PharmaCielo Ltd. (TSXV: PCLO) reported today its financial performance for the quarter ending June 30, 2021. The results highlighted a quarterly revenue of $0.4 million, down from Q2 2020’s revenue of $1.2 million.
However, the cost of goods sold exceeded the revenue for the quarter primarily due to inventory impairment amounting to $0.7 million. This led the firm to end with a negative gross margin of $0.8 million compared to a gross profit of $0.2 million for the same comparable period last year.
The company further incurred expenses beyond the revenue, including selling, general, and administrative expenses north of $4.9 million. This resulted in a net loss of $7.2 million for the quarter, marginally up from last year’s net loss of $7.7 million. The quarterly loss translates to $0.05 per share.
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At the end of the first half of 2021, the cash and cash equivalents balance is at $11.0 million coming from a starting balance of $8.9 million at the end of 2020. While the firm gained proceeds from shares issued amounting to $13.5 million, it’s partially offset by the losses incurred for six months.
As of June 30, 2021, the company’s current assets have a total balance of $14.3 million while its current liabilities ended at $9.6 million.
The cannabis firm expects revenue growth to accelerate later in the year coming from expected higher recurring revenue from sales agreements and initial commercial sales, as well as better margin profiles from additional value-added products.
PharmaCielo last traded at $1.29 on the TSX Venture.
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