Goodness Growth Holdings Announces Third Quarter 2022 Results

Goodness Growth Holdings, Inc. GDNSGDNSF, a physician-led, science-focused cannabis company and IP incubator reported financial its results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Summary

• Total revenue in the third quarter was $18.9 million, an increase of 41.0 percent as compared to Q3 2021. 
• Retail revenue excluding Arizona increased 60.1 percent to $16.4 million in Q3 2022. Wholesale revenue excluding Arizona increased by 56.1 percent to $2.5 million.
• Gross profit $9.5 million, or 50.6 percent of revenue, as compared to gross profit of $5.1 million, or 38.3 percent of revenue in Q3 last year.
• Total operating expenses in the third quarter $9.7 million. 
• Operating loss in the third quarter was $0.2 million, a decrease of $3.9 million compared to an operating loss of $4.1 million in Q3 last year. 
• Total expenses were $7.6 million during Q3 2022, compared to $2.2 million in Q3 2021.
• Net loss in Q3 2022 was $8.4 million, as compared to a loss of $6.9 million in Q3 2021.

EBITDA: Loss of $1.2 million during Q3 2022, compared to a loss of $3.1 million in Q3 2021. Adjusted EBITDA was $1.9 million in Q3 2022, as compared to a loss of $1.9 million in Q3 2021, according to the report.

"Our third quarter results reflect continued revenue growth across each of our operating markets in Maryland, Minnesota, New Mexico, and New York, as well as consistency of our gross margin performance as compared to the prior quarter," said Kyle Kingsley, M.D., chairman and CEO.

Balance Sheet and Liquidity: As of September 30, 2022, the Company had 128,126,330 equity shares issued and outstanding on an as-converted basis, and 158,380,087 shares outstanding on an as-converted, fully diluted basis. 

Total current assets were $53.9 million (as of September 30, 2022). The Company had cash on hand of $21.8 million, which included net proceeds received from an increase on its delayed draw loan of $8.5 million during the third quarter. Total current liabilities were $26.3 million.

In August, the Company announced the launch of its Boundary Waters line of premium cannabis pre-rolls focused on sustainability and environmental preservation.

In October the company received a notice of purported termination of the agreement with Verano Holdings Corp. pursuant to which Verano had agreed to purchase all of the Company's stock, subject to the satisfaction of certain conditions.

"While we are experiencing positive momentum in our business, we were extremely disappointed by Verano's decision to wrongfully repudiate our transaction, which we previously anticipated would close during the fourth quarter,” Kingsley said. “We are unable to comment more on ongoing litigation beyond what has already been disclosed, but we reiterate that we believe this termination was unlawful and we will be seeking significant damages through the judicial process in British Columbia.”
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Photo: Courtesy Of Alexander Schimmeck On Unsplash