The West Coast operator reported its financial and operational results for the third quarter ending Sept. 30.
Revenue totaled $5.5 million, down 36% from $8.7 million in the same quarter last year. Halo said that revenue was affected by lower pricing in Oregon and California.
Net loss for the quarter totaled $5.6 million, an improvement of 44% versus $10 million in the same quarter last year. Earnings were for a loss of 23 cents per share versus a loss of $806 a year ago.
“Despite downward pricing pressure, oversupply, and other challenging factors, Halo’s financial metrics have improved,” CEO Katie Field said. “While revenue is down from Q3 2021, in California sales grew and Oregon is down due to a shift away from unattractive low-margin business segments such as consignment sales.”
Halo reported a gross profit of $1.7 million with a margin of 30.7%, versus 2021’s third quarter gross profit of $1.6 million with a margin of 18.8%.
The company said that it raised $2.06 million in debt financing and repaid $1.8 million from convertible debentures. Cash inflow was $142,235 in the quarter, versus $2.03 million in the same period last year.
Halo had $1.6 million worth of unrestricted cash available by the end of the quarter.
“I look forward to continuing our hard work to improve Halo’s performance,” Field added. “We have reduced our burn rate and still have further room to trim overheads. Oregon was down in Q3, but September was the best month in the time period, demonstrating an encouraging trajectory.”
Adjusted EBITDA was a loss of $1.24 million, versus a loss of $4.5 million in the prior year’s third quarter.
Field added, “In Oregon, we remain focused on maintaining price and increasing distribution in key product categories such as cartridges and indoor flower while using our inventory position to rekindle relationships with old customers. Furthermore, the sun-grown 2022 harvest is shaping up nicely and we expect prices to rebound slightly meaning sales should continue to pick up in Oregon through year end.”