Second quarter financials from Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) showed a downtick in its revenue and a slight improvement in its losses. The cannabis MSO released its financial results for the second quarter of fiscal year 2023, ending January 31, 2023.
The company has been focusing on developing new dispensaries in Illinois and New Jersey, with construction for the first Illinois location almost complete and a Jersey state license application submitted.
Body and Mind reported a revenue of $7.7 million, a 4% drop since the same period last year, and a slight decrease sequentially. Gross profit rose from $1.6 million to $2.26 million. The company also reported a net loss of $2.7 million for the quarter, which is a slight improvement from the net loss of $3 million in the previous quarter.
The company’s net operating loss was primarily impacted by increased business development expenses related to the new dispensaries, license applications, and new operation startup expenses. Earnings were for a loss of $0.02 cents.
“Our most recent quarter reflects improvement in wholesale pricing in Nevada and wholesale growth in Ohio,” said CEO Michael Mills. “Construction at our new Illinois dispensary in Markham is more than 90% complete and we are on track to open in the next month as we leverage dispensary opening and operational experience from multiple markets.”
The company’s in the advanced stages of refurbishing commercial space for their first adult-use dispensary in Illinois, which is situated in a retail mall in Markham. It anticipates beginning sales at the location in April 2023.
Body and Mind also closed a merger with CraftedPlants NJ, Inc., which holds a lease on a commercial property in New Jersey with local cannabis-use approval for a retail location. It submitted a New Jersey state license application in conjunction with BaM Body and Mind Dispensary NJ, Inc to start design, architectural, and planning work for the location.
The company widened its product offerings in Arkansas, which has seen a surge in sales so far this year, by introducing branded vape cartridges. The addition would have arrived in good timing if the state had passed its recreational question in last November.
Adjusted EBITDA loss also showed improvement, falling from $1.6 million in the previous quarter to $1.3 million.
The company had $8.1 million in liquidity, and $32.6 million in total assets. It owed $8.5 million in short-term debts and $27.6 million in total debts.