VANCOUVER, BC / ACCESSWIRE / February 23, 2023 / Lotus Ventures Inc. (CSE:J)(OTC PINK:LTTSF) ("Lotus" or the "Company") a North Okanagan based licensed cannabis producer and the owner of Lotus Cannabis Co.™, a premium-craft consumer brand in Canada announced the financial results for the period ending August 31, 2022.
CORPORATE HIGHLIGHTS
The primary feature of Fiscal 2022 was the diversification of sales channels from an almost exclusive business-to-business ("B2B") sales model to adding additional business-to-consumer ("B2C") channels. Difficulties in the B2B market generated a steep decline in sales volume and pricing which culminated in a large year-end loss of $4,792,759 after significant inventory and fair value accounting write-downs. Overhead and operating expenses are lean, and the Company has obtained short-term debt from related and other parties during this transition period. At the date of this news release, sales are recovering as we implement the marketing and sales evolution strategy initiated last year. The highlights of our efforts during the year-end August 31, 2022 are as follows:
SALES AND MARKETING HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
SELECTED ANNUAL INFORMATION
The following selected financial information is derived from the Company's audited consolidated financial statements for the years ended August 31, 2022, 2021 and 2020.
Description | Year ended August 31, 2022 | Year ended August 31, 2021 | Year ended August 31, 2020 |
Revenues | $1,689,783 | $5,481,479 | $4,629,743 |
Net income (loss) Income (loss) per share, basic and fully diluted | ($4,792,759) ($0.05) | $241,097 $0.00 | $1,494,002 $0.02 |
Total assets | $13,471,193 | $16,907,742 | $16,908,437 |
Total long-term liabilities | $Nil | $Nil | $Nil |
Cash dividends declared | $Nil | $Nil | $Nil |
SUMMARY OF QUARTERLY RESULTS
During the year ended August 31, 2022, the Company had net loss of $4,792,759 (2021 - $301,797 net income). The financial results of the Company for the eight most recent quarters are summarized below:
Description | Three months ended Aug 31, 2022 | Three months ended May 31, 2022 | Three months ended Feb 28, 2022 | Three months ended Nov 30, 2021 |
Revenues | $449,574 | $459,090 | $370,551 | $410,568 |
Net income (loss) | ($4,930,606) | ($103,573) | $176,127 | $65,293 |
Income (loss) per share, basic and diluted | ($0.05) | $0.00 | $0.00 | $0.00 |
EBITDA | ($4,633,554) | $122,671 | $399,757 | $279,830 |
Total assets | $13,471,193 | $17,640,121 | $17,678,148 | $17,172,703 |
Total long-term liabilities | $Nil | $Nil | $Nil | $Nil |
Cash dividends / share | $Nil | $Nil | $Nil | $Nil |
Description | Three months ended Aug 31, 2021 | Three months ended May 31, 2021 | Three months ended Feb 28, 2021 | Three months ended Nov 30, 2020 |
Revenues | $1,235,937 | $1,437,763 | $1,431,509 | $1,376,270 |
Net income (loss) | $42,625 | $208,893 | $329,414 | $(339,835) |
Income (loss) per share, basic and diluted | $0.00 | $0.00 | $0.00 | $0.00 |
EBITDA | $264,876 | $433,488 | $547,044 | $(116,506) |
Total assets | $16,907,742 | $16,845,615 | $16,841,875 | $16,413,969 |
Total long-term liabilities | $Nil | $Nil | $Nil | $Nil |
Cash dividends / share | $Nil | $Nil | $Nil | $Nil |
During the three months ended August 31, 2022 the Company recognized a net loss of $4,930,606, compared net income of $42,625 for the three months ended August 31, 2021.
Net income for the three months ended August 31, 2022 decreased by $4,962,812 as a result of the decline in sales and gross margin, and impairment of inventory in the current period as compared to the prior comparative period.
Loans payable at year-end, primarily from related parties totalled $1,011,020 up from $319,704 the previous year. As at December 31, 2022 the amount outstanding totalled approximately $2,920,508.
For details see Note 9 and Note 13 of the Audited Statements.
Significant items making up the change for the three months ended August 31, 2022 as compared to the three months ended August 31, 2021 were as follows:
For more information about the Audited Financial Statements, please visit lotuscannabis.ca/investors or SEDAR.com.
ON BEHALF OF LOTUS VENTURES INC:
Lotus Ventures Inc.
"Dale McClanaghan"
Dale McClanaghan, President and CEO
About Lotus Ventures Inc.
Lotus Ventures Inc. is a BC-based licensed producer of premium cannabis. Lotus owns the premium-craft consumer brand Lotus Cannabis Co.™ which has had its cannabis flower sold by wholesale partners in all provinces to date. Lotus is an experienced cultivator on a mission to produce the cleanest and most consistent premium cannabis in Canada. With operations in the North Okanagan B.C., the Lotus Cannabis team has launched popular cultivars like the Keylime Kush, Black Blossom, Tranquil Elephantizer and Kalifornia and currently has flower being sold in British Columbia, Alberta, Manitoba, and Ontario.
To invest in the Company, Lotus Ventures Inc. is listed on the Canadian Securities Exchange (CSE:J), on the OTC Markets (OTC:LTTSF) and on the Frankfurt Stock Exchange (FRA:LV9).
For More Information:
President & CEO
Dale McClanaghan
(604) - 644 - 9844
Investor Relations & Communications
Daniel McRobert
[email protected]
(604) - 842 - 4625
General Information
[email protected]
(604) - 842 - 4625
To learn more, visit lotuscannabis.ca and follow the Lotus Cannabis Co.™ brand on social media.
Instagram: @lotuscannabisco
Twitter: @lotuscannabisco
LinkedIn: @lotuscannabisco
Facebook: @lotuscanna
Forward-Looking Information:
This document includes certain statements that are not descriptions of historical facts but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for medical and recreational cannabis products, our expectations regarding the continued growth of the medical and recreational cannabis market, as well as all assumptions, expectations, predictions, intentions, or beliefs about future events. Users are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties have not been documented or mentioned in this document nor other communications made by the company. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Lotus Ventures, Inc.