Heritage Cannabis Holdings Corp. HERTF CANN released its financial results as at and for the three months ended January 31, 2022, revealing net revenue of CA$6.54 million ($5.16 million) an increase of 330.26% YoY.
Q1 2022 Financial Highlights
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Gross revenue of CA$9.6 million , an increase of CA$7.42 million as compared to gross revenue of $1.83 million for the Q1 2021, representing an increase of over 400%. The increase in gross revenue was a result of the company having fully transitioned to branded provincial sales, increased national distribution, and increased SKU penetration.
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Cost of sales was CA$4.66 million, an increase of CA$3.65 million, compared to CA$1 million for the tQ1 2021. The increase in cost of sales was a result of increased sales activity.
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Comprehensive income of CA$6.26 million or $0.01 income per share compared to a comprehensive loss of CA$3.21 million or $0.01 loss per share for the Q1 2021. The decrease in losses during this period was attributable to one primary factor which was non-cash related. In accordance with the accounting policies, the company recorded a gain of CA$8.5 million as a result the change in fair market value between share price used for the premium 5 milestone payment and the current share price at the time of award. This gain was offset by a loss on derivative liabilities primarily by the convertible warrant revaluation and interest expense.
“Our team has done a phenomenal job over the past year in transitioning Heritage to a company with exceptional brands offering innovative, in-demand products – a great accomplishment and testament to how far we have come in just one year. With revenue growth over 400% from the first quarter of last year, and 34% over the fourth quarter of 2021, we are hitting our stride as a branded cannabis company, and we’re just getting started,” stated David Schwede, CEO of Heritage.
“As we move to cash flow positive territory, the company has never been healthier, and our stable balance sheet, continued revenue growth, and proven commitment to a lean cost structure are leading indicators of where we are headed. We have an incredible business with staff that are the soul of our company. During a very turbulent time in the cannabis market, we are so appreciative of our platform partners that trust and believe in our products, and exceedingly thankful to our shareholders for their patience during this transitionary period.”
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