Item 2.02 Results of Operations and Financial Condition.
On
The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed
"filed" for purposes of Section 18 of the
Item 7.01 Regulation FD Disclosure.
On
Q2 FY2022 Financial Summary (results expressed in USD$ unless otherwise indicated):
· Reported Q2 FY2022 revenue of$8.05 million a 27% increase over Q2 FY2021 revenue of$6.32 million and a 6% increase over Q1 FY2022 revenue of$7.57 million ; · Q2 FY2022 Gross profit of$3.02 million , a 10% increase over Q2 FY2021 Gross profit of$2.75 million ; · Q2 FY2022 Net Operating Loss of$0.97 million ; · Q2 FY2022 Net Loss of$2.72 million ; · Basic and Diluted loss per share of$0.02 ; · Adjusted EBITDA loss of 0.40 million*; · Inventory of$4.07 million as ofJanuary 31, 2022 ; · AtJanuary 31, 2022 , BaM had$4.62 million in cash and a working capital surplus of$4.07 million ; · Total Assets were$53.93 million , Total Current Liabilities were$8.42 million and Total Liabilities were$21.20 million atJanuary 31, 2022 ; · 113,349,464 shares of common stock outstanding as ofJanuary 31, 2022 (113,349,464 as ofMarch 17, 2022 ). 2
Operational Milestones for Q2 FY2022:
California : · Definitive agreement entered for acquisition ofSeaside, California dispensary; · The Company took over management ofSeaside dispensary operations effectiveDecember 1, 2021 ; · Local and State approval of change in ownership of theSeaside dispensary license received; · Consolidation of financials fromSeaside dispensary forDecember 2021 andJanuary 2022 ; · Rebranded the Long Beach ShowGrow dispensary to become aBody and Mind branded dispensary; · Manufacturing and Distribution facility in development stage with local approvals in process.Nevada : · Completion of electrical power upgrade and distillation capacity project for Production facility to provide 10X increase in distillation capacity;Ohio : · Increased production from the newOhio production facility; ·Body and Mind branded extracted products on dispensary shelves with an expanded product line in progress; · Secured high quality biomass for extracted products including shatter and live resin offerings.Arkansas : · Cultivation operations produced first flower for wholesale and sales inBody and Mind dispensary; · Finalized phenotyping ofBody and Mind strains and perpetual harvest operations established.Michigan : · Continued vertical market expansion intoMichigan ; · OpenedMuskegon, Michigan dispensary inFebruary 2022 ; · Commenced construction to advance a Phase 1 cultivation and production facility with approximately 22,500 square feet of indoor cultivation and 7,500 square feet of production/manufacturing; · Confirmed initial power requirements are complete to the cultivation facility and pre-ordered long lead items; · Completed demolition within the existing structure, underground plumbing and concrete work for flooring and footings is underway.Illinois · The Company has management agreements with two entities that have been identified in theIllinois Department of Financial and Professional Regulation (IDFPR) results of theSocial Equity Justice Lottery as recipients of Conditional Adult-Use Cannabis Dispensary Licenses (Conditional Licenses) in the greaterChicago -area zone; · Final license awards by theIllinois Department of Financial and Professional Regulation (IDFPR) delayed due to litigation by other parties; · Identified and advanced strong real estate opportunities for dispensary locations. 3
"The
*Adjusted EBITDA is a Non-GAAP metric used by management that does not have any
standardized meaning prescribed by
The unaudited condensed consolidated interim financial statements for the
quarter ended
The Company will be hosting a conference call to discuss its financial results
on
Conference call detailsCanada : 1-416-764-8659
Confirmation No.: 37292270
A replay of the call will be available until
Encore replay --
Encore replay --
4
Encore replay entry code: 292270 #
A copy of the news release is attached as Exhibit 99.1 hereto.
The information in this Item 7.01 (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit Description 99.1 News Release datedMarch 18, 2022 . 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) 5
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