RIV Capital Q4 FY23 Revenue Declines 10.5% Hit By Illicit Market And Statewide Decline In Medical Cannabis Sales

RIV Capital Inc. CNPOF RIV released its financial results for the fiscal year ended March 31, 2023, revealing net revenue of $6.8 million. The company did not report revenue for any reporting periods ended on or prior to March 31, 2022.

Fiscal Year 2023 Financial Highlights

• Gross profit of $2.4 million.

• Net loss of $179.3 million, compared to a loss of $42.2 million in FY 2022.

• Total comprehensive loss of $187.3 million compared to a loss of $39.9 million in FY 2022.

Q4 Fiscal Year 2023 Financial Highlights

• Net revenue of $1.7 million, compared to $1.9 million in Q3 FY 2023. Retail revenue of $1.6 million was generated from Etain, LLC's dispensaries in Manhattan, Kingston, Syracuse, and Yonkers, and wholesale revenue of $200,000 was generated from sales of Etain-branded products to other registered organizations in New York. New York's medical market continues to be challenged by the proliferation of the illicit market. Based on state-level data, medical cannabis revenue appears to be declining across New York and Etain's medical business is experiencing similar pressure.

• Gross profit of $200,000, compared to a gross profit of $800,000 in Q3 FY 2023.

• Other loss of $19.4 million, compared with $6.3 million Q3 FY 2023 and $12.2 million for Q4 FY 2022. Included in this is a $16.0 million charge related to the settlement agreement announced on February 23, 2023.

• Net loss of $23.6 million, and a basic and diluted loss per share of $0.15, compared with a net loss of $9.9 million, and a basic and diluted loss per share of $0.06 for Q3 FY 2023, and a net loss of $13.7 million, and a basic and diluted loss per share of $0.10, for Q4 FY 2022.

• Total comprehensive loss of $24.7 million for Q4 2023, compared with a total comprehensive loss of $12.7 million for Q3 FY 2023 and $9.8 million for Q4 FY 2022.

"Our fiscal year end marks nearly one year since we acquired ownership and control of New-York based Etain and officially entered the U.S. cannabis market," stated Mike Totzke, COO and interim CEO of RIV Capital. "While the opening of the adult-use market in New York has been slower and less successful than we initially expected, we remain bullish on this market's long-term prospects, especially in light of the recently unveiled updated draft regulations that we believe are a much-needed move in the right direction."

Photo: Benzinga edit with photo by Kindel Media on Pexels

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