High Tide Inc. (TSXV: HITI) released on Tuesday its financial statements for fiscal Q3 2021 ending July 31, 2021. The results highlighted a quarterly revenue of $48.1 million, up from both Q2 2021’s revenue of $40.9 million and Q3 2020’s revenue of $24.1 million.
Breaking down the topline revenue figure, merchandise sales contributed $43.8 million while other revenue added $4.3 million. Geographically, $38.4 million of the revenue came from Canadian operations while $9.6 million came from the United States. In the previous quarter, the US market contributed $5.7 million out of the quarterly revenue.
However, gross margin fell to 35% this quarter from 37% last quarter and 40% last year. This further led to the company ending the quarter with a net loss of $1.7 million compared to the previous quarter’s net loss of $12.3 million and the previous year’s net income of $3.8 million. The quarterly loss translates to $0.03 per share.
Considering financial recalibrations, adjusted EBITDA for the quarter came in at $1.5 million, down from $4.7 million last quarter and $3.4 million for the same period last year. The company relayed that the decline is mainly due to the expenses entailed in its recent Nasdaq listing.
The firm ended the quarter with a cash position of $26.6 million coming from a starting balance of $7.5 million. The inflow was driven primarily by the proceeds from equity financing amounting to $43.2 million. Further, the company had an ending current assets balance of $55.2 million and current liabilities balance of $34.1 million.
The cannabis company stated that its key focus in the coming months is its e-commerce strategy, evident by its recently announced acquisition of online retailer DankStop.com for US$3.85 million.
High Tide last traded at $9.49 on the TSX Venture.
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