Ayurcann Holdings (CSE: AYUR) this morning announced its third quarter 2021 financial results. The company reported net revenues of $2.6 million for the three month period, along with adjusted EBITDA of $1.1 million.
Revenues were up 68.6% on a quarter over quarter basis, growing from $1.52 million to $2.63 million. Revenues for the nine month period as a result now sit at $4.9 million as of March 31, 2021. Gross margin for the quarter meanwhile amounted to $1.8 million, off the back of cost of goods sold of just $0.8 million.
Expenses for the quarter meanwhile amounted to just $0.8 million, lead by salaries and wages of $0.4 million, followed by office and general at $0.2 million. The result is an operating income of $1.0 million for the three month period. The company however posted a comprehensive loss for the quarter of $1.0 million, as a result of a recapitalization cost of $2.0 million for the period, which is related to the go-public transaction listing costs.
Looking to the balance sheet, the company currently sits at a cash position of $1.1 million, while trade and receivables sits at $1.4 million. Following inventories of $0.9 million, the company has current net assets of $3.3 million.
On the other side of the equation, the company currently has $1.0 million in trade and other payables, contributing to total current liabilities of $1.4 million. As a result, the company currently has a working capital position of $1.9 million.
“This quarter was a milestone for Ayurcann. We wanted to show that it can be done, a Cannabis company in Canada can operate as a profitable entity, keeping an eye on the bottom line and being responsible. We successfully oversubscribed and closed a financing which will now enable us to complete our phase 2 buildout, further increasing our ability to serve our clients and grow our revenues.
We are thrilled to see our revenues growing at a steady pace, month over month, while maintaining incredibly strong margins and running a profitable business. As far as we know, we are one of the very few in our peer group showing growing revenues and a positive operating income with a consistent path of profitability. We can confidently say we are profitable now and fully expect to show continued profits going forward while building on our momentum.”Igal Sudman, Chief Executive Officer of Ayurcann
Ayurcann Holdings last traded at $0.165 on the CSE.
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