AAWH — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-13

• The Company continues to focus on optimizing its operations, including evaluating expansion opportunities across the markets in which it operates. In addition to recent acquisition-related activity, as further described below, dispensaries that are associated with two previously consolidated transac…

• In April 2025, the Company entered into a definitive agreement pursuant to which the Company proposed to acquire an entity that anticipated obtaining an adult-use license (“Northeast Retail Partnership Dispensary Six”) and receive $1,000 of cash consideration in exchange for the Company’s Ohio culti…

• We believe our operations are in material compliance with all applicable state and local laws, regulations, and licensing requirements in the states in which we operate. However, cannabis is illegal under United States federal law. Substantially all of our revenue is derived from United States canna…

• On April 23, 2026, the U.S. Department of Justice (the “DOJ”) issued an order placing cannabis products subject to qualifying state medical cannabis licenses and other cannabis products that are FDA-approved into Schedule III under the Controlled Substances Act (21 U.S.C. § 801 et seq.) (the “CSA”) …

• The April 2026 Order may have a material effect on our future results of operations, cash flows, and liquidity, particularly if it reduces or eliminates the application of Internal Revenue Code (“IRC”) Section 280E to some or all of our state-licensed cannabis operations. Any such impact will depend…

Text removed vs the prior filing · source: 10-Q · 2025-11-10

• The Company continues to focus on expansion opportunities across the markets in which it operates and remains committed to cost-savings initiatives, improvements in working capital management, and providing an enhanced customer experience. Some of the Company’s recent business highlights include:

• •entering into agreements to provide support to three additional partner stores, including two that were added to our footprint during the quarter;

• •strengthened our capital position with the closing of a new financing arrangement with a principal amount of $9,345, as further described in “Liquidity and Capital Resources;” and

• •ending the period with $87,272 of cash and cash equivalents, reflecting improvements in working capital management and the generation of positive net cash from operating activities, offset by investments in capital assets and acquisition-related activity.

• In December 2024, Midwest Partnership One, a consolidated VIE, as further described in Note 8, “Variable Interest Entities,” in the Financial Statements, entered into entered into a definitive agreement to acquire the membership interests of an entity that anticipates receiving two adult-use license…

Text added vs the prior filing · source: 10-Q · 2026-05-13

• We are subject to risks and uncertainties relating to the April 23, 2026 order issued by the U.S. Department of Justice rescheduling certain medical cannabis to Schedule III (the “April 2026 Order”) and the related pending DEA administrative proceedings concerning broader cannabis rescheduling.

• The Company’s revenue is derived from sales of both medical and adult-use cannabis operations. The April 2026 Order does not address adult-use cannabis, which remains federally illegal under the Controlled Substances Act. Accordingly, any benefits of the April 2026 Order to our business, including p…

• The legal basis for the April 2026 Order is expected to be challenged in litigation. If the April 2026 Order is enjoined, narrowed, or vacated, tax positions or operational decisions we take in reliance on it may be reversed, and we could be required to amend tax filings, recognize additional tax li…

• The April 2026 Order creates a federal registration pathway with the DEA for state-licensed medical cannabis operators. The Company is evaluating the implications of this pathway, and there can be no assurance that, if we elect to pursue DEA registration, any such application would be granted, grant…

• The DEA has commenced a separate administrative hearing process to consider the broader rescheduling of all cannabis from Schedule I to Schedule III. The timing and outcome of that process are uncertain, and any resulting rule may be subject to litigation. Until a broader rescheduling rule is final …