RIV Capital Reports Financial Results for the First Quarter Ended March 31, 2024
Successfully opened first adult-use dispensary in
Ended the quarter with
"The first quarter of 2024 was pivotal with the official launch of our adult-use operations in
The Company is also pleased to note that several positive changes have been made to the existing tax structure for cannabis operators in
The state has accelerated its efforts to combat the ongoing illicit market activities as well. This increased commitment includes authorizing the
Plans have also been announced for an overhaul of the OCM's organizational structure, processes, and systems, and the Company will continue to work closely with the agency and maintain its strong relationship with all
On a federal level, the
The following is a summary of the Company's unaudited financial results for Q1 2024 and the three-month period ended
Unless otherwise indicated, all financial highlights summarized in tables in this press release are presented in thousands of dollars, except share and per share amounts. All references to "$" are to
Summary Operating Results |
||
|
Three months
(unaudited) |
Three months
(unaudited) |
Revenue, net |
|
|
Cost of goods sold |
1,889 |
1,596 |
Gross profit excluding fair value items |
249 |
132 |
Unrealized gain on changes in fair value of biological assets |
353 |
82 |
Realized fair value amounts included in inventory sold |
11 |
(2) |
Gross profit |
613 |
212 |
Selling, general, and administrative expenses |
6,199 |
5,332 |
Operating loss |
(5,586) |
(5,120) |
Other loss |
(1,936) |
(19,437) |
Loss before taxes |
(7,522) |
(24,557) |
Income tax recovery |
(2,530) |
(987) |
Net loss |
|
|
Other comprehensive loss not subsequently reclassified to net loss Net change in fair value of financial assets at FVTOCI, net of tax expense or recovery |
(471) |
(1,160) |
Other comprehensive income subsequently reclassified to net loss Foreign currency translation adjustment |
835 |
32 |
Total comprehensive loss |
|
|
|
|
|
Net loss per share – basic |
|
|
Net loss per share – diluted |
|
|
Summary Cash Flows and Financial Position Data |
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|
Three months
(unaudited) |
Three months
(unaudited) |
Net cash flows from operating activities |
|
|
Net cash flows from investing activities |
(10,691) |
(22,582) |
Net cash flows from financing activities |
(679) |
(4,544) |
Net decrease in cash (1) |
|
|
Effect of foreign exchange rate movements on cash held |
(160) |
(274) |
Cash, beginning of fiscal period |
81,887 |
125,601 |
Cash, end of fiscal period (1) |
|
|
|
|
|
|
As at
|
As at
|
Current assets |
|
|
Non-current assets |
121,468 |
120,831 |
Total assets |
|
|
|
|
|
Current liabilities |
|
|
Non-current liabilities |
155,715 |
157,353 |
Total liabilities |
|
|
|
|
|
Total shareholders' equity |
|
|
(1) During the three months ended |
- Net revenue was
$2.1 million for Q1 2024, compared to$1.7 million for CQ1 2023. Retail revenue of$2.1 million was generated from Etain LLC's co-located adult-use and medical retail dispensary inWhite Plains and its medical retail dispensaries inManhattan ,Kingston , andSyracuse , compared with$1.5 million in CQ1 2023 from medical dispensaries only. Wholesale revenue of$0.1 million was generated from sales of Etain-branded adult-use and medical products to other adult-use wholesale customers and medical dispensaries inNew York , compared to$0.2 million in CQ1 2023. The increase in net revenue was primarily the result of the Company's entry into the adult-use market in the first quarter of 2024. - Cost of goods sold (which excludes unrealized fair value changes included in biological assets and realized fair value changes included in inventory sold) was
$1.9 million for Q1 2024, compared to$1.6 million for CQ1 2023. The increase in cost of goods sold was primarily related to the increase in the Company's revenue base, the impact of the greater scale of operations at the Chestertown Facility, and an increase in the Company's inventory reserve. - The Company reported an unrealized gain on changes in fair value of biological assets of
$0.4 million for Q1 2024, compared to$0.1 million for CQ1 2023. The increase in unrealized gain on changes in fair value of biological assets was primarily attributable to an increase in average plant yields and, correspondingly, lower cultivation costs on a per gram basis, partially offset by a reduction in the estimated selling price for bulk flower. - The Company reported a gross profit of
$0.6 million for Q1 2024, compared to a gross profit of$0.2 million for CQ1 2023. - Selling, general, and administrative ("SG&A") expenses were
$6.2 million for Q1 2024, compared to$5.3 million in CQ1 2023. The increase in SG&A expenses was primarily attributable to increased headcount to scale Etain's operations for growth in theNew York adult-use cannabis market, and an increase in legal and tax advisory fees related to the Company's ongoing M&A strategy. - Other loss was
$1.9 million for Q1 2024, compared to$19.4 million in CQ1 2023. The expenses included in other loss for Q1 2024 are largely non-cash in nature. - The Company reported a net loss of
$5.0 million , and a basic and diluted net loss per share of$0.04 , for Q1 2024, compared to a net loss of$23.6 million , and a basic and diluted net loss per share of$0.15 , for CQ1 2023. - Other comprehensive income was
$0.4 million for Q1 2024, compared to other comprehensive loss of$1.1 million for CQ1 2023. - Total comprehensive loss was
$4.6 million for Q1 2024, compared to$24.7 million for CQ1 2023.
This press release should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis ("MD&A") for the three months ended
This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the Company's ability to execute its go-forward strategy; stock market volatility; changes in the business activities, focus and plans of the Company, Etain and the Company's investees and the timing associated therewith; the timing of any changes to federal laws in the
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although
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