Increased Production & Retail Sales For Magic Truffles: Red Light Holland Balances 2023 Financial Results

Ontario-based all-mushrooms producer Red Light Holland Corp. TRUFF filed its audited annual financial statements, plus management takes and analysis, for the financial years ended March 31, 2023 and 2022.

2023's Numbers: 

• Cash and cash equivalents totaled $14 (CA$18.5) million as of March 31, 2023 compared to the $19.8 million held in the same date in 2022, maintaining a approximate $5 million yearly cash reduction for the past two years. 

• $3 million in revenue, of which cost of sales totaled $1.7 million and gross profit $1.3 million; vs. 2022’s $1.8 million revenue with a $1.3 million cost of sales and gross profit of $469.248. 

• Operating expenses were cut down on a YoY basis, totaling $5.25 million in March 2023 as compared to $7.4 million in March 2022, mostly due to a $2 million reduction in share based payments.

• R&D expenses were half-sized to mere $232.182 in March 2023, coming from the $572.191 spent as of March 2022. 

• Yearly net loss of $4.4 million as compared to the $11.1 million in the same period in 2022.

• Total assets of $22.9 million, with property and equipment valued in $3.6 million

‘Significant Growth’ In Canada & The Netherlands

Red Light’s CEO and director Todd Shapiro says FY2023 shows “significant growth” particularly in the Netherlands and Canada but in other countries as well through the company’s operations including production, distribution and points of sale for both magic truffles and “exotic” mushrooms all while managing to remain “cautious” with spending.

CFO David Ascott reaffirmed that the company’s financial position and liquidity “remains strong,” with current capital being sufficient to fund its ongoing business development and near-future growth and expansion plans. 

Particularly, Ascott referred to FY2023’s adding of tangible capital assets in the amount of $1.4 million consisting of 100 acres of farmland in Ontario. He also explained that Red Light has been putting its excess cash to good use through government-issued GICs, working with advantageous current market interest rates to increase its related ROI.

Shapiro added that the company continues to be aggressive around its core focus on legal, naturally-occurring psilocybin as well as its “everything mushroom” approach toward growing its brands and its full-vertically integrated business, which is aimed at growing revenues in legal and emerging markets. 

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