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
Q2 FY 2023 Summary & Comparison to Q1 FY 2023 (in Millions of US$) Q2 FY 2023 Q1 FY 2023 Revenue $ 7.7$ 7.8 Net Income/(Loss)$ (2.7 ) $ (3.0 ) Adjusted EBITDA*$ (1.3 ) $ (1.6 )
Q2 FY 2023 (ended
· Advanced 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, and the Company projects that its first retail sale will occur inApril 2023 . · 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.) · 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. · Began sellingBody and Mind branded vape cartridges inArkansas . Management Commentary
"Our most recent quarter reflects improvement in wholesale pricing in
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Q2 FY 2023 Financial Highlights:
· Revenues for Q2 FY 2023 were$7.7 million , a slight decrease over Q1 FY 2023 revenues of$7.8 million . · Gross profit of$2.26 million for Q2 FY 2023 compared to a gross profit of$1.6 million for Q1 FY 2023. · Q2 FY 2023 net operating loss was$1.8 million compared to Q1 FY 2023 net operating loss of$2.0 million . Net operating income was primarily impacted by increased business development expenses related toIllinois andNew Jersey , license applications and new operation startup expenses. An increase in wholesale flower pricing inNevada in Q2 improved both the gross profit and net operating loss. · Q2 FY 2023 net loss was$2.7 million (or basic and diluted loss per share of$0.02 ) compared with Q1 FY 2023 net loss of$3.0 million (or basic and diluted loss per share of$0.03 ). · Adjusted EBITDA loss of$1.3 million for Q2 FY 2023 vs. Adjusted EBITDA loss of$1.6 million for Q1 FY 2023*. · Total Current Assets were$8.1 million , Total Assets were$32.6 million , Total Current Liabilities were$8.5 million and Total Liabilities were$27.6 million atJanuary 31, 2023 .
The Company had 146,636,974 common shares outstanding as of
For further details, please see the Company's recent Form 10-Q filing on EDGAR at www.sec.gov/edgar/search, and the interim financial statements filed on SEDAR at www.sedar.com.
*Adjusted EBITDA is a Non-GAAP metric used by management that does not have any
standardized meaning prescribed by
Net Profit/Loss$ (2,741,050 ) Interest Income$ (18,000 ) Interest$ 425,124 Tax$ 620,062 Depreciation/Amortization$ 362,623 EBITDA$ (1,351,241 ) EBITDA$ (1,351,241 ) Gain on settlement 0 Loss on impairment 0 Stock-based compensation$ 22,014 Adjusted EBITDA$ (1,329,227 )
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 datedMarch 23, 2023 . 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) __________ - 4 -
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