Lifeist Reports Q4 And Full Year 2021 Results, Improves Net Loss By 9.84% To $19M YoY

Lifeist Wellness Inc. NXTTF LFST M reported its financial results for year ended November 30, 2021.

Fiscal 2021 Highlights

  • Net loss improved to CA$23.8 million ($19 million) in FY2021 compared to CA$26.4 million in FY2020.

  • Net revenue decreased 9% to CA$22.8 million for the year ended November 30, 2021 compared to CA$25.1 million for the year ended November 30, 2020. 

  • Gross margin was 7% of net revenue in FY2021 compared to 6% in FY2020. The improvement was due to improved efficiencies across all segments.

  • EBITDA loss narrowed to CA$21.6 million in FY2021 compared to CA$23.5 million in FY2020, due to higher gross margins and a decrease in expenses as a result of management focus on more profitable business units.

  • Cash and cash equivalents were CA$12.7 million as of November 30, 2021, compared to CA$10.3 million as of November 30, 2020.

Fourth Quarter 2021 Highlights

  • While net revenue decreased 11% to CA$6.4 million in the fourth quarter ended November 30, 2021 compared to CA$7.2 million in the same period last year.  Core company net revenue, increased 4% in Q4 2021 compared to Q4 2020.

  • Gross profit and margin increased to CA$0.7 million and 11% of net revenue in Q4 2021 compared to Q4 2020, the second-highest result in two years, including CA$0.5 million gross margin from the company’s Canadian recreational cannabis business, compared to $0.3 million negative margin from the same business in Q4 2020.

  • EBITDA improved substantially by narrowing losses to CA$2.8 million in Q4 2021 compared to a CA$5.7 million loss in Q4 2020 and a $5.4 million loss in the third quarter ended August 30, 2021 noting that Q4 2021 EBITDA loss results are net of incremental investments into emerging businesses including nutraceuticals.

  • Net loss was CA$4.0 million in Q4 2021 compared to CA$6.4 million in Q4 2020, due to improved gross margins and a gain of fair value of a convertible note receivable.

"The past year was one of transitioning to wellness, sharpening our strategic focus, and investing to drive sustainable growth," stated Meni Morim, CEO of Lifeist. "As a portfolio of wellness companies, Lifeist is growing its B2B recreational cannabis distribution and manufacturing business, and expanding its new nutraceutical division. We believe these opportunities provide the most direct and viable path to value creation, enabling Lifeist to leverage its capabilities and expertise to differentiate itself in the growing wellness economy.”

Other Highlights

Subsequent to Q4 2021, on December 9, 2021, Fire & Flower Holdings Corp. entered into a definitive agreement to acquire Pineapple Express Delivery Inc., a holder of the company’s convertible loan payable. On January 25, 2022, Fire & Flower completed the acquisition of PED, and, as part of the purchase, Fire & Flower assumed and repaid a CA$2,040,077 convertible loan receivable owed to the company by PED. In addition, the company received 75,100 common shares in Fire & Flower on completion of the acquisition, with a further 258,478 common shares in Fire & Flower having been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in its fiscal 2022 year.

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