Hempsana Net Loss Grew 156.36% To $4.23M In 2021, First Year With Revenue

Hempsana Holdings Ltd. announced fourth quarter and annual financial results for the twelve-month period ended December 31, 2021.

Financial Highlights

• Revenues were $114,715 for fiscal 2021, the first year the company had revenues.

• Revenues for Q4 2021 were $84,351, compared to $30,364 in Q3 2021, which represents a 178% quarter over quarter increase.

• Net loss and comprehensive loss were $4.23 million in fiscal 2021 compared to a net loss of $1.65 million in 2020

• Net loss per share was $(0.19) in fiscal 2021, compared to $(0.10) in 2020

• The higher net loss in 2021 was driven by one-time costs related to the RTO Transaction and costs to operate as a public company. Specifically, the $1.9 million in listing expenses, of which $1.7 million were non-cash expenses, professional fees of $322k and IR costs of $313k.

• Net loss and comprehensive loss were $417,039 in Q4 2021, compared to a net loss of $812,646 in Q4 2020

• Net loss per share was $(0.02) in Q4 2021, compared to $(0.05) in Q4 2020

Randy Ko, Hempsana’s CEO stated: “2021 was the inaugural year for Hempsana. After several years of preparation and hard work, we completed the build out of our facility and launched commercial operations. We also completed the RTO and became publicly traded. 2021 was the year we laid the foundation for longer term growth: we built a production and management team, amended our cannabis licence to authorize us to directly sell, established strategic supplier relationships and developed key customer relationships. While the cannabis market faced significant turmoil in 2021, we were able to advance our business plan despite the challenges.”

Options Grant Announcement

The company announces the grant of an aggregate of 757,000 incentive stock options to certain directors and officers of the corporation exercisable at CAD$0.05 until April 22, 2032 pursuant to the corporation’s stock option plan.

Photo: Courtesy of Jeff W on Unsplash

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