Lifeist Wellness Inc., a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, today reported its financial results for the three months ended February 29, 2024 (“Q1 2024”) compared to the same period last year (“Q1 2023”). All financial figures are in Canadian dollars unless otherwise indicated.
First Quarter Highlights
- Net revenue from continued operations of $4.9 million in Q1 2024 compared to $5.9 million in Q1 2023.
- Gross profit before inventory adjustment of $1.4 million in Q1 2024, representing gross margin of 27%, compared to $1.5 million, or 25% gross margin, in Q1 2023.
- Operating costs and professional fees decreased to $3.4 million in Q1 2024 compared to $4.4 million in Q1 2023.
- Adjusted EBITDA loss improved to $2.1 million in Q1 2024 compared to $3.0 million in Q1 2023.
“Our performance in the first quarter of 2024 reflects the challenges of operating in the present regulatory and economic landscape,” said Meni Morim, CEO of Lifeist. “While our efforts to focus on premium, higher margin products and continued operational efficiencies have led to improvements in the bottom line, the quarter reflected a drop in revenue from a year ago. We are taking steps to address structural issues within our operations and will act on opportunities to increase revenue and drive toward profitability. The teams at CannMart, Aussie Vapes, and Mikra are working tirelessly to realize the goal of transforming Lifeist into a sustainable, diversified wellness company.”
Financial Summary
Net revenue was $4.9 million in Q1 2024 compared to $5.9 million in Q1 2023. Gross profit before inventory adjustment was $1.4 million in Q1 2024 versus $1.5 million in the same period last year, with margins of 27% in Q1 2024 compared to 25% in Q1 2023.
Adjusted EBITDA loss improved to $2.1 million in Q1 2024 compared to $3.0 million in Q1 2023 and net loss from continuing operations improved to $2.5 million, or ($0.004) per diluted share, in Q1 2024 compared to a loss of $3.3 million, or ($0.007) per diluted share, in Q1 2023. The improvement in both adjusted EBITDA loss and net loss was due largely to operational efficiencies and the resulting reduction in operating costs of $1.1 million in Q1 2024 versus 2023.
Balance Sheet and Cash Flow
Cash and cash equivalents were $1.6 million at February 29, 2024, compared to $1.5 million at November 30, 2023. Inventories were $3.3 million at February 29, 2024 compared to $4.5 million at November 30, 2023. The working capital position was negative $2.4 million at February 29, 2024. Net cash provided by operations was $0.4 million in Q1 2024 compared to net cash provided by operations of $2.2 million in Q1 2023.
New CFO Appointed
Lifeist also announces the appointment of Mr. Joshua Hone to the position of Chief Financial Officer (CFO) of the Company, effective April 30, 2024. Mr. Hone was promoted from his current position of Controller and is replacing Mr. John Sinclair, who took on the position of interim CFO in September 2023.
Mr. Hone is a Chartered Professional Accountant and brings over 14 years of progressive financial leadership to the Company with extensive experience working with multi-entity organizations across diverse industries. Mr. Hone is thoroughly qualified in financial planning, modeling and analysis, operations, reporting and regulatory compliance, and change management. Mr. Hone will focus his efforts on accelerating growth and forging a path to sustained profitability to create shareholder value.
The Board of Directors would like to thank Mr. Sinclair for his financial leadership and his many contributions as interim CFO of Lifeist. Mr. Sinclair will remain a member of the board of directors and chair of the Audit Committee.
Additional Information
The Company’s complete financial statements and management’s discussion & analysis (“MD&A”) for the three months ended February 29, 2024 are available on Lifeist’s website (www.lifeist.com) and SEDAR+ (www.sedarplus.ca).
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: Mikra, a biosciences and consumer wellness company developing and selling innovative products for cellular health; CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards including for CannMart Labs, a BHO extraction facility producing high margin cannabis 2.0 products; and Australian Vapes, one of Australia’s largest online retailers of vaporizers and accessories.
Information on Lifeist and its businesses can be accessed through the links below:
www.lifeist.com
www.wearemikra.com
www.cannmart.com
www.australianvaporizers.com.au