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Cronos Group Inc (CRON-1.28%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenue to $34.3 million from $24.8 million in the same quarter the previous year. This increase is attributed to higher cannabis flower and extract sales in Canada and Israel.
Cost of sales for the quarter was $30.3 million, compared to $20.1 million in the same quarter of the previous year, primarily due to the impact of inventory step-up from the Cronos GrowCo Transaction.
The company reported a gross profit of $3.6 million for the quarter, compared to $4.0 million in the previous year.
Operating expenses increased to $37.3 million from $25.7 million, with the rise attributed to impairment of Ginkgo exclusive licenses and the impact of the Cronos GrowCo Transaction.
Net income for the quarter was $7.3 million, compared to a net loss of $1.8 million in the previous year. The improvement is driven by gains from the revaluation of equity method investment and loan receivable related to the Cronos GrowCo Transaction.
Cash provided by operating activities was $11.1 million, while cash provided by investing activities was $180.2 million, primarily due to the maturity of short-term investments.
Cronos had cash and cash equivalents of $862 million as of September 30, 2024. The company expects these funds to be sufficient to fund operations over the next twelve months.
The filing also details the Cronos GrowCo Transaction, where Cronos obtained majority control of Cronos GrowCo, a cannabis cultivation company. This transaction is expected to support Cronos' current and future biomass supply requirements.
The company continues to focus on expanding its global cannabis market presence and enhancing its brand portfolio, including Spinach®, PEACE NATURALS®, and Lord Jones®.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cronos Group Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.