In its second-quarter financial results for the period ended June 30, 2024, Vext Science, Inc. VEXT VEXTF reported a year-over-year drop in revenue from $9.2 million in the second quarter of fiscal 2023, to $8.4 million in this year's corresponding period.
As a company with vertical operations in Arizona and Ohio, it is expected to benefit from the recent launch of recreational cannabis sales in the Buckeye State. Vext secured Certificates of Operation for the dual licensing of its cultivation and manufacturing facility as well as its operated dispensaries in Jackson and Columbus and received approval from the Ohio Division of Cannabis Control to begin selling adult-use cannabis in August.
“The launch of adult-use sales in Ohio after quarter-end marks a significant milestone for Vext," said CEO Eric Offenberger. "Over two years of preparation and operational experience in the state have positioned us well for this transition and we’re pleased with the initial results. We view Ohio as one of the most promising adult-use markets in the U.S. and look forward to the opportunities it presents for both the state and Vext.”
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Q2 2024 Financial Highlights
- Gross profit was $1.5 million down from $2.7 million in the prior year's quarter.
- Total operating expenses amounted to $5.3 million up from nearly $2 million in the second quarter of fiscal 2023.
- Net loss after taxes totaled $4.4 million, compared to a net income after taxes of $535,454 in the corresponding period of last year.
- Adjusted EBITDA came in positive at $1.08 million, compared to an adjusted EBITDA gain of $1.9 million in the prior year's period.
What's Next
Vext’s Ohio network includes a Tier 1 cultivation facility, a manufacturing facility, and two operating retail dispensaries.
Upon closing the previously announced acquisitions and completion of additional licensing under state law for the Tier 1 cultivation facility, Vext expects to reach the state dispensary license cap in 2024.
"For the remainder of 2024, we anticipate improved performance through our focus on seamlessly transitioning our Ohio dispensaries to serve both medical and adult-use markets, enhancing efficiency in our Arizona operations, and exploring growth opportunities across our footprint, which we expect will lead to increasing cash flow, and solid long-term returns for our shareholders," Offenberger said.
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