Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) posted its yearly audit results that show the company to be in healthy standing as it looks to expand its reach in the nascent market. The company filed its audited annual financial statements and management discussion & analysis for the financial year ending March 31, 2022.
The psychedelics maker audit results posted over $2.3 million in revenue and gross profit of over $600,000 — resulting in a gross margin percentage of 26.6% during a fiscal year in which they also oversaw four acquisitions. Not included was the recent acquisition of two retail stores in the Netherlands. The company also has working capital of around $26.1 million in cash. Property and equipment were valued at $2.9 million with total asset values at $32.9 million.
The company bore net losses of $14.7 million and $0.04 per share, which it said was significantly influenced by “non-cash charges relating to the impairment of intangible assets and goodwill in the amount of $5.9 million and stock-based compensation of $3.2 million.”
“As you know, I love marketing and brand building; we will push even harder in the near future with impactful marketing strategies with the continued goal of Red Light Holland being the leader in the Rec and Tech psychedelic sector,” CEO Todd Shapiro said. “We continue to identify and analyze near-term acquisition transactions while remaining cautious with our spending habits.”
“Our financial position and liquidity remain strong, and the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future,” CFO David Ascott said. “The working capital as of March 31, 2022, is $25 million which includes $26.1 million of cash and cash equivalents. During the year, we recorded a non-cash impairment loss against the intangible assets and goodwill in the amount of $5.9 million. Through our acquisitions, we added tangible capital assets including a mushroom production facility in New Brunswick valued at $2.5 million.”