HempFusion Wellness (TSX: CBD.u) this morning filed its fourth quarter and full year financial statements for 2020, revealing revenues of just $3.8 million for the full fiscal year for the firm currently valued at $233 million. The company meanwhile reported a net loss of $38.0 million.
There’s little to be said for the financial results, with the firm recording gross profits of just $400,000 for the full fiscal year. Expenses meanwhile amounted to $19.7 million, with the company spending $7.5 million on sales and marketing, which equates to $1.96 in marketing being spent for every $1 in revenues earned. General and administrative expenses were the largest cost bucket overall at $12.2 million. The result is a net loss from operations of $19.3 million.
Other expenses did not fair any better, with the company impairing its goodwill by $1.3 million and intangible assets by $5.9 million. It also took a loss of $11.5 million on a derivative liability, resulting in a net loss of $38.0 million for the full fiscal year.
Looking to the balance sheet, as of December 31 the company reported a cash position of $9.3 million, along with inventory of $2.6 million and prepayments of $1.5 million. Current assets totaled out at $13.8 million.
Accounts payable and accrued liabilities meanwhile amount to $2.3 million, while purchase consideration payable came in at $1.4 million. The largest liability here is a derivative liability which has a value of $14.0 million, resulting in total current liabilities of $17.7 million for the firm.
HempFusion last traded at US$1.99 on the TSX.
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.