It’s complicated, but not really that complicated
Net loss for the quarter amounted to a whopping $73.4 million.
The deep dive works harder on the numbers
The Green Organic Dutchman (TSX: TGOD) reported first quarter 2020 financials this evening after market close, and despite the narrative spin put forth by the company, the quarter was a doozie. The company reported net revenues of $2.9 million, of which just $536,000 came from Canadian cannabis sales – the company in its official news release reported gross figures. Net loss for the quarter amounted to a whopping $73.4 million.
Revenues on a gross basis came in at $3.06 million, with $2.40 million being attributed to the firms European hemp operations. After the cost of production, gross margin for the quarter came in at an electrifying $1.0 million before biological adjustments. Operating costs, comparatively, amounted to $17.0 million, of which general and administrative expenses accounted for $9.8 million, followed by share based compensation at $2.47 million and sales and marketing at $2.46 million.
The bright side here, is that the company is on track to having quarterly general and administrative expenses of just $8 million per quarter as per the company – which still is more than double current revenue figures.
Losses grew during the quarter before the final net loss line as a result of significant impairments to the tune of $55.8 million, which TGOD describes as the following:
Read more if you haven’t bought shares, if you have we suggest you make yourself a nice cup of tea and do something else
TGOD Generates $2.9 Million In Q1 2020 Revenues, $73.4 Million Net Loss
