After a series of delays, Sundial Growers Inc. (Nasdaq: SNDL) finally reported late on Wednesday night its Q4 and full-year 2021 financial results. The firm recorded annual revenue of $56.1 million, down from 2020’s $60.9 million.
Gross profit, however, jumped to a loss of $7.0 million from a loss of $49.9 million a year ago.
“2021 was a transformational year for Sundial. We increased the sustainability of our business model, establishing a strong balance sheet, positive adjusted EBITDA results, and significant improvements in gross margin,” said CEO Zach George.
However, due to a $77.8 million fair value charge on derivative warrants, the firm recorded a wider annual net loss of $230.2 million from a net loss of $206.3 million last year (excluding discontinued operations).
But the firm saw a significant improvement in its annual adjusted EBITDA, ending the year with $32.1 million from a loss of $25.6 million last year.
For Q4 2021, the company notched $22.7 million in quarterly revenue, up from Q3 2021’s $14.4 million. Gross loss dipped to $2.5 million for the quarter compared to $1.2 million last quarter and $4.7 million last year.
The quarterly net loss from continuing operations ended at $54.8 million from a net income of $11.3 million last quarter and a net loss of $64.1 million last year.
Despite the losses, the company ended the year with a cash balance of $558.3 million coming from a starting balance of $60.4 million. The inflow mostly came from the $1.06 billion net proceeds from public offerings.
This puts the balance of the current assets at $728.2 million while current liabilities ended at $65.9 million.
The firm is still working on meeting the minimum US$1.00-bid price per share requirement of the Nasdaq. Should it still fail to trade above the threshold, it is considering the idea of a reverse stock split any time prior to August 8, 2022.
Sundial last traded at US$0.53 on the Nasdaq.
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