Cannabis Company iAnthus Q2 Revenue Grows 11.1% YoY, Trims Net Loss, Improves Working Capital Deficit
Author: Nina Zdinjak | August 15, 2024 09:51am
iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQB:ITHUF) reported its financial results Wednesday for the second quarter ended June 30, 2024. The New York and Toronto-headquartered cannabis company disclosed quarterly revenue of $43.0 million, a sequential increase of 3.5% and an increase of 11.1% year-over-year.
Second quarter 2024 financial highlights include:
Gross profit of $20.7 million, a sequential increase of 20.3% from Q1 2024 and an increase of 12.5% from the same quarter in the prior year.
Gross margin of 48.1%, reflecting a sequential increase of 673 bps when compared to Q1 2024 and an increase of 62bps from the same quarter in the prior year.
Net loss of $9.8 million, or a net loss of less than $0.01 per share, compared to a net loss of $14.0 million, or a net loss of less than $0.01 per share in Q1 2024, and compared to a net loss of $20.1 million, or a net loss of $0.01 per share, in the same quarter in the prior year.
Adjusted EBITDA of $8.9 million, a sequential increase from Adjusted EBITDA of $3.2 million in Q1 2024, and an increase from Adjusted EBITDA of $3.9 million from the same quarter in the prior year.
At the end of the reporting period, on June 30, the company had $16.55 million in cash, which compares to $13.10 million at the end of December. It also reported a working capital deficit of $67.0 million (compared to $79.9 million at the end of December), and an accumulated capital deficit of $1.35 billion.
As of June 30, the total and unamortized debt discount costs were $21.9 million, and $13.8 million, respectively (December 31, 2023 $20.4 million and $14.6 million, respectively).
According to company's filing, iAnthus remains a going concern, meaning it has the resources needed to continue operating indefinitely until it provides evidence to the contrary. The company also states that it will continue to generate positive cash flow from operations in the near future.
Price Action
iAnthus shares closed Wednesday's market session 41.51% higher at $0.015 per share.
