Fiore Cannabis Reports First Quarterly Net Profit, Focuses On U.S. Possible Federal Legalization

A multi-state cannabis company Fiore Cannabis Ltd. FIOR FIORF released its third-quarter 2021 financial results Monday with revenues of $1.11 million, up by 101% from $550,000 in the same quarter of 2020. Increased sales from the Apex Facility and solid retail performance at the California dispensary were the primary drivers.

Q3 Financial Highlights

• Gross profit was $297,000, compared with a gross profit of $158,000 in the third quarter of 2020
• General and administrative expenses were $1.19 million, which compares to $537,000 in the same period a year ago;
• Net profit amounted to $14,000, or nil per share, versus a net loss of $962,000, or $0.01 per share, in the corresponding quarter of 2020. Fiore Cannabis’ first recorded net profit in its history was primarily due to the gain on the sale of subsidiary companies.
• The company's deficit was $114,724 on September 30, 2021, essentially unchanged compared with $114,618 on June 30, 2021. Cash was $237,000 on September 30, 2021, slightly lower than the $406,000 on June 30, 2021.

"The third quarter of this year has been a pivotal period for Fiore as we achieved a number of key milestones including recording our first quarterly net profit," Erik Anderson, president and CEO of Fiore Cannabis stated. "We continued to build upon our strong first half of the year and focused on driving performance in our revenue-generating U.S. operations. During the quarter, we achieved strong sales activity at our Apex Cultivation and Production Facility in Las Vegas, Nevada and at our cannabis dispensary in Desert Hot Springs, California. Quarterly year-over-year revenues and gross profit were basically doubled at the same time that we kept our G&A costs for year to date in check."

Anderson added that Fiore Cannabis’ plans for the rest of the year and 2022 are focused on expanding its operational presence in key U.S. markets.

“Nevada and California are growth markets for cannabis products and are expected to see sales expand in the coming months as the tourist trade in both locations improves due to COVID-19 restrictions being reduced,” Anderson noted. “Additionally, we see positive signs for U.S. federal legalization of cannabis as the Republicans have joined the Democrats in proposing and drafting legislative options.”

Price Action

Fiore Cannabis’ shares traded 1.42% higher at $0.06 per share at the time of writing Monday morning.

Photo: Courtesy of Elsa Olofsson on Unsplash