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CLS Holdings USA Inc (CLSH+17.14%). has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $4,161,270 from $5,197,214 in the same quarter the previous year. The decrease is attributed to a reduction in sales at the company's dispensary and production operations.
Cost of goods sold for the quarter was $2,389,245, representing 57% of sales, compared to 58% in the same quarter of the previous year. This slight improvement in cost ratio is due to reduced production costs.
The company reported a gross margin of $1,772,025 for the quarter, compared to $2,171,619 in the previous year, reflecting lower sales volumes.
Selling, general, and administrative expenses decreased to $2,095,099 from $2,606,918, primarily due to cost-cutting measures implemented during the period.
Net loss for the quarter was $87,671, down from $1,302,180 in the previous year. The reduction in net loss is primarily due to gains on debt settlements and reduced interest expenses.
Cash provided by operating activities was $468,336, while cash used in investing and financing activities was $16,141 and $459,618, respectively.
CLS Holdings had a working capital deficit of $13,116,227 as of November 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including convertible debentures and related party notes, with efforts to reduce the company's debt burden.
CLS Holdings does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on its retail dispensary and cannabis production operations, with an emphasis on cost management and operational efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CLS Holdings USA Inc quarterly 10-Q report dated January 10, 2025. To report an error, please email earnings@qz.com.