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.
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