iAnthus Capital Holdings Generates US$19.2 Million in Second Quarter Revenues

iAnthus Capital Holdings (CSE: IAN) filed its second quarter 2019 financials late this evening, posting revenues of US$19.20 million for the three months ended June 30, 2019, a 99.58% increase over the previous quarter. Gross profit came in at $9.19 million for the quarter before unrealized changes in the fair value of biological assets.

Expenses meanwhile increased 52.15% over the previous quarter, coming in at $35.24 million. Share based compensation consisted of the largest portion of expenses at $9.58 million, followed by salaries and employee benefits at $8.10 million. Overall, iAnthus posted a net loss of $9.29 million for the quarter, or ($0.06) per share.

Net cash used in operating activities nearly tripled from the previous quarter to that of $27.73 million, resulting in operational cash burn of $4.62 million on a monthly basis over the current fiscal year. The firms cash position fell from $42.33 million to that of $30.51 over the three month period.

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While current assets decreased slightly from $84.65 million to $78.79 million, total assets increased $810.99 million, with the company reallocating some of its $555.43 million in goodwill to that of intangible assets to bring goodwill down to $440.69 million. The adjustment appears to be related to a reevaluation of the MPX transaction. Legacy MPX assets have accounted for $17.62 million in revenues on a year to date basis, out of a total $28.82 million in revenue generated by iAnthus Capital Holdings.

iAnthus however made notable improvements in its current and long term liabilities. Accounts payable fell to $16.04 million over the quarter, a $4.41 million improvement. Current long term debt also fell considerably, from $37.79 million to that of $10.84 million. Collectively, total liabilities fell $46.22 million over the quarter, settling at $188.45 million.

iAnthus Capital Holdings is currently trading at $3.38 per share as of todays close.

Information for this briefing was found via Sedar and iAnthus Capital Holdings. 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.