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4Front Ventures Corp (FFNTF+23.81%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details a decrease in revenue from sales of goods to $49.0 million for the nine months ended September 30, 2024, down from $67.7 million in the same period the previous year. This decline is attributed to increased competition and price compression in the cannabis market.
Real estate income for the nine months ended September 30, 2024, was $5.6 million, a decrease from $8.7 million in the prior year, primarily due to lower rent billings.
Cost of goods sold decreased to $36.1 million for the nine months ended September 30, 2024, compared to $38.9 million in the prior year. The decrease in cost of goods sold did not match the decrease in revenue, affecting gross profit margins.
The company reported a gross profit of $18.6 million for the nine months ended September 30, 2024, compared to $37.6 million in the previous year.
Operating expenses decreased to $33.1 million for the nine months ended September 30, 2024, from $52.2 million in the prior year, largely due to reduced selling, general, and administrative expenses.
Net loss from continuing operations was $30.1 million for the nine months ended September 30, 2024, compared to $39.6 million in the previous year.
Cash provided by operating activities was $1.8 million for the nine months ended September 30, 2024, while cash used in investing and financing activities was $1.9 million and $2.5 million, respectively.
The company had a working capital deficit of $74.8 million as of September 30, 2024. The company continues to focus on scaling operations in Illinois and Massachusetts and remains dependent on raising capital to meet future obligations.
The filing also notes management changes, including the resignation of the Chief Financial Officer and the appointment of an Interim Chief Financial Officer.
4Front Ventures does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to insufficient accounting staff resources.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the 4Front Ventures Corp (Sub Voting) quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.