Red Light Holland, With $12M Cash Balance & Revenue Up 33%, Remains 'Confident' In Business Strategy

Canada-based all-mushroom producer Red Light Holland Corp. TRUFF filed its quarterly financial statements and management discussion and analysis for the three and six months ended Sept. 30, 2023.

Numbers show:

• Cash and cash equivalents of $12.0 million (CA$16.4 million) by Sept. 30, 2023, vs. the $13.6 million held by March 31 this year.

• Three and six-month total revenue of $723.726 and $1.6 million, as compared to $542.011 and $1.12 million in the same periods in 2022.

• Three and six-month operating expenses totaled $1.24 million and $3.1 million, as compared to $1.13 million and $2.37 million during the same periods in 2022.

• Three and six-month net loss of $815.648 and $2.2 million, as compared to $960.694 and $2.09 million during the same respective periods in 2022.

See Also: Red Light Holland's Q1 2024 Performance: Revenue Soars 53% And Solid Cash Balance

Managers' Views

"We are proud of this quarter's YoY growth while decreasing our burn as well,” CEO Todd Shapiro stated. “We continue to remain supremely confident in our strategy as an 'everything mushroom company' as our Q2 2024 financial statements demonstrate.” 

Shapiro says the team has been resilient and clever, especially regarding its “patient growth, cautious spending and a focus on revenue generations” strategy for the psychedelics sector. The company’s long-term strategy, he added, is “to help human beings with positive change through health and wellness."

On Red Light Holland’s financial position to date, CFO David Ascott says that it remains “strong,” along with liquidity. 

“The company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future,” said Ascott, adding that management has been putting the excess cash “to good use” through government-issued GICs, utilizing current market interest rates for related ROI increase.

Red Light Holland expects to update its shareholders regarding the final permitting process and build out of the 65,000 sq. ft. farm in Peterborough, Ontario and on its psilocybin microdosing capsules jointly developed with CCrest Laboratories for distribution in New Zealand and Australia.

Photo: Benzinga edit with photo by Geralt on Pixabay.