earnings Archives - Green Market Report

Adam JacksonSeptember 15, 2022
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3min130

Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) posted positive results as revenue rose along with patients — showing the growing demand for psychedelics-centered therapy to treat addictions. The Canadian biotechnology company released its financial report card for the second quarter ending July 31.

Awakn posted revenues of C$339,872 via Awakn’s clinics for the second quarter, versus no revenue in the prior year. The second quarter revenue is up C$86,718, or 34% over the quarter.

The company said that revenue “during the seasonally quietest period of the year for our services” was primarily driven by the provision of ketamine-assisted therapies at the London, Bristol and Oslo Awakn clinics. These clinics were not open during the equivalent period last year.

“Today’s results and revenue growth demonstrate the continued momentum building in our business and the successful execution of our business plan in both pillars of the business: R&D and Commercialization,” CEO Anthony Tennyson said.

Over the quarter, Awakn received approval for its Phase III clinical trial for ketamine-assisted therapy for the treatment of Alcohol Use Disorder. This is the first time a government agency has funded a Phase III trial in psychedelics.

The company received C$2.5 million from U.K.’s National Institute for Heal and Care Research to cover 66% of the costs of the trial. The company will bankroll the rest.

“We have also made excellent progress in strengthening the IP moats for our ketamine and MDMA programs,” Tennyson said, referring to the competitive advantage of its intellectual property.

The company had C$481,830 in cash. It also announced the closing of a private placement – issued 1,880,454 units at a price of C$0.55 per unit raising gross proceeds of C$1,034,250.

“We have also successfully launched our licensing partnership business into the U.S. and Canada, putting us in the unique position of being a biotech with commercial operations in four territories, the U.K., the U.S., Canada and Norway, in only our second full financial year,” Tennyson said

Through the rest of the fiscal year, Awakn said it anticipates receiving regulatory and ethics approval for its Phase III clinical trial for ketamine-assisted therapy, as well as completing its behavioral study of ketamine in gambling addiction.

The company will also look to further its therapeutics commercialization through acquiring more licensing partners utilizing the company’s intellectual property moat ketamine-assisted therapy for treatment of Alcohol Use Disorder in the U.S. and Canada.


Adam JacksonAugust 30, 2022
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4min320

It was near midnight on Monday when Flower One Holdings Inc. (CSE: FONE) (OTCQB: FLOOF) posted results that missed expectations as the company reels from consecutive periods of revenue drop amid financing concerns. The Nevada-based cannabis cultivator and producer released its financial report card for the second quarter ending June 30, 2022.

The company reported revenue of $7.9 million in the second quarter — below the Yahoo Finance Average analyst estimate for revenues of $9.6 million.

The company lent its woes to some of the same issues stated in the previous quarter, citing the pandemic’s effects on Nevada’s cannabis market in addition to a “thriving” illicit market, which has resulted in price compression and decreased statewide cannabis sales.  Tourist activity in the state has continued to slowly rebound to pre-pandemic levels, it said, though still remains far below company expectations amid the reductions in conferences, corporate and international travel.

The company posted a net loss of $5.4 million for the quarter, versus a net loss of $1 million for the same period last year. The earnings were a loss of one cent per share, in line with Yahoo estimates.

“Despite best efforts from our team to continue to produce the best quality cannabis we can at the lowest possible price, we face significant market pressures and with our current cash burn rate we must continue to explore all avenues to source working capital, and there is no guarantee that the company will receive this funding,” said CEO Kellen O’Keefe.

Cost of sales for the second quarter was $6.9 million, versus $11 million from the same period last year. The company said that the drop in gross margin is a direct result of wholesale price compression driven by top-line market softening and increased supply.

Second quarter 2022 gross profit before fair value adjustments was $1 million, versus $7.2 million from the same quarter last year. The company said that the drop in gross profit is directly attributable to wholesale price compression, “as well as an increase in consumer incentives, such as pricing discounts and other promotions, in order to maintain market position for both in-house and brand partner products.”

Going Concern

In Flower One’s filing, the company said that it needs “adequate capital resources” to support its ongoing operations and development, adding that assessing its viability as a company “requires judgments about the company’s ability to execute its strategy by funding future working capital requirements.”

The company had cash and cash equivalents of $3.6 million, versus $2.2 million in the same period last year. The company’s overall liability balance has increased by $11.9 million since the end of last year. The company’s total liabilities are $138 million.

“While still navigating through a challenging global economic environment, we continue to strengthen and refine our ability to decrease and control our costs,” said CFO Araxie Grant. “In the second quarter we significantly reduced our operating expenses, and continue to practice the financial discipline required to give the company the chance to achieve positive cash flow.”


Adam JacksonAugust 29, 2022
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5min170

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) posted results that showed healthy margins despite revenues slightly slumping over the quarter amid the company’s international bid. The pharmaceutical cannabis company announced today its financial results for the second quarter ending June 30, 2022.

Khiron’s second-quarter revenues totaled $4.47 million, down 3% versus $4.6 million in the same period last year; and $2.8 million sequentially, according to the SEDAR filings. The company recorded a net loss of $2.2 million versus $4.8 million in the same quarter last year; and $4.5 million sequentially. Earnings went from a loss of one cent per share versus a loss of 3 cents per share in the same period last year.

“The results of the first half of the year and Q2 2022 demonstrate that we are a disciplined company building sustainable growth, reducing costs and optimizing cashflow, able to reach profitability in the near term,” said CEO Alvaro Torres. “During Q2 2022, we made key decisions to continue to build our global platform with the strategic acquisition of Pharmadrug in Germany, the opening of our new flagship clinic in Rio de Janeiro in Brazil, as well as our new mid-sized clinic and pharmacy in Bogota in one of the city’s busiest shopping centres.”

Gross profit before fair value adjustments for the second quarter was $2.2 million, up 5% quarter-over-quarter and 114% year-over-year, despite the lack of sales in Germany. The medical cannabis segment represented 89% of Khiron’s total gross profits, versus 70% a year ago.

Total gross margin before fair value adjustments for the second quarter increased to 50%, driven by growth in the highly profitable medical cannabis segment. The gross margin in the medical cannabis segment increased to 76%. The total gross margin for Khiron’s Health Services segment for the second quarter was 13%, up from 8% in the previous quarter due to improvements in margins in Colombia’s Zerenia operations; offset by the losses incurred in the early stages of Zerenia Clinics UK.

The company also recorded its lowest ever Adjusted EBITDA loss of $2.3 million, down 30% quarter-over-quarter and 39% year-over-year.

Khiron continued its cost-cutting initiatives to streamline its operations. Expenses in the second quarter fell by 16% to $5.5 million from the same period last year. The company said the expense reduction was driven by cost savings efforts mainly in corporate governance, salaries, and investor relations; offset by an increase in selling and marketing expenses in the growing U.K. cannabis market.

Khiron had $40 million in total assets, with $13.7 million in property, plant, and equipment, a high-quality medical cannabis inventory of $8.2 million, as well as healthy bookkeeping with credit-worthy clients in Colombia and Europe of $4.4 million, and $600,000 in financial debt.

The company also ended the quarter with net cash of $5.8 million, having spent $2.0 million on operating activities during the quarter and a total of $4.8 million in the first half of the year, versus $10.4 million in the first half of last year. The company attributed the savings as a result of actively managing the working capital cycle, improving collection times for the company’s accounts receivable, and extending payment terms on its accounts payables.

“These steps, coupled with the growing patient loyalty we experience across our bigger markets, will continue to drive Khiron’s leadership in Latin America and Europe,” said Torres. “This is possible because of an incredible team across many countries and continents who are committed to improving the quality of life of patients, and who continue to work very diligently to ensure we become indispensable to our patients in every market.”


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