Revenue for the quarter rose by 25% from $10.9 million to $13.6 million, driven mostly by the increased wholesale distribution of its finished branded products to retail customers in Illinois and Maryland, as well as increased traffic at the company’s retail stores.
The company’s net income was roughly $400,000, up from a loss of $1.6 million in the first quarter. EBITDA was negative $4.7 million, up from $1.3 million during the same period last year. However, the adjusted EBITDA, which excluded non-cash and one-time expenses related to the company’s reverse takeover of Bayswater Uranium, was approximately $500,000.
General and administrative expenses increased to $11.3 million, driven primarily by the costs of hiring 150 new employees, which totaled to $4 million.
“The second quarter was a critical quarter for GTI,” said GTI Founder and Chairman Ben Kovler in a statement. “We became a publicly-traded company on June 13th. The team has been hard at work and that is reflected in the results for our first reporting period as a public company – generating solid revenue growth, raising capital, entering new markets and attracting top talent.”
On June 13, 2017, shortly before the quarter ended, GTI went public through a reverse takeover of Bayswater Uranium Corporation. Most recently, the company closed a bought deal financing worth C$80.3 million, although it occurred after the second quarter closed.
Gross profits for the quarter total to $6.8 million, up from $1.2 million during the same period in the previous year. Loss from operations, however, also increased year-over-year from $1.3 million to $5.2 million.
Currently, GTI has assets that total to $230.1 million, which includes cash and cash equivalents of $112.7 million and long-term liabilities of $10.4 million. The company’s debt amounts to $7.9 million, of which $1.4 million is due within the next 12 months.
During the last quarter, the company expanded its footprint to eight U.S. markets, including eight cultivation and manufacturing facilities and licenses for 59 retail stores.