Stem Holdings (CSE: STEM) continues to see its operations make gains in terms of revenue. The company last night posted its third quarter financial results, highlighting record sales of US$12.4 million on a gross basis.
In terms of net revenues, the company posted $10.6 million in revenues. Following cost of goods sold of $9.1 million, gross profits totaled out at $1.5 million.
Despite revenue growth, the firm still posted a loss from operations of $4.6 million. The loss follows total operating expenses of $6.1 million, comprised largely of $4.5 million in general and administrative expenses and professional fees of $1.0 million.
The company did however receive a boost from total other income, which totaled $7.1 million during the quarter, lead by changes in fair values of warrant liabilities of $6.4 million. The firm also received a boost of $0.8 million from other income of $0.8 million.
Stem Holdings overall reported a net income of $2.6 million for the three month period, and ended the quarter with $9.1 million in cash and cash equivalents.
Commenting on the quarter, CEO Adam Berk stated, “We are building our footprint with a strong ongoing focus on cost reductions, operational excellence, and customer acquisition and retention to drive topline sales and margin improvement as we did this quarter. We expect to achieve longer-term benefits that will build value for our shareholders as we invest in organic and acquisitive growth.”
The company also highlighted that it expects to launch its first dispensary in Michigan in September, which shortly follows the launch of the firms delivery services in the state of Oregon.
Stem Holdings last traded at $0.385 on the CSE.
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