It’s time for your Daily Hit of financial news for August 31, 2020.
On The Site
CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH) reported that its fiscal year-end 2020 total revenues were $11,917,629 an increase over fiscal year 2019’s total revenue of $8,459,048. The company also reported a net loss $30 million versus last year’s net loss of $27 million. The loss was attributed to a large non-cash impairment charge on goodwill as a result of the decline in the company’s stock price.
“Because our stock price provides a basis for our enterprise value, this decline meant that we were required to write-down the value of this intangible asset by $25,185,003, a one-time write-down that has not occurred in prior fiscal years. This devaluation is not reflective of any tangible loss of assets, and our working capital remains sound.”
As the West Coast matures from the early Green Rush and Midwest markets like Michigan and Illinois hit their stride with recent legalization, all eyes are on the Northeast as the sleeping giant that will radically change the national cannabis landscape for 2021 and beyond. Among the 40 million-plus residing in the tri-state area between New York, New Jersey, and Pennsylvania, the East Coast offers a monumental competitive advantage with substantial opportunities for new players to make their mark as soon as the industry is given the green light to move forward—which is only a matter of time.
“There is no question that a lot of states that were sitting on the fence on adult-use legalization will now turn to it as they look for tax revenues,” says Joe Bayern, President of CuraLeaf (OTC:CURLF).
In Other News
Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) reported the following earnings:
- Revenues were $10.8 million as compared to $16.5 million, a decrease of 34.9%
- Gross profit before biological adjustments was $4.7 million or 43.8% as compared to $9.7 million or 58.7%, a decrease of 51.5%
- Operating expenses, excluding non-cash compensation expense, were $5.8 million as compared to $7.1 million, a decrease of 18.5%
- Net loss before taxes of $3.3 million as compared to a net income of $1.1 million
- Net loss of $4.0 million as compared to a net loss of $0.9 million
- Adjusted EBITDA loss of $0.7 million as compared to Adjusted EBITDA of $2.7 million