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Golden Leaf Holdings (GLH-Cse) It's the Most Wonderful Time of the Year...
Golden Leaf Holding Ltd. Announces Financial Results for Third Quarter 2015 - Nov 30, '15
Golden Leaf Holdings a vertically integrated cannabis extraction company, announced its financial results yesterday for the third quarter ended September 30, 2015. All amounts are expressed in US dollars.
Highlights
Revenue for 3 months ended September 30 2015 of $2.95m, a 900% increase from the third quarter the previous year
Signs exclusive definitive agreement with Dixie Brands Inc. to enter edibles and beverage markets
Commences initial phase of capacity expansion at cultivation facility
Prepares for US listing on the OTCQB
Q3 2015 Financial & Operational Highlights ($ in 000)
Three-month period ended September 30, 2015
3 Months Ended
September 30, 2015
Revenue
$2,950
Gross Profit
$1,231
Operating Expenses
$3,734
Operating Loss
$(2,502
)
Net Loss
$(3,127
)
Don Robinson, CEO, said "We continue to make operational improvements and invest in our facilities and equipment to improve yields, quality, sales and margins. We believe these investments will support our continued growth and development initiatives over the long-term."
Results of Operations
Revenue
Revenue for the third quarter ended September 30, 2015, was $2,950,809. The Company's revenues increased approximately 900% from the third quarter the previous year. Year to date revenue totals $7,834,711.
Gross Margin
Gross margin (including the unrealized gain on changes in fair value of biological assets, in accordance with IFRS) increased year on year in the 3rd quarter from 27% to 42%. The Company's gross profit for the third quarter was $1,231,176. The Company's gross profit in the 3rd quarter excluding the unrealized gain in fair value of biological assets was $1,051,635, with a gross margin of 36%.
In the 3rd quarter, the Company operated three Co2 extraction machines and two BHO extraction machines, at full capacity. Additionally, the Company ramped up testing on an additional two Co2 machines in the quarter. Extraction yields decreased in Q3 to 8.1%, from 9.3% in Q2 respectively, due to the quality of trim available. With the new harvest and consequent higher quality trim, it is anticipated that yields will increase in the 4th quarter.
Operating Expenses
In the 3rd quarter, general and administrative expenses were $3,733,644. Of this, $488,155 were for a non-cash expenses related to the reserve for warrant issuance. Operating expenses in the 4th quarter are expected to decrease as operating efficiencies are being realized.
Net Loss and Cash Position
Operating loss and net loss amounted to $(2,502,468) and $(3,127,358). The Company had $1,133,339 cash on hand at the end of the 3rd quarter.
