THC BioMed Intl Ltd. reported its financial results for the three months ended October 31, 2021.
Q1 HIGHLIGHTS
- Produced a gross margin profit after fair value adjustments of $711,761 and net income of $25,006
- Sales revenue increased 83% period to period
- Sales of edibles in Q1 made up 21.3% of total sales
- Facility buildout completed
- Received a Notice of Allowance from the Canadian Patent and Trademark Office regarding its patent application for the invention of a Contrast Illuminated Tamper Resistant Plant Shipping Container, or the Clone Shipper unit. The Notice of Application is not a grant of patent rights at this time but a notice from the Examiner that the Application is being allowed.
HIGHLIGHTS SUBSEQUENT TO OCTOBER 31, 2021
- On November 1, 2021, the Company entered into a lease for an additional unit at the facility on Acland Road in Kelowna, British Columbia. The lease is for a five year term expiring October 31, 2026. The monthly lease payment is $2,500 plus costs of $726 excluding the Goods and Services Tax. This unit will be used for administration
MANAGEMENT COMMENT
“We are pleased to report net income for the quarter. This reflects the hard work to streamline production, especially regarding our edible products,” said THC BioMed President and CEO, John Miller. “Going forward, we intend on concentrating on the edibles market and specifically our THC Kiss Beverage Shot, THC Kiss Gummies and THC Kiss Biscuits which will continue to improve our gross margin and subsequent bottom line.”
|
SUMMARY OF QUARTERLY RESULTS |
|||||||
|
Quarter Ended |
Revenue |
Net |
Income (Loss) |
||||
|
Q1/2022 |
October 31, 2021 |
$ |
1,136,796 |
$ |
25,006 |
$ |
– |
|
Q4/2021 |
July 31, 2021 |
$ |
1,020,804 |
$ |
(1,426,064) |
$ |
(0.01) |
|
Q3/2021 |
April 30, 2021 |
$ |
1,109,503 |
$ |
(1,319,503) |
$ |
(0.01) |
|
Q2/2021 |
January 31, 2021 |
$ |
1,021,989 |
$ |
(2,921,510) |
$ |
(0.02) |
|
Q1/2021 |
October 31, 2020 |
$ |
622,025 |
$ |
(692,177) |
$ |
– |
|
Q4/2020 |
July 31, 2020 |
$ |
990,940 |
$ |
(642,989) |
$ |
(0.01) |
|
Q3/2020 |
April 30, 2020 |
$ |
896,104 |
$ |
(295,717) |
$ |
– |
|
Q2/2020 |
January 31, 2020 |
$ |
1,246,625 |
$ |
88,191 |
$ |
– |
|
STATEMENT OF NET AND COMPREHENSIVE LOSS SUMMARY |
||||
|
For the three months ended |
||||
|
October 31 |
October 31 |
|||
|
Revenue |
$ |
1,136,796 |
$ |
622,025 |
|
Production costs |
(1,069,111) |
(729,379) |
||
|
Gross profit before fair value adjustments |
67,685 |
(107,354) |
||
|
Net change in fair value of biological assets |
644,076 |
20,353 |
||
|
Gross margin |
711,761 |
(87,001) |
||
|
Total expenses |
686,755 |
605,176 |
||
|
Net and comprehensive income (loss) for the period |
$ |
25,006 |
$ |
(692,177) |
|
STATEMENT OF FINANCIAL POSITION SUMMARY |
||||
|
October 31 |
July 31 |
|||
|
As at |
2021 |
2021 |
||
|
Current assets |
$ |
5,266,701 |
$ |
4,271,435 |
|
Total assets |
$ |
18,250,253 |
$ |
17,396,441 |
|
Current liabilities |
$ |
5,035,152 |
$ |
5,968,492 |
|
Total liabilities |
$ |
8,308,698 |
$ |
7,613,032 |
|
Working capital |
$ |
231,549 |
$ |
(1,697,057) |
|
Accumulated deficit |
$ |
30,482,330 |
$ |
30,551,021 |
|
CASH FLOW STATEMENT SUMMARY |
||||
|
For the three months ended |
||||
|
October 31 |
October 31 |
|||
|
Net and comprehensive income (loss) for the period |
$ |
25,006 |
$ |
(692,177) |
|
Cash, end of the period |
$ |
377,096 |
$ |
232,091 |
|
NON-IFRS EARNINGS MEASURE |
||||
|
For the three months ended |
||||
|
October 31 |
October 31 |
|||
|
Net and comprehensiveincome ( loss) for the period |
$ |
25,006 |
$ |
(692,177) |
|
Add back |
||||
|
Interest |
103,585 |
51,504 |
||
|
Depreciation and amortization |
219,852 |
241,882 |
||
|
EBITDA from continuing operations |
348,443 |
(398,791) |
||
|
Share-based compensation |
94,204 |
34,620 |
||
|
Net changes in fair value of biological assets |
(711,761) |
87,001 |
||
|
Adjusted EBITDA |
$ |
(269,114) |
$ |
(277,170) |
The Company defines Adjusted EBITDA as net income (loss) excluding fair value changes on growth of biological assets, realized fair value changes on inventory sold or impaired, amortization of property plant and equipment & intangible assets, share based payments, finance expense, loss on disposal of property plant and equipment, unrealized gains or losses on investments and income taxes. This non-IFRS measure is defined in the Company’s MD&A for the three months ended October 31, 2021 and 2020.
All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. This press release is intended to be read in conjunction with the Company’s Condensed Interim Consolidated Financial Statements and Management’s Discussion & Analysis for the three months ended October 31, 2021 and 2020, which has been filed on SEDAR (www.sedar.com).
ABOUT THC Biomed
THC BioMed is one of Canada’s oldest active licensed cannabis companies. It was first licensed to deal with cannabis in 2013 under a Health Canada Section 56 exemption under the Controlled Drugs and Substances Act and has been a Licensed Producer under the current regime since 2016. It is a small batch producer and aims to be a leader in the beverage and edible space. THC BioMed is a Licensed Producer of medical and recreational cannabis under the Cannabis Act. It is licensed to cultivate and sell dried, extract, edible, and topical cannabis. The Company is on the leading edge of scientific research and the development of products and services related to the cannabis industry. THC BioMed is well-positioned to be in the forefront of this rapidly growing industry. Please visit our website for a more detailed description of our business and services available. www.thcbiomed.com
