Montreal-based Good Shroom Co. (TSXV: MUSH) filed its 2023 financials for the fiscal year that ended July 31, which revealed that the cannabis company pulled in just over C$4 million in revenue for the year but still posted a C$452,140 loss, which the company attributed primarily to a poor first two quarters.
CEO Eric Ronsse focused on the revenue portion in a press release, noting that the figures were a 266% jump from the year prior.
“Our growth strategy is effective and we have the team in place to successfully execute,” Ronsse said.
“Creating and offering innovative products is bolstering brand recognition and broadening our customer base, which is leading to increased sales,” he added.
Ronsse also projected optimism based on cash flows in the second half of the company’s latest fiscal year, which the company asserted had made it profitable.
“Despite accumulated losses in the first two quarters, we achieved positive cash flow in Q3 and Q4 and we expect to maintain this trend,” he said in a statement. “We are also remain optimistic about the growth opportunities for our wellness beverage division and we intend on further developing this market in the coming year.”
At the end of July, the Good Shroom Co. had C$1.4 million in total assets, including C$378,424 in cash, and C$986,477 in total liabilities with zero long-term debt.
However, the company reported that it also has an accumulated deficit of C$12.7 million, and stated in its annual report, “Management believes that these funds may not be sufficient to meet the obligations and liabilities of the company. These uncertainties cast significant doubt regarding the company’s ability to continue as a going concern.”
After the end of the 2023 fiscal year, the Good Shroom Co. in October updated its Canadian micro-processing permit to a standard processing license and is now authorized to “manufacture, sell, and distribute an unlimited amount of cannabis products.”
That’ll lead to a new product line launch in Quebec alone, with the company planning to roll out at least 10 new SKUs before January. It will also enter the Alberta market with “cannabis flower, edibles, joints, infused joints, and capsules.”
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