WeedMD Inc. (TSXV: WMD) released today its financial results for the fiscal year ending December 31, 2020, posting $29.4 million in revenue. This is an increase from the fiscal year 2019’s revenue of $20.8 million.
The company, however, incurred a $51.4 million cost of goods sold for the fiscal year, which resulted in $22.0 million gross losses. This is a notable decline from last year’s gross profit of $4.0 million. WeedMD attributes this decline mainly to inventory write-down.
Things didn’t get much better from here for the company, with expenses amounting to a figure higher than the firms gross revenues. Selling, general, and administrative expense was at $27.6 million for the fiscal year, followed by $5.9 million in financing costs and share based compensation of $2.6 million.
Further down the financials, the company recorded a number of impairments, including $16.1 million to goodwill, $12.4 million to intangibles, and $6.2 million on property, plant and equipment. WeedMD’s net loss for the fiscal year was pegged at $89.6 million, compared to last year’s net loss of $10.4 million. This year’s net loss translates to a $0.43 loss per share.
The company ended FY 2020 with $22.3 million in cash and cash equivalents, up from last year’s $8.2 million. Its ending inventory was valued at $30.7 million, a slight dip from last year’s $31.3 million, while biological assets were valued at $2.0 million, a decline from last year’s $7.7 million. Total current assets amounted to $66.8 million, as compared to current liabilities of $21.7 million.
WeedMD Inc. last traded at $0.29 on the TSX Venture.
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