Aleafia Health (TSX: ALEF) this morning reported its first quarter 2020 financial results, reporting net revenues of $14.6 million, of which $13.7 million came from the sale of cannabis. The company reported a positive adjusted EBITDA figure of $6.4 million, while posting a net loss of $6.2 million.
While the company boasted a positive EBITDA figure, the firm actually posted an operating loss, largely in part to changes in fair value of inventory sold of $6.1 million, reducing gross profit from $12.1 million to $5.9 million. Operating expenses came in at $9.2 million, with general and administrative expenses amounting to $3.1 million and wages and benefits coming in at $2.5 million.
The firm did claim positive cash flow from operations of $146,000, however the cash position still saw an overall $7.9 million reduction on a quarter over quarter basis, thanks in part to the company spending $7.9 million on investing activities, of which $7.94 million was for the acquisition of property. Aleafia saw its cash position decline from $41.2 million to $33.4 million over the course of the quarter.
Outside of the decreasing cash position, most other current asset line items stayed relatively the same, save for inventory which decreased from $34.1 million to $29.1 million over the quarter, while still representing several periods worth of sales. Total current assets declined from $117.6 million to $102.6 million.
Accounts payable decreased significantly over the period, falling from $20.1 million to $10.7 million, while $21.9 million in convertible debt became current during the period, bringing total current liabilities up from $20.7 million to $34.9 million. The current convertible debt consists of $25.0 million in principal due on February 2, 2021.
In terms of cannabis, the company saw its average net selling price of medical cannabis decrease from $9.80 to $8.04 over the course of the quarter, while adult use cannabis increased to $6.88 from $6.14. Wholesale cannabis declined marginally, from $2.50 per gram to $2.47 per gram. The company saw 4,992 kilograms sold during the quarter, up from 1,398 kilograms in the fourth quarter of 2019.
Aleafia Health last traded at $0.63 per share.
Information for this briefing was found via Sedar and Aleafia Health Inc. 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.
