Organigram Holdings (TSX: OGI) (NASDAQ: OGI) this morning reported its first quarter 2021 financial results for the period ended November 30, 2021. The company reported declining revenues on a quarter over quarter basis, recognizing net revenues of $19.3 million for the three month period, while also posting a net loss of $34.3 million.
Revenues were down from the fourth quarter of 2020, which saw revenues of $20.4 million on a net basis. Net revenues were also down 23% from the year ago period, which saw net revenues of $25.2 million. The company also posted a negative gross profit before fair value adjustments, with its $19.3 million in sales costing the company $23.2 million in terms of cost of sales, providing a negative gross margin of $3.8 million.
Total operating expenses of $11.5 million made things worse for the company, with general and administrative expenses accounting for $7.4 million. Sales and marketing made up a further $3.7 million of the firms total operating expenses.
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Other expenses meanwhile amounted to $6.1 million, with the largest impact coming from change in fair value of derivative warrant liabilities at $4.6 million, followed by financing costs of $1.6 million. In total, the company reported a net loss of $34.3 million for the three month period.
Looking to the balance sheet, there were some notably improvements however with Organigram seeing its cash position grow to $103.9 million from $24.6 million. Short term investments however declined from $50.1 million to $30.0 million, while accounts receivable declined from $14.7 million to $12.8 million. Inventories also declined, falling from $66.4 million to $49.2 million. Overall, current net assets climbed to $208.4 million, up from $170.2 million.
Current liabilities however climbed significantly as well. Accounts payable staying rather stagnant at $17.1 million, down from $17.5 million. The big item here was long term liabilities, which climbed from $11.6 million to $61.1 million, pushing current liabilities from $29.1 million to $78.3 million.
It should be noted however that subsequent to quarter end, the company used $55.0 million of its cash position to repay $55.0 million of its amended term loan, bringing down current long term liabilities substantially.
Organigram Holdings last traded at $2.28 on the TSX.
Information for this briefing was found via Sedar and Organigram 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.
