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.
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.
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.