Item 2.02 Results of Operations and Financial Condition.
On
The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed
"filed" for purposes of Section 18 of the
Item 7.01 Regulation FD Disclosure.
On
Q1 FY 2023 Summary & Comparison to Q1 FY 2022 (in Millions of US$) Q1 FY 2023 Q1 FY 2022 Revenue$7.8 $7.6 Net Income/(Loss) ($3.0 ) ($0.7 ) Adjusted EBITDA* ($1.6 )$0.8
Q1 FY 2023 (ended
· Closed a$3 million unsecured convertible debt financing with Bengal Capital andMindset Capital , two experienced cannabis-focused funds, and announced thatBengal Capital partnerJosh Rosen would be joining the Company's Board of Directors. · Closed a merger withCraftedPlants NJ, Inc. , an entity that holds a lease on aNew Jersey commercial property with local cannabis-use approval for a retail location with nearly all merger consideration tied to successful completion of specific licensing and operational milestones. (See the Company'sDecember 22, 2022 press release for further details.) · Commenced tenant improvement construction on the first of twoIllinois adult-use dispensaries. The dispensary is located within the largest retail mall inMarkham, Illinois , which has average daily traffic counts of more than 400,000 cars per day within a mile of the project location. · SubmittedNew Jersey state license application in conjunction with BaMBody and Mind Dispensary NJ, Inc. f/k/aCraftedPlants NJ, Inc. Commenced design, architectural and planning work for theNew Jersey location. Management Commentary
"Our most recent quarter reflects our growth into new markets, continued focus
on operations and funds committed to expanding
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Q1 FY 2023 Financial Highlights:
· Revenues for Q1 FY 2023 were$7.8 million , a 3.4% increase over Q1 FY 2022 revenues of$7.6 million . · Gross profit of$1.6 million for Q1 FY 2023 compared to a gross profit of$3.2 million for Q1 FY 2022. · Q1 FY 2023 net operating loss was$2.0 million compared to Q1 FY 2022 net operating loss of$0.3 million . The change in net operating income was primarily impacted by increased business development expenses related toIllinois andNew Jersey , license applications, new operation startup expenses and a decrease in flower pricing inNevada . · Q1 FY 2023 net loss was$3.0 million (or basic and diluted loss per share of$0.03 ) compared to a Q1 FY 2022 net loss of$0.7 million (or basic and diluted loss per share of$0.01 ). · Adjusted EBITDA loss of$1.6 million for Q1 FY 2023 vs. Adjusted EBITDA of$0.8 million in Q1 FY 2022*. · Total Current Assets were$6.7 million , Total Assets were$29.0 million , Total Current Liabilities were$7.6 million and Total Liabilities were$21.9 million atOctober 31, 2022 . · Subsequent toOctober 31, 2022 , the company raised$3.0 million in unsecured convertible debt (See the Company'sDecember 22, 2022 press release for further details.)
The Company had 146,636,974 common shares outstanding as of
For further details, please see the Company's recent Form 10-Q filing on EDGAR at www.sec.gov/edgar/search, and the interim financial statements filed on SEDAR at www.sedar.com.
*Adjusted EBITDA is a Non-GAAP metric used by management that does not have any
standardized meaning prescribed by
Net Profit/Loss ($2,952,795 ) Interest Income ($18,000 ) Interest$381,423 Tax$626,074
Depreciation/Amortization
EBITDA ($1,601,183 ) EBITDA ($1,601,183 ) Gain on settlement 0 Loss on impairment 0
Stock-based compensation
Adjusted EBITDA ($1,568,725 )
A copy of the news release is attached as Exhibit 99.1 hereto.
The information in this Item 7.01 (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit Description 99.1 News Release datedJanuary 25, 2023 . 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) 4
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