But that’s only one step in the right direction, intimated the newly minted interim CEO Tim Conder, who took the reins at Tilt just three weeks ago amid a C-suite shakeup.
Conder said his mission this year will be to “optimize our operations, instill frugality as a core value, and hold ourselves and our team to high levels of accountability” as he tries to steer the company toward profitability. Tilt Holdings lost a total of $107.5 million in 2022, and the first quarter of 2023 brings the losses to $112.4 million since 2021.
The loss shrinkage in Q1 was chalked up to an “$8.4 million gain from the previously announced sale leaseback transaction for the company’s Pennsylvania cultivation and manufacturing facility,” since revenues were just under flat year-over-year at $42.3 million, and down by $2 million from Q4 2022.
As of March 31, Tilt Holdings had just $5.2 million in the bank, up from $3.5 million at the close of 2022, and was carrying $48.9 million in debts, down from $59.7 million on New Year’s Eve.
The company also reported additional steps to manage its debt, including obtaining an increase in its line of credit with better terms and a longer maturity runway, a “series of transactions that alleviated its near-term debt maturity,” and the aforementioned sale-leaseback deal for one of its properties in Pennsylvania.
Among Tilt’s highlights for the quarter were:
- Launch of Coda Signature edibles line in Massachusetts.
- Introduction of the Black Buddha Cannabis brand in Pennsylvania.
- A licensing deal to sell vape cartridge technology Thredz.