Lifeist Archives - Green Market Report

Adam JacksonJuly 28, 2022

Lifeist Wellness Inc. (OTCMKTS: NXTTF) is still reeling from a natural disaster that threatened profits in the second quarter. The company announced its third-quarter financial and operating results for the three and nine-month periods ending May 31, 2022.

Net revenue decreased 15% to $4.1 million in the second quarter versus $4.9 million posted the same time last year. The $800,000 loss in net revenue in the second quarter was due to a $1 million decrease in Australian Vaporizers hardware revenue caused by a flood-related operational shutdown in March and April.

In addition to that, Lifeist saw a $600,000 decline from the planned wind-down of hardware sales in Europe through Lifeist Bahamas, which more than offset gains in Canadian recreational cannabis and the initial contribution of Mikra and CannMart Labs revenue.

Revenue would have increased if not for these afflictions, the company said. Lifeist’s said its metrics for Australian Vaporizers posted pre-shutdown levels after severe and unprecedented storm flooding in Queensland and New South Wales halted production for 53 days “after waking up to two feet of water in the warehouse,” said CEO Meni Morim.

“The Australian floods dampened what was otherwise a solid quarter for Lifeist,” he said. “While it’s been a difficult period for the broader cannabis industry, we’re generating measurable success and establishing a path to profitability for our recreational cannabis distribution platform.”

Canadian cannabis revenue increased by $800,000, or 29%, compared to this quarter last year. Recreational cannabis continues to be Lifeist’s largest driver of performance accounting for 86% of the company’s second-quarter net revenue.

Gross profit before inventory adjustment increased to $700,000 compared to $400,000 in last year’s second quarter, with margins growing to 16% from 7%.

Adjusted EBITDA loss was $4.5 million in the second quarter compared to a loss of $5.4 million in the same quarter last year. The $9000,000 improvement, or 17%, was driven by a $2.0 million improvement at CannMart and an $800,000 reduction in corporate and other costs, which more than offset a $1.1 million decline at Australian Vaporizers due to the impact of the flood, $700,000 at Mikra due to start-up costs, and $200,000 decline at Lifeist Bahamas.

The company said it has $13 million worth of working capital.

Debra BorchardtMarch 25, 2022

Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF) (formerly known as Namaste Technologies) reported its financial results for the fourth quarter and the year ending November 30, 2021. Net revenue decreased 11% to $6.4 million in the quarter versus $7.2 million for the same time period in 2020. The net loss was $4.0 million in the quarter versus $6.4 million in the fourth quarter of 2020. The improvement was attributed to improved gross margins and a gain of the fair value of a convertible note receivable.

Lifeist said the decrease in revenue was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. The company said this was partially offset by the continued growth in sales of Canadian recreational cannabis, Australian Vapes hardware revenue which increased 15%, and Findify SaaS revenue which increased 16%. Excluding Lifeist Bahamas hardware and CannMart medical cannabis, net revenue increased by 4%. All financial figures are in Canadian dollars unless otherwise indicated.

Full Year Results

Net revenue decreased 9% to $22.8 million for the full year ending November 30, 2021, versus $25.1 million for the year ending November 30, 2020. The decrease was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. This was partially offset by the continued growth in FY2021 of Canadian recreational cannabis revenue which increased 25%, Findify SaaS revenue which increased 16%, and Australian Vapes hardware revenue which increased 10%, in each case in comparison to FY2020. Excluding Lifeist Bahamas hardware and medical cannabis, net revenue increased 19% compared to FY 2020. the company said that the working capital position of $16.4 million at year-end remains strong.

“The past year was one of transitioning to wellness, sharpening our strategic focus, and investing to drive sustainable growth,” said Meni Morim, CEO of Lifeist. “As a portfolio of wellness companies, Lifeist is growing its B2B recreational cannabis distribution and manufacturing business, and expanding its new nutraceutical division. We believe these opportunities provide the most direct and viable path to value creation, enabling Lifeist to leverage its capabilities and expertise to differentiate itself in the growing wellness economy.”

Loan Repaid

After the quarter ended, Fire & Flower Holdings Corp. entered into a definitive agreement to acquire Pineapple Express Delivery Inc., a holder of the company’s convertible loan payable. On January 25, 2022, Fire & Flower completed the acquisition of PED, and, as part of the purchase, Fire & Flower assumed and repaid a $2,040,077 convertible loan receivable owed to the company by PED. In addition, the company received 75,100 common shares in Fire & Flower on completion of the acquisition, with a further 258,478 common shares in Fire & Flower having been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in its fiscal 2022 year.

Added Mr. Morim, “With Mikra’s first nutraceuticals product, CELLF, a novel cellular therapeutic compound targeting systemic fatigue, already in pre-orders and our distribution, logistics and CannMart Labs businesses driving growth in our recreational B2B cannabis business, we believe we have the platform for sustainable growth.”