AUDACIOUS Reports 2,400% YoY Revenue Growth In Q3, Continues Execution & Reduces Losses

Author: Jelena Martinovic | March 02, 2022 08:41am

Australis Capital Inc. (CSE:AUSA) (OTC:AUSAF), also known as Audacious, announced that the company has filed its financials and management discussion and analysis for the three-month period ending December 31, 2021, its fiscal third quarter of fiscal 2022.

Q3 2022 Financial Highlights

Total revenues amounted to $2.37 million representing an an increase of 2,623% year-over-year from $90,378 in the third fiscal quarter of 2021 and even grew 4% compared to the second quarter of fiscal quarter of 2022.
Gross profit for the fiscal second quarter of 2022 was $1.84 million compared to a gross profit loss of ($166k) in the comparable period of 2021 and increased by 51% from the second fiscal quarter of 2022.
Operating expenses increased to approximately $6.16 million, or by 25.8%, as compared to the same period in the prior year, well below the recorded revenue growth rate of over 2,400% for the same period, showing the leverage built into the business as commercial activity increases.
A 16% reduction in operating loss was recorded $(4.3) million as compared to $(5.1) million for the prior year, with growth in margins offsetting increased operating costs.

Q3 Highlights & Subsequent Events

Announced a term sheet on staged funding with US-based LDA Capital. Subsequent to the quarter, the Company announced it had closed its financing facility with LDA, bringing, initially, up to $10 million in funding, with the option to extend the facility with an additional $10 million.
Hosted a booth at MJBizCon in October 2021.
Completed a definitive agreement with GTH – subsequent to the quarter - pursuant to which the company will acquire, in stock, 25% of GTH. GTH is a spin off from $400M+ Thai public company NR Instant Produce PCL ("NRF"), who sell ethnic foodstuffs around the globe.
ALPS signed a partnership with Priva, the global pre-eminent environment control company for the horticultural industry.
Announced the launch of its turn-key all-in grow solution, the AUDACIOUS ACHIEVE series.
ALPS, thew world leader in sustainable agriculture greenhouse design, entered a contract with Pure Harvest of the United Arab Emirates for project work concerning a large greenhouse facility in Kuwait, in itself a partnership between Pure Harvest and TCS, the largest public grocery chain in the Middle East.
Launched its LOOS brand in the California market through its pending acquisition of the Herbs dispensary in San Jose, and an accompanying partnership with EAZE, the world's largest legal cannabis delivery company with over 2 million registered customers.
As part of its partnership agreement with PBR, the Company launched its CBD infused pain relief brand, Wreck Relief.

What’s Next?

AUDACIOUS will continue to execute on its strategy with further growth in its current markets and anticipates entering new jurisdictions, including New York, New Jersey, and others, as well as further expansion of its product line portfolio.

Management Commentary

"The third quarter saw us expand internationally through our partnership with Green Triangle Health, where we have already started generating revenues,” Terry Booth, CEO of AUDACIOUS, commented. “Our partner is exceptionally well-connected, which is translating into commercial arrangements with major regional and international distributors. In the U.S., we continue to make good headway too, with an important partnership with First Americans of the Saint Regis Mohawk Tribe, which sees us move into New York well ahead of statewide commencement of adult use sales, providing us with a significant early mover advantage.”

Jon Paul, the company’s CFO says that the third quarter was an “important pivot for us, as we spent heavily towards future growth opportunities while moving further from our past.”

Photo: Courtesy of Chris Briggs on Unsplash

Posted In: AUSAF CSE:AUSA