The Green Organic Dutchman (TSX: TGOD) is under new leadership. The company announced this evening in connection with its third quarter 2020 financial statements that CEO Brian Athaide has “left his positions” as CEO and a director. The current CFO, Sean Bovingdon, is to take over the role on an interim basis.
The financial results put forth by the company in the third quarter leave much to be desired, with the company posting net revenues of $4.9 million for the period ended September 30, 2020, an increase from $4.4 million in the prior quarter. The net loss meanwhile amounted to $76.2 million following impairments that were made during the quarter.
The company posted a gross profit of $1.6 million during the quarter before fair value biological adjustments, as compared to $0.4 million in the previous quarter. The company remains nowhere near profitability however with total operating expenses amounting to $10.3 million, more than double net revenues posted during the period.
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Operating expenses largely comprised of general and administrative expenses of $5.0 million, followed by sales and marketing at $2.3 million and depreciation and amortization of $2.3 million. The loss was then further extended by a number of other expenses, including a $67.8 million impairment charge on assets and $0.9 million in financing costs, bringing the total net loss to $76.2 million.
Impairments made during the quarter were primarily related to property plant and equipment writedowns following the failure of certain energy related equipment in July and August, which then impact the quality of flower being outputted by the facilities.
Looking to the balance sheet, the firms cash position declined from $18.8 million to that of $4.1 million, justifying the financing conducted in October for $12.8 million. Prepaids and deposits also declined, falling from $7.9 million to that of $2.8 million. Inventory meanwhile rose from $13.9 million to $18.2 million, with current inventory levels representing several quarters worth of sales at the current run rate. Total current assets overall fell from $50.3 million to $34.4 million over the course of the quarter.
Notably however, accounts payable also declined during the quarter, falling to $24.0 million from $32.7 million, while current portions of loans inched up marginally from $28.6 million to $29.1 million. Due to related parties meanwhile fell from $0.3 million to nil. Total current labilities overall fell from $62.6 million to that of $54.2 million.
The Green Organic Dutchman last traded at $0.27 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. 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. The author holds no licenses.
One Response
The company release indicated his leaving was a decision made by the board of directors. Saying he “Quit “is a little misleading