IM Cannabis (US:IMCC)2022-11-14 14:26Financial Performance - Total revenues for the nine months ended September 30, 2022, were CAD 39,874,000, representing a 65% increase from CAD 24,141,000 in the same period of 2021[8] - Gross profit before fair value adjustments for the nine months ended September 30, 2022, was CAD 8,500,000, compared to CAD 7,516,000 for the same period in 2021, indicating a 13% increase[8] - The net loss for the nine months ended September 30, 2022, was CAD 157,852,000, significantly higher than the net loss of CAD 6,030,000 in the same period of 2021[10] - Total comprehensive loss for the nine months ended September 30, 2022, was CAD 158,828 thousand, compared to CAD 6,092 thousand in the prior year[15] - The company reported a total operating loss of $158,867,000 for the nine months ended September 30, 2022, compared to a loss of $26,667,000 for the same period in 2021, indicating a substantial increase in losses[73] Assets and Liabilities - Total assets as of September 30, 2022, were CAD 129,066,000, a decrease from CAD 287,388,000 as of December 31, 2021[5] - Total liabilities as of September 30, 2022, were CAD 73,094,000, down from CAD 82,443,000 as of December 31, 2021[6] - The company had total equity attributable to equity holders of CAD 54,337,000 as of September 30, 2022, down from CAD 201,236,000 as of December 31, 2021[6] Cash Flow and Financing - Cash and cash equivalents decreased to CAD 3,223,000 as of September 30, 2022, from CAD 13,903,000 as of December 31, 2021[5] - Cash used in operating activities for the nine months ended September 30, 2022, was CAD 10,123 thousand, a decrease from CAD 39,134 thousand in the same period of 2021[15] - The company’s cash flow from financing activities for the nine months ended September 30, 2022, was CAD 2,908 thousand, a significant decrease from CAD 45,938 thousand in the same period of 2021[16] - A private placement raised $4,050 (US$3 million) in total gross proceeds, with the first tranche closing on August 24, 2022[29][30] Operational Changes - IMCC's Focus Medical Herbs Ltd. closed its cultivation facility in July 2022 and now holds an IMCA license to import cannabis products[19] - The company decided to discontinue its operations in Canada and sell its subsidiaries in the segment due to anticipated significant changes in the competitive landscape and misalignment with the company's strategy[75] - The Trichome Group filed for creditor protection under the Companies' Creditors Arrangement Act on November 7, 2022, to restructure its business[40] Inventory and Production - Total inventory as of September 30, 2022, was valued at $16,634,000, with bulk cannabis work in progress at $6,872,000 and packaged dried cannabis at $9,395,000[59] - The average selling price per gram of dried cannabis increased to $3.51 as of September 30, 2022, compared to $3.64 as of December 31, 2021[58] - The average yield per plant was estimated at 40 grams as of September 30, 2022, down from 47 grams as of December 31, 2021[58] - The attrition rate for biological assets was 31% as of September 30, 2022, compared to 27% as of December 31, 2021[58] Impairments and Expenses - The company experienced a goodwill impairment of CAD 107,854 thousand during the nine months ended September 30, 2022, which was not present in the previous year[15] - The company recognized an impairment of $115,112,000 related to discontinued operations, which significantly impacted the net loss from discontinued operations, totaling $142,581,000 for the nine months ended September 30, 2022[79] - The company incurred total operating expenses of $142,922,000 for discontinued operations in the nine months ended September 30, 2022, a significant increase from $13,004,000 in 2021[79] Shareholder Information - Basic loss per share attributable to equity holders for the nine months ended September 30, 2022, was CAD (2.22), compared to CAD (0.10) for the same period in 2021[10] - The total number of issued and outstanding common shares increased to 74,582,821 as of September 30, 2022, from 68,217,894 at the beginning of the year[66]