Harborside Reports Q2 Revenues Of $15.4 Million, Net Income

Harborside Inc (CSE: HBOR) last night reported its second quarter financial results. The company saw strong sequential growth of revenues, with revenues for the quarter coming in at $15.4 million on a net basis, up 23.4%.

Revenues for the quarter climbed substantially as a result of an improvement in wholesale revenues. On a gross basis, whole revenues grew 79.2% to $5.2 million, while retail revenues grew 9.2% to $11.0 million.

Gross profits meanwhile came in at $8.7 million after biological adjustments, representing a gross margin of roughly 56.7%, putting the company in line with its peers, while improving significantly from the 36.9% margins reported last quarter.

Expenses for the quarter however totaled $9.0 million, lead by general and administrative expenses of $5.4 million, and professional fees of $3.3 million.

Despite this, Harborside still managed to post a positive net income, as a result of fair value gains on derivative liabilities, with net income for the quarter totaling $1.7 million.

In terms of its balance sheet, the company currently has $26.6 million in cash, along with $38.4 million in total current assets. Current liabilities however total $67.3 million, lead by provisions of $38.6 million, and accounts payable of $17.7 million.

Commenting on the results, the firms interim CEO Matt Hawkins notably stated, “As we move into the second half of the year, our focus remains on further scaling our reach through accretive M&A opportunities and building our leadership team, including our goal to bring in a new CEO, which together with our strong foundation will position Harborside for long-term growth.”

The comments recently follow the news of Matt Hawkins being appointed as interim CEO of the company back in July.

Harborside last traded at $1.08 on the CSE.

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