Vertically integrated cannabis operator Stem Holdings, Inc. (OTCQX:STMH) (CSE:STEM) announced its financial results for the fiscal first quarter 2022 ended December 31, 2021.
“The recent business decisions we have made with Driven Deliveries and other non-core assets puts us on a path to positive working capital,” Steve Hubbard, interim CEO and CFO of Stem, commented. “We have decided to focus the majority of our resources on cultivation facilities in Oregon and retail stores in Oregon and California where, in particular, we have significant room for growth in the cultivation operations as we have recently been producing at less than 50% capacity.”
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Q1 2022 Financial Highlights
- Revenue totaled $4.9 million, a decrease of 21% as compared to $6.2 million for the same period the year prior.
- Net revenue after discounts and returns totaled $4.2 million, a decrease of 20.1% as compared to $5.3 million for the same period the year prior, a decrease in retail sales resulting from general market conditions.
- Impairment expense totaled $800 000 predominately related to the impairment of investments and a non-refundable deposit.
- Other income was $2.4 million compared to other expenses of $3 million for the comparable period of 2020, the increase in other income was primarily related to the change in fair value of warrant liabilities.
- Loss from discontinued operations amounted to $1.745 million related to the divesture of Driven compared to a loss of $.144 million in the comparable period of the prior year.
- On December 31, 2021, working capital was approximately $1.3 million, which included cash and cash equivalents of $3.3 million.
- Net loss was approximately $4.2 million and net cash used in operating expenses totaled $2 million. Cash used in investing activities was $0.1 million and cash flows used in financing activities totaled $0.1 million.
- Total liabilities as of December 31, 2021 were reduced to $14.2 million as compared to $23 million as of September 30, 2021.
Photo: Courtesy of Towfiqu barbhuiya on Unsplash
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