48North Cannabis (TSXV: NRTH) this morning reported its third quarter 2021 financial results for the period ended March 31, 2021. The company reported gross revenues of $5.2 million for the period, along with a net loss of $13.4 million.
Revenues were down on a quarter over quarter 31.7% on a gross revenue basis, with the company notably not discerning between gross or net revenue within the news release. On a net basis, the company generated $3.7 million in revenue, a 38.9% decline from the second quarter. Little detail was provided for why revenues declined so significantly, with the company instead highlighting that revenues were up on a year over year basis.
Gross profit meanwhile came in at a negative $3.9 million, a result of COGS of $5.2 million, and inventory impairments of $2.3 million. Expenses added a further $9.4 million to the losses for the quarter, lead by general and administrative expenses of $4.9 million and impairments of property to the tune of $4.2 million in relation to the closure of the firms outdoor cultivation operations.
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The company overall reported a net loss of $13.4 million for the quarter.
Looking to the balance sheet, 48North saw its cash position decline from $4.1 million to just $1.4 million, while receivables were up slightly from $4.7 million to $4.9 million. Inventories declines slightly from $13.4 million to $13.3 million. Overall, total current assets declined from $26.0 million to $25.2 million. Accounts payable meanwhile grew from $11.4 million to $14.9 million, driving total current liabilities up from $14.4 million to $19.6 million.
48North Cannabis last traded at $0.185 on the TSX Venture.
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.
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