Greenlane Holdings (NASDAQ: GNLN) this morning reported preliminary financial results for the fiscal third quarter of 2021. The company had indicated that quarter saw unaudited sales of between $40 and $41 million on a net basis.
The data follows the firm finally closing its merger with KushCo Holdings, with the sales figure reflecting a single month of combined operations. The sales figures reflect an improvement over the third quarter, which saw net sales for Greenlane of $34.7 million.
Outside of net sales, the company indicated that it expects gross margins to be between negative 2% and 0% on a GAAP basis, while adjusted gross margins will be between 19% and 21%. The reasoning behind the negative figure on a GAAP basis is a “one-time inventory rationalization charge” in connection with the closing of the merger. The charge, at $9 million, is currently under review and reflects the current estimate.
Finally, the company expects to have a total cash balance of $13 million as of the period end.
Greenlane Holdings last traded at $1.82 on the Nasdaq.
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