iAnthus Capital Holdings (CSE: IAN) this morning reported its third quarter financial results, posting revenues of $40.6 million, along with a loss of $9.7 million for the period ended September 30, 2020. Revenues were up 17.23% on a quarter over quarter basis, with the prior period seeing revenues of $34.6 million.
With a cost of sales of $15.1 million, the company managed to post a gross profit before biological adjustments of $25.6 million for the three month period. Total operating expenses however amounted to $33.0 million. Salaries and employee benefits amounted to the largest expense at $9.1 million, followed by depreciation and amortization of $7.7 million. Professional fees meanwhile came in at $6.2 million, while general and administrative expenses came in at $5.5 million.
Also weighing the company down ws an interest expenses of $7.1 million, along with accretion expenses of $3.6 million, with total other items amount to a loss of $10.3 million. Combined with an income tax expense of $11.4 million and the bump up from fair value adjustments on biological assets, the company posted a comprehensive loss of $9.7 million.
Moving to the balance sheet, the company saw its cash position climb from $8.1 million to $9.7 million, thanks largely to a net debt issuance that brought in $12.5 million to company coffers. Restricted cash meanwhile went from nil to $4.9 million, while inventory ballooned from $29.0 million to $44.4 million. Receivables meanwhile climbed from $5.1 million to $5.8 million. Total current assets overall went from $63.0 million to $92.0 million.
This significant gain however was offset by the current liability situation. The company saw its payables and accrued liabilities climb from $53.7 million to $64.1 million, posing a significant problem for the company given its current cash position. The current portion of long term debt, which is believed to have been subsequently settled via the recapitalization transaction, meanwhile rose from $146.3 million to $149.6 million. Overall, total current liabilities climbed from $208.0 million to $222.0 million.
With the advent of the recent recapitalization transaction however, it is known that the company is effectively in a different position as far as its balance sheet is concerned. For that, we’ll have to wait until the full fiscal 2020 financial results are published by the company some time in the new year.
Finally, the company also announced the resignation of the firms COO Patrick Tiernan this morning. Robert Galvin, whom was previously senior vice president and chief administrative officer for the company, will be taking the role on an interim basis.
iAnthus Capital Holdings last traded at $0.15 on the CSE.
Information for this briefing was found via Sedar and iAnthus Capital Holdings Inc. 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.