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Acreage Holdings Inc (ACRDF0.00%) Class D (Sub Voting) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decline in total revenues to $39,624,000 from $56,502,000 for the same quarter in the previous year, primarily due to liquidity constraints limiting inventory purchases.
Retail revenue decreased by 37% to $27,435,000, while wholesale revenue fell by 4% to $12,188,000, attributed to price compression and decreased demand.
Cost of goods sold decreased to $25,710,000 from $35,228,000, resulting in a gross profit of $13,914,000, down from $21,274,000 in the prior year.
Operating expenses were reduced by 5% to $22,578,000, with decreases in general and administrative expenses and compensation expenses.
The company reported a net operating loss of $8,664,000 for the quarter, compared to a loss of $2,501,000 in the previous year.
Interest expense decreased to $8,128,000 from $9,207,000, while other income (loss) was reported at $(983,000), down from $10,021,000.
A net loss of $22,240,000 was recorded for the quarter, compared to a net loss of $7,859,000 in the previous year.
The company continues to face challenges related to liquidity and market conditions, impacting its ability to meet financial obligations.
Cash and cash equivalents at the end of the period were $13,845,000, reflecting a decrease of $3,770,000 during the nine months ended September 30, 2024.
The filing outlines various financial agreements, including a second amended and restated credit agreement with a new lender and Canopy Growth's (CGC-1.57%) subsidiary.
Acreage Holdings highlights its strategic focus on cash management, growth in core markets, and preparation for integration with Canopy USA.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Acreage Holdings Inc Class D (Sub Voting) quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.