GrowLife provides update, reaffirms aim to be EBITDA positive before year-end

Dave Dohrmann commented: “The first half of 2023 has been about laying the foundation for what we believe is going to be the beginning of an extended period of sequential revenue growth at GrowLife with the goal of returning to profitability by the end of 2023. This is thanks to the collective work accomplished by our excellent team across all three divisions of our wholly-owned subsidiary, Bridgetown Mushrooms. I am looking forward to sharing details regarding why we are so well-positioned to build on our now-strong foundation, what is driving the growth in each division of Bridgetown, and what to expect from us operationally going forward.” The company said, “As disclosed in the Company’s Q1 2023 filing, Bridgetown’s revenue was $79,000, and the Company anticipates that Q2 revenue will be $143,000 when it releases its audited June results. The recently announced partnership with GrowGeneration to nationalize the Company’s distribution of mycology supplies, the imminent addition of a prominent West Coast produce distributor to materially expand the distribution of Bridgetown’s gourmet mushrooms, and the recent release of Bill Walton’s will not be reflected in the Company’s Q2 2023 financial results. The Company will realize the benefits of these milestones starting in Q3 2023 and into 2024. The Company forecasts revenue for this current quarter ending September 30 to be in the $400,000 range, followed by another sequential rise to $750,000 in the quarter ending December 31. The Company anticipates exiting 2023 with a $3M annual run rate and gross margins in the 50% to 55% range. Furthermore, the Company reaffirms that it plans to turn EBITDA positive in December 2023. The Big Picture for GrowLife & Bridgetown Given the collective work of the Company’s team during the past year, it now has the product, strategic partnerships, and distribution capabilities in place to begin scaling up to a $10M annual run rate which is what current production capacity can accommodate. As well, the Company has the team in place to support this run rate, having added personnel across the organization’s three divisions to prepare for its expansion. While all of this top line growth is vital to the health of the organization, it is important to note that the Company is being judicious regarding overall expenses by focusing on and prioritizing profitability and free cash flow in 2024 and 2025. The Company has primarily modeled the majority of its revenue over the next 18 months to come from its Mycology Supply and Fresh Gourmet divisions, with the Functional Products division providing potential upside to our forecasts. The long term target is to maintain 50% gross margins and 20 to 25% operating margins. Corporate Updates Finally, before the end of 2023, the Company plans to drop the GrowLife name and stock symbol to become Bridgetown with a new stock symbol that reflects its focus on the mushroom industry and enter 2024 with a public profile that represents our evolving brand.”