[10-Q] Planet 13 Holdings Inc. Quarterly Earnings Report
Planet 13 Holdings reported Q3 2025 results showing softer sales and large non-cash charges. Net revenue was $23,270,211 (Q3 2024: $32,159,070), with gross profit of $4,958,861. The company recorded a non-cash impairment loss of $29,844,227, driving a loss from operations of $41,245,847 and a net loss of $43,955,853 (loss per share $0.14).
For the nine months, net revenue totaled $78,156,379 and net loss was $59,304,262. Cash was $17,181,080 at quarter-end. Total assets were $158,497,199 against total liabilities of $103,913,259, for shareholders’ equity of $54,583,940. The company had a fully drawn, cash-secured revolving line of credit of $9,750,000; notes to VidaCann sellers and Lafayette State Bank were paid in full earlier in 2025.
Subsequent and strategic actions include an APA signed October 29, 2025 to sell the Orange County, CA dispensary (proceeds expected to be negligible after costs) and a November 3, 2025 plan to discontinue the Coalinga, CA cultivation facility. Shares outstanding were 325,363,800 as of November 12, 2025.
- None.
- Large non-cash impairment of $29,844,227 in Q3 2025, contributing to a quarterly net loss of $43,955,853
- Revenue decline year over year in Q3 2025 to $23,270,211 from $32,159,070
Insights
Revenue fell and impairments drove a large quarterly loss.
Planet 13 reported Q3 net revenue of
On the balance sheet, cash was
Management signed an
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the quarterly period ended | |
| OR | |
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ________ to ________
Commission File Number:
| PLANET 13 HOLDINGS INC. | ||
| (Exact name of Registrant as Specified in its Charter) |
| | | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
| | | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| | ☒ | Smaller reporting company | |
| Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of November 12, 2025, there were
Planet 13 Holdings Inc.
Quarterly Report on Form 10-Q
For Quarterly Period Ended September 30, 2025
Table of Contents
| Page |
||
| PART I |
FINANCIAL INFORMATION |
|
| Item 1. |
Financial Statements. |
5 |
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
25 |
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk. |
33 |
| Item 4. |
Controls and Procedures. |
33 |
| PART II |
OTHER INFORMATION |
|
| Item 1. |
Legal Proceedings. |
34 |
| Item 1A. |
Risk Factors. |
34 |
| Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds. |
34 |
| Item 3. |
Defaults Upon Senior Securities. |
34 |
| Item 4. |
Mine Safety Disclosures. |
34 |
| Item 5. |
Other Information. |
34 |
| Item 6. |
Exhibits. |
35 |
| SIGNATURES |
36 |
|
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes “forward-looking information” and “forward-looking statements” within the meaning of applicable United States securities laws and Canadian securities laws. All information, other than statements of historical facts, included in this Quarterly Report on Form 10-Q that addresses activities, events or developments that we expect or anticipate will or may occur in the future is forward-looking information. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and includes, among others, information regarding: our strategic plans and expansion and expectations regarding the growth of the California, Florida and Illinois cannabis markets; statements relating to the business and future activities of, and developments related to, us after the date of this Quarterly Report on Form 10-Q, including such things as future business strategy, competitive strengths, goals, expansion and growth of our business, operations and plans, new revenue streams, the completion by us of contemplated acquisitions of additional real estate, cultivation and licensing assets, the roll out of new dispensaries, the application for additional licenses and the grant of licenses or renewals of existing licenses that have been applied for, the expansion of existing cultivation and production facilities, the completion of cultivation and production facilities that are under construction, the construction of additional cultivation and production facilities, the expansion into additional U.S. markets, any potential future legalization of adult-use and/or medical cannabis under U.S. federal law; expectations of market size and growth in the United States and the states in which we operate or contemplate future operations; expectations for other economic, business, regulatory and/or competitive factors related to us or the cannabis industry generally; and other events or conditions that may occur in the future.
Readers are cautioned that forward-looking information and statements are not based on historical facts but instead are based on reasonable assumptions and estimates of our management at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information and statements. Such factors include, among others, our actual financial position and results of operations differing from management’s expectations; our business model; a lack of business diversification; increasing competition in the industry; public opinion and perception of the cannabis industry; expected significant costs and obligations; current reliance on limited jurisdictions; development of our business; access to capital; risks relating to the management of growth; risks inherent in an agricultural business; risks relating to energy costs; risks related to research and market development; risks related to breaches of security at our facilities; reliance on suppliers; risks relating to the concentrated voting control of the Company; risks related to our being a holding company; risks related to service providers withdrawing or suspending services under threat of prosecution; risks related to proprietary intellectual property and potential infringement by third parties; risks of litigation relating to intellectual property; negative clinical trial results; insurance related risks; risk of litigation generally; risks associated with cannabis products manufactured for human consumption, including potential product recalls; risks relating to being unable to attract and retain key personnel; risks relating to obtaining and retaining relevant licenses; risks relating to integration of acquired businesses; risks related to quantifying our target market; risks related to industry growth and consolidation; fraudulent activity by employees, contractors and consultants; cyber-security risks; conflicts of interest; risks related to reputational damage in certain circumstances; leased premises risks; risks related to epidemics and pandemics; U.S. regulatory landscape and enforcement related to cannabis, including political risks; heightened scrutiny by Canadian regulatory authorities; risks related to capital raising due to heightened regulatory scrutiny; risks related to tax liabilities; risks related to U.S. state and local law and regulations; risks related to access to banks and credit card payment processors; risks related to potential violation of laws by banks and other financial institutions; ability and constraints on marketing products; risks related to lack of U.S. federal trademark and patent protection; risks related to the enforceability of contracts; the limited market for our securities; difficulty for U.S. holders of our common stock to resell over the Canadian Securities Exchange; price volatility of our common stock; future sales by shareholders; no guarantee regarding use of available funds; currency fluctuations; risks related to entry into the U.S; and other factors beyond our control, as more particularly described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although we have attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information and statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on forward-looking information and statements. The forward-looking information and statements contained herein are presented for the purposes of assisting readers in understanding our expected financial and operating performance and our plans and objectives and may not be appropriate for other purposes.
The forward-looking information and statements contained in this Quarterly Report on Form 10-Q represent our views and expectations as of the date of this Quarterly Report on Form 10-Q. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update such forward-looking information and statements at a future time, we have no current intention of doing so except to the extent required by applicable law.
ADDITIONAL INFORMATION
In this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms “we,” “us,” “our,” “Company,” or “Planet 13” refer to Planet 13 Holdings Inc. together with its wholly-owned subsidiaries.
Unless otherwise indicated, all references to “$,” “US$” or “USD” in this Quarterly Report on Form 10-Q refer to United States dollars, and all references to “C$,” “CAD$,” or “CAD” refer to Canadian dollars.
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
| PLANET 13 HOLDINGS INC. Interim Condensed Consolidated Balance Sheets (Unaudited, In United States Dollars) |
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | $ | ||||||
| Restricted Cash | ||||||||
| Accounts Receivable | ||||||||
| Inventory | ||||||||
| Assets held for sale | ||||||||
| Prepaid Expenses and Other Current Assets | ||||||||
| Total Current Assets | ||||||||
| Property, Plant and Equipment | ||||||||
| Intangible Assets and Goodwill | ||||||||
| Right of Use Assets - Operating | ||||||||
| Long-term Deposits and Other Assets | ||||||||
| Deferred Tax Asset | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| LIABILITIES | ||||||||
| Current: | ||||||||
| Accounts Payable | $ | $ | ||||||
| Accrued Expenses | ||||||||
| Income Taxes Payable | ||||||||
| Notes Payable - Current Portion | ||||||||
| Operating Lease Liabilities | ||||||||
| Total Current Liabilities | ||||||||
| Long-Term Liabilities: | ||||||||
| Operating Lease Liabilities | ||||||||
| Other Long-term Liabilities | ||||||||
| Uncertain Tax Positions | ||||||||
| Deferred Tax Liability | ||||||||
| Total Liabilities | ||||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common Stock, no par value, 1,500,000,000 shares authorized, 325,363,800 issued and outstanding at September 30, 2025 and 325,163,800 issued and outstanding at December 31, 2024 | ||||||||
| Preferred Stock, no par value, 50,000,000 shares authorized, 0 issued and outstanding at September 30, 2025 and 0 at December 31, 2024 | ||||||||
| Additional Paid-In Capital | ||||||||
| Deficit | ( | ) | ( | ) | ||||
| Total Shareholders' Equity | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
| PLANET 13 HOLDINGS INC. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited, in United States Dollars, except Share Amounts) |
| Three Months Ended |
Nine Months Ended |
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| September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
| 2025 |
2024 |
2025 |
2024 |
|||||||||||||
| Revenues, net of discounts |
$ | $ | $ | $ | ||||||||||||
| Cost of Goods Sold |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Gross Profit |
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| Expenses: |
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| General and Administrative |
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| Sales and Marketing |
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| Lease Expense |
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| Impairment Loss |
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| Depreciation |
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| Total Expenses |
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| Loss From Operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Other Income (Expense): |
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| Interest income (expense), net |
( |
) | ( |
) | ||||||||||||
| Foreign exchange (loss) |
( |
) | ( |
) | ( |
) | ||||||||||
| Other income, net |
( |
) | ( |
) | ||||||||||||
| Total Other Income (Expense) |
( |
) | ||||||||||||||
| Loss Before Provision for Income Taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Provision For Income Taxes |
||||||||||||||||
| Current Tax Expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Deferred Tax Recovery |
( |
) | ( |
) | ||||||||||||
| ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
| Net Loss and Comprehensive Loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Loss per Share |
||||||||||||||||
| Basic and diluted loss per share |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Weighted Average Number of Shares of Common Stock |
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| Basic and diluted |
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The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
| PLANET 13 HOLDINGS INC. Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited, in United States Dollars, except Share Amounts) |
| Number of |
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| Shares of Common Stock |
Warrants |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders' Equity |
||||||||||||||||
| Balance, December 31, 2023 |
$ | $ | ( |
) | $ | |||||||||||||||
| Share based Compensation - RSUs |
- | - | ||||||||||||||||||
| Share based Compensation - RSUs - Taxes Paid in Lieu of Share Issuance |
- | - | ( |
) | ( |
) | ||||||||||||||
| Shares Issued on Settlement of RSUs |
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| Proceeds from public offering |
||||||||||||||||||||
| Share issuance costs |
- | - | ( |
) | ( |
) | ||||||||||||||
| Shares Issued on VidaCann Acquisition |
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| Net Loss for the Period |
- | - | ( |
) | ( |
) | ||||||||||||||
| Balance, September 30, 2024 |
$ | $ | ( |
) | $ | |||||||||||||||
| Balance, December 31, 2024 |
$ | $ | ( |
) | $ | |||||||||||||||
| Share based Compensation - RSUs |
- | - | ||||||||||||||||||
| Shares Issued on Settlement of RSUs |
||||||||||||||||||||
| Net Loss for the Period |
- | - | ( |
) | ( |
) | ||||||||||||||
| Balance, September 30, 2025 |
$ | $ | ( |
) | $ | |||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
| PLANET 13 HOLDINGS INC. Interim Condensed Consolidated Statements of Cash Flows (Unaudited, In United States Dollars) |
| Nine Months Ended |
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| September 30, |
September 30, |
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| 2025 | 2024 | |||||||
| CASH USED IN OPERATING ACTIVITIES |
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| Net loss |
$ | ( |
) | $ | ( |
) | ||
| Adjustments for items not involving cash: |
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| Shared based compensation |
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| Non-cash lease expense |
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| Depreciation |
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| Loss on impairment of fixed assets |
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| Loss on impairment of intangible assets |
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| Loss on disposal of fixed assets |
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| Gain on disposal of ROU asset |
( |
) | ||||||
| Recovery of property in legal settlement |
( |
) | ||||||
| Loss on reserve for slow moving inventory |
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| Amortization of note payable discount |
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| Lease incentive amortization |
( |
) | ||||||
| ( |
) | ( |
) | |||||
| Net Changes in Non-cash Working Capital Items |
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| Repayment of lease liabilities |
( |
) | ( |
) | ||||
| Total Operating |
( |
) | ||||||
| FINANCING ACTIVITIES |
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| Proceeds from public share issuance |
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| Net Cash From VidaCann Acquisition |
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| VidaCann Acquisition-Cash Component |
( |
) | ||||||
| Repayment of Lafayette State Bank Note |
( |
) | ||||||
| Bank of Nevada Revolving Line of Credit |
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| Payment of Promissory Note to former VidaCann Shareholders |
( |
) | ||||||
| Total Financing |
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| INVESTING ACTIVITIES |
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| Purchase of property and equipment |
( |
) | ( |
) | ||||
| Proceeds from sales of fixed assets |
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| Proceeds from the sale of Florida license, net of transaction costs |
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| Proceeds from sale of assets held for sale |
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| Total Investing |
( |
) | ||||||
| NET CHANGE IN CASH DURING THE PERIOD |
( |
) | ||||||
| CASH |
||||||||
| Beginning of Period |
||||||||
| End of Period |
$ | $ | ||||||
Supplemental cash flow information (Note 14)
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 1. Nature of Operations |
Planet 13 Holdings Inc. (“P13” or the “Company”) was incorporated under the Canada Business Corporations Act on April 26, 2002 and continued under the British Columbia Business Corporations Act on September 24, 2019, and on September 15, 2023 completed its domestication to Nevada.
The Company is a vertically integrated cultivator and provider of cannabis and cannabis-infused products that is licensed under the laws of the States of Nevada, California, Illinois and Florida. The Company is licensed in these jurisdictions as follows: six Nevada licenses for cultivation (three medical and three adult-use), six Nevada licenses for production (three medical and three adult-use), three Nevada dispensary licenses (one medical and two adult-use), two Nevada licenses for distribution (one active, one conditional), one medical and adult-use dispensary license in California, two distribution licenses in California, one event organizer license in California, one medium indoor cultivation license in California, one non-volatile manufacturing license in California, one Medical Marijuana Treatment Center license in Florida (unlimited medical dispensaries, cultivation and processing) and one adult-use dispensary license in Illinois.
P13 is a public company which is listed on the Canadian Securities Exchange (“CSE”) under the symbol PLTH and on the OTCQX exchange under the symbol “PLNH”.
The Company’s registered and head office address is 2548 W. Desert Inn Road, Suite 100, Las Vegas, NV 89109.
While cannabis and CBD-infused products are legal under the laws of several U.S. states (with varying restrictions applicable), the United States Federal Controlled Substances Act classifies all “marijuana” as a Schedule I drug, whether for medical or recreational use. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of safety for use under medical supervision.
The federal government currently is prohibited from prosecuting businesses that operate in compliance with applicable state and local medical cannabis laws and regulations; however, this does not protect adult use cannabis. If the federal government changes this position, it would be financially detrimental to the Company.
| 2. Basis of Presentation |
These unaudited condensed consolidated interim financial statements reflect the accounts of the Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for all periods presented. Certain information and footnote disclosures normally included in the audited annual consolidated financial statements prepared in accordance with GAAP have been omitted or condensed. The information included in these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. These unaudited interim condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments), which, in the opinion of management, are necessary for the fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.
These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operation for the foreseeable future and, accordingly, will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due.
Failure to arrange adequate financing on acceptable terms and/or achieve profitability may have an adverse effect on the financial position, results of operations, cash flows and prospects of the Company. These unaudited interim condensed consolidated financial statements do not give effect to adjustments to assets or liabilities that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.
These unaudited condensed consolidated interim financial statements were authorized for issuance by the Board of Directors of the Company on November 12, 2025.
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| i) | Basis of consolidation |
These accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and all subsidiaries. Subsidiaries are entities in which the Company has a controlling voting interest or is the primary beneficiary of a variable interest entity. Subsidiaries are fully consolidated from the date control is transferred to the Company and are deconsolidated from the date control ceases. All intercompany accounts and transactions have been eliminated upon consolidation. The unaudited condensed consolidated interim financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Company and its subsidiaries after eliminating intercompany balances and transactions.
These unaudited condensed consolidated interim financial statements include the accounts of the Company and the following entities which are subsidiaries of the Company:
| Subsidiaries as at September 30, 2025 | Jurisdiction of Incorporation | Ownership Interest 2025 | Ownership Interest 2024 | Nature of Business | ||||
| MM Development Company, Inc. | Nevada, USA | | | Nevada license holding company; vertically integrated cannabis operations | ||||
| BLC Management Company LLC | Nevada, USA | | | Management/holding company | ||||
| LBC CBD LLC | Nevada, USA | | | CBD retail sales and marketing | ||||
| Newtonian Principles Inc. | California, USA | | | California license holding company; cannabis retail sales | ||||
| Crossgate Capital U.S. Holdings Corp. | Nevada, USA | | | Holding company for Next Green Wave, LLC | ||||
| Next Green Wave, LLC | California, USA | | | California license holding company; cannabis cultivation and processing | ||||
| Planet 13 Illinois, LLC | Illinois, USA | | | Illinois license holding company; cannabis retail sales | ||||
| BLC NV Food, LLC | Nevada, USA | | | Holding company for By The Slice LLC | ||||
| By The Slice, LLC | Nevada, USA | | | Restaurant and retail operations | ||||
| Planet 13 Chicago, LLC | Illinois, USA | | | Holding company | ||||
| Planet 13 Florida, Inc. | Florida, USA | | | Florida license holding company | ||||
| Planet 13 Real Prop LLC | Florida, USA | N/A | Holding company | |||||
| Planet 13 Lifestyles LLC | Nevada, USA | Retail sales of apparel and accessories | ||||||
| VidaCann, LLC | Florida, USA | Florida license holding company | ||||||
| Planet 13 Innovations LLC | Nevada, USA | Intellectual property holding company | ||||||
| Estate of Las Palmas LLC | California, USA | N/A | Real estate holdings company | |||||
| Club One Three, LLC | Nevada, USA | N/A | Inactive |
| ii) | Functional currency |
These unaudited condensed consolidated interim financial statements are presented in U.S. Dollars (“USD”), which is the Company’s and its subsidiaries’ functional currency.
Foreign currency transactions are remeasured to the respective financial currencies of the Company’s entities at the exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are measured to functional currency at the foreign exchange rate applicable at the statement of balance sheets date. Non-monetary items are carried at historical rates. Non-monetary items carried at face value denominated in foreign currencies are remeasured to the functional currency at the date when the fair value was determined. Realized and unrealized foreign exchange gains and losses are recognized through profit or loss.
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| iii) | Emerging growth company |
The Company is an “Emerging Growth Company”, as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act, and it has taken advantage of certain exemptions that are not applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not has a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial reporting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable.
The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public and private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
| 3. Inventory |
Finished goods inventory consists of dried cannabis, concentrates, edibles, and other products that are complete and available for sale (both internally generated inventory and third-party products purchased in the wholesale market). Work in process inventory consists of cannabis after harvest, in the processing stage. Packaging and miscellaneous consist of consumables for use in the transformation of biological assets and other inventory used in the production of finished goods, non-cannabis merchandise and food and beverage items. The Company’s inventory is comprised of:
| September 30, |
December 31, |
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| 2025 |
2024 |
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| Raw materials |
$ | $ | ||||||
| Packaging and miscellaneous |
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| Work in progress |
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| Finished goods |
||||||||
| $ | $ | |||||||
Cost of Inventory is recognized as an expense when sold and included in the cost of goods sold. During the three and nine months ended September 30, 2025, the Company recognized $
| 4. Prepaid Expenses and Other Current Assets |
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Security deposits | $ | $ | ||||||
| Advertising and Marketing | ||||||||
| Prepaid rent | ||||||||
| Insurance | ||||||||
| License fees | ||||||||
| Miscellaneous | ||||||||
| $ | $ |
| ||||||
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 5. Property, Plant and Equipment |
| Land and | Leasehold | Construction | ||||||||||||||||||||||
| Improvements | Buildings | Equipment | Improvements | in Progress | Total | |||||||||||||||||||
| Gross carrying amount | ||||||||||||||||||||||||
| At December 31, 2024 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Additions | ||||||||||||||||||||||||
| Transfers | ( | ) | ||||||||||||||||||||||
| Asset Impairments | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Disposals | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| At September 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Depreciation | ||||||||||||||||||||||||
| At December 31, 2024 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Additions | ||||||||||||||||||||||||
| Asset Impairments | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Disposals | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| At September 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Carrying amount | ||||||||||||||||||||||||
| At December 31, 2024 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| At September 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
For the nine months ended September 30, 2025, depreciation expense was $
During the nine months ended September 30, 2025, $
During the nine months ended September 30, 2025, net impairment charges of $
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 6. Intangible Assets and Goodwill |
| Retail Dispensary Clark County | Cultivation and Production Clark County | Illinois License | Cultivation Coalinga CA Other Intangibles | Florida MMTC License-VidaCann | VidaCann Goodwill | Other | Total | |||||||||||||||||||||||||
| Gross carrying amount | ||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Impairments | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Coalinga, California Cultivation License
The company tests and assesses for impairment of intangible asset carrying values annually at a minimum, or when there are indicators of a loss in value, such as a decline in the market or overall business performance. The Company has determined that the carrying value of its California cultivation license is substantially impaired and recorded an intangible asset impairment charge of $
VidaCann Acquisition
On August 28, 2023, the Company entered into a Membership Interest Purchase Agreement (“Purchase Agreement”) with VidaCann, LLC (“VidaCann”), Loop’s Dispensaries, LLC (“Dispensaries”), Ray of Hope 4 Florida, LLC (“Ray of Hope”) and Loops Nursery & Greenhouses, Inc. (“Nursery” and together with Dispensaries and Ray of Hope, the (“Sellers”), David Loop (“Loop”) and Mark Ascik and Loop, solely in his capacity as Seller Representative, pursuant to which, upon the terms and subject to the conditions set forth therein, the Company acquired from the Sellers all of the membership interests in VidaCann (the “Transaction”).
On May 9, 2024, the Company acquired
Pursuant to the Purchase Agreement, the Company acquired VidaCann from the Sellers for agreed consideration at closing of the Transaction (the “Closing”) equal to the sum of: (i)
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
The VidaCann acquisition was deemed to be a business combination under ASC 805. The following table summarizes the allocation of consideration exchanged to the estimated fair value of the tangible and intangible assets acquired:
| Consideration paid: | ||||
| Cash | $ | |||
| Issuance of 80,564,554 shares of common stock | ||||
| Note Payable to Former VidaCann Shareholders | ||||
| $ | ||||
| Fair value of net assets acquired: | ||||
| Cash | $ | |||
| Inventory | ||||
| Prepaids and other assets | ||||
| Property, plant and equipment | ||||
| ROU Assets | ||||
| Intangible assets | ||||
| Goodwill | ||||
| ROU Liabilities | ( | ) | ||
| Notes Payable | ( | ) | ||
| Accounts Payable and Accrued Liabilities | ( | ) | ||
| $ | ||||
The purchase price allocations for the VidaCann transaction reflect various fair value estimates and analyses relating to the determination of fair value of certain tangible and intangible assets acquired and residual goodwill. The Company determined the estimated fair value of the acquired working capital, and identifiable intangible assets and goodwill after review and consideration of relevant information including market data and management’s estimates. The estimated fair value of acquired working capital was determined to approximate carrying value.
The goodwill arising from the VidaCann transaction consists of expected synergies from combining operations of the Company and VidaCann, and intangible assets not qualifying for separate recognition such as formulations, proprietary technologies and acquired know-how. None of the goodwill is deductible for tax purposes. VidaCann’s state cannabis license represented an identifiable intangible asset acquired in the amount of $
In connection with the VidaCann transaction, the Company expensed $
VidaCann contributed $
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
The following table reflects the revenue, gross profit and comprehensive loss that would have been reported if the acquisition had occurred at the beginning of the period indicated:
| Nine Months Ended September 30, 2024 | ||||||||||||
| As Reported | VidaCann | Pro Forma | ||||||||||
| Revenue, net of discounts | $ | $ | $ | |||||||||
| Gross Profit | ||||||||||||
| Comprehensive Income (loss) for the period | ( | ) | ( | ) | ||||||||
Florida License
On January 22, 2024, the Company entered into a definitive agreement to sell its Planet 13 Florida, Inc. entity for $
| 7. Leases |
The Company’s lease agreements are for cultivation, manufacturing, retail office premises and for vehicles. The property lease terms range between
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
The following table provides the components of lease costs recognized in the unaudited interim condensed consolidated statement of operations and comprehensive loss for the three and nine-month periods ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating lease costs | $ | $ | $ | $ | ||||||||||||
| Short term lease expense | ||||||||||||||||
| Total lease costs | $ | $ | $ | $ | ||||||||||||
Other information related to operating and finance leases as of and for the nine months ended September 30, 2025 and 2024 is as follows:
| September 30, 2025 | September 30, 2024 | |||||||
| Operating | Operating | |||||||
| Lease | Lease | |||||||
| Weighted average discount rate | % | % | ||||||
| Weighted average remaining lease term | ||||||||
The maturities of the contractual undiscounted lease liabilities as of September 30, 2025 and December 31, 2024 are:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Operating | Operating | |||||||
| Lease | Lease | |||||||
| 2025 | $ | $ | ||||||
| 2026 | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| 2031 | ||||||||
| Thereafter | ||||||||
| Total undiscounted lease liabilities | ||||||||
| Interest on lease liabilities | ( | ) | ( | ) | ||||
| Total present value of minimum lease payments | ||||||||
| Lease liability - current portion | ( | ) | ( | ) | ||||
| Lease liability | $ | $ | ||||||
Principally all leases relate to real estate.
For the three and nine months ended September 30, 2025, the Company incurred $
See Note 14 for additional supplemental cash flow information related to leases.
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 8. Notes Payable |
| September 30, |
December 31, |
Stated Interest |
Effective |
Maturity |
|||||||||||||||
| 2025 |
2024 |
Rate |
Interest Rate |
Date |
|||||||||||||||
| Promissory note dated November 4, 2015, with semi-annual interest at 5.0%, secured by deed of trust, due December 1, 2019 |
% | % | 12/1/2019 |
||||||||||||||||
| Promissory Note to Former VidaCann shareholders |
% | (1) |
% | 4/1/2025 |
|||||||||||||||
| Promissory Note to La Fayette State Bank |
% | (2) |
% | 2/20/2025 |
|||||||||||||||
| Promissory Note to VidaCann former managers |
% | (3) |
% | 5/6/2029 |
|||||||||||||||
| Revolving Line of Credit, cash secured with monthly interest paid at an annual rate of 5.65% |
% | (4) |
% | 6/30/2026 |
|||||||||||||||
| $ | $ | ||||||||||||||||||
| Less current portion |
( |
) | ( |
) | |||||||||||||||
| $ | $ | ||||||||||||||||||
| Stated maturities of debt obligations are as follows: |
|||||||||||||||||||
| 2025 |
$ | $ | |||||||||||||||||
| 2026 |
|||||||||||||||||||
| 2027 |
|||||||||||||||||||
| 2028 |
|||||||||||||||||||
| 2029 |
|||||||||||||||||||
| 2030 |
|||||||||||||||||||
| Total |
$ | $ | |||||||||||||||||
(1) The Promissory note to former VidaCann shareholders had a face value of $
(2) The Promissory note to Lafayette State Bank had a face value of $
(3) The Promissory note to VidaCann former managers had a face value of $
(4) The Company entered into a cash secured line of credit up to $
| 9. Share Capital |
The Company is authorized to issue
| Number of Shares of Common Stock | |||||||||
| September 30, | December 31, | ||||||||
| 2025 | 2024 | ||||||||
| Common Stock | |||||||||
| Balance at January 1 | |||||||||
| Shares issued on settlement of RSUs | i. | ||||||||
| Shares issued on public offering | ii. | ||||||||
| Shares issued in VidaCann Acquisition | iii. | ||||||||
| Finders shares issued on VidaCann acquisition | iv. | ||||||||
| Total shares of common stock outstanding | |||||||||
i. Shares issued for Restricted Share Units
During the nine months ended September 30, 2025,
During the year ended December 31, 2024,
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
ii. Shares issued on public offering
On March 7, 2024, the Company issued and sold
iii. Shares issued on VidaCann acquisition
On May 9, 2024, the Company issued
iv. Finders shares issued on VidaCann acquisition
On May 9, 2024, the Company issued
| 10. Warrants |
The following table summarizes the number of warrants outstanding at September 30, 2025 and December 31, 2024.
| September 30, 2025 |
Weighted Average Exercise Price - USD |
December 31, 2024 | Weighted Average Exercise Price - USD |
|||||||||||||
| Balance - beginning of period |
$ | $ | ||||||||||||||
| Exercised |
$ | $ | ||||||||||||||
| Issued |
$ | $ | ||||||||||||||
| Expired |
$ | $ | ||||||||||||||
| Balance - end of period |
$ | $ | ||||||||||||||
On March 7, 2024, the Company issued and sold
| 11. Share Based Compensation |
At the 2023 Annual General and Special Meeting, the shareholders of Planet 13 voted to approve and adopt the 2023 Equity Plan, which was contingent upon the completion of the Company's domestication, and became effective on September 15, 2023. As of September 15, 2023, the Company may not grant any new awards under the Planet 13 Holdings Inc. 2018 Stock Option Plan and Planet 13 Holdings Inc. 2018 Share Unit Plan (collectively, the “Prior Plans”), and the Prior Plans will continue to govern awards previously granted under them.
On July 22, 2025, the Company authorized an additional
(a) Stock Options
During the three and nine months ended September 30, 2025 and the year ended December 31, 2024
The following table summarizes information about stock options outstanding at September 30, 2025:
| Exercise price | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 | ||||||||||||||||
| Expiry Date | CAD$ | Outstanding | Exercisable | Outstanding | Exercisable | |||||||||||||||
| February 27, 2025 | $ | |||||||||||||||||||
| December 15, 2025 | $ | |||||||||||||||||||
| September 30, 2026 | $ | |||||||||||||||||||
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
The following table reflects the continuity of stock options for the period presented:
| September 30, 2025 | Weighted Average Exercise Price - CAD | December 31, 2024 | Weighted Average Exercise Price - CAD | |||||||||||||
| Balance - beginning of period | $ | $ | ||||||||||||||
| Expired | ( | ) | ( | ) | ||||||||||||
| Balance - end of period | $ | $ | ||||||||||||||
Share based compensation expense attributable to employee options was $
The total intrinsic value of stock options exercised, outstanding and exercisable as of September 30, 2025 and December 31, 2024 was $
(a) Restricted Share Units
The following table summarizes the RSUs that are outstanding as at September 30, 2025 and December 31, 2024:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Balance - beginning of period | ||||||||
| Issued | ||||||||
| Exercised | ( | ) | ( | ) | ||||
| Surrendered for taxes | ( | ) | ||||||
| Forfeited | ( | ) | ||||||
| Rounding adjustment | ( | ) | ||||||
| Balance - end of period | ||||||||
The Company recognized $
During the nine months ended September 30, 2025
During the nine months ended September 30, 2024
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 12. Loss Per Share |
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Loss available to common stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average number of shares outstanding, basic and diluted | ||||||||||||||||
| Basic and diluted loss per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 13. General and Administrative |
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Salaries and wages | $ | $ | $ | $ | ||||||||||||
| Share based compensation | $ | |||||||||||||||
| Executive compensation | $ | |||||||||||||||
| Licenses and permits | $ | |||||||||||||||
| Payroll taxes and benefits | $ | |||||||||||||||
| Supplies and office expenses | $ | |||||||||||||||
| Subcontractors | $ | |||||||||||||||
| Professional fees (legal, audit and other) | $ | |||||||||||||||
| Miscellaneous general and administrative expenses | $ | |||||||||||||||
| $ | $ | $ | $ | |||||||||||||
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 14. Supplemental Cash Flow Information |
| Nine Months Ended | ||||||||
| September 30, | September 30, | |||||||
| Change in Working Capital |
2025 |
2024 |
||||||
| Accounts Receivable |
$ | ( |
) | $ | ( |
) | ||
| Inventory |
( |
) | ( |
) | ||||
| Prepaid Expenses and Other Assets |
||||||||
| Long-term Deposits and Other Current Assets |
( |
) | ||||||
| Deferred Tax Assets |
( |
) | ( |
) | ||||
| Deferred Tax Liabilities |
( |
) | ||||||
| Accounts Payable |
( |
) | ||||||
| Accrued Expenses |
( |
) | ||||||
| Other Liabilities (LT) |
||||||||
| Uncertain Tax Positions |
||||||||
| Income Taxes Payable |
||||||||
| $ | $ | |||||||
| Cash Paid |
||||||||
| Interest Paid on Leases |
$ | $ | ||||||
| Income Taxes |
$ | $ | ||||||
| Non-cash Financing and Investing Activities |
||||||||
| Shares Issued on Exercise of Purchase Option |
$ | $ | ||||||
| Lease additions |
$ | $ | ||||||
| Fixed Asset Amounts in Accounts Payable |
$ | $ | ||||||
| Reclassification of long term lease liabilities to current |
$ | $ | ||||||
| 15. Related Party Transactions and Balances |
Related party transactions are summarized as follows:
(a) Building Lease
As part of the VidaCann acquisition on May 9, 2024, the Company entered into a long-term lease agreement with Loop's Nursery for a property in St John's Florida that is used as the Company's primary cultivation facility in Florida. Loop's Nursery is primarily owned by David Loop, one of the Company's board members. Payments for rent and associated costs related to the use of this property for the nine months ended September 30, 2025 equaled $
(b) Other
As part of the VidaCann acquisition on May 9, 2024, the Company acquired related party notes payable to David Loop, one of the Company's board members and Mark Ascik, in the amounts of $
Effective March 1, 2025, the Company entered into a 30 month lease agreement with PRMN Investments Ltd for a Florida apartment unit used primarily for executive travel in Florida for oversight of Florida operations. PRMN Investments Ltd is primarily owned by Robert Groesbeck, the Company's Co-CEO. Payments for rent and associated costs related to the use of this property for the nine months ended September 30, 2025 equaled $
Effective September 19, 2025, the Company entered into a three month consulting agreement with Off the House, LLC, an entity owned and operated by the stepson of Robert Groesbeck, the Company's Co-CEO. After the initial three month period, the contract continues on a month to month basis. Total contract payments for the nine months ended September 30, 2025 equaled $
For the nine-month period ended September 30, 2025, $
| 16. Commitments and Contingencies |
(a) Construction Commitments
The Company had $
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
(b) Contingencies
The Company’s operations are subject to a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations. While management of the Company believes that the Company is in compliance with applicable local and state regulations at September 30, 2025, medical and adult use cannabis regulations continue to evolve and are subject to differing interpretations. As a result, the Company may be subject to regulatory fines, penalties, or restrictions in the future.
(c) Claims and Litigation
From time to time, we may become involved in legal or regulatory proceedings, lawsuits and other claims arising in the ordinary course of our business. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of such matters will be. However, based on our knowledge, as of September 30, 2025, we are not presently a party to any legal proceedings that, in the opinion of our management, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.
(d) Operating Licenses
Although the possession, cultivation, and distribution of marijuana for medical and adult use is permitted in Nevada and California, and for medical use these activities are permitted in Florida, marijuana is a Schedule I controlled substance, and its use remains a violation of federal law. Since federal law criminalizing the use of marijuana pre-empts state laws that legalize its use, strict enforcement of federal law regarding marijuana would likely result in the Company’s inability to proceed with our business plans. In addition, the Company’s assets, including real property, cash, equipment, and other goods, could be subject to asset forfeiture because marijuana is still federally illegal.
| 17. Risks |
Credit risk
Credit risk is the risk that a third party might fail to discharge its obligations under the terms of a financial instrument. Credit risk arises from cash with banks and financial institutions. It is management's opinion that the Company is not exposed to significant credit risk arising from these financial instruments. The Company limits credit risk by entering into business arrangements with high credit-quality counterparties. The Company further limits credit risk to a maximum of $
The Company evaluates the collectability of its accounts receivable and maintains an allowance for credit losses at an amount sufficient to absorb losses inherent in the existing accounts receivable portfolio as of the reporting dates based on the estimate of expected net credit losses.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company currently has some notes payable that are interest bearing, as well as funds held in an interest-bearing money market account. Based on the balances involved, it is management’s opinion that the Company is not exposed to significant interest rate risk.
Price risk
Price risk is the risk that the trading price of the Company’s shares will fluctuate and adversely impact the Company, primarily due to the inability to raise additional funds through future stock offerings. The Company is not exposed to significant price risk.
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
Liquidity risk
The Company’s approach to managing risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As of September 30, 2025, the Company’s financial liabilities consist of accounts payable, accrued liabilities, obligations under operating leases, notes payable and taxes. The Company manages liquidity risk by reviewing its capital requirements on an ongoing basis. Historically, the Company’s main source of funding has been the public issuance of common equity. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity financing.
Concentration risk
The Company operates exclusively in Southern Nevada, Florida, and California and has a small presence in Illinois. Should economic conditions deteriorate within any of these regions, its results of operations and financial position would be negatively impacted.
Banking risk
Notwithstanding that a majority of states have legalized medical marijuana, there has been no change in US federal banking laws related to the deposit and holding of funds derived from activities related to the cannabis industry. Given that US federal law provides that the production and possession of cannabis is illegal, there is a strong argument that banks cannot accept or deposit funds from businesses involved with the marijuana industry. Consequently, businesses involved in the cannabis industry often have difficulty accessing the US banking system and traditional financing sources. The inability to open bank accounts with certain institutions may make it difficult to operate the business of the Company and leave the Company’s cash holdings vulnerable.
Asset forfeiture risk
Because the cannabis industry remains illegal under US federal law, any property owned by participants in the cannabis industry which are either used in the course of conducting such business, or are the proceeds of such business, could be subject to seizure by law enforcement and subsequent civil asset forfeiture. Even if the owner of the property was never charged with a crime, the property in question could still be seized and subject to an administrative proceeding by which with minimal due process, it could be subject to forfeiture.
Currency rate risk
As of September 30, 2025, none of the Company’s financial assets and liabilities were held in Canadian dollars. The same was true as of September 30, 2024. The Company’s objective in managing its foreign currency risk is to minimize its net exposure to foreign currency cash flows by transacting, to the greatest extent possible, with third parties in the functional currency. The Company does not currently use foreign exchange contracts to hedge its exposure of its foreign currency cash flows as management has determined that this risk is not significant at this point in time. The Company’s exposure to a 10% change in the foreign exchange conversion rate at September 30, 2025 equals $nil.
| 18. Disaggregated Revenue |
The following table presents the Company’s disaggregated revenue by sales channel:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Retail | $ | $ | $ | $ | ||||||||||||
| Wholesale | ||||||||||||||||
| Net revenues | $ | $ | $ | $ | ||||||||||||
| PLANET 13 HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (Unaudited, in United States Dollars, except share amounts) |
| 19. Potential Acquisition |
On July 31, 2024, the Company announced that its wholly-owned subsidiary, MM Development Company Inc., entered into an asset purchase agreement to acquire all assets required to operate a
| 20. Property Recovered in Settlement |
On March 3, 2025 the Company announced significant recovery of funds related to El Capitan, including a settlement and recovery of $2.1 million of funds which were held at Bridge Bank, a division of Western Alliance Bank (collectively "WAB"), bringing the total recovery of funds held at WAB to $5.5 million. Additionally, the Company, through a wholly-owned subsidiary, obtained real estate (the "Real Property") valued at approximately $5.0 million based on comparable sales, and carried on the balance sheet at a net (after estimated costs to sell) value of $
| 21. Subsequent Events |
On October 29, 2025, the Company entered into an Asset Purchase Agreement ("APA") for the sale of its Orange County, California dispensary and is currently awaiting regulatory approvals for the transfer of the retail license and completion of the transaction, which is expected to occur within approximately three to four months of the execution of the APA. The sale is also subject to customary closing conditions. The proceeds from the sale are expected to be negligible after deducting expenses and lease termination fees. The sale reflects the Company's strategy to focus its resources on its highest performing markets and to position the Company for long-term growth and profitability.
On November 3, 2025, the Company announced plans to discontinue operations at its cultivation facility in Coalinga, California. The closure will involve the wind-down of operations and sell through of existing inventory through the remainder of 2025. The Company determined that this action was necessary to improve overall profitability and cash flow and to focus on its core businesses in Nevada and Florida. The cultivation facility, equipment and land are owned by the Company and have been classified as assets held for sale on the balance sheet date as of September 30, 2025.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
This management’s discussion and analysis (“MD&A”) of the financial condition and results of operations of Planet 13 is for the three and nine months ended September 30, 2025. It is supplemental to, and should be read in conjunction with, our unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024, and the accompanying notes presented herein. Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Financial information presented in this MD&A is presented in United States dollars (“$”, “USD” or “US$”), unless otherwise indicated.
In this MD&A, unless the context otherwise requires, the terms “we,” “us,” “our,” “Company,” or “Planet 13” refer to Planet 13 Holdings Inc. together with its wholly owned subsidiaries.
This MD&A contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable United States and Canadian securities laws. Please refer to the discussion of forward-looking statements and information set out under the heading “Cautionary Note Regarding Forward-Looking Statements,” identified in this Quarterly Report on Form 10-Q. As a result of many factors, our actual results may differ materially from those anticipated in these forward-looking statements and information.
Overview
We are a multi-state cannabis operator with licenses to operate in Nevada, California, Florida, and Illinois.
As of September 30, 2025, we employed approximately 725 full-time and 58 part-time employees and remain focused on providing our customers with the best products, best services, and an experiential shopping experience at our superstore-themed dispensaries, while expanding our products and sales through neighborhood stores. Each of our state operations is held in state-focused subsidiaries: (a) Newtonian Principles, Inc. for California licensed cannabis dispensing and distribution activities, (b) Next Green Wave, LLC for California licensed cannabis cultivation, production and distribution activities, (c) MM Development Company, Inc. for all licensed Nevada cannabis cultivation, production, distribution, and dispensing activities, (d) VidaCann, LLC (“VidaCann”) which holds our Florida Medical Marijuana Treatment Center (“MMTC”) license, and (e) Planet 13 Illinois, LLC (“Planet 13 Illinois”) which holds our Illinois social-equity justice impaired dispensing license. We have focused on our large-store dispensing stores as superstores which offer an experiential approach to our customers, including drones, robotics, 3-D mapping projection, cannabis-culture inspired social-media backdrops for customer interaction, customer facing production, one-on-one sales staffing and customer education, and other interactive marketing elements to differentiate from more traditional dispensing locations, which we refer to herein as “neighborhood stores”. Each of our cannabis facilities is state-licensed as an adult-use cannabis facility, a medical cannabis facility, or a dual-use facility allowing for both adult-use and medical cannabis licensed activity, as designated below in the state-by-state breakdown.
Nevada
As of September 30, 2025, we held the following licensed cannabis operations in Nevada: (a) one dual-licensed dispensary superstore adjacent to the Las Vegas Strip with 24,000 square feet of licensed dispensary (the “Planet 13 Las Vegas Superstore”), (b) one adult-use “neighborhood store” at 2,300 square feet of licensed dispensary (the “Medizin dispensary”), (c) three dual-licensed production facilities, one of which is co-located and customer-facing at the Planet 13 Las Vegas SuperStore with 18,500 square feet of licensed production, (d) three dual-licensed cultivation facilities, one with approximately 16,100 square foot indoor cultivation facility under perpetual harvest cycle, a second with 45,000 square feet co-located with our production license at that facility, and a small-indoor rural site in Beatty, Nevada that is expandable up to 2,300,000 square feet of greenhouse located on 80-acres owned by us, also co-located with our production license at that facility, (e) one cannabis distribution license and (f) one cannabis consumption license operating as Dazed! Consumption Lounge, a 3,000 square foot location inside the Planet 13 Las Vegas Superstore. At the Planet 13 Las Vegas Superstore, we also offer ancillary services to our customers, including a restaurant (currently closed and awaiting a new tenant operator) with a liquor license, a retail store, and our online cannabidiol (“CBD”) store which also sells products in our facility.
California
As of September 30, 2025, we held the following licensed operations in California: (a) an adult-use dispensary superstore co-located with a distribution license at our 33,000 square foot facility in Santa Ana (the “Planet 13 OC Superstore”), and (b) one dual-use and two adult-use cultivation licenses along with a nursery license and distribution license at our 35,000 square foot cultivation facility, and one Type P production license at a 4,000 square foot facility. The Company has announced plans to discontinue operations at both its Orange County, California retail store, as well as its Coalinga California cultivation facility. The Company expects to have divested all California operations by early first quarter of 2026 in an effort to focus resources on its highest performing markets such as Nevada and Florida and to position the Company for long-term growth and profitability.
Florida
As of September 30, 2025, we are continuing capital outlays to utilize our Florida MMTC license issued by the Florida Department of Health that was acquired through our acquisition of VidaCann. The VidaCann acquisition added a cultivation and processing facility, a production facility and a 26 retail store network, to which we have added seven additional locations, bringing the total number of medical dispensaries we operate in Florida to 33. As of the date of this Quarterly Report on Form 10-Q, as part of our Florida expansion, we have one active lease agreement for an additional dispensing location in Sarasota, Florida, which remains subject to completion of tenant improvements and regulatory inspection prior to sales to customers. In addition, we are nearing completion on the construction of a new butane hash oil lab facility to enhance our current product portfolio starting in late fourth quarter of 2025.
Illinois
As of September 30, 2025 we operate one Planet 13 branded dispensary in Waukegan, Illinois. The Company has plans to leverage its resources in Illinois by introducing its exclusive line of products through licensing agreements for sale at its retail store and wholesale throughout the State in 2026.
Competitive Conditions
The markets in which we operate are highly competitive, with increasing competition from larger, better financed companies, as well as new entrants. Competition has become more intense as competitors offer an increasing number of diversified products and engage in price competition in all markets. Planet 13 is committed to enhancing the customer experience through events, exclusive product offerings, improved pricing and enhancements to its loyalty program to help attract and retain customers in light of this competitive environment.
We expect to continue to focus on several areas, including customer experience, product innovation, production efficiencies, marketing and branding, and ongoing cost control and reductions. The management team constantly monitors ongoing developments in the cannabis and related industries to help us remain competitive. We have been closely tracking the illicit market for cannabis and manufacturers and retailers of intoxicating hemp products as the illicit market also has a direct financial impact on our business.
Recent Developments
The U.S. government has continued to impose increased tariffs on goods imported from various countries, which have led to reciprocal tariffs and other trade measures. We continue to actively monitor the tariff developments and any potential impacts. We do not expect them to have a material impact on our business, cost structure, or supply chain. In addition, the adoption of the One Big Beautiful Bill Act is unlikely to have any material impact on Planet 13 and its operations.
Results of Operations
| Three Months Ended |
||||||||||||
| September 30, |
September 30, |
Percentage |
||||||||||
| Expressed in USD$ |
2025 |
2024 |
Change |
|||||||||
| Revenue |
||||||||||||
| Net revenue |
23,270,211 | 32,159,070 | (27.6 | )% | ||||||||
| Cost of Goods Sold |
(18,311,350 | ) | (15,463,050 | ) | 18.4 | % | ||||||
| Gross Profit |
4,958,861 | 16,696,020 | (70.3 | )% | ||||||||
| Gross Profit Margin % |
21.3 | % | 51.9 | % | ||||||||
| Expenses |
||||||||||||
| General and Administrative |
11,987,649 | 14,772,846 | (18.9 | )% | ||||||||
| Sales and Marketing |
1,171,083 | 1,572,549 | (25.5 | )% | ||||||||
| Lease expense |
1,345,835 | 1,320,018 | 2.0 | % | ||||||||
| Impairment loss |
29,844,227 | — | - | |||||||||
| Depreciation and Amortization |
1,855,914 | 2,355,052 | (21.2 | )% | ||||||||
| Total Expenses |
46,204,708 | 20,020,465 | 130.8 | % | ||||||||
| Income (Loss) From Operations |
(41,245,847 | ) | (3,324,445 | ) | 1140.7 | % | ||||||
| Other Income (Expense): |
||||||||||||
| Interest expense, net |
(91,934 | ) | 30,263 | (403.8 | )% | |||||||
| Foreign exchange gain (loss) |
— | (3,066 | ) | (100.0 | )% | |||||||
| Other income, net |
(1,799,946 | ) | 376,717 | (577.8 | )% | |||||||
| Total Other Income |
(1,891,880 | ) | 403,914 | (568.4 | )% | |||||||
| Loss for the period before tax |
(43,137,727 | ) | (2,920,531 | ) | 1377.1 | % | ||||||
| Provision for income tax (current and deferred) |
(818,126 | ) | (4,490,659 | ) | (81.8 | )% | ||||||
| Loss for the period |
(43,955,853 | ) | (7,411,190 | ) | 493.1 | % | ||||||
| Loss per share for the period |
||||||||||||
| Basic and fully diluted income (loss) per share |
$ | (0.14 | ) | $ | (0.02 | ) | ||||||
| Weighted Average Number of Shares Outstanding |
||||||||||||
| Basic and diluted |
325,363,800 | 325,163,800 | ||||||||||
| Nine Months Ended |
||||||||||||
| September 30, |
September 30, |
Percentage |
||||||||||
| Expressed in USD$ |
2025 |
2024 |
Change |
|||||||||
| Revenue |
||||||||||||
| Net revenue |
78,156,379 | 86,124,795 | (9.3 | )% | ||||||||
| Cost of Goods Sold |
(49,531,520 | ) | (43,107,569 | ) | 14.9 | % | ||||||
| Gross Profit |
28,624,859 | 43,017,226 | (33.5 | )% | ||||||||
| Gross Profit Margin % |
36.6 | % | 49.9 | % | ||||||||
| Expenses |
||||||||||||
| General and Administrative |
39,645,372 | 37,075,341 | 6.9 | % | ||||||||
| Sales and Marketing |
4,344,072 | 4,380,926 | (0.8 | )% | ||||||||
| Lease expense |
4,032,796 | 3,140,575 | 28.4 | % | ||||||||
| Impairment loss |
29,844,227 | 2,393,087 | - | |||||||||
| Depreciation and Amortization |
5,442,633 | 6,559,123 | (17.0 | )% | ||||||||
| Total Expenses |
83,309,100 | 53,549,052 | 55.6 | % | ||||||||
| Income (Loss) From Operations |
(54,684,241 | ) | (10,531,826 | ) | 419.2 | % | ||||||
| Other Income (Expense): |
||||||||||||
| Interest expense, net |
(645,635 | ) | 139,405 | (563.1 | )% | |||||||
| Foreign exchange gain (loss) |
(3,113 | ) | (13,108 | ) | (76.3 | )% | ||||||
| Other income, net |
3,504,281 | (67,013 | ) | (5329.3 | )% | |||||||
| Total Other Income |
2,855,533 | 59,284 | 4716.7 | % | ||||||||
| Loss for the period before tax |
(51,828,708 | ) | (10,472,542 | ) | 394.9 | % | ||||||
| Provision for income tax (current and deferred) |
(7,475,554 | ) | (10,885,563 | ) | (31.3 | )% | ||||||
| Loss for the period |
(59,304,262 | ) | (21,358,105 | ) | 177.7 | % | ||||||
| Loss per share for the period |
||||||||||||
| Basic and fully diluted income (loss) per share |
$ | (0.18 | ) | $ | (0.08 | ) | ||||||
| Weighted Average Number of Shares Outstanding |
||||||||||||
| Basic and diluted |
325,362,689 | 281,087,233 | ||||||||||
Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended June 30, 2024
Revenue, net of Discounts
The Company experienced a decrease in net revenue of $8,888,859, down 27.6% from $32,159,070 during the three months ended September 30, 2024 and a decrease of $7,968,416, down 9.3% from $86,124,795 during the nine months ended September 30, 2024. The decrease in net revenue during the three and nine months ended September 30, 2025 was primarily driven by price compression in all markets and an increase in new dispensaries in the Florida market. The Company saw a reduction in the number of customers at the Planet 13 Las Vegas Superstore compared to the prior year, and decreases in revenue from both retail operations and wholesale operations in California and Nevada. In particular, the flower category suffered from intense price compression and oversupply in the market, negatively impacting both retail and wholesale revenue in the period. We believe that a decline in tourism in Las Vegas, combined with an overall reduction in the disposable income of our customers during the nine months ended September 30, 2025, had a negative impact on the number of tourists and local customers visiting the Planet 13 Las Vegas Superstore and our other retail locations.
Details of net revenue by product category are as follows:
| Three Months Ended | ||||||||||||
| September 30, |
September 30, |
Percentage |
||||||||||
| 2025 |
2024 |
Change |
||||||||||
| Flower |
$ | 8,577,585 | $ | 12,186,833 | (29.6 | )% | ||||||
| Concentrates |
7,661,562 | 10,118,100 | (24.3 | )% | ||||||||
| Edibles |
3,667,384 | 4,771,498 | (23.1 | )% | ||||||||
| Topicals and Other Revenue |
1,119,393 | 1,882,233 | (40.5 | )% | ||||||||
| Wholesale |
2,244,287 | 3,200,406 | (29.9 | )% | ||||||||
| Net revenue |
$ | 23,270,211 | $ | 32,159,070 | (27.6 | )% | ||||||
| Nine Months Ended |
||||||||||||
| September 30, |
September 30, |
Percentage |
||||||||||
| 2025 |
2024 |
Change |
||||||||||
| Flower |
$ | 28,728,017 | $ | 30,997,127 | (7.3 | )% | ||||||
| Concentrates |
24,876,348 | 26,756,157 | (7.0 | )% | ||||||||
| Edibles |
12,801,895 | 13,603,796 | (5.9 | )% | ||||||||
| Topicals and Other Revenue |
3,447,300 | 4,262,969 | (19.1 | )% | ||||||||
| Wholesale |
8,302,819 | 10,504,746 | (21.0 | )% | ||||||||
| Net revenue |
$ | 78,156,379 | $ | 86,124,795 | (9.3 | )% | ||||||
Gross Profit
Gross profit margin for the three months ended September 30, 2025 was 21.3% compared to 51.9% for the three months ended September 30, 2024 and was 36.6% for the nine months ended September 30, 2025 compared to 49.9% for the nine months ended September 30, 2024. Overall gross profit was $28,624,859 and $43,017,226 for the nine months ended September 30, 2025 and 2024 respectively, a decrease of 33.5%.
The decrease in gross profit margin for the three and nine months ended September 30, 2025 was the result of several factors including: price compression seen in retail sales channels, as well as in the Nevada and California wholesale markets, particularly in the flower category. In addition, due to the high level of vertical integration in the Nevada and Florida markets, the Company faced issues related to over capacity at its cultivation and production facilities which led to an increase in aged inventory. The Company increased its reserve for slow moving inventory by $3,500,000 in the three months ended September 30, 2025 and has implemented additional strategies to help prevent excess inventory build and reduce production costs. Excluding the impact of inventory related charges and California wholesale revenue at, or below cost to produce, the Company estimates gross margin at approximately 45% both for the three and nine months ended September 30,2025.
General and Administrative Expenses
General and Administrative (“G&A”) expenses (which includes non-cash share-based compensation expenses), increased by 6.9% during the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024. The increase in G&A expenses incurred was a result of the addition of the VidaCann operations with only a partial period under the Company's ownership included in the prior period and an increase in share-based compensation resulting from the March 31, 2025 RSU grant. These increases were partially mitigated by focused cost cutting initiatives undertaken by the Company during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024. Overall, excluding non-cash share-based compensation expenses, G&A expenses as a percentage of revenue equaled 49.2% for the nine months ended September 30, 2025, compared to 42.9% for the nine months ended September 30, 2024.
A detailed breakdown of G&A expenses is as follows:
| Three Months Ended |
||||||||||||
| September 30, | September 30, | Percentage | ||||||||||
| 2025 |
2024 |
Change |
||||||||||
| Salaries and wages |
$ | 4,793,367 | $ | 7,267,296 | (34.0 | )% | ||||||
| Share-based compensation expense |
616,654 | 25,416 | 2326.2 | % | ||||||||
| Executive compensation |
728,180 | 869,415 | (16.2 | )% | ||||||||
| Licenses and permits |
683,859 | 745,350 | (8.2 | )% | ||||||||
| Payroll taxes and benefits |
1,150,290 | 1,113,463 | 3.3 | % | ||||||||
| Supplies and office expenses |
200,787 | 455,794 | (55.9 | )% | ||||||||
| Subcontractors |
562,979 | — | — | % | ||||||||
| Professional fees (legal, audit and other) |
1,133,736 | 2,018,888 | (43.8 | )% | ||||||||
| Miscellaneous general and administrative expenses |
2,117,797 | 2,277,224 | (7.0 | )% | ||||||||
| $ | 11,987,649 | $ | 14,772,846 | (18.9 | )% | |||||||
| Nine Months Ended |
||||||||||||
| September 30, |
September 30, |
Percentage |
||||||||||
| 2025 |
2024 |
Change |
||||||||||
| Salaries and wages |
$ | 16,032,900 | $ | 16,019,641 | 0.1 | % | ||||||
| Share-based compensation expense |
1,174,281 | 154,893 | 658.1 | % | ||||||||
| Executive compensation |
2,816,843 | 2,173,653 | 29.6 | % | ||||||||
| Licenses and permits |
2,030,477 | 1,897,750 | 7.0 | % | ||||||||
| Payroll taxes and benefits |
3,734,383 | 3,080,493 | 21.2 | % | ||||||||
| Supplies and office expenses |
736,928 | 795,731 | (7.4 | )% | ||||||||
| Subcontractors |
1,761,008 | 182,042 | 867.4 | % | ||||||||
| Professional fees (legal, audit and other) |
4,114,199 | 6,882,102 | (40.2 | )% | ||||||||
| Miscellaneous general and administrative expenses |
7,244,353 | 5,889,036 | 23.0 | % | ||||||||
| $ | 39,645,372 | $ | 37,075,341 | 6.9 | % | |||||||
Non-cash, share-based compensation of $616,654 was recognized during the three months ended September 30, 2025, increasing from $25,416 that was recognized during the three months ended September 30, 2024. The increase is attributable to the 13,673,635 Restricted Share Units (“RSUs”) that were granted on March 31, 2025. These amounts are non-cash, and the expense is recognized in accordance with the vesting schedule of the underlying RSUs. See Note 12 to our audited consolidated financial statements filed with our Annual Report on Form 10-K for the year ended December 31, 2024, for additional details on the assumptions used to calculate fair value as well as information regarding the vesting of the various components of the non-cash share-based compensation.
Sales and marketing expenses decreased by 25.5% or $401,466 during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and decreased 0.8% or $36,854 during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024. The decrease in marketing expenses was a result of the Company's overall cost reduction efforts, partially offset by the cost of efforts to drive increased customer traffic to the Planet 13 Las Vegas Superstore and expenses incurred in Florida promoting our expanded store network and Planet 13 rebrand.
Lease expense increased by 2.0% during the three months ended September 30, 2025, when compared to the three months ended September 30, 2024 and increased 28.4% during the nine months ended September 30, 2025 when compared to the nine months September 30, 2024. The increase in Lease expense is due to ongoing annual increases in contracted lease rates on the Company’s leased properties during the year as well as the addition of the dispensary, cultivation and processing facility leases in Florida.
Depreciation and amortization decreased by 21.2% during the three months ended September 30, 2025, when compared to the three months ended September 30, 2024 and decreased 17.0% in the nine months ended September 30 2025 when compared to the nine months ended September 30, 2024. The reduction is primarily due to the elimination of depreciation charges as a result of asset impairments.
Impairment charges of $29,844,227 were incurred during the nine months ended September 30, 2025 related to cultivation assets in Nevada and California that the Company determined had carrying values in excess of their fair values. The ongoing decline in the market price for flower in these markets was the indication that these assets may be impaired. During the nine months ended September 30, 2024, the Company recorded an impairment loss of $2,393,087 related to the write-down to net realizable value of construction in process assets for a steel building kit structure at our Florida operations that is no longer going to be used in the operations.
Interest expense of $91,934 was incurred during the three months ended September 30, 2025, compared to net interest expense of $30,263 during the three months ended September 30, 2024. Interest expense was $645,635 for the nine months ended September 30, 2025 compared to interest income of $139,405 during the nine months ended September 30, 2024. Interest expense is related to the revolving line of credit, net of interest earned on a corresponding money market account, plus accrued interest on our long-term debt that is due and payable on demand. The balance of long-term debt as of September 30, 2025, was $1,219,475 compared to $1,177,722 as of December 31, 2024.
We conduct our operations primarily in United States dollars and hold all of our currency in US dollars. An insignificant amount of expenses are incurred in Canadian dollars, or Euros. The foreign currency gains/losses reflect fluctuations in the underlying exchange rates on the dates expenses are incurred compared to when they are paid. It is our policy not to hedge our foreign exchange exposure.
Other income/expense, consisting of losses on sale of fixed assets and other miscellaneous charges, partially offset by Automated Teller Machine (“ATM”) fees, and other income, was expense of $1,799,946 for the three months ended September 30, 2025, compared to other income consisting of ATM fees, and other miscellaneous income of $376,717 for the three months ended September 30, 2024. Other income, consisting of ("ATM") fees and other miscellaneous income/expense, including the recovery of a property in a legal settlement related to the El Capitan matter valued at $4,570,227 was $3,504,281 for the nine months ended September 30, 2025 compared to $67,013 in the nine months ended September 30, 2024.
Income tax expense for the three months ended September 30, 2025, was $818,126 compared to $4,490,659 for the prior year period. The tax expense decreased due to overall business performance in the current period when compared to the prior year. Income tax expense decreased during the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024 due to an overall reduction in taxable income year over year. We are subject to Section 280E of the Internal Revenue Code (the “Code”), which prohibits businesses from taking deductions or credits in carrying on any trade or business consisting of trafficking in certain controlled substances that are prohibited by federal law. We, to the extent our “trafficking” activities, and/or key contract counterparties directly engaged in trafficking in cannabis, have incurred significant tax liabilities from the application of Section 280E. Our income tax obligations under Section 280E of the Code are typically substantially higher as compared to companies to which Section 280E does not apply. Section 280E essentially requires us to pay federal, and as applicable, state income taxes on gross profit, which presents a significant financial burden that increases our net loss and may make it more difficult for us to generate net profit and cash flow from operations in future periods. In addition, to the extent that the application of Section 280E creates a financial burden on contract counterparties, such burdens may impact the ability of such counterparties to make full or timely payment to us, which would also have a material adverse effect on our business.
The overall net loss for the three months ended September 30, 2025, was $43,955,853 (($0.14) per share) compared to an overall net loss of $7,411,190 (($0.02) per share) for the three months ended September 30, 2024. The overall net loss for the Nine months ended September 30, 2025, was $59,304,262 (($0.18) per share) compared to an overall net loss of $21,358,105 (($0.08) per share) for the nine months ended September 30, 2024
Segmented Disclosure
The Company determined that each of its locations represents an operating segment. These operating segments have been aggregated into a single reportable segment as the Company operates as a vertically integrated cannabis company with dispensary, cultivation, production and distribution operations in the States of Nevada and Florida, dispensary, cultivation and distribution operations in the State of California and dispensary operations in the State of Illinois.
Liquidity and Capital Resources
As of September 30, 2025, our financial instruments consist of cash, deposits, accounts receivable, accounts payable and accrued liabilities, and notes payable. We have no speculative financial instruments, derivatives, forward contracts, or hedges.
As of September 30, 2025, we have working capital of $18,564,637 compared to working capital of $15,564,382 as of September 30, 2024. The Company believes that it has adequate liquidity in the form of cash on hand to fund all its planned capital expenditures and expansion plans as well as to continue to fund its operation over the next 12 months and the planned build-out of its operations in Florida. The Company currently has a cultivation facility for sale in Coalinga, California, that includes an owned building, land and licensing that is valued by the Company at $3,000,000. The Company is planning to use the proceeds from the future sale to fund its ongoing operations and expansion in Florida.
The Company entered into a cash secured line of credit up to $9,750,000, effective June 13, 2024, with no other collateral securing the credit line (the "revolving line of credit"). The revolving line of credit had no previous draws until the quarter ended March 31, 2025. The revolving line of credit contains no financial or other incurrence-based covenants and no material maintenance covenants. The revolving line of credit was used to pay off the approximately $3 million note payable at Lafayette State Bank that matured on February 20, 2025, the $5 million note to former VidaCann shareholders, plus accrued interest that was due on April 1, 2025, plus some additional construction projects that were completed in the nine months ended September 30, 2025.
The following table relates to the nine months ended September 30, 2025 and 2024:
| Nine Months Ended |
||||||||
| September 30, | September 30, | |||||||
| 2025 |
2024 |
|||||||
| Cash flows used in operating activities |
$ | (10,570,883 | ) | $ | 6,642,779 | |||
| Cash flows provided by investing activities |
514,518 | (1,236,623 | ) | |||||
| Cash flows provided by financing activities |
1,802,368 |
6,773,923 | ||||||
Cash Flows from Operating Activities
Net cash used in operating activities was $10,570,883 for the nine months ended September 30, 2025, compared to cash provided by operating activities of $6,642,779 for the nine months ended September 30, 2024. A significant portion of the increase in cash used in operating activities is directly attributable to the net change in certain working capital items during the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024.
Cash Flows from Investing Activities
Net cash provided by investing activities was $514,518 for the nine months ended September 30, 2025, compared to net cash used in investing activities of $1,236,623 for the nine months ended September 30, 2024. Funds received were related to the sale of a property in Santa Barbara that was recovered in a legal settlement and the sale of land in Florida that was no longer needed and previously held for sale. Capital expenditures were primarily related to new store buildouts and upgrades to the cultivation and production facilities in Florida.
Cash Flows from Financing Activities
Net cash provided by financing activities was $1,802,368 during the nine months ended September 30, 2025, compared to net cash provided by financing activities of $6,773,923 for the nine months ended September 30, 2024. The funds received in the current period were draws from the revolving line of credit, partially offset by the payoff of debts related to the VidaCann acquisition. Prior year net funds received were related to the closing of an equity financing in March 2024.
Capital Resources
We have a recent history of operating losses. It may be necessary for us to arrange for additional financing to meet our ongoing growth initiatives.
Management believes it will be able to raise equity capital as required in the long term, but recognizes the risks attached thereto. There can be no assurance that it will be able to obtain adequate financing in the future or that the terms of such financing may be favorable.
Should financing not be available, the Company has adequate liquidity in the form of cash on hand and assets for sale to fund all of its planned capital expenditures and expansion plans as well as to continue to fund its operation over the next 12 months, including the planned build-out of its operations in Florida.
Capital Management
Our capital consists of shareholders’ equity. Our objective when managing capital is to maintain adequate levels of funding to support the development of our businesses and maintain the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity financing. Future financings are dependent on market conditions and there can be no assurance we will be able to raise funds in the future. We invest all capital that is surplus to our immediate operational needs in short-term, highly liquid, and high-grade financial instruments. There were no changes to our approach to capital management during the period. We are not subject to externally imposed capital requirements.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements as of September 30, 2025, or as of the date hereof.
Critical Accounting Estimates
The preparation of consolidated financial statements in conformity with GAAP requires our management to make judgements, estimates and assumptions about future events that affect the amounts reported in the consolidated financial statements. Although these estimates are based on management’s best knowledge of the amounts, events or actions, actual results may differ from those estimates. Estimates and judgements are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
There have been no material changes to our critical accounting estimates as set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
There have been no material changes to our market risk disclosures as set forth in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024.
Item 4. Controls and Procedures
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Our management, with the participation of our Co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Exchange Act. Based on that evaluation as of September 30, 2025, our Co-Chief Executive Officers and Chief Financial Officer concluded that our Company’s disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, cannot provide absolute assurance of achieving the desired control objectives. Our management recognizes that any control system, no matter how well designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met. Similarly, an evaluation of controls cannot provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected.
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, we may become involved in legal or regulatory proceedings, lawsuits and other claims arising in the ordinary course of our business. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of such matters will be. However, based on our knowledge, we are not presently a party to any legal proceedings that, in the opinion of our management, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.
Item 1A. Risk Factors.
In addition to other information set forth in this report, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect our business, financial condition, financial results, or future performance. Other than as set forth below, there have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
The Company made no unregistered sales of securities during the quarter covered by this report that have not previously been disclosed in a Current Report on Form 8-K.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Insider Trading Arrangements
The Company’s executive officers and directors may from time to time enter into plans or arrangements for the purchase or sale of its common stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. During the three months ended September 30, 2025, no officer or director adopted a “Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K.
Item 6. Exhibits.
EXHIBIT INDEX
| Incorporated by Reference | ||||||||||
| Exhibit No. |
Description |
Form | Exhibit | Filing Date | Filed/Furnished Herewith | |||||
| 31.1 |
Certification of Principal Executive Officer (Robert Groesbeck) pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
✓ | ||||||||
| 31.2 |
Certification of Principal Executive Officer (Larry Scheffler) pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
✓ | ||||||||
| 31.3 |
Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
✓ | ||||||||
| 32.1 |
Certification of Principal Executive Officers and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to 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 within the Inline XBRL and contained in Exhibit 101) | ✓ | ||||||||
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.
| Date: November 12, 2025 |
By: |
/s/ Robert Groesbeck |
|
| Robert Groesbeck |
|||
| Co-Chief Executive Officer |
|||
| (Principal Executive Officer) | |||
| By: |
/s/ Larry Scheffler |
||
| Larry Scheffler |
|||
| Co-Chief Executive Officer |
|||
| (Principal Executive Officer) | |||
| By: |
/s/ Stephen McLean |
||
| Stephen McLean |
|||
| Interim Chief Financial Officer |
|||
| (Principal Financial and Accounting Officer) |
FAQ
What was Planet 13 (PLNH) Q3 2025 revenue and profit?
How much cash did Planet 13 hold at September 30, 2025?
What major charges affected Q3 2025 results?
What is Planet 13’s debt and credit line position?
How did the VidaCann acquisition contribute in 2025?
What strategic changes were announced in California?
How many shares of Planet 13 were outstanding?
