IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) announced its financial results for the fourth quarter and full year ended December 31, 2022. Revenues for IM Cannabis in the fourth quarter increased 46% to $14.5 million versus $9.9 million in the same time period in 2021. The company said that the increase in revenues was primarily attributed to the increase in the quantity of medical cannabis products sold.
In addition, the increase was due to a higher average selling price per gram that the company realized from its portfolio of premium branded cannabis products in Israel. Losses in the quarter increased to $10.7 million versus last year’s loss of $8.7 million.
For the full year 2022 revenue increased 60% to $54.3 million versus $34.1 million in 2021. The company reported a loss in 2022 of $30.8 million versus 2021’s loss of $23 million.
“The fourth quarter marked another pivotal moment on our trajectory to growth and profitability,” said Oren Shuster, Chief Executive Officer of IMC. “By commencing our exit from Canada, and the restructuring initiatives announced a few weeks back, we will be able to better focus our resources on growth opportunities in Israel, Germany and elsewhere in Europe. We are determined to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives. We will continue building on the increasing demand and positive momentum in Israel and Germany, supported by strategic alliances with Canadian suppliers and a highly skilled sourcing team, to cement our leadership position in the markets we operate in.”
IM Cannabis reported that it ended the year with cash and cash equivalents of $2.4 million, compared with $13.9 million in December 31, 2021. Total operating expenses in 2022 were $40 million, compared to $29.4 million in 2021. Total operating expenses in the fourth quarter were $13.3 million, compared to $9.7 million in the fourth quarter of 2021.
The company said its Trichome business entered bankruptcy courts looking for a buyer, but that didn’t seem to happen. It is just winding down the business and liquidating the remaining assets.