Why did IMCC's Q4 2023 forecast differ from past trends?

The estimated EPS for IMCC in Q4 2023 was -0.39, compared to the previous quarter's EPS of -1.20 and the same quarter in the previous year of -1.02. The estimated revenue for Q4 2023 was $10.43 million, which is higher than the revenue of $8.76 million in Q3 2023 but lower than the revenue of $11.58 million in Q4 2022. The significant decrease in EPS and the slight increase in revenue compared to the previous quarter suggest that the company faced some challenges or implemented cost-saving measures during this period.

The company's strategic focus on the German market and the reduction of operating expenses by 53% since 2022 since 2022 could be the reasons for the improved revenue despite the negative EPS. The German market's extraordinary growth following partial legalization in April 2024 may also have contributed to the increase in revenue.

In conclusion, the Q4 2023 forecast differs from past trends due to a combination of factors including strategic shifts, market conditions, and cost management efforts.

1. **Strategic Shifts**: The company's focus on the German market and the integration of its supply chain may have led to increased revenue.
2. **Market Conditions**: The partial legalization of cannabis in Germany in April 2024 has created a favorable market environment for IM Cannabis, leading to significant growth in that region.
3. **Cost Management**: The reduction of operating expenses by 53% since 2022 has likely contributed to the improved revenue margin despite the negative EPS.

These factors, combined with the potential impact of the Israel-Hamas war on gross profit and the ongoing price compression in the German market, provide a comprehensive understanding of the differences in IMCC's Q4 2023 forecast compared to past trends.