48North Cannabis Corp (TSXV: NRTH) filed their fourth quarter 2019 financials today after the bell, positing revenues of $0.48 million for the period ended June 30, 2019. Revenues were down 29.70% on a quarter over quarter basis, with the firm posting revenues of $0.68 million in the prior quarter.
While revenues were down for the quarter, expenses were up as a result of the firm initiating its outdoor crop during the quarter. While 48North elected to not break out its operational results on a quarterly basis, we took the time to break things down to provide a clear picture for viewers of how expenditures went for the quarter.
| Q4’19 | Q3’19 | % Change | |
| General & Administrative | 2,479,406 | 1,932,473 | 28.30% |
| Sales & Marketing | 750,118 | 588,483 | 27.46% |
| Share based compensation | 2,773,795 | 1,145,632 | 142.11% |
| Depreciation | 83,754 | 403,585 | -79.24% |
| Total | 6,087,073 | 4,070,173 | 49.55% |
Overall, the firm posted a net loss of $4.77 for the fourth quarter.
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Looking at things from an annual perspective, 48North recognized total revenues of $4.83 million for the fiscal year, on expenses of $15.90 million. The firm recorded a net loss of $8.12 million for the year. However, it should be noted that certain expenses during this period are associated with the ongoing outdoor grow operation at Good Farm, and thus revenues will be recorded in the current fiscal year.
To their credit, 48North also posts a balance sheet that is healthier than many, with a cash position of $52.76 million. Biological assets are currently at a valuation of $2.12 million, up from $1.86 million in the prior quarter. Inventories are also up, at $4.72 million, versus $2.48 million in the third quarter. Total assets currently sit at $91.02 million, on liabilities of $5.22 million, of which $4.70 million are current in the form of accounts payable.
One item that is notable from the financials, is that 48North states that it expects to harvest anywhere from 30 to 50 grams of cannabis per outdoor plant, with an average of 40 grams of cannabis per plant. With the company reportedly seeding 250,000 cannabis plants this year as per a news release issued June 17, this implies that they expect to harvest roughly 10,000 kilograms of cannabis during the 2019 season – which is far short of their original estimates of “over 40,000 kilograms of cannabis” as per their May 17, 2019 news release.
The firm is currently in the midst of harvesting 200,000 plants from its outdoor crop. The plants are anticipated to provide significant revenues for the firm over the coming quarters.
48North closed today’s session at $0.62, down 8.82% on the day.
Information for this briefing was found via Sedar and 48North Cannabis Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
