Empower Clinics Posts Q1 Revenues Of $2.0 Million, Net Loss Of $25.2 Million
Empower Clinics (CSE: CBDT) this morning reported its first quarter financial results for the period ended March 31, 2021. The company saw total revenues for the period of US$2.0 million, while also recording a net loss of $25.2 million. Notably, the firm reported in US dollars yet headlined its news release with the Canadian dollar equivalent.
Revenues for the period amounted to $2.0 million, a notable improvement over the firms fourth quarter revenues of $0.9 million. However, the company saw its net loss climb to $25.2 million, a decline from the $15.7 million loss posted in the fourth quarter, and the $17.1 million loss posted for all of 2020.
Direct clinic expenses for the quarter amounted to $0.7 million, resulting in a gross margin of just under $1.3 million for the three month period. This however was offset by $1.2 million in operating expenses, and a further $0.9 million in legal and professional fees among other expenses, with the company posting a loss from operations of $1.4 million overall.
The firm then saw the quarter pushed further into the red as a result of a $23.8 million loss on change in the fair values of warrant liabilities, resulting in the overall net loss of $25.2 million posted for the three month period.
In terms of the balance sheet, the company saw its cash position improve from $4.9 million to $6.3 million as a result of warrant exercises during the quarter among other items, while total current assets improved to $7.3 million from $5.3 million. Total current liabilities meanwhile feel from $7.0 million to $4.8 million over the same time period.
An outlook for the remainder of the year was not provided by the company.
Empower Clinics last traded at $0.66 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.
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.
