Net revenue

Heritage Cannabis Q1 net revenue increases 330%

Heritage Cannabis Holdings Corp. HERTF CAN published its financial results as of January 31, 2022 and for the three months ended on this date, revealing net revenues of C$6.54 million ($5.16 million) an increase of 330.26% year-on-year.

First Quarter 2022 Financial Highlights

  • gturnover of California$9.6 million , an increase of C$7.42 million from gross revenue of C$1.83 million for the first quarter of 2021, representing an increase of more than 400%. The increase in gross revenue is the result of the company’s full transition to provincial branded sales, increased national distribution and increased SKU penetration.

  • The cost of sales was California$4.66 millionan increase of C$3.65 million, compared to C$1 million for the first quarter of 2021. The increase in cost of sales is the result of increased business activity.

  • VStotal income of California$6.26 million or earnings per share of $0.01 compared to an overall loss of CA$3.21 million or loss of $0.01 per share for the first quarter of 2021. The decrease in losses during this period was attributable to a primary factor that was unrelated to cash. In accordance with accounting policies, the company recorded a gain of C$8.5 million due to the change in fair market value between the share price used for the bonus milestone payment 5 and the share price of the share at the time of the grant. This gain was offset by a loss on derivative liabilities mainly by the revaluation of convertible warrants and interest expense.

“Our team has done a phenomenal job over the past year transforming Heritage into a company with exceptional brands delivering innovative and in-demand products – a great achievement and a testament to how far we’ve come in just one year. With revenue growth of over 400% from the first quarter of last year and 34% from the fourth quarter of 2021, we are hitting our stride as a branded cannabis company, and we are only start,” said David SchwedeCEO of Heritage.

“As we move into positive cash flow territory, the business has never been healthier, and our stable balance sheet, continued revenue growth and proven commitment to a lean cost structure are leading indicators of the direction we are headed in. We have an amazing business with staff who are the lifeblood of our business. During a very turbulent time in the cannabis market, we are so grateful to our platform partners who are doing confidence and belief in our products, and extremely grateful to our shareholders for their patience during this transition period.

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