Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) posted $7.3 million in revenue for the third quarter of fiscal year 2023, which ended on April 30, 2023. The results represented a slight slump from the company’s previous quarter revenues of $7.7 million.
The net loss for the third quarter was $3.6 million, versus $2.7 million sequentially. Despite the decrease in revenue and the rise in net loss, the company saw a 46% improvement in adjusted EBITDA compared to the previous period. The adjusted EBITDA loss was $700,000 for the third quarter versus a $1.3 million loss in the previous quarter.
The third quarter financial results included non-cash charges of $900,000 for loss on impairment and $200,000 for stock-based compensation. The net operating loss for the third quarter was $1.6 million, primarily impacted by continued business development expenses related to Illinois and New Jersey, new license applications and new operation startup expenses.
“Our team has focused on cost reductions and development of the new Illinois and New Jersey dispensaries,” CEO Michael Mills said in a statement Wednesday. “We continue to work with state and local licensing authorities to advance current projects and also to apply for licenses in new jurisdictions.”
The company highlighted several key developments during the quarter, including the completion of a new dispensary in Markham, Illinois. The dispensary, which opened on May 27 is located in the largest retail mall in Markham, which the company says sees daily traffic counts of more than 400,000 cars.
Body and Mind also advanced its New Jersey state license application in conjunction with BaM Body and Mind Dispensary NJ, Inc. (formerly CraftedPlants NJ, Inc.). In addition, they commenced sales of Pretzel Bites, Turbo and vaporization cartridge products in Ohio, leveraging its processing operation in the state.
The company decided to divest its Michigan dispensary to focus on the Illinois and New Jersey markets.
As of April 30 Body and Mind had total current assets of $7.2 million, total assets of $32.6 million, total current liabilities of $10.8 million and total liabilities of $31 million. The company had 146,636,974 common shares outstanding.