Australis Capital Inc. AUSA AUSAF doing business as AUDACIOUS announced Monday that it has filed its unaudited financial statements for the first quarter of fiscal year 2022 ending June 30, 2021, revealing revenues of $1.7 million, up by 2,650% from $60,000 in the same period of fiscal 2021. The reporting period includes revenues from ALPS (acquired in March 2021), and management fees from GT.
- Gross profit for the three months ended June 30, 2021 and 2020, were $1.1 million and $60,000, respectively. The Q1 FY 2022 amounts are predominantly from high margin ALPS business plus management fees with GT.
- The net loss for the three months ended June 30, 2021, and 2020 were $9.7 million and $3.3 million, respectively. The decrease in value of the Body and Mind BMMJ holdings along with higher personnel and professional fees were offset partially by higher gross margins.
- Adjusted EBITDA came in negative $1.58 million or $0.01 loss per share, which compares to an adjusted EBITDA loss of $1.43 million or $0.01 per share in the same period of the prior year.
- Gross margin came in at a strong 62% and climbed to $1.1 million, a 1,814% increase over Q1 last year, led by strong consulting revenues from ALPS along with management fee income related to GT. Margins from the cannabis business will kick in once the pending license transfer from GT is approved in Nevada to complete the balance of the GT acquisition.
- Cost of sales for the three months ended June 30, 2021 and 2020, were $0.7 million and $0.01 million, respectively. The Q1 FY 2022 cost is largely ALPS labor costs for professionals advising greenhouse clients.
- The operating loss was $3.4 million for the three months ended June 30, 2021, compared to $2.5 million for the three months ended June 30, 2020. Higher SG&A costs more than offset the increase in gross profit. However, the operating loss in Q1 FY 2022 was $0.3 million less than Q4 FY 2021 and $1.6 million less than Q3 FY 2021.
- Working capital as of June 30, 2021, was $10.4 million, as compared to $16.4 million as of March 31, 2021 resulting in a decrease to working capital of $6.0 million.
"Continuing the strong performance recorded in Q4 of fiscal 2021, AUSA has transformed itself into a rapidly growing MSO in the U.S. cannabis space,” Terry Booth, CEO, stated. “With revenues soaring by over 2,600% over last year, improving gross margin and adjusted EBITDA, we are showing the power of our execution on a unique strategy. This is just the beginning. We are exceptionally well positioned with operations in new jurisdictions coming online, new brands launched, and a number of very interesting transactions and partnerships progressing well towards signing. Going forward, shareholders can expect AUDACIOUS to continue transforming the business and execute towards becoming a unique and uniquely successful MSO."
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