Cannabis Co. iAnthus Q3 Revenue Drops 6.1% YoY, Needs Capital 'To Continue As A Going Concern'

iAnthus Capital Holdings, Inc. IAN ITHUF reported its financial results Tuesday for the third quarter ended Sep. 30, disclosing revenue of $40.3 million, down 6.1% from $42.9 million in the same quarter in the prior year. The New York- and Toronto-based cannabis company reported a gross profit of $18.1 million, up from $13.35 million in the same period of 2023.

The increase in gross profits is attributed to lower material costs and a more favorable sales mix from increased volume of higher-margin products sold in both Maryland and New Jersey. Additionally, iAnthus disclosed in the filing that gross profits increased due to significantly lower costs in Massachusetts thanks to improved operating efficiencies at its Fall River facility.

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Q3 Financial Highlights

• Gross margin of 44.9%, compared to gross margin of 40.6% in the corresponding period of 2023.
• Net loss amounted to $11.6 million, or a net loss of less than $0.01 per share, compared to a net loss of $19.2 million, or a net loss of $0.01 per share, in the same quarter in the prior year.
• Adjusted EBITDA was $5.3 million, a sequential decrease from an Adjusted EBITDA of $8.9 million in Q2 2024, and an increase from an Adjusted EBITDA of $800,000 from the same quarter in the prior year
• For the three months ended Sept. 30, 2024, the total operating expenses were $19.3 million as compared to $21.9 million for the three months ended September 30, 2023, which represents a decrease of 11.6%.

Going Concern

iAnthus also stated in the filing that "our ability to continue as a going concern is dependent upon our ability to raise additional capital, our ability to achieve sustainable revenues and profitable operations, and our ability to obtain the necessary capital to meet our obligations and repay our liabilities when they become due. While we believe that we have funding necessary for us to continue as a going concern, we may need to raise additional capital and there can be no assurance that such capital will be available to us on favorable terms, if at all. As such, these material circumstances cast substantial doubt on our ability to continue as a going concern for a period of no less than 12 months from the date of this report, and our unaudited interim condensed consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern."

Price Action

iAnthus shares closed Tuesday's market session 6.06% higher at $0.0070 per share.

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