Nutritional High Overstates Q3 Revenue

On July 3, Nutritional High International Inc. (SPLIF) published a press release boasting Q3 revenues of $2,680,444 CAD, an increase of 408% over Q3 2017. That figure, however, differs from the Q3 financial statements Nutritional High filed with SEDAR. Nutritional High’s formal financial statements show lower 2018 Q3 earnings and the discrepancy remains unaccounted for. Nutritional High did not respond to a request for comment.

Nutritional High is a Toronto-based company that distributes edibles, concentrates, and oils. Nutritional High both develops its own products under its FLÏ flagship brand and acquires other brands for distribution and development. On July 18, Nutritional High announced a Letter of Intent to acquire a 51% interest in Bright Green Lights LLC (d/b/a J:MEDS), which produces cannabis-infused lozenges and mints.

In March, Nutritional High acquired Calyx Brands Inc., a California-based distributor, for $3,433,784 CAD. In Q3, Calyx Brands posted sales $1,674,269 CAD, accounting for the majority of Nutritional High’s Q3 2018 revenue. This number is not misstated in Nutritional High’s July 3 press release.

Nutritional High’s Q3 financial statements, though, do not show top-line revenue of $2,680,444 CAD. It’s unclear how the company arrived at this figure. In addition to the sales by Calyx Brands, Nutritional High reported earnings of $585,156 CAD from various asset holdings. Incorporating these earnings brings Nutritional High revenue total to $2,257,425 CAD, still short of their $2,680,444 figure.

Nutritional High reported 408% year-over-year growth by pointing to their Q3 2017 revenues of $527,227 CAD. This was income from asset holdings—specifically, interest on a loan to Palo Verde LLC and rent from real estate holdings. However, Nutritional High’s gross profits show more modest growth. In Q3 2017, Nutritional High’s revenue was entirely profit. But, in Q3 2018, income from their asset holdings was down and Calyx Brands contributed $1,346,722 CAD in COGS. Nutritional High’s gross profits were only $693,821 CAD.

Nutritional High “has been incurring operating losses and cash flow deficits since its inception,” according to their financial statements. In Q3 2018, they reported a net loss of $2,397,163 CAD—roughly the same as in Q3 2017. Nutritional High raised $8 million CAD in Q3 2018 and has $19,227,881 CAD in assets. With a solid amount of cash under its belt, it’s unclear why these numbers don’t add up and why the company didn’t respond for a request for clarity.

Jeffrey Yozwiak

Jeffrey Yozw​iak is an entrepreneur and educator. He develops products for early-stage startups.


  • Justin

    July 25, 2018 at 10:59 am

    The news release was comparing NH’s performance for the 9-months (as opposed to the 3-months for which the report above was contesting). You didn’t look at the number close enough and that’s probably the reason NH isn’t responding to you in the first place.


    • Debra Borchardt

      July 25, 2018 at 12:47 pm

      The news release clearly states it was reporting earnings “for the three month period ended April 30, 2018” and then states “Revenue for the period was $2,680,444, an increase of 408%.” The release never mentions nine (9) months. If it meant to say 9 months, then it should have been corrected.


      • Justin

        July 25, 2018 at 3:41 pm

        They did, you just didn’t resd through the entire report.


        • Debra Borchardt

          July 26, 2018 at 8:06 am

          For the record, NH’s $2,680,444 number doesn’t match anything in their financial statements. The author even asked a CPA to check the work and she too couldn’t figure out how they arrived at that number. Plus, the company has never asked for any correction and still hasn’t responded. Please email me at and show me your work. Happy to review.


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