C21 Investments (CSE: CXXI) this morning reported its third quarter 2021 financing results for the period ended October 31, 2020, reporting revenues of $9.5 million for the three month period. The quarter also saw the company report a net income of $2.3 million.
On a quarterly basis revenues were essentially flat, rising from $9.4 million to $9.5 million, an improvement of 1.1%. Cost of sales however climbed from $4.6 million to $5.0 million, an increase of 8.0%. Gross margins as a result fell from $4.8 million to $4.5 million on a quarter over quarter basis, before fair value adjustments for biological assets.
Expenses also increased over the course of the quarter, climbing from $2.3 million to $2.6 million, with the largest expenditure being general and administrative expenses at $1.7 million, followed by depreciation at $0.6 million and share based compensation of $0.3 million.
Other expenditures during the quarter include $0.8 million spent on interest, up from $0.6 million in the prior quarter, as well as restructuring fees of $0.5 million, up from $0.1 million in the prior quarter. This however was offset slightly by other income of $0.2 million, up from effectively nil in the prior period. Overall, the company posted a net income of $2.3 million, compared to a net loss of $38,183 in the prior period, largely a result of biological adjustments.
Looking to the balance sheet, C21 saw its cash position climb from $2.7 million to $3.4 million, which is largely a function of posting an operating cash flow positive quarter. Inventory meanwhile declined from $5.7 million to $4.5 million, while biological assets climbed from $1.4 million to $1.9 million. Total current assets rose marginally overall, from $10.6 million to $11.1 million.
Accounts payable meanwhile decreased slightly, falling from $3.7 million to $3.3 million, while the current portion of the promissory note payable declined from $17.6 million to $15.8 million. Most other current liabilities remained stagnant, with total current liabilities falling from $38.0 million to $35.4 million, largely a result of the promissory note seeing payments made to it. It should also be noted here that subsequent to the end of the quarter, this note was extended in maturity, resulting a sizable portion moving to long term liabilities.
C21 Investments last traded at $1.30 on the CSE.
Information for this analysis was found via Sedar and C21 Investments. The author has no securities or affiliations related to the discussed organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
