Cannabis financier XS Financial (OTCQB: XSHLF) reported its financial results for the second quarter ending June 30, showing rising revenues and lowered losses as it tries to refinance its debt.
The company recorded an 80% year-over-year increase in revenue to $3 million, 56% increase in gross lease receivables, and 83% improvement in net distributable earnings. Net loss for the quarter was $1.67 million, lower than the loss of $3.96 million reported in the same quarter of 2022.
The company also reported closing lease transactions worth a total of $6 million with several companies.
CEO David Kivitz stated that the smaller yet “scrappier” company generated record revenue and gross lease receivables and is focused on expanding its customer base, increasing operational efficiency, optimizing the balance sheet, and expanding relationships with existing customers.
“Our customers and new prospects remain reliant on our leasing solutions, including our ability to fund at scale, which we expect will continue well beyond 2023,” Kivitz said in a statement.
The company attributed the rise in revenue to income recognized from 116 new financing leases, while the increase in operating expenses was mainly due to rising personnel and contractor costs. Other expenses fell compared to the same period in the previous year, primarily the result of a decrease in non-cash losses related to changes in the fair value of derivative liabilities and non-cash foreign currency translation losses.
XS Financial also voided previously announced amendments to its unsecured convertible notes, and the company is in discussions with the note holders regarding a proposed restructuring.