RIV Capital Inc. (OTC:CNPOF) has released its financial results for the last fiscal quarter of 23 and the nine-month transition period ended December 31, 2023. The company’s performance highlights significant revenue growth and strategic milestones amidst operational expansion efforts in the cannabis industry.

Revenue Surge and Market Expansion

RIV Capital reported a surge in revenue, reaching $2.1 million for the three months ended December 31, 2023 (“CQ4 2023”), compared to $1.9 million for the same period in 2022 (“CQ4 2022”). Notably, retail revenue of $1.9 million was generated from Etain’s medical dispensaries in Manhattan, Kingston, Syracuse, and Yonkers, supplemented by wholesale revenue of $0.3 million from sales of Etain-branded products to other medical dispensaries in New York.

Operational Efficiency and Cost Management

While revenue soared, the Company encountered increased cost of goods sold, totaling $1.5 million for CQ4 2023, compared to $1.1 million for CQ4 2022. Factors contributing to this include scaling operations at the expanded Chestertown Facility. Additionally, the Company reported an unrealized loss of $1.2 million on changes in fair value of biological assets for CQ4 2023, compared to a nominal amount for CQ4 2022, primarily due to adjustments in estimated selling prices for wholesale bulk flowers.

Financial Performance Overview

Despite revenue growth, the Company reported a gross loss of $0.6 million for CQ4 2023, compared to a gross profit of $0.8 million for CQ4 2022. Selling, general, and administrative (“SG&A”) expenses increased to $5.5 million for CQ4 2023, compared to $4.8 million in CQ4 2022.

Impact of Impairment Charges

An impairment charge is a figure used to describe the situation when an asset is no longer as valuable as it once was. The most significant factor impacting the Company’s reported net loss for CQ4 2023 was an impairment charge of $48.7 million related to goodwill and intangible assets recognized in connection with its acquisition of Etain in 2022. This impairment charge, primarily driven by a reduction in projected cash flows for Etain’s New York operations, underscores the challenges faced in market development and competition.

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Net Loss and Comprehensive Loss

The Company reported a net loss of $47.3 million for CQ4 2023, with a basic and diluted net loss per share of $0.35, compared to a net loss of $9.9 million for CQ4 2022. Total comprehensive loss stood at $50.3 million for CQ4 2023, compared to $12.7 million for CQ4 2022, primarily driven by the impairment charge.

While RIV Capital continues to navigate challenges in the cannabis market landscape, its revenue growth and operational expansion efforts underscore its resilience and commitment to long-term value creation.

Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF) a vertically-integrated cannabis company operating under the FLUENT brand, announced financial results Monday for the fourth quarter and full year ended December 31, 2023. Quarterly revenues increased 9% to $25.5 million, compared to $23.4 million in the same period of the prior year.  

"We delivered record revenue and positive cash flow generation during the fourth quarter as we continued to execute on our growth objectives. We are making the critical investments needed to lay the foundation for growth and support our future plans and remain excited about the opportunities ahead," stated CEO Robert Beasley.

"In Florida, we continue to ramp our new dispensaries while driving cultivation improvements, leading to the production of more high quality, high THC products. These operating improvements drove higher retail prices and higher average basket size during the quarter."

Q4 2023 Financial Highlights (vs. Q4 2022)

• Gross profits were $13.34 million, versus $5.53 million  
• Gross profit margin was 52.2%, compared to 23.6%.
• Adjusted EBITDA was $6.9 million compared to $7.9 million, with the decrease primarily driven by higher SG&A spend due to additional stores.
• Net loss amounted to $4.7 million, compared to a net loss of $9.7 million.
• Florida revenue increased 11% to $21.6 million compared to $19.4 million.
• Cash flow from operations for the three months ended December 31, 2023, was $1.4 million compared to $3.6 million in the prior year.
• On December 31, 2023, Cansortium had approximately $10.5 million of cash and cash equivalents and $61.2 million of total debt, with approximately 300 million shares outstanding.

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Full Year 2023 Financial Highlights (vs. Full Year 2022)

• Net loss was $22.8 million, compared to net loss of $37.1 million. 
• Revenue increased 11% to $97.3 million compared to $87.7 million.
• Florida revenue increased 11% to $81.2 million compared to $73.0 million.
• Adjusted EBITDA was $27.2 million compared to $25.1 million.
• Cash flow from operations for the full year ended December 31, 2023, was $18.5 million compared to $19.1 million in the prior year.

Price Action 

Cansortium shares closed Monday market session 1.44% higher at 16 cents per share. 

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Canadian marijuana company Red White & Bloom Brands Inc. (CSE:RWB) (OTC:RWBYF) reported its financial results Monday for the fourth quarter and fiscal year 2023, revealing quarterly revenue of CA$19.9 million ($14.5 million), compared to CA$15.4 million in the same period of 2022. For the fiscal year 2023, the Toronto-based operator reported revenues of CA$88.3 million, compared to CA$87.7 million in fiscal 2022.  

"RWB continued to effect value-added transformations of its business during fiscal 2023," stated Colby De Zen, president and director. "We focused on higher margin revenue opportunities and sunsetting of low margin products, as can be seen in our results, which has led to a 30% increase in gross margin with revenue only increasing marginally over the same period. Moving into fiscal 2024, the company has targeted several near-term priorities, including a fulsome restructuring of its current financing arrangements, resourcing its key business segments, both in Canada and across incumbent and prospective US states, providing a path for our company and its valued team members to achieve profitable growth and sustainable liquidity."  

Grow your cannabis business and raise capital at Benzinga’s New Jersey Market Spotlight on June 17. Network with key industry players, hear from the top operators and close deals that will shape the future. Act now— spots are filling fast. Get your tickets here. 

Q4 2023 Results Compared To Q4 2022

• Gross profit was CA$7.4 million, compared to CA$1.3 million. 
• Net loss amounted to CA$118.1 million, versus net loss of CA$206.1 million. 
• Adjusted EBITDA was a gain of CA$1.7 million, compared to an Adjusted EBITDA loss of CA$3.2 million. 

FY 2023 Results Compared To FY 2022 

• Gross profit was CA$31.2 million, which compares to CA$22.5 million. 
• Adjusted EBITDA was a gain of CA$5.5 million, versus CA$7.2 million. 
• Operating expenses were CA$11.0 million, compared to CA$7.4 million.
• Net loss amounted to CA$143.6 million, which compares to a net loss of CA$242.1 million. 
• At the end of 2023, the company had reported a debt of CA$240 million, compared to a debt of CA$171.8 million at the end of 2022. 

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Multi-state cannabis operator, Acreage Holdings, Inc. (CSE:ACRG) (OTCQX:ACRHF), reported its financial results Monday for the fourth quarter and full year ended December 31, 2023. The earnings report revealed quarterly revenue of $52.8 million, compared to $57.5 million in the same period of the prior year, while yearly revenue reached $223.4 million, versus $237.1 million in the full year 2022.

"Throughout 2023, we completed various strategic initiatives that have positioned us strongly ahead of our acquisition by Canopy USA," stated Dennis Curran, chief executive officer of Acreage. "During the quarter, we completed the anticipated expansion of our Egg Harbor, New Jersey facility, bolstering these operations with more canopy and manufacturing equipment to increase the output of in-demand, high-margin products such as edibles and concentrates. We also upgraded our cultivation capabilities in Freeport, Illinois, where we produce non-remediated flower, a unique and top-selling offering to the market”.  

Curran continued, "Our flagship brands continue to perform exceptionally well, particularly in new states where they have recently made their debut, such as New Jersey for Superflux and New York and Pennsylvania for The Botanist. This has prompted us to optimize our portfolio and focus on expanding distribution of our most successful products and brands that will cohesively fit into Canopy USA’s ecosystem alongside Wana and Jetty."

See Also: Canopy Is ‘Cautiously Optimistic’ On Cannabis Rescheduling Following Major Step Toward Entry Into US THC Market

Q4 Earnings Highlights 

• Gross margin was 32%, which compares to 35% in the same period of the prior year. 
• Gross profit was $16.66 million, versus $20.4 million in the fourth quarter of 2022.
• Net loss was $35.7 million, compared to net loss of $119.18 million in the corresponding period of 2022.  
• Adjusted EBITDA reached $4.3 million, versus $6.99 million in the fourth quarter of 2022.

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Full Year 2023 Financial Summary

• Adjusted EBITDA was $28.3 million compared to $34.8 million in full year 2022.  
• Net loss amounted to $77.96, which compares to a net loss of $168.7 million in the previous fiscal year. 
• Gross profit reached $85.65 million, versus $101.75 million for full 2022. 

Price Action

Acreage shares closed Monday market session 8.83% lower at 29 cents per share.  

Now Read: New York Gov Hochul Orders Review Of Cannabis Licensing Process After Numerous Setbacks

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