In This Story
Lowell Farms Corp (LOWLF0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $3,244,000 from $6,212,000 in the same quarter the previous year. The decrease is attributed to reduced sales volumes of packaged flower and pre-rolls.
Cost of goods sold for the quarter was $4,184,000, compared to $6,656,000 in the same quarter of the previous year. The company reported a gross loss of $940,000 for the quarter, compared to a gross loss of $444,000 in the previous year.
Operating expenses decreased to $1,836,000 from $2,423,000, primarily due to headcount reductions and operating efficiencies.
Net loss for the quarter was $3,629,000, down from $20,170,000 in the previous year. The decrease in net loss is attributed to lower impairment charges and other expenses.
Cash used in operating activities was $2,473,000, while cash provided by investing activities was $595,000, primarily from asset sales.
Lowell Farms had a working capital of $(1,927,000) as of September 30, 2024. The company is focused on improving its balance sheet by enhancing accounts receivable collections and right-sizing inventories.
The filing also details ongoing litigation related to the Zabala Road Lease, with the landlord seeking damages exceeding $36 million. The company is defending itself against these claims.
Lowell Farms has entered into management services agreements with two cannabis retail dispensaries in Los Angeles, California, with an option to acquire equity ownership.
The company continues to focus on its core brands and has scaled back investment in non-core brands to improve cash flow and profitability.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lowell Farms Corp Sub Vtg Sh quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.