Clever Leaves Holdings Inc. (CLVR): Business Model Canvas [Dec-2025 Updated]

As a seasoned analyst, you know that surviving in the cannabis space means ruthless focus, and Clever Leaves Holdings Inc. has certainly done that by pivoting entirely to pharmaceutical-grade cannabinoids. The core of their 2025 strategy, built on their $17.7 million FY 2024 revenue base, is leveraging low-cost, industrial-scale cultivation in Colombia while maintaining stringent EU-GMP compliance-a tough balancing act. If you want to see the precise mechanics of how they connect that massive growing capacity to their key partners like international distributors and pharma buyers, check out the full breakdown of their Business Model Canvas right here.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that allow Clever Leaves Holdings Inc. to move product from its Colombian and Portuguese facilities into regulated international markets. These alliances are critical because they handle the complex last mile of distribution and research compliance, which Clever Leaves Holdings Inc. cannot manage alone across all jurisdictions. Here's the quick math on the known terms of these key alliances.

International Distributors for Market Access

Clever Leaves Holdings Inc. relies on established local partners to navigate the regulatory hurdles for medical cannabis distribution. The German market, for instance, has been a focus through its investment and commercial relationship with Cansativa.

• The commercial supply agreement with Cansativa in Germany stipulated a minimum purchase of €2 million of high-THC cannabis flower from Clever Leaves Portugal Unipessoal, Lda.
• Clever Leaves Holdings Inc. expected to generate approximately €2.3 million in pre-tax proceeds from selling a portion of its Cansativa holdings in connection with a 2022 financing round.
• Clever Leaves Holdings Inc. has exported medical cannabis products to over 15 countries, demonstrating a broad, though not always deep, distribution network.

Pharmaceutical Companies for Long-Term Supply Agreements

Securing multi-year supply commitments locks in demand for Clever Leaves Holdings Inc.'s EU-GMP certified output. These agreements often include minimum purchase requirements, giving revenue visibility.

Partner Jurisdiction	Partner Name Example	Agreement Term/Commitment	Product Supplied
Brazil	GreenCare	Minimum purchase of $4M over a three-year agreement.	White label finished cannabis-derived products.
Portugal/Europe	SOMAÍ Pharmaceuticals	Five-year agreement for supply of EU-GMP certified APIs and CBD extracts.	EU-GMP pharmaceutical-grade APIs and CBD extracts.

Also, Clever Leaves Holdings Inc. had a two-year commercial supply agreement with Cannatrek in Australia, committing Cannatrek to a minimum purchase of US$3.6 million over the duration for high-THC flower from Portugal and CBD oral solutions.

Genetics Partners for Cultivar Registration

To maintain a competitive, high-quality product portfolio, Clever Leaves Holdings Inc. partners with specialized genetics firms. This helps ensure their cultivars meet specific market and regulatory needs, like registration in Colombia.

• Clever Leaves Holdings Inc. announced a collaboration with Paradise Seeds in February 2024 to develop and register genetic assets in Colombia.
• The company's operations in Colombia are extensive, with 18 greenhouses creating 1.8 million square feet of cultivation space as of late 2020, which serves as the base for these genetic assets.

Biopharmaceutical Research Company for US Research Initiatives

The Project Change Lives initiative targets the US research market, requiring a licensed partner to handle controlled substance importation and analysis. The value pledged is significant, though historical.

Clever Leaves Holdings Inc. partnered with Biopharmaceutical Research Company as the importer of record for Project Change Lives. This initiative pledged up to USD$25,000,000 retail value of product to U.S. research organizations. Specifically, this involved offering up to 250,000 bottles of pharmaceutical-grade cannabis oils or approximately 5 tons of medical cannabis flower at no cost to research partners.

Contract Manufacturers for Finished Product Formulation

While specific 2025 contract manufacturing figures aren't public, the structure involves supplying Active Pharmaceutical Ingredients (APIs) and extracts to partners who then formulate finished goods. For example, the agreement with GreenCare in Brazil included clinical trials on the initial product before commercialization.

Clever Leaves Holdings Inc. supplies bulk GACP certified flowers from its Portugal facility to pharmaceutical manufacturing company IDT Australia for finished product formulation. This demonstrates the use of contract manufacturers to finalize products for specific markets.

Finance: draft Q4 2025 partnership revenue reconciliation by next Tuesday.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Key Activities

Low-cost, industrial-scale cannabis cultivation in Colombia

Clever Leaves Holdings Inc. operates with 1.8 million sq. ft. of greenhouse cultivation capacity in Colombia. The company has the potential to expand cultivation to approximately 2.5 million sq. ft. at its existing operating site. The crops benefit from 12 hours of daily sunlight year-round due to their equatorial location. This setup allows production at a cost of just $0.20 per gram.

Metric	Value	Unit/Context
Cultivation Space (Existing)	1.8 million	sq. ft. (Colombia)
Cultivation Space (Potential Expansion)	2.5 million	sq. ft. (Existing Site)
Production Cost	$0.20	per gram
Sunlight Exposure	12	hours daily

EU-GMP certified cannabinoid extraction and processing

The extraction facilities in Colombia hold European Union Good Manufacturing Practices (EU GMP) certification. The total annual dry flower extraction potential is 104,400 kilograms. The portion extractable under EU GMP certification is approximately 32,400 kilograms per year. One report indicates 108,000 kilograms of dry flower extraction capacity per year within the EU GMP certified operation. Expansion is underway to increase extraction capacity to 324,000 kilograms of dried flower per year.

Global regulatory compliance and licensing management

Clever Leaves Holdings Inc. manages compliance for multiple international standards.

• European Union Good Manufacturing Practices (EU GMP) Certification
• Good Manufacturing Practices (GMP) Certification by Colombia National Food and Drug Surveillance Institute - Invima
• Good Agricultural and Collecting Practices (GACP) Certification
• Australian GMP certification by the Therapeutic Goods Administration (TGA)

The company has exported medical cannabis products to 14 countries. Sales into the Israeli market are expected to grow significantly into 2025.

International B2B sales and supply chain logistics

Clever Leaves Holdings Inc. operates across two reportable segments: Cannabinoid and Non-Cannabinoid. The latest reported full-year revenue for 2024 was $17.7 million. For the fiscal year 2023, revenue was $17.42 million. In 2021, total annual revenue was up 27 per cent to US$15.4 million from US$12.1 million in 2020. Cannabinoid revenue in 2021 rose 29 per cent to $3.2 million.

Research and development of new cannabinoid APIs

The operations in Colombia include a fully equipped R&D laboratory. The team develops processes and formulations for new products. The company entered an agreement with Paradise Seeds to Develop and Register Genetic Assets in Colombia.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Key Resources

You're looking at the core assets Clever Leaves Holdings Inc. relies on to execute its strategy as of late 2025.

Large-scale, low-cost Colombian cultivation footprint

Clever Leaves Holdings Inc. operates with a significant physical base in Colombia, designed for cost-competitive, industrial-scale production. The existing operational site features 18 greenhouses creating 1.8 million square feet of cultivation space as reported in late 2023 filings. The potential for expansion at this site allows for cultivation to grow to approximately 2.5 million square feet. Furthermore, the company holds an option to acquire an additional 73 million square feet of agricultural land for open field production. The extraction capacity at the facility was reported at 108,000 kilograms of dry flower per year, positioning it as one of the few EU GMP certified vertically-integrated operations globally.

Asset Component	Metric	Reported Value
Existing Cultivation Space	Square Feet	1,800,000
Expandable Cultivation Space (Existing Site)	Square Feet	Approximately 2,500,000
Optional Agricultural Land	Square Feet	Approximately 73,000,000
Dry Flower Extraction Capacity	Kilograms per year	108,000

EU-GMP and GACP certifications for global pharmaceutical export

The quality certifications are critical for accessing high-value pharmaceutical export markets. Clever Leaves Holdings Inc. maintains compliance with stringent international standards.

• EU Good Manufacturing Practices (EU GMP) certification for post-harvest and extraction, first received in July 2020.
• GACP certified cultivation.
• Australian GMP certifications granted by the Therapeutic Goods Administration (TGA) in December 2023.
• EU GMP re-certification from HALMED received in September 2023, including the crystallization process.

Proprietary cannabis genetics and intellectual property

The company secures access to specialized genetics through strategic alliances. In February 2024, Clever Leaves Holdings Inc. entered a partnership with Paradise Seeds, gaining an exclusive license to cultivate some of these genetics in Colombia for registration and commercialization. Separately, in 2021, the company pledged up to $25 million worth of cannabis to U.S. researchers, with the potential to gain a stake in the resulting intellectual property upon commercialization.

$8.02 million in cash proceeds from the 2024 non-cannabinoid business sale

A key financial event was the divestiture of the non-cannabinoid segment. The sale of Herbal Brands, Inc. closed on March 21, 2024, for a total purchase price of $8.02 million. This consideration was comprised of $7.02 million in cash paid at closing, plus a senior secured promissory note valued at $1.00 million accruing interest at 7.50% per annum, maturing March 21, 2025. The company also expected an additional $0.19 million from the sale of manufacturing equipment related to the transaction.

Experienced regulatory and international trade team

Regulatory expertise underpins the ability to operate across multiple jurisdictions. Key personnel, such as Julian Wilches, held the role of Chief Regulatory Officer as of the Nasdaq listing in late 2020, indicating established internal capacity for navigating international trade compliance.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Value Propositions

You're looking at the core value Clever Leaves Holdings Inc. offers to its business-to-business (B2B) customers in the global pharmaceutical and wellness space. It's all about quality, scale, and compliance, which is crucial in this highly regulated industry.

Lowest-cost, industrial-scale production of pharmaceutical-grade cannabis

Clever Leaves Holdings Inc. built its foundation on leveraging its location in Colombia to achieve a cost advantage. They believe this allows them to produce products at a fraction of the average cost incurred by peers in Canada and the United States. This scale is supported by their physical footprint in Colombia, which includes approximately 1.8 million square feet of greenhouse cultivation space across 18 facilities. Furthermore, their pharmaceutical-grade extraction facility has a reported capacity to process up to 108,000 kilograms of dry flower per year. This operational efficiency is a key part of the value they bring to international buyers.

Guaranteed compliance with stringent EU-GMP quality standards

For pharmaceutical markets, certification is everything. Clever Leaves Holdings Inc. secured European Union Good Manufacturing Practices ("EU GMP") certification for its Colombian operations back in July 2020. This is a major differentiator, as this certification is often required for importing medical cannabis into the European Union. They also hold Australian GMP certifications from the Therapeutic Goods Administration ("TGA"), which they received in December 2023. This commitment to quality standards provides customers with confidence in the product's suitability for intended use.

The scope of their certifications is broad, covering:

• API (Active Pharmaceutical Ingredients)
• Semi-finished cannabis products
• Finished cannabis products

Reliable, diversified global supply chain to over 15 countries

The value proposition includes the ability to reliably move product across borders. Clever Leaves Holdings Inc. has established a global footprint, successfully exporting to more than 15 countries. This network includes key regulated markets. The company's 2021 production quota from the Colombian government was substantial, authorizing them to manufacture up to approximately 59,000 kilograms of cannabis into dried flower derivatives, which at the time represented about 18% of the world's legal medical cannabis production quota for that year.

Here's a look at some of the markets they serve:

Region/Country	Product Focus
Germany	Medical Cannabis Imports
Australia	TGA Certified Products
Brazil	Cannabinoid Distribution
United Kingdom	Pharmaceutical Channel Supply
Czech Republic	Medical Cannabis Extracts

High-quality Active Pharmaceutical Ingredients (APIs) and finished flower

Clever Leaves Holdings Inc. focuses on producing both the raw, high-purity components and the final consumer-ready product. They produce cannabinoid active pharmaceutical ingredients (API) and finished products in both flower and extract form for their B2B clientele. This dual output capability allows them to serve different parts of the value chain, from pharmaceutical formulators needing isolates to distributors requiring dried flower.

Dual-segment offering (Cannabinoid and Non-Cannabinoid, pre-sale)

You aren't just buying cannabis; you are engaging with a company that has two distinct revenue drivers. The business operates through the Cannabinoid segment, which handles cultivation, extraction, and distribution of cannabis products internationally. The other stream is the Non-Cannabinoid segment, which formulates and sells nutraceuticals and other natural remedies, wellness products, and dietary supplements, primarily to retailers in the United States. To be fair, the Non-Cannabinoid segment historically generates the maximum revenue for the company. For instance, the trailing twelve-month revenue reported for 2023 was $17.42 million, with the latest reported annual revenue for 2024 reaching $17.7 million.

The segments break down like this:

• Cannabinoid: Cultivation, extraction, APIs, flower.
• Non-Cannabinoid: Nutraceuticals, wellness products, supplements.

The company's financial performance shows the challenge: 2023 saw revenue of $17.42 million against losses of -$17.90 million.

Finance: draft 13-week cash view by Friday.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Customer Relationships

You're looking at how Clever Leaves Holdings Inc. manages its relationships with the entities buying its pharmaceutical-grade cannabis products, especially now that they've gone private. The strategy clearly pivots around high-touch service for regulated B2B buyers and cost-conscious execution for bulk sales.

Dedicated B2B account management for pharmaceutical clients

For pharmaceutical clients, the relationship is managed through dedicated B2B account management. This is crucial because you're dealing with Active Pharmaceutical Ingredients (APIs) and finished products requiring stringent quality control. Clever Leaves Holdings Inc. focuses its commercial efforts on key international markets, including Australia, Brazil, Germany, Israel, and the United Kingdom, as part of its post-delisting strategy. The company's operations in Colombia produce EU GMP cannabinoid APIs and finished products for this growing base of B2B customers globally. As of the end of 2023, cannabinoid sales, which feed these B2B relationships, had surged by 39% year-over-year, reaching $6.6 million of the total $17.4 million revenue for that year. This indicates the high value placed on these specific customer accounts.

Long-term, high-volume supply contracts with fixed terms

The foundation of the pharmaceutical client relationship is built on securing long-term, high-volume supply contracts. These agreements lock in demand for the company's output, providing revenue visibility. The process for securing these involves a multi-step validation: identifying a prospective customer, defining product specifications, securing country-specific regulatory approval, and finally, achieving repeat/regular purchase orders after an initial validation shipment. While specific 2025 contract values aren't public, the 2023 revenue of $17.42 million reflects the scale of these ongoing commitments.

Regulatory and technical consulting support for partners

Clever Leaves Holdings Inc. supports its partners by leveraging its regulatory expertise, which is a key value-add in this complex sector. The company holds multiple international certifications, including European Union Good Manufacturing Practices (EU GMP) Certification, a GMP Certification by Colombia National Food and Drug Surveillance Institute - Invima, and Good Agricultural and Collecting Practices (GACP) Certification. This deep compliance knowledge helps partners navigate import/export permits and product acceptance. The company's Chief Regulatory Officer is a key part of this relationship structure.

Direct, transactional sales for bulk dried flower exports

For bulk dried flower, the relationship model shifts to be more direct and transactional, focusing on leveraging low-cost production. The company aims to commercially launch high-THC flower produced in Colombia. Historically, Clever Leaves Holdings Inc. has executed significant flower transactions; for example, they exported 30 kg of high-THC cannabis flower from Portugal to a U.S. partner in October 2021. Furthermore, a past research initiative involved pledging up to 5 tons of cannabis flower at no cost to advance U.S. scientific research, showing a willingness to transact large volumes based on strategic need.

The following table summarizes the different customer engagement types and associated scale indicators:

Customer Relationship Type	Primary Product Focus	Key Metric/Scale Indicator	Geographic Focus (Post-2024 Strategy)
Dedicated B2B Account Management	APIs, Finished Pharmaceutical Products	Cannabinoid Revenue: $6.6 million (2023)	Germany, Brazil, Australia, Israel, UK
Long-Term Supply Contracts	EU GMP Certified Materials	Total Revenue: $17.4 million (2023)	Global B2B Network
Regulatory/Technical Support	All Products	Holding EU GMP, GACP Certifications	Partners requiring compliance pathways
Direct/Transactional Sales	Bulk Dried Flower	Historical Flower Export: 30 kg (Single Shipment)	Markets with high flower demand

Investor relations and public disclosure (voluntary delisting in 2024)

The relationship with public market investors fundamentally changed in 2024. Clever Leaves Holdings Inc. voluntarily delisted from NASDAQ around May 16, 2024, and subsequently filed a Form 15 to suspend reporting obligations under the Exchange Act, meaning no more mandatory Forms 10-K, 10-Q, and 8-K. This was done to reduce the significant operating expense and regulatory burden associated with public trading. The company's market capitalization as of December 4, 2025, stood at $526.00, a significant decrease from its prior public standing, reflecting the shift away from public market scrutiny. The company now communicates material information through its website and press releases, a different relationship dynamic than required by the SEC.

• Investor communication channels now include the company website (https://cleverleaves.com) and social media.
• The decision to delist was partly due to non-compliance with Nasdaq's listing requirements.
• The company aims to continue reducing operating expenses, having achieved a 26% reduction in General and Administrative expenses in Q4 2023.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Channels

You're looking at how Clever Leaves Holdings Inc. gets its pharmaceutical-grade cannabinoid products out to the world, which is critical given their focus on international, regulated markets. The channel strategy heavily relies on certified partners and direct export from their primary production hub.

Direct B2B sales force targeting pharmaceutical and CPG companies

The core of the B2B approach involves direct engagement with pharmaceutical entities for Active Pharmaceutical Ingredients (APIs) and finished products. For instance, the company has a five-year agreement to supply EU-GMP-certified CBD extracts from Colombia to SOMAÍ Pharmaceuticals in Portugal. This direct supply channel is designed to feed European drug delivery systems. While specific 2025 revenue attribution to the direct sales force isn't public, the company's total trailing 12-month revenue as of December 31, 2023, stood at $17.42M.

International distribution partners and licensed importers

Clever Leaves Holdings Inc. uses established local entities to navigate complex regulatory landscapes. In Germany, Cansativa, a Frankfurt-based certified importer and distributor, handles sales and distribution of Clever Leaves' extracts and oral solutions. The company's investment in Cansativa accelerated its participation in that specific market. Historically, Clever Leaves has exported to over 15 countries, demonstrating a broad network of potential or existing distribution relationships.

The structure of these partnerships can be summarized:

Market/Partner Type	Known Partner Example (as of latest data)	Product Supplied	Facility Origin
European Biopharma	SOMAÍ Pharmaceuticals	EU-GMP-certified CBD extracts	Colombia
German Distributor	Cansativa	Extracts and oral solutions	Colombia
Australian Partner	Cannatrek	White label finished products (OS 20%CBD and OS 10%CBD)	Colombia (Historical context)

Direct export from Colombia and Portugal facilities

The primary export channel centers on the Colombian greenhouses, which span over 1.8 million square feet of fully built-out cultivation capacity. The extraction facility there was capable of extracting 104,400 kilograms of dried flower annually, with expansion underway to reach 324,000 kilograms per year. It is important to note that cultivation and manufacturing activities in Portugal ceased in full by the end of the first quarter of 2023, meaning all 2025 dry flower exports are solely from the Colombian facility. The company has secured significant production quotas, representing 50% of Colombia's total quota and approximately 18% of the world's legal medical cannabis production quota for 2021, setting the stage for export capacity.

Academic and research institution supply channels

This channel focuses on supplying material to advance scientific knowledge. In a notable 2021 initiative, Project Change Lives, Clever Leaves Holdings Inc. pledged up to USD $25,000,000 retail value of medical cannabis products to eligible U.S. organizations. This included offering up to 250,000 bottles of cannabis oil or approximately 5 tons of medical cannabis flower, provided at no cost to research partners.

Key research supply metrics:

• Pledged product value: Up to $25,000,000 (retail value).
• Product volume offered: Up to 250,000 bottles of oil.
• Product volume offered: Up to 5 tons of flower.
• Compliance standard: Pharmaceutical-grade cannabis.

Digital presence for corporate and investor communication

The digital channel supports corporate visibility and investor relations, though specific 2025 engagement metrics are not available. The company maintains its listing on the Nasdaq under ticker symbol CLVR (though trading has seen extreme volatility, with a market cap reported at $526.00 as of December 4, 2025). The digital presence is used to communicate operational milestones, such as receiving EU-GMP certification for its Colombian facilities, which is generally required to import into the European Union. The company also reports having nearly 300 full-time employees as of late 2024/early 2025 data points.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Clever Leaves Holdings Inc. as of late 2025. The business model is heavily weighted toward B2B supply in the pharmaceutical and medical cannabis space, leveraging its Colombian cultivation and EU GMP certifications. Honestly, the biggest shift impacting this section recently was the divestiture of the other side of the business.

The company operates primarily through its Cannabinoid segment, which focuses on cultivation, extraction, and distribution of pharmaceutical-grade products. For context, the full-year 2024 revenue reached $17.7 million, building on the 2023 full-year cannabinoid revenue growth of 39%.

The customer base is segmented by the type of regulated product required:

• Global Pharmaceutical and Biotech Companies requiring Active Pharmaceutical Ingredients (API) and standardized extracts.
• International Medical Cannabis Distributors and Importers needing registered flower and extract products.
• Academic and Government Research Institutions requiring validated, traceable cannabis material.
• Nutraceutical and Wellness Brands, though this group is now largely historical following a major transaction.

The Non-Cannabinoid segment, which served mass and specialty retailers in the U.S. with wellness products and nutraceuticals, was sold off. Clever Leaves Holdings Inc. completed the sale of this herbal brands business on March 21, 2024, for a total consideration of $8.02 million, which included $7.02 million in cash paid at closing. So, that customer group is no longer a focus for the current structure.

The international reach is significant, with export shipments having reached over a dozen jurisdictions, including Germany, Brazil, the United Kingdom, and Australia. The focus remains on providing lower-cost, reliable supply to these partners.

Here's a breakdown of the primary B2B customer types within the core Cannabinoid segment:

Customer Segment Focus	Product Form Supplied	Geographic Sales Focus (Primary)	Key Requirement Met
Global Pharmaceutical and Biotech Companies	Active Pharmaceutical Ingredients (API), Oral Solutions, Standardized Extracts	Primarily outside of the U.S.	EU GMP Certification and Traceability
International Medical Cannabis Distributors and Importers	Cannabis Flowers (THC/CBD), Full Spectrum Extracts	Germany, Brazil, Australia, and others (over 15 countries served historically)	Reliable, Year-Round Supply and Product Registrations
Academic and Government Research Institutions	Validated Extracts, Specific Cultivar Material	Global (subject to local regulation)	Consistent Quality and Cultivar Registration (e.g., through Paradise Seeds collaboration)
CPG Companies (B2B Ingredient Supply)	Cannabidiol (CBD) Isolates	International Markets	Bulk Ingredient Supply for Downstream Formulation

The company's production locations in Colombia, which boast over 10 million square feet of licensed cultivation capacity, are key to serving these segments with environmentally sustainable, industrial-scale output. This capacity supports the consistent supply needed by major international importers and pharmaceutical partners.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Cost Structure

You're looking at the cost side of Clever Leaves Holdings Inc. (CLVR)'s operations, which is heavily influenced by its strategic pivot to low-cost, high-quality production centered in Colombia. The structure clearly shows a trade-off between high initial compliance costs and low ongoing cultivation expenses.

High fixed costs for maintaining GMP-certified facilities and compliance are a given when you operate at a pharmaceutical standard. Clever Leaves Holdings Inc. maintains its EU GMP-certified extraction operation and cultivation facilities in Colombia, which span over 1.8 Million sq. ft. of fully built-out capacity. These certifications are not cheap to acquire or maintain, representing a significant fixed overhead necessary to access premium international markets like Germany and Australia.

The core advantage, however, lies in the low variable cultivation costs due to Colombian climate advantage. The equatorial location provides a consistent 12 hours of sunlight year-round, reducing the need for costly light supplementation and minimizing pesticide use. This natural advantage allowed Clever Leaves Holdings Inc. to produce cannabis at a reported cost as low as $0.20 per gram in high volume, which was roughly 1/10 the cost of many leading Canadian producers at the time of that comparison. To be fair, the all-in cost per gram of dry flower was reported at $0.75 in FY 2023, up from $0.36 in FY 2022, a change management attributed to reduced agricultural output early in 2023 and quality improvements.

The company has been aggressively tackling overhead through significant operating expense reduction. Reflecting these optimization efforts, Clever Leaves Holdings Inc. drove year-over-year General and Administrative (G&A) expense reductions of 24% for the full year 2023. For the fourth quarter of 2023 specifically, the G&A cut was 26% year-over-year. Total Operating Expenses improved significantly, moving from $54.14 Million in FY 2022 down to $22.15 Million in Q4 2023. This focus on capital efficiency was further supported by divestitures, such as the sale of Portuguese farm assets for $1.5 Million and the sale of the Non-Cannabinoid Herbal Brands Business for $8.02 Million.

When we look at the Costs of Goods Sold (COGS) and Gross Margin, the picture is clearer when using the adjusted figures, which strip out one-time inventory provisions. The outline mentioned a 45% gross margin target for FY 2024; the company achieved an Adjusted Gross Margin of 45.4% in FY 2023. The latest reported margin figure available, as of late 2025 context, is 37.64%. Here's a look at the core COGS components from the last full financial report (FY 2023):

Metric (USD Millions)	FY 2023	FY 2022
Total Revenue	$17.42	$16.41
Cost of Revenue (COGS)	$10.86	$9.19
Gross Profit (Reported)	$6.56	$7.22
Adjusted Gross Margin	45.4%	56.3%

Finally, International regulatory and legal compliance expenses are embedded within both fixed costs and operating expenses. Clever Leaves Holdings Inc. is structured to supply pharmaceutical-grade products to over 15 countries globally, including key markets like Australia, Brazil, and Germany. Successfully navigating the distinct import and quality regulations in each jurisdiction requires dedicated legal and regulatory teams, which contributes to the sustained Selling, General & Admin (SG&A) spend, which totaled $20.03 Million in FY 2023.

You should review the cash flow statement to see how the divestiture proceeds of $8.02 Million from the Herbal Brands sale are being allocated against ongoing compliance and operational burn rate. Finance: draft 13-week cash view by Friday.

Clever Leaves Holdings Inc. (CLVR) - Canvas Business Model: Revenue Streams

You're looking at how Clever Leaves Holdings Inc. actually brings in the money now that the focus is purely on high-quality, EU-GMP certified cannabis for global pharmaceutical markets. The numbers tell a clear story of strategic divestiture and focus on the core cannabinoid business.

The Total annual revenue for the fiscal year 2024 was reported to be approximately $17.7 million.

The shift away from the diversified model is concrete, marked by the divestiture of the non-core business:

• Sales from the Non-Cannabinoid segment (prior to March 2024 sale): The sale of the Herbal Brands business was completed on March 21, 2024, for a total consideration of $8.02 million, which included $7.02 million in cash paid at closing.

The remaining, core revenue streams are entirely within the cannabinoid segment, which includes both API/extracts and dried flower exports. While the precise 2024 breakdown isn't public, the 2023 figures show the relative weight before the sale:

Revenue Stream Type (Based on 2023 Data)	Reported Annual Revenue (FY 2023)
Cannabinoid Revenue (API, Extracts, Flower)	$6.6 million
Non-Cannabinoid Revenue (Sold in 2024)	$10.9 million
Total Annual Revenue (FY 2023)	$17.4 million

The primary focus of the current revenue generation is:

• Sales of Cannabinoid Active Pharmaceutical Ingredients (API) and extracts: These are produced in Colombia under EU-GMP standards and sold to B2B customers globally.
• Revenue from bulk EU-GMP certified dried cannabis flower exports: Shipments are supported by certifications including EU GMP, Australian GMP, and ANVISA GMP, targeting markets like Australia, Germany, and Israel.

The entire structure of the cannabinoid business is built around securing long-term commercial relationships, which is the mechanism for future revenue stability. The commercial strategy involves a multi-step process to convert initial shipments into recurring sales:

• Revenue from long-term B2B supply agreements: The business model is focused on partnering with leading and emerging cannabis and pharmaceutical businesses by providing them with lower cost product and reliable supply.
• The pathway to securing this revenue involves: Identify Prospective Customer, Develop & Country-Specific Regulatory Path Determined, Quality Systems Audit, New Supply Agreement Secured, Initial Pathfinder Shipment, Validation of Product Quality, Country-Specific Regulatory Approval, Apply for & Obtain Export & Import Permits, 1st Commercial Shipment, Receive Market Feedback, Achieve Acceptance, and finally, Expect to Achieve Repeat/Regular Purchase Orders.

Finance: draft 13-week cash view by Friday.