September 30, 2022

December 31, 2021

Assets

Current assets:

Cash and cash equivalents

$

22,719

$

28,685

Accounts receivable and other receivables, net of allowance for doubtful accounts of
   $13 and $76 as of September 30, 2022 and December 31, 2021, respectively

2,726

1,370

Inventories, net — current

3,342

4,433

Assets held for sale

254

—

Prepaid expenses and other current assets

990

900

Total current assets

30,031

35,388

Property and equipment, net

848

2,291

Right of use asset

2,073

3,081

Inventories, net — noncurrent

984

2,494

Intangible assets, net

373

484

Other noncurrent assets

165

180

Total assets

$

34,474

$

43,918

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable and accrued expenses

$

2,748

$

3,638

Amounts due to related parties

47

64

Operating lease liability — current

986

1,074

Other current liabilities

270

264

Total current liabilities

4,051

5,040

Operating lease liability — noncurrent

1,269

2,220

Common stock warrant and option liabilities

2,135

3,392

Other noncurrent liabilities

2,000

2,070

Total liabilities

9,455

12,722

Commitments and contingencies (Note 15)

Stockholders’ equity:

Common stock, $0.001 par value—150,000,000 shares authorized as
   of September 30, 2022 and December 31, 2021; 24,642,960
   and 22,184,235 shares issued and outstanding as of September 30,
   2022 and December 31, 2021, respectively

65

63

Additional paid-in capital

278,618

257,515

Accumulated deficit

(253,615

)

(226,485

)

Total stockholders’ equity

25,068

31,093

Non-controlling interest

(49

)

103

Total stockholders' equity

25,019

31,196

Total liabilities and stockholders’ equity

$

34,474

$

43,918

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Revenues:

Product

$

1,851

$

2,324

$

7,967

$

4,506

Royalty

17

35

117

86

License

10

17

872

17

Total revenues

1,878

2,376

8,956

4,609

Operating expenses (income):

Cost of revenues

1,344

2,511

8,250

4,954

Research and development

255

1,038

1,009

3,328

Gain on sale of Verdeca

—

—

(1,138

)

—

Impairment of intangible assets

—

120

72

120

Change in fair value of contingent consideration

—

—

(70

)

(140

)

Impairment of property and equipment

24

1,108

370

1,319

(Gain) loss on sale of property and equipment

—

—

(386

)

17

Selling, general and administrative

4,835

6,312

13,834

16,733

Total operating expenses

6,458

11,089

21,941

26,331

Loss from operations

(4,580

)

(8,713

)

(12,985

)

(21,722

)

Interest income (expense)

95

(15

)

123

(23

)

Other income (expense), net

43

(7

)

13

10,214

Change in fair value of common stock warrant and option liabilities

1,880

4,777

1,880

4,601

Gain on extinguishment of PPP loan

—

1,123

—

1,123

Issuance and offering costs

(314

)

—

(314

)

(769

)

Net loss before income taxes

(2,876

)

(2,835

)

(11,283

)

(6,576

)

Income tax provision

(1

)

(1

)

(1

)

(1

)

Net loss

(2,877

)

(2,836

)

(11,284

)

(6,577

)

Net loss attributable to non-controlling interest

(10

)

(661

)

(152

)

(1,199

)

Net loss attributable to common stockholders

$

(2,867

)

$

(2,175

)

$

(11,132

)

$

(5,378

)

Net loss per share attributable to common stockholders:

Basic and diluted

$

(0.12

)

$

(0.10

)

$

(0.48

)

$

(0.26

)

Weighted-average number of shares used in per share
   calculations:

Basic and diluted

24,552,543

22,177,423

22,984,816

20,976,105

Other comprehensive loss, net of tax

Foreign currency translation adjustment

—

(12

)

—

(24

)

Other comprehensive loss

—

(12

)

—

(24

)

Comprehensive loss attributable to common stockholders

$

(2,867

)

$

(2,187

)

$

(11,132

)

$

(5,402

)

Nine Months Ended September 30,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(11,284

)

$

(6,577

)

Adjustments to reconcile net loss to cash used in operating activities:

Change in fair value of common stock warrant and option liabilities

(1,880

)

(4,601

)

Change in fair value of contingent consideration

(70

)

(140

)

Issuance and offering costs

314

769

Depreciation

354

737

Amortization of intangible assets

39

99

Lease amortization

686

914

Impairment of intangible assets

72

120

(Gain) loss on disposal of property and equipment

(386

)

17

Stock-based compensation

897

1,035

Bad debt expense

32

—

Realized gain on corporate securities

—

(10,222

)

Impairment of property and equipment

370

1,319

Write-down of inventories

1,530

1,802

Gain on extinguishment of PPP loan

—

(1,123

)

Gain on sale of Verdeca

(1,138

)

—

Changes in operating assets and liabilities:

—

—

Accounts receivable and other receivables

(534

)

(47

)

Inventories

1,071

(2,651

)

Prepaid expenses and other current assets

(90

)

(452

)

Other noncurrent assets

15

(159

)

Accounts payable and accrued expenses

(890

)

972

Amounts due to related parties

(17

)

(29

)

Unearned revenue

—

(8

)

Other current liabilities

6

1

Operating lease liabilities

(718

)

(984

)

Net cash used in operating activities

(11,621

)

(19,208

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of property and equipment

897

2

Proceeds from sale of Verdeca — earn-out received

285

—

Purchases of property and equipment

(46

)

(919

)

Acquisitions, net of cash acquired

—

(4,250

)

Proceeds from sales and maturities of investments

—

21,845

Net cash provided by (used in) investing activities

1,136

16,678

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock, pre-funded warrants and
   preferred investment options from August 2022 Offering

5,000

—

Payments of offering costs relating to August 2022 Offering

(488

)

—

Proceeds from issuance of common stock and warrants from
   January 2021 PIPE securities purchase agreement

—

25,147

Payments of offering costs relating to January 2021 PIPE
   securities purchase agreement

—

(1,912

)

Proceeds from the exercise of warrants

—

22

Principal payments on debt

—

(2,032

)

Proceeds from ESPP purchases

7

39

Capital contributions received from non-controlling interest

—

750

Net cash provided by financing activities

4,519

22,014

Effects of foreign currency translation on cash and cash equivalents

—

(1

)

Net (decrease) increase in cash and cash equivalents

(5,966

)

19,483

Cash and cash equivalents — beginning of period

28,685

16,043

Cash and cash equivalents — end of period

$

22,719

$

35,526

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for income taxes

$

—

$

1

Cash paid for interest

$

1

$

25

NONCASH INVESTING AND FINANCING ACTIVITIES:

Shares of common stock issued at closing of Arcadia Wellness transaction

$

—

$

2,053

Common stock warrant liabilities reclassified to equity upon adoption of ASU 2020-06

$

3,392

$

—

Common stock options issued to placement agent and included in offering
   costs related to August 2022 RDO securities purchase agreement

$

191

$

—

Common stock warrants issued to placement agent and included in offering
   costs related to January 2021 PIPE securities purchase agreement

$

—

$

942

Right of use assets obtained in exchange for new operating lease liabilities

$

114

$

1,662

Proceeds from sale of Verdeca in accounts receivable and other receivables

$

854

$

—