Meta Growth Sees Revenues Decline 13.6% Quarter Over Quarter
Meta Growth Corp (TSXV: META) filed its second quarter 2020 financial results last night, revealing declining revenues of $13.6 million and a net loss of $5.5 million for the period ended February 29, 2020.
Revenues were down by 13.6% on a quarter over quarter basis, from $15.8 million, while also being down 15.8% from $16.2 million on a year over year basis, showing a worrying trend for cannabis investors. Gross profit for the period came in at $4.1 million.
Operating expenses during the quarter totalled out at $9.4 million, lead by general and administrative expenses at $5.9 million, followed by finance and other costs at $1.7 million. Net loss for the quarter came in at $5.5 million, as compared to $5.7 million in the previous period.
In terms of the balance sheet, Meta Growth saw its cash figure climb to $15.7 million during the quarter from $6.8 million in the previous period, thanks in part to $14.0 million in equity and debt financing activities during the quarter. Inventory declined during the period from $5.5 million to $3.9 million, while prepaid expenses grew from $2,3 million to $3.2 million, resulting in total current assets expanding to $23.5 million from $15.2 million.
Moving to liabilities, accounts payable was relatively unchanged, falling to $3.2 million from $3.3 million in the first quarter. Lease obligations during the quarter grew to $2.3 million from $2.2 million offsetting the decline in payables and resulting in total current liabilities staying relatively stagnant, declining to $6.0 million from $6.1 million, with the change largely being the result of rounding.
Meta Growth Corp last traded at $0.14 on the TSX Venture.
Information for this briefing was found via Sedar and Meta Growth. 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.
