LAS VEGAS & TORONTO, June 28, 2021–, the leading cannabis cultivator and producer in Nevada, is pleased to announce its financial and operating results for the first quarter ended March 31, 2021, along with its unaudited preliminary revenue guidance for the second quarter of 2021.
In the first quarter of 2021 we reported the best performance in the history of the Company, as the impact of the restructuring and operational improvements began to show results.
We are focused on the financial discipline and operational excellence required to meet or exceed projections and achieve cash flow positivity.
O’Keefe added, “Over the past several months, we have improved the quality of cannabis that comes out of our facility, which has enabled us to generate a significantly higher average price per pound.
For the three-month period ended March 31, 2021, the Company earned revenue of $13.9 million, up significantly from fourth quarter of 2020 revenue of $9.7 million and $8.8 million in first quarter of 2020.
Cost of sales of $7.662 million for the first quarter of 2021, down slightly from the fourth quarter of 2020 cost of sales of $7.68 million – due principally to higher revenues and cultivation and production efficiencies implemented by new management.
This improvement resulted from the new management’s focus on cost rationalization, offset partially by higher cannabis taxes related to higher sales.
Gross profit in the first quarter of 2021 amounted to $11.3 million or 81.8% of revenues, compared to $.
For the quarter, the Company reported income from operations of $3.8 million and a net loss of $10.6 million.
“Due to the corporate restructure-related debt reductions and uses of proceeds from the January and March financings to reduce payables and other obligations, the Company’s liquidity position improved significantly.
Flower One currently produces a wide range of products from flower, full-spectrum oils and distillates to finished consumer packaged goods, including a variety of: pre-rolls, concentrates, edibles, topicals and more for top-performing brands in cannabis.
The Company’s common shares are traded on the Canadian Securities Exchange under the Company’s symbol “FONE”, in the United States on the OTCQX Best Market under the symbol “FLOOF” and on the Frankfurt Stock Exchange under the symbol “F11”.
The results for the second quarter of 2021 are preliminary and have been prepared by management solely for the purpose of providing a preliminary update to shareholders and remain subject to final review by the Company’s Audit Committee and approval by the Company’s Board of Directors.