Cannabis Earnings News

01:58pm ET03/23/2023

Body and Mind Inc. (OTCQB:BMMJ) (CSE:BAMM) revenue for Q2 FY 2023 was $7.7 million, a 3.75% decrease compared to $8 million in Q2 FY 2022.

Q2 FY 2023 Financial Highlights:

  • Gross profit of $2.26 million for Q2 FY 2023 compared to a gross profit of $2.63 million for Q2 FY 2022.

  • Q2 FY 2023 net operating loss was $1.8 million compared to Q2 FY 2022 net operating loss of $970,773.

  • Q2 FY 2023 net loss was $2.7 million (or basic and diluted loss per share of $0.02) compared with Q2 FY 2022 net loss of $2.7 million (or basic and diluted loss per share of $0.02).

  • Adjusted EBITDA loss of $1.3 million for Q2 FY 2023 vs. adjusted EBITDA loss of $400,000 for Q2 FY 2022.

  • Cash at the end of the period was $3.16 million.

"Our most recent quarter reflects improvement in wholesale pricing in Nevada and wholesale growth in Ohio as we focus on development of the new Illinois and New Jersey dispensaries," stated Michael Mills, CEO of Body and Mind. "Construction at our new Illinois dispensary in Markham is more than 90% complete and we are on track to open in the next month as we leverage dispensary opening and operational experience from multiple markets. In Arkansas we expanded Body and Mind branded product offerings with new Body and Mind branded vape cartridges joining our wide existing product offerings including craft flower and concentrates."

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

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01:21pm ET03/23/2023

Radient Technologies Inc. (OTCPK:RDDTF) (TSXV:RTI) released its financial results for the quarter ended December 31, 2022, revealing revenue of $1 million, a decrease of 37% compared to $1.6 million in the same period in the prior year.

Q3 FY 2023 Financial Highlights

  • Gross profit for the quarter ended December 31, 2022 was $272,309, which compares to $233,836 in the same period in the prior year.

  • Operating expenses for the quarter ended December 31, 2022, were $1.3 million which compares to $2.6 million in the same period in the prior year.

  • Net loss and comprehensive loss was 1.4 million compared to a loss of $3.2 million in the same period in the prior year.

  • Cash at the end of the period was $107,893

Loan Facility Demand

Moskowitz Capital Mortgage Fund II Inc. issued a demand notice on August 26, 2022, to the company for payment of approximately $10.5 million, plus accrued costs and additional interest to the date of payment pursuant to the terms of a secured loan facility guaranteed by the company. The facility is secured by a first priority mortgage on the land and buildings located at 4035, 4029, and 4025 101 St. N.W., Edmonton, Alberta, as well as all of the company's present and after acquired personal property. On February 8, 2023, Moskowitz obtained a redemption order from the court to list for sale the mortgaged property under certain conditions. On March 21, 2023, Moskowitz was granted a limited receivership order to sell equipment not required for operations.

The company is encountering difficulty in meeting financial obligations as they become due. The continuing operations of the company are dependent upon funding provided by investors and realizing profits from products being commercialized. The company's efforts are focused on financing its future requirements through a combination of debt and/or equity issuances. There is no assurance that the company will be able to obtain such financings or obtain them on favorable terms. This uncertainty casts doubt about the ability of the company to continue as a going concern. The company is currently examining all restructuring options.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo by Jeff W on Unsplash

 

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11:56am ET03/23/2023

Charlotte's Web Holdings, Inc. (OTCQX:CWBHF) (TSX:CWEB) net revenue for the twelve months ended December 31, 2022, was $74.1 million, a decrease of 22.8% from $96.1 million in 2021, due to lower DTC and B2B sales.

Q4 2022 Financial Highlights

  • Gross profit was negative $10.5 million due to non-cash inventory provisions of $21.5 million taken in the quarter. This compares to gross profit of $4.2 million in the fourth quarter of 2021, which included inventory provisions of $9.7 million. During the fourth quarter of 2022, it was determined that certain aging hemp biomass inventory would no longer meet long-term product specifications, due to pending legislative changes in Colorado.

  • Consolidated net revenue for the fourth quarter ended December 31, 2022, was $18.9 million, a decrease of 23.8% year-over-year from $24.8 million in the fourth quarter of 2021, primarily due to lower retail and online sales through the company's webstore. On a sequential quarterly basis, Q4 2022 net revenue increased 10.7%, versus $17.0 million in Q3 2022.

  • Net loss for the fourth quarter was $35.2 million, or ($0.23) per share on a basic and diluted basis, compared to a net loss of $118.2 million, or ($0.86) per share, on a basic and diluted basis in Q4 2021. Additionally, Q4 2022 included a negative change of $6.8 million in the fair value of the company's SBH Purchase Option, which was a non-cash charge.

  • Adjusted EBITDA loss for the fourth quarter of 2022 was $4.5 million, an improvement of $3.8 million, or 45.8% as compared to adjusted EBITDA loss of $8.3 million, for the fourth quarter of 2021.

FY 2022 Financial Highlights

  • Gross profit was $19.4 million, or 26.2% of consolidated revenue, versus $48.6 million, or 50.6%, in 2021.

  • Net loss for 2022 was $59.3 million, or $(0.40) per share on a basic and diluted basis and included changes in fair value of the company's SBH Purchase Option of negative $10.7 million, and a $1.8 million operating lease impairment, partially offset by a net gain of $3.1 million in fair value of the company's debt derivative. This compares to a net loss of $137.7 million, or $(0.98) per share on a basic and diluted basis for 2021, which included $107.7 million of non-cash impairments in goodwill, customer relationships, trade names, inventory provisions, and other long-lived assets.

  • Adjusted EBITDA loss for 2022 was $11.8 million, an improvement of $8.7 million, or 42.5% as compared to adjusted EBITDA loss of $20.6 million, for 2021.

  • The company's cash and working capital at December 31, 2022, were $67.0 million and $82.3 million respectively, compared to $19.5 million and $75.6 million respectively at December 31, 2021.

"We simplified and streamlined our business in 2022, significantly reducing costs by almost $30 million, which helped to lower total cash use in 2022 to $5.3 million from $29.6 million in 2021, more than offsetting lower revenue," stated Jessica Saxton, CFO. "As a result of these actions and the investment from BAT, we ended 2022 with a cash balance of $67 million. We remain committed to being good stewards of capital through prudent expense and cash management. Our strong liquidity position enables us to be choiceful when investing in our growth initiatives. Moreover, our key strategic partners – Major League Baseball and BAT (NYSE:BTI) – have become important stakeholders in the company."

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Benzinga edit with photo by Kindel Media on Pexels

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01:50pm ET03/22/2023

Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX) released its financial results for the twelve months ended December 31, 2022, and other recent developments.

FY 2022 Financial Highlights

  • General and administrative expenses increased by $3.9 million, or 54%, to $11 million for the year ended December 31, 2022, from $7.2 million for the year ended December 31, 2021.

  • Research and development expenses increased by $5.9 million or 122%, to $10.8 mllion for the year ended December 31, 2022, from $4.8 million for the year ended December 31, 2021.

  • For the year ended December 31, 2022, cash used in operations was $17.8 million compared to $14.5 million for the year ended December 31, 2021.

  • At December 31, 2022, Virpax had cash of approximately $19.0 million.

Recent Developments

On December 8, 2022, Virpax received Pre-Investigational New Drug (PIND) application guidance from the FDA for NobrXiol. The main purpose of a PIND submission is to obtain FDA guidance on the overall development plan for a new drug and to identify any need for further data prior to submitting an IND. NobrXiol is the company’s product candidate for the delivery of cannabidiol in the management of epilepsy in children and adults that utilizes Nanomerics’ Molecular Envelope Technology (MET) as its delivery system to cross the blood brain barrier, propelling the cannabidiol nanoparticles through the nose to the brain via the olfactory nerve.

On January 4, 2023, Virpax announced that it has engaged two leading physicians experienced in childhood epilepsy, Dr. Kenneth W. Sommerville and Dr. Lawrence Fried, to support the overall development plan for NobrXiol. Their involvement with this program is expected to include advising on trial design, regulatory pathway development and patient recruitment. Additionally, it is anticipated that they will support Virpax with patient advocacy groups and grant applications.

On February 13, 2023, Virpax announced that the company has completed FDA required preclinical toxicology studies for its licensed Molecular Envelope Technology. The company believes MET may enhance the delivery of Virpax’s Envelta and NobrXiol product candidates. MET is also utilized in the company’s AnQlar product candidate. These preclinical toxicology studies were performed to evaluate the safety of the MET platform and support the IND submission of each product candidate.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo by Giorgio Trovato on Unsplash

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12:15pm ET03/22/2023

Vext Science, Inc. (OTCQX:VEXTF) (CSE:VEXT) FY 2022 revenue was $35.41 million, a decrease of 4.92% compared to $37.24 million in FY 2021.

Financial Highlights

  • FY 2022 gross margin before fair value adjustments was 59% compared to 44% in FY 2021.

  • FY 2022 adjusted EBITDA was $15.12 million compared to $13.39 million in FY 2021.

  • Q4 2022 revenue was $8.18 million, a decrease of 12.1% compared to $9.3 million in Q4 2021.

  • Q4 2022 gross margin before fair value adjustments was 50%, compared to 42% in Q4 2021.

  • Q4 2022 adjusted EBITDA was $3.18 million compared to $3.37 million in Q4 2021.

Eric Offenberger, CEO of Vext stated, "Overall, I am very pleased with our performance through the challenging consumer environment that emerged, particularly during the second half of 2022, which was driven by record high inflation rates and resulting pressure on consumer discretionary income. Arizona market sales were flat for 2022 and we held our own, with revenue of $35.4 million for the year and $8.2 million for Q4. Our team continued to execute on our business objectives, launching targeted promotions to drive traffic and maximize basket, while finding consistent efficiencies, driving adjusted EBITDA of $15.1 million for the year, up 12.8% from 2021.”

“Our financial performance in 2022 reaffirms Vext's track record as a profitable operator with a keen focus on driving efficiencies. While we expect the underlying effects of this environment to persist through at least mid-2023, we expect continued results from our Arizona operations and clearly see the Ohio market as a catalyst for Vext as we close our recently announced acquisition of vertical operations in the state. With its significantly larger population, steady growth in patient count and potential for future adult-use transition, we expect Ohio to propel growth for Vext, contributing meaningfully towards revenue, profitability and cash flow over the next few years as we continue to focus on building value for our shareholders," concluded Offenberger.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo by Thiago Patriota on Unsplash

 

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11:34am ET03/22/2023

LFTD Partners Inc. (OTCQB:LIFD) 2022 revenue increased 81% to $57.42 million, up from $31.66 million in 2021.

Financial Highlights - 2022 Compared to 2021:

  • Net income increased 24% to $7.2 million, up from $5.8 million

  • Basic earnings per share ("EPS") increased 2% to $0.51 per share, up from $0.50

  • Diluted EPS up 5% to $0.45 per share, up from $0.43

Financial Highlights - Q4 2022 Compared to Q4 2021:

  • Revenue decreased 12% to $11.31 million, down from $12.79 million

  • Net income decreased 55% to $608,589, down from $1.35 million - the tenth consecutive quarter of positive GAAP net income

  • Basic EPS decreased 60% to $0.04 per share, down from $0.10

  • Diluted EPS decreased 50% to $0.04 per share, down from $0.08

Balance Sheet Highlights - December 31, 2022 Compared to December 31, 2021:

  • Cash on hand increased 120% to $3.53 million up from $1.6 million

  • Working capital increased 513% to $7.64 million up from $1.25 million

  • No debt as of December 31, 2022

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Benzinga edit with photo by Kindel Media on Pexels

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08:00pm ET03/17/2023

Cannabis retailer High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE: 2LYA) released first-quarter results Friday, posting a 64% year-over-year revenue increase. 

"Our Q1 earnings numbers represent the best quarter ever in High Tide’s history in terms of revenue, adjusted EBITDA, and market share growth. Q1 is now our second consecutive quarter of record revenue and adjusted EBITDA and saw a meaningful improvement in our free cash flow position," said CEO Raj Grover.

HITI Financial Highlights

  • Revenue increased to $118.1 million in the first fiscal quarter of 2023 compared to $72.2 million during the same period in 2022, representing an increase of 64% year-over-year and 9% sequentially.
  • Gross profit increased to $32.2 million in the first fiscal quarter of 2023 compared to $23 million during the same period in 2022, representing an increase of 40% year-over-year and 9% sequentially.
  • The gross profit margin in the three months ended Jan. 31, 2023, was 27%, consistent with the previous three quarters. Gross margins earned in High Tide's brick-and-mortar stores ticked higher sequentiallym the company said. 
  • Adjusted EBITDA increased to $5.5 million in the first fiscal quarter of 2023 compared to $3 million during the same period in 2022, representing an increase of 86% year-over-year and 10% sequentially, per the news release.

The company has achieved its 12th consecutive quarter of positive adjusted EBITDA, Grover said, with a fourth consecutive quarter of sequential same-store sales growth, indicating its strength in the market.

The company represents 9% of the Canadian cannabis retail market outside of Quebec, as reported exclusively by Benzinga.

In the first fiscal quarter of 2023, salaries, wages and benefits accounted for 12% of revenue, an improvement from 14% in the same quarter of the previous year and consistent with the previous three quarters.

General and administrative expenses represented 6% of revenue in Q1 2023, an improvement from 8% in Q1 2022 and 7% in the previous quarter, indicating strong cost controls by the company. The sales of Cabanalytics data totaled $6.6 million in Q1 2023, an increase from $4.7 million in the same period last year, with a 3% sequential increase.

During the first fiscal quarter of 2023, same-store sales increased by 52% compared to the same period in 2022, with a sequential increase of 4%, marking six consecutive quarters of same-store sales growth.

The company also reported a 58% increase in the ELITE cannabis paid loyalty program membership, reaching about 9,500 members. As of Jan. 31, the company had $23.7 million in cash on hand.

"We are also pleased to share a shift in our strategy to ensure long-term growth and sustainability, with a goal of becoming free cash flow positive by the end of this calendar year. In contrast with much of the cannabis industry, we’ve remained focused on continuing to strengthen our operations and set attainable growth goals. While we are not abandoning growth through M+A in the medium and long-term, our short-term focus has shifted to attaining free cash flow profitability in the coming months," said Grover.

High Tide aims to become free cash flow positive within this calendar year and remains the highest revenue-generating cannabis company reporting in Canadian dollars. The company has 151 locations, over 975,000 Cabana Club members and a global customer database of over 4.5 million, making it the largest non-franchised cannabis retailer in Canada.

Come meet Grover in person as well as other fascinating leaders in the cannabis industry at the Benzinga Cannabis Capital Conference at Miami Beach’s historic Fontainebleau Hotel in Florida on April 11-12. This is the place to get DEALS DONE, raise money, jumpstart M&A, and meet investors and key partners. Secure your tickets now before prices go up.

Image By El Planteo.

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