Icanic Brands (CSE: ICAN) (OTCQB: ICNAF) posted mixed results as the company touted record revenues for the quarter while racking up $15 million in losses.
The California-based cannabis company released its financial results for the quarter ended June 30.
Total revenue for the second quarter was $8.12 million, a 26.5% rise from the same quarter in the previous year. Net loss for the quarter totaled $15 million, according to SEDAR filings.
“The results are in-line with our expectations as we experienced a significant increase in revenue due to the acquisition of LEEF, but also incurred several one-time transaction-related costs,” said newly minted CEO Micah Anderson, who was tapped to head the company after Brandon Kou resigned yesterday.
The company restructured its existing debts in June from $14.5 million to $10.9 million after closing the LEEF acquisition, saving $110,000 in interest annually.
Gross profit was $2.68 million for the second quarter, a 13.8% gain versus the same period in 2021. The company said that this rise was a direct result of the company’s supply chain management, increased manufacturing efficiencies and greater diversification into CPG-branded products.
The company posted an adjusted EBITDA loss of $31.8 million for the second quarter.
“Despite a challenging macro environment, we have been able to drive revenue growth and management costs that are propelling us towards profitability,” Anderson said. “We are seeing month-over-month evidence of the substantial growth prospects of our business.”