Montreal-based Good Shroom Co. (TSX: MUSH) lost just under C$100,000 in its second quarter of 2023, which ended Jan. 31.
The cannabis, probiotics, and functional mushroom brand posted a C$95,166 net loss for the quarter, despite a gross profit of C$182,242, which the company’s CEO chalked up to both expenses and “liquidity issues” in the broader Canadian cannabis trade.
“Cannabis capital markets are down, banks show little interest in lending, and private lenders have aggressive interest rates,” CEO Eric Ronsse said in a press release. “Financial discipline is of the utmost importance. Especially as we begin to scale this company. This is why we are heavily focused on cash flow, maintaining a tight capital structure, and revenue growth.”
Ronsse also said Good Shroom Co. is at the outset of utilizing economies of scale and increasing sales, noting that revenue has increased the last two quarters sequentially, from just under C$500,000 in Q4 2022, to roughly C$800,000 in Q1 2023, to almost C$900,000 in Q2 this year.
Good Shroom Co. also noted several highlights in recent months that suggest it’s making progress, including:
- The addition of four more marijuana product SKUs to its existing line of 15 cannabis goods, including THC-infused beef jerky.
- One of its cannabis products, “Joints Infuses d’Afghan Gold,” is reportedly the top selling cannabis concentrate in the province of Quebec.
- Good Shroom Co. expects to flesh out its product lines even more by August or September this year, with potential new edibles, infused joints, hash, CBD capsules, and cannabis flower.