Reports $31.6 Million in Q2 2024 Revenue and  Adjusted Gross Profit of $18.2 Million, Representing a 57% Adjusted Gross Margin Achieves Goal of Generating in Excess of 30% of Retail Revenue from the Company's First Party Brand Portfolio   Recently Completed Cultivation Investments Deliver 14% Improvement in Flower Harvest Yields Conference Call to be Held August 14, 2024, at 6:00 p.m. (Eastern Time) Laurie Holcomb Named Chairman of the Board COSTA MESA, Calif., Aug. 14, 2024 /CNW/ - Gold Flora Corporation, ("Gold Flora" or the "Company") (Cboe Canada: GRAM) a leading vertically-integrated California cannabis company, announced its financial results for the three month period ("Q2 2024"). All amounts are expressed in U.S. dollars. Q2 2024  Financial Highlights: Total revenue of $31.6 million; Q2 2024 gross profit of $7.2 Million, representing a 23% gross margin; Q2 2024 adjusted gross profit1 of $18.2 million, representing a 57% adjusted gross margin. Adjusted gross profit excludes depreciation & amortization and operating expense related to U.S. tax code 280E adjustments, and non-recurring inventory adjustments. The adjustments do not affect reported operating income; Net quarterly loss of $24.0 million; Adjusted EBITDA1 of $(2.0) million for Q2 2024. Cash used in operating activities of $4.8 million; and Cash and cash equivalents totaled $10.7 million as of June 30, 2024. Operational Highlights: Achieved the Company's stated goal of increasing its first party product revenue generated at its owned retail stores to 30% of total first party retail store sales in June 2024 and have continued to maintain this targeted level subsequent to quarter end. Entered into agreements to lease an additional 53,000 square feet of cultivation canopy at two facilities located near the Company's Desert Hot Springs campus, bringing the total cultivation footprint to 160,000 square feet. The Company expects to add approximately 25,000 pounds of annual flower production with the increased capactity2. The turn-key facilities will be delivered ready for operations, and the respective lease payments do not commence until a date subsequent to receipt of all necessary state and local licenses, the first of which is expected in the first half of 20252. Increased Q2 flower harvest volume by 14% over the prior quarter through recently completed improvements that have refined and optimized the Company's cultivation methods and strains. Continued the successful launch of Gramlin, currently the 5th fastest growing cannabis brand in California. Gramlin is targeted at high-volume consumers and includes products across the top-selling categories, including newly launched pre-rolls and multiple vape formats. Currently, Gramlin products are available across the Company's 16 retail stores, through its commerce digital sites, and at over 250 third-party retailers. Subsequent to quarter end, the Company further expanded the Gramlin offering with the introduction of 1G live rosin vapes, produced from 100% indoor-grown hash rosin oil that leverages low-temperature ceramic core hardware optimized for premium rosin flavor preservation. As of July 26, Gold Flora's Form-211 cleared the U. S. securities regulatory process and, as a result, its U. S. market activity is no longer restricted to unsolicited bids and asks, with Glendale Securities, Inc. acting as the Company's initial market maker. Laurie Holcomb, Chief Executive Officer of Gold Flora, was named Chairman of the Board, effective immediately.    _________________________________ 1 Adjusted Gross Profit and Adjusted EBITDA are non-GAAP financial measures.  See "Non-GAAP Financial Measures" at the end of this press release for a reconciliation and discussion of non-GAAP financial measures. 2  This is a forward-looking statement and based on a number of assumptions. See "Forward Looking Statements" at the end of this press release. Management Commentary "Our efficient, vertically integrated operations have allowed us to expand our competitive position, capture shelf-space, and enhance our brand portfolio, so we can successfully launch new products and navigate the evolving California market," said Laurie Holcomb, Chief Executive Officer and Chairman of Gold Flora. "I am proud of the work our team has done to improve our market leadership position in our core areas of focus. We continue to demonstrate success by bringing high-quality, high-margin products to market that generate excellent consumer responses." Ms. Holcomb continued, "To do this, we leverage our strong market insights, premier strains, and genetics, together with our best-in-class cultivation and manufacturing capabilities, to create innovative new products, as exemplified by our recent successful launch of Gramlin. In July, we further expanded the Gramlin line of products, introducing 1G Live Rosin vapes at our 16 stores, with wholesale distribution recently commencing across the State. According to recent BDSA data, Gramlin is now the 5th fastest growing cannabis brand in California since launch in March 2024." Ms. Holcomb concluded, "As one of the largest indoor cultivators in the state, we have a unique competitive advantage that sets us apart from the vast majority of other operators in California. We can quickly adjust our operations to meet current market demand, and at scale, enabling us to offer attractive price points and excellent products.  With our cultivation investments complete and subsequent harvests now demonstrating the improved yield and product quality that we can generate, we are incredibly well positioned to execute on the opportunity ahead of us as we move through the second half of the year." Q2 2024 Financial Results (in thousands) Q2 2024 Q1 2024 % Change Total Revenue $                 31,642 $                 32,153 (2) % Wholesale Revenue $                   5,455 $                   5,236 4 % Retail Revenue $                 26,187 $                 26,917 (3) % Gross Profit $                   7,248 $                 10,029 (28) % Gross Margin 23 % 31 % Adjusted Gross Profit (1) $                 18,176 $                 17,398 4 % Adjusted Gross Margin 57 % 54 % Net Loss $               (23,954) $               (13,704) 75 % Adjusted EBITDA (2) $                 (1,972) $                 (1,801) 9 % (1) Adjusting for depreciation & amortization, operating expense related to U.S. tax code 280E adjustments and non-recurring inventory adjustments.  Adjusted Gross Profit is a non-GAAP financial measure.  See "Non-GAAP Financial Measures" at the end of this press release for a reconciliation and discussion of non-GAAP financial measures. (2) Adjusted EBITDA is defined as EBITDA adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) change in fair value of the earn out ...