TILT Holdings Inc.  (NEO: NEO) (OTCQX:TLLTF) reported its financial and operating results for the three months ended March 31, 2022. 

"As discussed on our March 30^th earnings call, during the first quarter we experienced the effects of inflationary pressure on consumers exacerbated by legacy product mix in our key plant-touching markets, coupled with both customer ordering and regulatory timing delays that affected Jupiter's performance," said Gary Santo, CEO of TILT. "Exiting the quarter, the broader market appears to be gaining momentum, with our inhalation business experiencing the second strongest sales order month in its history in April. Furthermore, opportunistic improvments made to our cultivation and processing operations over the past two quarters would appear to be well-timed to these changing market conditions, positioning the Company for a strong second half of 2022."

Q1 2022 Financial Summary

• Revenue was $42.4 million compared to $46.8 million in the year ago period. The decrease was primarily driven by lower sales volume in the Company's inhalation business related to the timing of purchases by certain large customers, as well as price compression for the Company's bulk and house-branded wholesale cannabis products.
• Gross profit before fair value adjustments was $9.4 million or approximately 22% of revenue, compared to $13.5 million or approximately 29% of revenue in the year-ago period. The decrease in gross margin was primarily driven by customer mix in the Company's inhalation business and lower cannabis wholesale pricing for legacy house brands and bulk wholesale.
• Operating expenses less non-cash adjustments for stock compensation, depreciation and amortization, and impairment charges were $10.4 million compared to $7.9 million in the year-ago period. As a percentage of revenue, operating expenses less non-cash adjustments totaled approximately 24% in the first quarter of 2022 compared to approximately 17%, with the increase driven by change in headcount attributed to headcount additions to support expanded retail locations as well as building out our corporate team and costs associated with becoming an SEC registrant.
• Cash and cash equivalents at March 31, 2022, was $9.2 million compared to $7 million in December 31, 2021. Working capital was $38.2 million compared to $41.1 million at December 31, 2021.
• Total debt as of March 31, 2022 was $88 million compared to $86.6 million at December 31, 2021. 

Q1 2022 Operational Highlights

Recent Operational Highlights