XS Financial Inc. XSF XSHLF, a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the U.S. reported robust financial performance for Q3 ending September 30th, 2023.
All figures are in U.S. dollars unless otherwise noted.
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Q3/23 Financial Highlights
- The company experienced a significant 41% YoY increase in Q3 revenue, reaching $2.9 million compared to $2.1 million in Q3/22.
- Gross lease receivables saw an impressive 56% YoY increase to $113.1 million in Q3/23, up from $99.1 million in Q3/22.
- Net distributable earnings showed an 11% YoY improvement, reaching $209,000 in Q3/23 compared to $189,000 in Q3/22.
- Net loss for the quarter was $2,987,733 compared to a net loss of $2,417,709 for the third quarter of 2022.
Moreover, operating expenses for the quarter decreased by 41% to $1,139,266 from $1,944,168 for the same period the prior year.
Other expenses for the quarter increased to $4,787,683 from $2,553,602 for the same period the prior year, primarily due to non-cash losses related to the change in fair value of derivative liabilities and a non-cash debt modification loss.
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Operational Milestones
Additionally, the quarter witnessed the closing of 16 new lease transactions with key players in the cannabis industry, contributing to a total transaction value of approximately $9.6 million.
Post-Quarter-End Portfolio and Corporate Highlights: As of November 22, 2023, XS Financial's key metrics demonstrated consistent growth and stability.
David Kivitz, CEO of XS Financial, stated: "During the third quarter, we generated record net distributable earnings of $209,594, which is a proxy for cash earnings. Looking ahead to 2024, we are focused on expanding our customer base, increasing efficiencies in operations, and optimizing our balance sheet, including refinancing our maturing debt.”
Kivitz emphasized the company's strong liquidity position, with $21.4 million available for drawdown on its $54 million commercial line of credit, “which provides sufficient liquidity for our business to continue exploring growth opportunities.”
Price Action
XSHLF's shares were trading 34.29% higher at $0.047 per share at the time of writing on Tuesday afternoon.
Read Next: How to Invest in Cannabis Stocks
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