS HOUSE BRANDS THE FARMACY THE FARMACY – SANTA THE FARMACY – SANTA THE FARMACY SANTA BARBARA ANA YNEZ THE FARMACY – BERKELEY THE FARMACY ISLA VISTA 21
Slide 22: Natural Healing Center & The Pottery
GLASS HOUSE BRANDS NATURAL HEALING CENTER & THE POTTERY NHC – GROVER BEACH NHC – MORRO BAY NHC – LEMOORE NHC – TURLOCK THE POTTERY – LOS ANGELES 22
Slide 23: ESG as a Strategic and Competitive Advantage
GLASS HOUSE BRANDS ESG AS A STRATEGIC AND COMPETITIVE ADVANTAGE ▪ Strategically located in Kg CO2 per kg Flower2 kWh per Sq. Ft. of Flower2 California, where growing 3000 300 conditions are optimal ▪ Focus on energy efficiency with solar and cogeneration 2250 225 capabilities ▪ ESG mandated U.S. AUM
Slide 24: Meet the Glass House Team
GLASS HOUSE BRANDS MEET THE GLASS HOUSE TEAM KYLE KAZAN GRAHAM FARRAR MARK VENDETTI HILAL TABSH BEN VEGA Co-founder, Chairman Co-founder, President Chief Financial Officer Chief Revenue Officer General Counsel & & CEO & Board Director Corporate Secretary BEN VASQUEZ JACQUELINE DE GINESTET JENNIFER B
Slide 25: Historical Financial Data
GLASS HOUSE BRANDS H I S T O R I C A L F I N A N C I A L D ATA
Slide 26: Revenue and Gross Profit
GLASS HOUSE BRANDS REVENUE AND GROSS PROFIT 26
Slide 27: Wholesale Biomass Metrics
GLASS HOUSE BRANDS WHOLESALE BIOMASS METRICS 27
Slide 28: Annual Net Income / Loss
GLASS HOUSE BRANDS ANNUAL NET INCOME / LOSS 28
Slide 29: Quarterly Net Income / Loss
GLASS HOUSE BRANDS QUARTERLY NET INCOME / LOSS (in thousands) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Revenues, Net $ 40,429 $ 30,100 $ 53,938 $ 63,821 $ 53,039 Cost of Goods Sold 22,417 17,574 25,264 30,379 30,288 Gross Profit 18,012 12,526 28,674 33,442 22,751 % of Net Revenue 45% 42% 53% 52% 43%
Slide 30: Annual Adjusted EBITDA
GLASS HOUSE BRANDS ANNUAL ADJUSTED EBITDA 30
Slide 31: Quarterly Adjusted EBITDA
GLASS HOUSE BRANDS QUARTERLY ADJUSTED EBITDA (in thousands) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $ $ Net Income (Loss) (GAAP) $ (38,115) (18,269) $ 10,039 (3,208) $ 12,159 Depreciation and Amortization 3,545 3,716 3,723 3,731 3,874 Interest Expense 3,033 2,206 2,593 2,255 2,130 Income Tax Expense
Slide 32: Select Balance Sheet Information
GLASS HOUSE BRANDS SELECT BALANCE SHEET INFORMATION (in thousands) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Cash and Restricted Cash $ 32,524 $ 24,408 $ 25,879 $ 35,060 $ 36,923 Accounts Receivable, Net 3,979 3,008 7,717 7,892 5,221 Income Taxes Receivable — — — 1,311 1,929 Prepaid Expenses and Other
Slide 33: Select Cash Flow Information
GLASS HOUSE BRANDS SELECT CASH FLOW INFORMATION 33
Slide 34: Select Cash Flow Information
GLASS HOUSE BRANDS SELECT CASH FLOW INFORMATION (in thousands) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $ $ $ Net Income (Loss) (38,115) (18,269) $ 10,039 (3,208) $ 12,159 Depreciation and Amortization 3,545 3,716 3,723 3,731 3,874 Share-Based Compensation 1,909 3,272 3,621 2,947 3,258 Impairment Exp
Slide 35: Equity Table
GLASS HOUSE BRANDS EQUITY TABLE (in thousands, except share price) Q4 2024 Q3 2024 Change Comments Total Equity and Exchangeable Shares Exercise of RSU's, ISO's, issuance of 76,906 76,271 635 shares for payment on convertible debentures and issuance of shares for At-the-Market Program Warrants Serie
Slide 36: Notes Payable and Preferred Equity
GLASS HOUSE BRANDS NOTES PAYABLE AND PREFERRED EQUITY 36
Slide 37: Board of Directors
GLASS HOUSE BRANDS BOARD OF DIRECTORS CBOE CANADA: GLAS.A.U C B O E C A N A D A : G L A S . W T. U OTCQX: GLASF OTCQX: GHBWF @glasshousebrands glass-house-brands-inc @GlassHouseBR
Slide 38: Board of Directors
GLASS HOUSE BRANDS BOARD OF DIRECTORS KYLE KAZAN GRAHAM FARRAR ▪ Co-founder, Chairman & CEO of Glass House Group ▪ Co-founder, President & Board Director of Glass House Group ▪ 30+ years of successful Private Equity & investment ▪ 20+ years of serial entrepreneurship, including taking two experience
Slide 39: Board of Directors
GLASS HOUSE BRANDS BOARD OF DIRECTORS GEORGE JOCELYN ROSENWALD RAVELING ▪ First African American basketball coach in the Pac-8 (now ▪ Co-founder and Board Director of Glass House Group Pac-12); head coach at Washington State, University of ▪ Veteran of real estate investment industry; most recently,
Slide 40: Disclaimer
GLASS HOUSE BRANDS DISCLAIMER Cautionary Statements the meaning of applicable securities laws. Such information is being provided to demonstrate potential future outcomes and may not be This document is for information purposes only and should not be considered a recommendation to purchase, sell or
Slide 41: GLASS HOUSE BRANDS
GLASS HOUSE BRANDS CBOE CANADA: GLAS.A.U C B O E C A N A D A : G L A S . W T. U OTCQX: GLASF OTCQX: GHBWF @glasshousebrands glass-house-brands-inc @GlassHouseBR