HempFusion Reports 2020 Revenues Of $3.8 Million, Net Loss Of $38.0 Million

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.

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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.