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TILT Holdings (TLLTF+4.92%) Inc. 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 revenue to $26,967,000 from $44,555,000 in the same quarter the previous year. This decrease is attributed to lower sales volume and delays in shipping from a primary supplier.
Cost of goods sold for the quarter was $23,172,000, representing 86% of sales, compared to 82% in the same quarter of the previous year. This increase in cost ratio is due to increased logistics costs and a shift in product mix.
The company reported a gross profit of $3,795,000 for the quarter, compared to $7,960,000 in the previous year, with the decline attributed to decreased sales volume.
Operating expenses decreased to $11,271,000 from $12,684,000, primarily due to cost reduction strategies including reduced professional fees and bad debt expenses.
Net loss for the quarter was $12,649,000, compared to $8,663,000 in the previous year. The increase in net loss is primarily driven by a decrease in gross profit and an increase in other expenses.
Cash provided by operating activities was $319,000, while cash used in investing and financing activities was $451,000 and $717,000, respectively.
TILT had a working capital deficit of $43,687,000 as of September 30, 2024. The company acknowledges its dependence on successful operating plans and potential financing to meet future obligations.
The filing also details various financial agreements, including a secured promissory note with a third-party retailer for borrowings up to $10,500,000.
TILT 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 non-compliance with certain financial covenants.
TILT continues to focus on increasing revenue growth and reducing operational costs across its business segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the TILT Holdings quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.