iAnthus Capital Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Unaudited Interim Condensed Consolidated Statements of Cash Flows Supplemental Information

Unaudited Interim Condensed Consolidated Statements of Cash Flows Supplemental Information

9 Months Ended

Sep. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Unaudited Interim Condensed Consolidated Statements of Cash Flows Supplemental Information

Note 12 – Unaudited Interim Condensed Consolidated Statements of Cash Flows Supplemental Information

(a) Cash payments made on account of:


	For the Nine Months Ended September 30,
	2021		2020
Income taxes	$	1,560	$	292
Interest		71		123

(b) Changes in other

non-cash

operating assets and liabilities are comprised of the following:


	For the Nine Months Ended September 30,
	2021			2020
Decrease (increase) in:
Accounts receivables	$	(4	)	$	1,791
Prepaid expenses		461			928
Inventories		(4,534	)		(5,209	)
Other assets		59			(1,602	)
Increase (decrease) in:
Accounts payable		(486	)		(9,686	)
Accrued and other current liabilities		18,035			27,005

	$	13,531		$	13,227

(c)

Depreciation and amortization are comprised of the following:


	For the Nine Months Ended September 30,
	2021		2020
Property, plant and equipment	$	10,135	$	7,590
Operating lease right-of-use assets		1,567		1,264
Intangible assets		11,564		11,562

	$	23,266	$	20,416

(d)

Write-downs and other charges are comprised of the following:


	For the Nine Months Ended September 30,
	2021			2020
Write-downs :
Account receivable (recoveries) provisions, net	$	(72	)	$	311
Fixed asset		258			379

	$	186		$	690

(e) Significant

non-cash

investing and financing activities are as follows:


	For the Nine Months Ended September 30,
	2021		2020
Supplemental Cash Flow Information:
Share issuance - settlement of outstanding obligations	$	—	$	193
Cashless exercise of MPX warrants recorded as derivatives		—		3,325
Non-cash consideration transferred from the Tranche Four Secured Notes		947		259
Non-cash consideration transferred from the Senior Secured Bridge Notes		1,049		—

Cash and Restricted Cash

For purposes of the unaudited interim condensed consolidated balance sheets and the statements of cash flows, cash and restricted cash are held primarily in U.S. dollars.

Restricted cash balances are those which meet the definition of cash and cash equivalents but are not available for use by the Company. As of September 30, 2021, the Company held $4.1 million as restricted cash (December 31, 2020 - $0.5 million), which is mainly related to funds held in escrow from the Senior Secured Bridge Notes. The net proceeds from the Senior Secured Bridge Notes were placed in escrow, and the availability of the funds are subject to drawdown requests that must be approved by the Secured Lenders.

The following table provides a reconciliation of cash and restricted cash reported on the unaudited interim condensed consolidated balance sheets to such amounts presented in the statements of cash flows:


	September 30, 2021		December 31, 2020
Cash	$	19,502	$	11,015
Restricted cash		4,138		495

Total cash and restricted cash presented in the statements of cash flows	$	23,640	$	11,510