Canadian extraction company Ayurcann Holdings Corp. (CSE: AYUR) (OTCQB: AYURF) reported solid revenue growth in its Dec. 31, 2022, earnings report, pointing to team and product expansions, as well as new partnerships.
Gross revenue rose to C$4.4 million for the quarter, up 37% from last year’s C$3.2 million in the same period. The company posted a 44% gross margin, calculated based on C$3.09 worth of net revenue.
The company reported a net loss of C$162,985, down from C$207,249 during the same quarter last year, according to regulatory filings.
“As we continue to expand to more markets across the country with our offerings, we are thrilled to report consistent growth in our revenue and market share despite the price compression that continues to impact the cannabis industry,” CEO Igal Sudman said. “Ayurcann is proud to have generated an increase in revenue from its business-to-consumer strategy. The increase in revenue, combined with the growth of our in-house brands, continues to have a positive impact on the future development of Ayurcann.”
Ayurcann said it now has around 6,500 products listed for sale throughout the vape, concentrate, oil, and flower sectors, with “over 40 new SKUs being launched over the next three to six months” in Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Saskatchewan.
The company noted its top-selling brands are “consistent performers” in the respective provinces they’re listed in. That cohort includes of Fuego, Xplor, and Hustle & Shake, which it acquired in September 2022.
Still, the company said that it would need to find more profit or funding to feel better about the future, citing a going concern in its regulatory filings.
It wrote in its Feb. 27 filings, “The company incurred a net loss and comprehensive loss of $1,098,081 during the six month period ending Dec. 31, 2022, and as of Dec. 31, 2022, the company’s accumulated deficit was $6,202,244.”
A large portion of the accumulated deficit is due to “one-time transaction costs as a result of the reverse-takeover transaction.”
The company had working capital of $3.13 million as of Dec. 31, 2022.
Ayurcann does everything from extraction and refinement, to packaging and distribution for Canadian cannabis brands.