C21 Investments (CSE: CXXI) this morning posted its third quarter 2021 financial results, recording revenue of US$8.2 million for the three month period. Net income meanwhile came in at US$3.3 million.
Revenues were down 9.1% on a quarter over quarter basis, falling from $9.0 million to $8.2 million. Cost of goods sold meanwhile increased, climbing from $4.3 million to $4.7 million, resulting in a substantial gross margin decline from $4.7 million to $3.5 million on a quarterly basis before fair value adjustments.
Expenses were up marginally to $2.4 million during the quarter, lead by administrative expenses of $1.9 million and depreciation and amortization of $0.4 million. Income from operations managed to come in at $2.0 million, after receiving a notable bump from fair value adjustments of $0.9 million. Income from operations however was still down $0.2 million on a quarterly basis.
After other expenses, including a $2.4 million gain on the fair value of derivative liabilities and a $0.4 million interest expense, the company posted an overall net income of $3.3 million for the three month period ended October 31, 2021. This figure was slightly down from the $3.7 million in net income recorded for the second quarter. Adjusted EBITDA meanwhile totaled out at $2.2 million.
The firm also reported a cash position of $3.3 million, down from $4.2 million in the prior quarter.
C21 Investments last traded at $0.65 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. 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.
