Lotus Ventures Inc. announced financial results for its first quarter ended November 30, 2019. The Company recorded net income of $839,554, compared to a loss of $839,264 during the same period last year. This quarter was about ramping up to full production and Q2 will be about executing on sales and shipment. Lotus will be exploring its higher THC% strains held in its seed catalogue, with the view of adding to its Kalifornia strain that seems to be in high demand at 24%+ THC.
Lotus has been extremely busy over the past year, and “now that the Company has been in production for more than a quarter, we are pleased to share that we are on the right track to profitability,” said Dale McClanaghan, CEO.
Below is a reflection of the milestones the Company reached in calendar 2019:
- Completion of its $13M facility buildout
- Received Cultivation, Medical sales, Plant/Seeds sales licenses
- Imported 3500 seeds and 229 varieties of strains into its vault
- Confirmed its operation is compliant by Health Canada
- Received successful lab tests reporting 19% – 24% THC
- Completion of a new harvest every 12 days since October 1, 2019 with yields exceeding target by 10 – 25%.
As of November 30, 2019, the following milestones were recorded:
- Net Income: $839,554
- Production in Inventory: $1.29MM (302kg of dried flower)
- Cost to Produce: $1.04/gram
- Earnings Per Share: (0.01)
- Decreased SG&A – Consulting, professional fees and share based compensation
Lotus has outlined the following as milestones to reach in the year 2020:
- Obtain a Processing license to permit retail sales and distribution
- Move forward with Phase 1B expansion up to an additional 30,000 square feet
The Company believes it’s on the right track moving forward and the subsequent quarterly financial results will provide more financial and production guidance for investors. This quarter has proven the Company can produce high-grade cannabis at low production costs, and we look forward to updating shareholders in the future.
For all official documents, including the Financial Statements and Management Discussion and Analysis for the three months ended November 30, 2019, please visit SEDAR.com