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.
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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.
