Aleafia Health (TSX: ALEF) reported net revenues for the second quarter of $3.83 million this morning, with a net loss of $11.47 million. Total cannabis revenue during the quarter grew to $2.53 million, a 377% increase over the previous quarter.
Total gross profit amounted to $0.55 million for the three month period, before fair value adjustments are factored in. Meanwhile, expenses during the period came in at $12.06 million, with share based payments being the largest expense at $4.21 million, followed by business advisory fees at $2.27 million. General and administrative fees came in at $1.72 million.
Moving to the balance sheet, Aleafia reported $57.97 million in cash as of June 30, with inventory of $4.25 million, and accounts receivable of $6.28 million. This compares with accounts payable of $6.71 million, on total current assets of $7.35 million.
With respect to kilograms sold, Aleafia abstained from providing such a figure. However, it indiciated that the average selling price on a per gram basis came in at $3.40, a decrease from last quarter which saw the company averaging between $4.00 and $4.50 per gram. The figure suggests that current sales are largely on a wholesale basis. This may change however, as the firms registered patients have subsequently seen a 27% increase, to a total of 8,861 patients as of August 13.
Aleafia also indicated that its current biological assets are expected to yield 784 KG of dried cannabis. However, this is at odds with previous comments made by the company as a result of the firm obtaining its outdoor cultivation license on June 10.
The company has indicated that they expect to yield over 2,300 KG of cannabis per acre of outdoor production, however this doesn’t appear to be indicated within their current biological asset estimates. Today’s news release reaffirmed that its outdoor production was planted just days after receiving its license, and has since increased to over 1.1 million square feet. The initial footprint of roughly 6.7 acres should theoretically have indicated a potential yield of over 15,000 KG by Aleafia’s own estimates before the subsequently expanded footprint is taken into consideration.
Aleafia is currently trading at $1.16, down 3.33% on the day.
Information for this briefing was found via Sedar and Aleafia Health. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.