This Pot Stock Says Goodbye To New York And New Mexico Markets As Its Net Loss Grows In Second Quarter

Cannabis company Goodness Growth Holdings, Inc. GDNS GDNSF reported Monday financial results for its second quarter ended June 30, 2023 with revenue $19.2 million with discontinued operations excluded, compared to $17.4 million in the same quarter of 2022.

“We continued to make progress executing our balance sheet and operational improvement plan during the second quarter, with continued revenue growth in our core markets, particularly Minnesota and Maryland, and improvements in key performance indicators,” interim CEO Josh Rosen stated. “With respect to our focus and de-risking our balance sheet, we completed the divestiture of our former New Mexico operations for an immaterial consideration during the second quarter, and are working on definitive documents after executing an LOI for the divestiture of our New York operations. When coupled with our recent announcement related to supporting two additional retail locations in Maryland, we believe we are on the cusp of meaningfully improved cash flow performance.”

Q2 Financial Summary

• GAAP gross profit decline 10% year-over-year to $9.3 million from $10.4 million.

• Gross profit margin was of 46.2%, versus 49.2% in the same period of last year.

• EBITDA was $2.8 million, which compares to $1.1 million in the second quarter of 2022.

• Net loss amounted to $7.33 million or $0.06 per share, compared to net loss of $6.18 million or $0.05 per share in the corresponding quarter of the prior year.

• As of June 30, the Goodnes Growth reported total assets of $126.4 million with cash reserves of $11.3 million. It also disclsoed total current liabilities of $157 million.

Price Action

Goodness Growth shares closed Monday market session 1.93% higher at $0.1315 per share.

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