ZeroStack Corp. Q2 FY2023 earnings call

• In late June, management was appointed to address challenges. Colombian operations were divested and $6.1 million of cost savings implemented, including significant reduction in corporate overhead. • Just Brands operates in all 50 states, 21 countries with over 20,000 distribution points globally, has a wide range of products, and in July formed an exclusive worldwide partnership with Hulk Hogan, with a deal expected to be accretive to Flora and including a partnership with Carma HoldCo. • Vessel is the leading brand of consumer technology with high loyalty. • Phatebo is a German-based distributor of patented brand pharmaceuticals with outreach to 28 countries. • Believes industry should consolidate, reduce costs, and build efficient models to withstand economic weaknesses.

In the second quarter of 2023, revenues were $21.5 million, an increase of 140% compared to the second quarter of 2022. For the first half of 2023, revenues were $40.8 million, an increase of 210% year-over-year. Gross profit for the second quarter of 2023 was $4.0 million, an increase of 19% compared to the second quarter of 2022. In the first half of 2023, gross profit was $9.3 million, an increase of 68% year-over-year. The growth in revenues and gross profit is driven by the inclusion of full period results for Phatebo (acquired in December 2022) and Just Brands (acquired in February 2022).

• Will continue to prioritize Flora’s liquidity position. • Intends to take proactive steps to improve liquidity by obtaining additional financing. • Believes current market offers a generational opportunity for investment in the sector.

• The downturn in the global financial markets, particularly within the cannabis space, continues to be a challenge facing the industry.

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