Greenlane Renewables Announces Fourth Quarter and Fiscal Year 2024 Financial Results

~Adjusted EBITDA improved by over 80%, balance sheet cash position strengthened by over 35% and G&A cost run rate reduced by over 25%~ 

VANCOUVER, BC, March 20, 2025 /CNW/ - Greenlane Renewables Inc. ("Greenlane'' or the "Company") (TSX: GRN) (FSE: 52G) (OTC: GRNWF) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024. For further information on these results please see the Company's Audited Consolidated Financial Statements and Management's Discussion and Analysis filed under the Company's profile on SEDAR+ at www.sedarplus.ca. All amounts reported are in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise stated.

Fiscal Year 2024 Highlights Include:

• Adjusted EBITDA² loss of $1.7 million;
• Annual revenue of $51.8 million;
• Gross profit of $15.4 million;
• Gross Margin¹ before amortization of $16.3 million (32% of revenue);
• Net loss and comprehensive loss of $1.3 million; and
• Sales Order Backlog³ of $21.8 million as at December 31, 2024. 

Fourth Quarter Highlights Include:

• Adjusted EBITDA² loss of $0.2 million;
• Revenue of $8.5 million;
• Gross profit of $3.6 million;
• Gross Margin¹ before amortization of $3.8 million (45% of revenue);
• Net income and comprehensive income of $1.9 million;
• Cash and cash equivalents at quarter end of $16.2 million;
• No debt, other than payables, advance payment / performance bonding and standby letters of credit resulting from normal course operations, as at December 31, 2024;
• Signed a new contract for a $6.5 million system supply contract for a landfill gas to renewable natural gas ("RNG") project in Canada;
• Filed patent applications for new landfill gas upgrading technology architected to maximize methane recovery while minimizing capex;
• Signed two service contracts with an international energy company; and
• Announced biogas desulfurization orders as part of international expansion through wholly-owned subsidiary Airdep S.r.l. expanding its sales into the South American market, specifically in Brazil.                                 

	Three Months Ended Dec 31			Twelve Months Ended Dec 31
(in millions, except as noted)	2024	2023	% Change	2024	2023	% Change
Revenue	$8.5	$16.5	(49 %)	$51.8	$54.6	(5 %)
Gross Margin^1 before amortization	$3.8	$3.3	17 %	$16.3	$13.6	20 %
Gross Margin as % of revenue	45 %	20 %	125 %	32 %	25 %	28 %
Gross profit	$3.6	$2.9	24 %	$15.4	$11.7	32 %
Adjusted EBITDA^2	($0.2)	($1.4)	85 %	($1.7)	($9.0)	81 %
Net income (loss) and comprehensive income (loss)	$1.9	($16.8)	112 %	($1.3)	($28.3)	95 %
Sales Order Backlog^3				$21.8	$36.0	(39 %)
Cash & cash equivalents				$16.2	$11.8	37 %

"Our Adjusted EBITDA improved by 85% in the fourth quarter and 81% for the full year of 2024, over the same periods in 2023 respectively, reflecting disciplined cost management and positive impact from gross margin as a percent of revenue that increased from 25% in 2023 to 32% in 2024, a 28% improvement," said Stephanie Mason, CFO of Greenlane. "With our G&A cost run rate reduced during 2024 by over 25%, balance sheet cash position strengthened by 37% to $16.2 million, no debt, and an order backlog of $21.8 million as at December 31, 2024, we are entering 2025 with a strong foundation to deliver on our strategic plan."

"We made significant progress in 2024, as evidenced by our strong financial results and continued operational improvements," said Brad Douville, CEO of Greenlane. "We remain resolute and committed to our mission of accelerating the energy transition with a 2025 strategy that involves advanced products, superior project execution, a strong parts and service platform, and royalty revenue. Our 2025 strategy is underpinned by financial discipline with relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. With a solid step in that direction as announced in today's results, we are delivering long-term value for our customers and shareholders."

"Beyond financial results, technological innovation and leadership through products that provide the best price and performance remains a focal point for us. Greenlane recently filed two new patent applications for landfill gas upgrading technology, aimed at maximizing methane recovery while reducing capital expenditure. The company plans to unveil its next-generation product line in 2025. Higher performance and lower cost systems boost revenue generating RNG output while minimizing upfront investment, making RNG projects more accessible and scalable."

"Outside of our results and product development plans, we do receive enquiries about the nature, extent and duration of any U.S. tariffs. We are assessing the direct and indirect impacts that these tariffs may have on our business, including the impacts of any retaliatory tariffs or other trade protectionist measures implemented as this situation evolves. The Company is currently not supplying systems into the United States reliant on components or assemblies supplied from Canada or Mexico."

The net income and comprehensive income of $1.9 million for the fourth quarter of 2024 is primarily from the $1.5 million gain from the change in fair value of notes receivable and foreign exchange. The change in fair value of the notes receivable stems from the Company having previously recorded in the third quarter of 2024 a loss in the change in fair value of notes receivable of $0.9 million as the underlying note matured and was in default. In the fourth quarter 2024, the Company received confirmation the note receivable would be repaid in full including interest and the default premium of $0.5 million, resulting in a $1.5 million gain.

The Market Outlook

Leading biomethane offtakers have come together under the leadership of the European Biogas Association to emphasize biomethane's essential role in achieving Europe's climate neutrality objectives while ensuring the continent's global competitiveness. "The European Commission's net-zero target requires a profound transformation of our energy systems, driven by renewable energy, infrastructure development, and new market opportunities. To achieve this in the most competitive way, sustainable biomethane has a vital role to play in the upcoming Clean Industrial Deal, serving as an essential component of this transformation by providing defossilisation solutions, enhancing energy security, and strengthening Europe's industry", explains EBA CEO Harmen Dekker.

In the U.S., Congresswoman Hillary Scholten (D-MI) and Congressman David Valadao (R-CA) introduced the Agricultural Environmental Stewardship Act of 2025 to extend the Section 48 investment tax credit (ITC) under the Inflation Reduction Act (IRA) for qualified biogas properties. "Extending the Sec. 48 ITC is common sense," said Scholten. "If we want to secure America's green future, we must ensure that producers have the clarity necessary to make critical investments in biogas. My bill would put West Michigan's agricultural community at the forefront of the clean energy transition while cutting harmful greenhouse gas emissions and lowering costs for families across the country. I'm glad to work with my California colleague, Rep. Valadao, to introduce solutions that support communities across the country."

Meanwhile, CNBC reported that natural gas producers are bullish on demand as they see significant upside from the immense energy needs of artificial intelligence and data centers. The surge in power demand poses a challenge for Amazon, Google, Microsoft, and Meta. The tech companies have committed to powering their data centers with renewables to slash carbon emissions. But solar and wind alone may be inadequate to meet the electricity load because they are dependent on variable weather. Greenlane believes that near term rapid uptake of natural gas for AI and data centers presents a new potential pathway for RNG as the tech companies fulfill their commitments to renewables by displacing that natural gas with RNG over time.

Management's Discussion on Financial Results

The public is invited to watch Brad Douville, Chief Executive Officer, and Stephanie Mason, Chief Financial Officer present the results through a video presentation on the Company's Events and Presentations page located HERE.

SPECIFIED FINANCIAL MEASURES

Management evaluates the Company's performance using a variety of measures, including "Gross Margin before amortization", "Adjusted EBITDA" and "Sales Order Backlog". The specified financial measures, including non-IFRS measures and supplementary financial measures should not be considered as an alternative to or more meaningful than revenue, gross profit or net income. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. The Company believes these specified financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. Management uses these specified financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.

Note 1 - Gross Margin before amortization is a non-IFRS measure and is defined by the Company as gross profit before amortization of intangible assets and property and equipment.

Note 2 - Adjusted EBITDA is a non-IFRS measure and is defined by the Company as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as adjustments for other income (expense), value assigned to options and RSU's granted, strategic initiatives, transaction costs and non-recurring items.

Reconciliation of net loss and comprehensive loss to Adjusted EBITDA:

(in $000s)	Three months ended Dec 31		Twelve months ended Dec 31
	2024	2023	2024	2023
Net loss and comprehensive loss	1,944	(16,843)	1,299	(28,313)
Add (deduct):
Exchange difference on translating   foreign operations	128	(96)	(81)	(213)
Provisions for income taxes	322	485	782	1,102
Restructuring charge	130	-	648	-
Foreign exchange (gain) loss	(947)	1	(1,261)	290
Other loss (income)	(278)	111	(1,236)	172
Finance income	(206)	(139)	(467)	(651)
Finance expense	35	34	143	79
Impairment of goodwill and intangible assets	-	14,352	-	14,352
Change in fair value of notes receivable	(1,483)	-	(531)	1,068
Share-based compensation	(130)	196	444	775
Amortization of office equipment	54	83	215	342
Amortization of property and equipment	79	47	330	175
Amortization of intangible assets	143	336	565	1,775
Adjusted EBITDA	(209)	(1,433)	(1,748)	(9,047)

Note 3 - Greenlane provides regular updates on its contracted system sales opportunities, which includes both Greenlane and Airdep branded products ("Sales Order Backlog"). Sales Order Backlog is a supplementary financial measure that refers to the balance of unrecognized revenue from sales contracts. The Company's Sales Order Backlog is a snapshot in time which varies from period-to-period. The Sales Order Backlog increases by the value of new system sales contracts and is drawn down over time as projects progress towards completion with amounts recognized in revenue (by reference to the stage of completion of each contract). Sales Order Backlog does not include revenue from contracts in connection with service and spare parts, given the smaller individual contract values, or royalties.

About Greenlane Renewables

Greenlane is driving change: accelerating the energy transition. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading specialist in biogas desulfurization and upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 355 systems supplied into 28 countries. We transform biogas generated from organic waste into high-value grid-ready renewable natural gas ("RNG") from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste. Greenlane is transforming energy production and creating new, sustainable revenue streams for its customers - all while dramatically reducing carbon emissions. Partner with us, let's accelerate the energy transition together. For further information, please visit www.greenlanerenewables.com.

Forward Looking Information Advisory –

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as "may", "expect", "likely", "could", "plan", or "is/are expected to", "goal", "objectives", "future", "shifting toward", "potential", "proposed", "estimate", "believe", "continues to", "remains" or "continually" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen or that current events or conditions will continue, be ongoing or be repeated such as "are transitioning" or "are realigning". The forward-looking information contained in this press release, includes, but is not limited to: references to the Company's ability to execute on its strategic plan for 2025, expectations regarding improving Adjusted EBITDA results, maintaining healthy cash reserves, continued product innovation including the next-generation landfill gas upgrading technology, expansion of the Company's parts and service platform, potential royalty revenue streams and the impact of regulatory changes, including U.S. tariffs and tax incentives for biogas projects. The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believes to be reasonable at the time such statements were made, including assumptions about: the continued growth and adoption of renewable natural gas (RNG) as a clean energy solution; the ability of the Company to execute its strategic initiatives effectively; stability in the global supply chain and the availability of key components for Greenlane's technologies; continued access to capital markets on favorable terms; the successful commercialization of new product innovations; including landfill gas upgrading technologies; ongoing support from government policies; incentives and regulatory frameworks that favor the expansion of RNG; and a stable macroeconomic environment without significant disruptions from inflation, interest rate charges, or geopolitical tensions; and an increase in demand for natural gas, including from AI and data centers, could create long-term opportunities for RNG as part of corporate sustainability commitments. While management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond Greenlane's control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: the ability to achieve profitability, reliance on key customers and suppliers, the competitive landscape, economic and geopolitical factors, regulatory and policy changes, potential trade restrictions or tariffs, fluctuations in foreign exchange rates, unforeseen operations or technical challenges, and potential impact of increasing natural gas demand from AI and data centers on RNG adoption remain uncertain and subject to changing market conditions and corporate strategies.  Additional risk factors can also be found in the Company's Management Discussion and Analysis, its Annual Information Form and its base shelf prospectus dated January 4, 2024, all of which have been filed under the Company's SEDAR profile at www.sedarplus.ca. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

FINANCIAL OUTLOOK INFORMATION – This news release contains "financial outlook information" regarding Greenlane's prospective revenue and results, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above. Revenue and other estimates contained in this news release were made by Greenlane management as of the date of this news release and are provided for the purpose of describing anticipated changes, and are not an estimate of profitability or any other measure of financial performance. Investors are cautioned that the financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company's revenues are largely derived from a relatively small number of biogas upgrader orders accounted for on a stage of completion basis over typically a nine to eighteen-month period. Timing of new contract awards varies due to customer-related factors such as finalizing technical specifications and securing project funding, permits and RNG off-take and feedstock agreements. Some contracts contain termination provisions that allow the customer to terminate with no penalty or with minimum prescribed threshold payments based on the length of time since the contract was entered into. Some projects have built-in pause periods to allow customers to complete concurrent activities such as civil work. As a result, the Company's revenue varies from month to month and quarter-to-quarter. THE COMPANY QUALIFIES ALL THE FORWARD LOOKING STATEMENTS AND FINANCIAL OUTLOOK INFORMATION CONTAINED IN THIS NEWS RELEASE BY THE FOREGOING CAUTIONARY STATEMENTS.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this news release.

SOURCE Greenlane Renewables Inc.

For more information please contact: Incite Capital Markets, Darren Seed / Clayton Paradis, Greenlane Renewables Inc., Brad Douville, CEO, Ph: 604.493.2004, Email: [email protected]