IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) reported financial results for its second quarter ended June 30, 2022. IMCC said that revenues rose 114% in the second quarter and were $23.8 million versus the same quarter last year. Total dried flower sold was 3,210 kilograms at an average selling price of $5.72 per gram, compared to 1,842 kilograms for the same period in 2021 at an average selling price of $3.92 per gram. The increase in revenues was primarily attributed to the increase in the quantity of medical and recreational cannabis products sold, as well as to the higher average selling price per gram the company realized from its portfolio of premium branded cannabis products in Israel and Canada.
IMCC delivered a net loss of $18.98 million in the second compared to a net loss of $5.01 million for the same quarter in 2021. The company said that included in the net loss was a non-cash charge of $5.4 million, related to restructuring activities in Canada and Israel, along with associated write-downs in tangible and intangible assets, such as other non-cash impairments of $1.5 million in financial expenses and $3.8 million in general and administrative costs.
The company though burned through its cash in the quarter with cash and cash equivalents totaling just $5.86 million as of June 30, 2022, versus $34.05 million as of December 31, 2021. General and administrative expenses were $11.1 million in the quarter versus $7.4 million in 2021. The increase in the general and administrative expenses was mainly attributable to the growing corporate activities in Israel and Canada following the company’s acquisitions in 2021.
“We have accelerated along the path to profitability, with increased revenues, operational streamlining, and a focus on cost reduction,” said Oren Shuster, Chief Executive Officer of IMC. “Our primary goal is to continue to increase revenue in each of our core markets to build long-term shareholder value. By focusing on sustainable revenue growth, while rigorously pursuing cost and margin efficiencies, we believe we can achieve profitability in the short term.”
“Our long-term strategy relies on geographic diversification and preparation to target, upon legalization, new adult-use recreational cannabis markets in Germany followed by the rest of Europe. We are preparing to leverage our global cultivation, brand, and commercial expertise to profitably capture substantial market share across Europe. Our strength is in properly positioning our brands in different markets and the introduction of new SKUs to consistently exceed consumer and patient expectations.”