EXHIBIT 99.1

Lowell Farms Inc. Announces Unaudited Second Quarter 2024 Financial and Operational Results

SALINAS, Calif., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Lowell Farms Inc. (the “Company”) (CSE: LOWL; OTCQX: LOWLF), a California cannabis company with advanced distribution and production capabilities including extraction, manufacturing, sales and brand management, announces unaudited revenue and operating results for the second quarter of 2024 (ended June 30, 2024). All figures stated are in US Dollars.

Second Quarter Financial Highlights:

Revenue Summary ($’s in ‘000)
        
       Q2’24 vs Q1’24
 Q2’23 Q1’24 Q2’24 Growth
CPG Revenues $4,438   $4,125   $3,489   -15% 
Bulk Product $2,263   $681   $49   -93% 
LFS $94   $68   $-   -100% 
Out-of-State Licensing $237   $-   -   0% 
Total $7,032   $4,874   $3,538   -27% 
                

"To start, I want to express our deep gratitude to our Board of Directors. Their unwavering support, commitment, and the significant time they have dedicated have been invaluable as our management team explores strategic alternatives to drive our business forward.” said Co-Founder and Chief Executive Officer Mark Ainsworth. “By expanding our services, we aim to better leverage our existing assets, reduce operational overhead, and strengthen our financial position. These efforts are designed to propel our business in a positive direction and deliver long-term value to our shareholders."

Operational Highlights and Ongoing Initiatives:

Q2 2024 Financial Results Earnings Conference Call Details:
The conference call with management at 5:30 p.m. EDT on Tuesday, August 13, can be accessed using the following dial-in information:

U.S. and Canadian Toll Free:1-800-579-2543
International:1-785-424-1789
Webcast: Link here
  

Please dial-in at least 10 minutes before the call to register.

The conference call will be webcast live and archived on the investor relations section of the Lowell Farms website at https://ir.lowellfarms.com/.

ABOUT LOWELL FARMS INC.
Lowell Farms Inc. (CSE:LOWL; OTCQX:LOWLF) (the “Company”) is a California-based cannabis company with advanced production capabilities supporting the supply chain, including extraction, manufacturing, brand sales, marketing, and distribution. Lowell Farms has an exclusive portfolio of award-winning brands, including Lowell Herb Co, House Weed, Moon, Cypress Cannabis, and Original Pot Co. for licensed retailers statewide.

Lowell Farms Inc. Media Contact
pr@lowellfarms.com

Lowell Farms Inc. Investor Relations Contact
Bill Mitoulas
416.479.9547
ir@lowellfarms.com

Lowell Farms Inc. Company Contact
Mark Ainsworth
ir@lowellfarms.com

Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved.” The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the anticipated growth of Lowell Farm Services and the ability of the Company to successfully achieve its business objectives and expectations for other economic, business, and/or competitive factors. There can be no assurance that such forward-looking information and statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information and statements. This forward-looking information and statements reflect the Company’s current beliefs and are based on information currently available to the Company and on assumptions the Company believes are reasonable.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; operating and development costs; competition; changes in legislation or regulations affecting the Company; the timing and availability of external financing on acceptable terms; the available funds of the Company and the anticipated use of such funds; favorable production levels and outputs; the stability of pricing of cannabis products; the level of demand for cannabis product; the availability of third-party service providers and other inputs for the Company’s operations; lack of qualified, skilled labor or loss of key individuals; and risks and delays resulting from the COVID-19 pandemic. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company’s disclosure documents, such as the Company’s annual information form filed on the SEDAR website at www.sedar.com and the Company's Form 10 filed on the SEC website at www.sec.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. However, the Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed, or accepts responsibility for the adequacy or accuracy of, the content of this news release.

Use of Non-GAAP Financial Information

EBITDA is net income (loss), excluding the effects of income taxes (recovery); net interest expense; depreciation and amortization; and adjusted EBITDA also includes noncash fair value adjustments on investments; unrealized foreign currency gains/losses; share-based compensation expense; and other transactional and special expenses, such as out-of-period insurance recoveries and acquisition costs and expenses related to the markup of acquired finished goods inventory, which are inconsistent in amount and frequency and are not what we consider as typical of our continuing operations. Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by operations. We use adjusted EBITDA internally to understand, manage, make operating decisions related to cash flow generated from operations and evaluate our business. In addition, we use adjusted EBITDA to help plan and forecast future periods.

This measure is not necessarily comparable to similarly titled measures used by other companies.

A reconciliation of this measure to Net Loss is provided below.

 

LOWELL FARMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 June 30,
2024		 December 31,
2023
ASSETS   
Current assets:   
Cash and cash equivalents$642  $2,311 
Accounts receivable - net of allowance for doubtful accounts of $1,090 and $959 at June 30, 2024 and December 31, 2023,     
respectively. 1,844   2,620 
Inventory 2,926   4,760 
Prepaid expenses and other current assets 1,638   2,397 
Total current assets 7,050   12,088 
Property and equipment, net 3,537   4,099 
Right of use assets, net 17,548   18,327 
Other intangibles, net 2,352   2,544 
Other assets 465   555 
      
Total assets$30,952  $37,613 
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Current liabilities:     
Accounts payable$1,775  $4,314 
Accrued payroll and benefits 299   363 
Notes payable, current portion 1   3 
Lease obligation, current portion 1,815   1,990 
Other current liabilities 2,276   1,943 
Total current liabilities 6,166   8,613 
Lease obligation 16,959   17,522 
Total liabilities 23,125   26,135 
COMMITMENTS AND CONTINGENCIES     
STOCKHOLDERS’ EQUITY     
Share capital 192,481   192,445 
Accumulated deficit (184,654)  (180,967)
Total stockholders’ equity 7,827   11,478 
   
Total liabilities and stockholders’ equity$30,952  $37,613 



LOWELL FARMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
 
 Six Months Ended Three Months Ended
 June 30,
2024		 June 30,
2023		 June 30,
2024		 June 30,
2023
Net revenue$3,538  $7,032  $8,412  $14,558 
Cost of goods sold 4,092   7,373   9,793   14,767 
     
Gross profit (loss) (554)  (341)  (1,381)  (209)
     
Operating expenses    
General and administrative 1,089   1,611   2,641   3,283 
Sales and marketing 451   638   860   1,373 
Depreciation and amortization 98   108   195   215 
Total operating expenses 1,638   2,357   3,696   4,871 
     
Loss from operations (2,192)  (2,698)  (5,077)  (5,080)
     
Other income (expense)    
Other income 1,399   3,803   1,404   3,805 
Unrealized change in fair value of investment -   (27)  -   (28)
Interest expense (5)  (1,151)  (14)  (2,810)
Total other income 1,394   2,625   1,390   967 
     
Loss before provision for income taxes (798)  (73)  (3,687)  (4,113)
Provision for income taxes -   -   -   - 
Net loss$(798) $(73) $(3,687) $(4,113)
     
Net loss per share:    
Basic$(0.04) $(0.01) $(0.19) $(0.34)
Diluted$(0.04) $(0.01) $(0.19) $(0.34)
Weighted average shares outstanding:    
Basic 19,031   12,177   19,031   12,177 
Diluted 19,031   12,177   19,031   12,177 



LOWELL FARMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) (in thousands)
 
 Six Months Ended
CASH FLOW FROM OPERATING ACTIVITIES June 30,
2024		   June 30,
2023		 
Net loss$(3,687) $(4,113)
Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation and amortization 1,533   2,644 
Amortization of debt issuance costs -   484 
Share-based compensation expense 36   101 
Provision for doubtful accounts 187   116 
Gain on sale leaseback -   (3,004)
Gain on lease settlement -   (880)
Unrealized loss on change in fair value of investments -   28 
Reversal of cultivation lease accrual (2,332)  - 
Changes in operating assets and liabilities:  
Accounts receivable 589   1,364 
Inventory 1,834   1,270 
Prepaid expenses and other current assets 759   466 
Other assets 90   (387)
Accounts payable and accrued expenses 62   1,488 
Operating lease payments (628)  - 
Net cash used in operating activities$(1,557) $(423)
CASH FLOW FROM INVESTING ACTIVITIES  
Purchases of property and equipment -   (19)
Net cash used in investing activities$-  $(19)
CASH FLOW FROM FINANCING ACTIVITIES  
Proceeds from sale leaseback -   8,991 
Principal payments on lease obligations (110)  (1,142)
Payments on notes payable (2)  (83)
Net cash provided by (used in) financing activities$(112) $7,766 
   
Change in cash and cash equivalents (1,669)  7,324 
Cash and cash equivalents-beginning of year 2,311   1,098 
Cash and cash equivalents -end of period$642  $8,422 
   
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION  
Cash paid during the period for interest$14  $1,821