The Supreme Cannabis Company (TSX: FIRE) this evening posted their second quarter 2021 financial results. The company reported net revenues of $18.3 million, along with a net loss of $7.9 million for the three month period.
Net revenues were up considerably on a quarter over quarter basis, rising 54.3% from $11.9 million to $18.3 million. After production costs of $9.3 million and inventory impairments of $0.7 million, the company managed to post a gross margin of $8.3 million before fair value adjustments.
Operating expenses however still amounted to $8.4 million, with wages and benefits amounting to the bulk of it at $3.8 million. Professional fees meanwhile amounted to $1.0 million, while amortization amounted to $1.2 million for the quarter.
After factoring in finance expenses of $2.4 million during the quarter, the company posted a net loss of $7.9 million for the three months ended December 31, 2020.
Looking to the balance sheet, cash stayed flat at $20.4 million on a quarter over quarter basis, a function of the company managing costs during the quarter. Receivables climbed marginally, from $11.1 million to $11.8 million, while inventory fell from $28.0 million to $25.5 million. Overall, total current assets fell from $66.7 million to $64.2 million.
Accounts payable meanwhile rose from $12.5 million to $13.2 million. The current portion of long term debt rose from $4.8 million to $6.4 million, with total current liabilities overall growing from $18.5 million to $21.1 million.
The Supreme Cannabis Company last traded at $0.405 on the TSX.
Information for this analysis was found via Sedar and Supreme Cannabis. 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.
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.