North American cannabis distributor Humble & Fume Inc. (CSE: HMBL) (OTC Pink: HUMBF) reported total revenue of C$68.5 million for the fiscal year ended June 30, a year-over-year increase of 3.6%.
In addition, the company recorded a substantial decrease – 46% – in operating expenses, excluding the California distribution business. Including California, operating expenses increased 17.7%, as Humble & Fume focused heavily on expanding in that market.
“Our commitment to strengthening the core of our business remains resolute,” CEO Jakob Ripshtein said in a statement. “Anchored by our strategic priorities to stabilize operations, optimize leadership, and reduce costs, our ongoing efforts have yielded positive momentum.”
Strategic cost reductions included implementing a targeted reduction in SKUs across the company, resulting in 28% less product offerings in Canada and 15% less in the U.S.
Net loss for the fiscal year increased to C$25 million, compared with a loss of C$16.1 million for fiscal year 2022.
The latest financial report from Humble & Fume indicated that the company continues to operate as a going concern. However, management noted in its discussion that it believes it has sufficient cash on hand to service its liabilities and fund operating costs for the immediate future; however, there is uncertainty as to how long these funds will last.
As of June 30, the company reported cash and cash equivalents of $2.8 million.
During the fourth quarter, overall revenue fell 4% to C$14.5 million, compared to the same period a year ago. However, the recorded net loss for the period improved to C$6.5 million, compared to a net loss of C$7.2 million in the fourth quarter of fiscal year 2022.