from Lotus Ventures, Inc. (NASDAQ:LTTSF)
Lotus Announces Fiscal Year Results
VANCOUVER, BC / ACCESSWIRE / November 1, 2023 / Lotus Ventures Inc. (CSE:J)(OTC:LTTSF) ("Lotus" or the "Company") a B.C. based licensed cannabis producer and owner of the Lotus Cannabis Co.™ brand, announced the unaudited financial and operating results for the twelve months ended August 31, 2023.
On a high note, the Company experienced a 46% increase in sales quarter over quarter and an 18% increase in sales year over year due to the continued support for our Keylime Kush flower and pre-rolls. Lotus launched its own branded Keylime Kush in January 2023 which quickly established itself as a premium offering at over 300 retail stores across British Columbia and Ontario. A timeline of sales and marketing milestones achieved during the fiscal year is listed below.
FISCAL YEAR 2023 SALES AND MARKETING MILESTONES
- The Company reported $1,998,244 in revenue and a net loss of $1,872,566 during the twelve months ended August 31, 2023. The Company also reported $751,743 in Q4 revenue compared to $512,726 in Q3 and expects the sales momentum to continue.
- On January 23, 2023, the Company launched the Lotus branded Keylime Kush flower which continues to be sold in B.C. and Ontario.
- On February 10, 2023, Lotus launched the Keylime Kush in a 3 x 0.5 gram pre-roll format in B.C.
- On March 10, 2023, Lotus announced the approval of the 14 gram Keylime Kush flower SKU in B.C. The 14 gram offering was subsequently launched on April 20, 2023.
- On April 11, 2023, Lotus announced the launch of its 3.5 gram Lotus branded Keylime Kush in the province of Ontario.
- On April 20, 2023, Lotus announced it placed in Third in the ARCannabis Cup for the Best Flower Producer out of 128 participating licensed producers and brands in Canada.
Q4 OPERATING OVERVIEW
- Production continued steady with the Company producing approximately 500,000 grams during the quarter and 2,000,000 grams during the year. Production has consisted of primarily the Keylime Kush as the Company continues selling in B.C. and Ontario; however, the Company expects to continuously add new strains to its production mix.
- During Q4, the cost of sales recognized was representative of approximately 455,000 grams of cannabis. Over the twelve-month period ended August 31, 2023, cost of sales recognized was representative of approximately 1,808,000 grams.
- The Company completed the initial harvests of its subsequent strain which is expected to have a pre-arranged wholesale purchaser.
- During Q4, the Company completed the application process and was subsequently certified by the IQC to sell its flower into the Israeli medical market via wholesale partners.
SUMMARY OF QUARTERLY RESULTS
The financial results of the Company for the eight most recent quarters are summarized below:
Description | Three months ended Aug 31, 2023 | Three months ended May 31, 2023 | Three months ended Feb 28, 2023 | Three months ended Nov 30, 2022 | ||||||||||||
Revenues | $ | 751,743 | $ | 512,726 | $ | 589,172 | $ | 144,603 | ||||||||
Net income (loss) | $ | (635,594 | ) | $ | (340,735 | ) | $ | (131,135 | ) | $ | (765,102 | ) | ||||
Income (loss) per share, basic and diluted | $ | (0.01 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||
EBITDA | $ | (567,135 | ) | $ | (82,635 | ) | $ | 129,041 | $ | (505,832 | ) | |||||
Total assets | $ | 13,894,615 | $ | 13,828,742 | $ | 13,959,942 | $ | 13,564,565 | ||||||||
Total long-term liabilities | $Nil | $Nil | $Nil | $Nil | ||||||||||||
Cash dividends / share | $Nil | $Nil | $Nil | $Nil | ||||||||||||
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 | ||||||||||||
During the twelve months ended August 31, 2023, the Company recognized a net loss of $1,872,566, compared net loss of $4,950,683 for the twelve months ended August 31, 2022.
Net loss for the twelve months ended August 31, 2023, decreased by $2,920,193 as a result of an increase in sales, gross margin, and no impairment of inventory in the current period as compared to the prior comparative period.
Significant items making up the change for the twelve months ended August 31, 2023, as compared to the year ended August 31, 2022, were as follows:
- Loss for impairment of inventory decreased by $1,437,000 due to no impairment in the current period.
- Gross margin increased by $466,564 due to increased sales price for retail sales during the current period.
- Property tax increased by $50,193 due to a general increase in property taxes and interest and penalties on late payment of property tax in the current period.
For more information regarding the fiscal year financial statements please visit sedarplus.ca.
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 B.C. based, award-winning licensed cannabis producer and the owner of the Lotus Cannabis Co.™ consumer brand. Lotus grows exclusive and rare strains like the Keylime Kush which is carried in over 300 retail stores across B.C. and Ontario.
Lotus Ventures Inc. is listed on the Canadian Securities Exchange (CSE:J) and on the OTC Markets (OTC:LTTSF).
For More Information:
President & CEO
Dale McClanaghan
dalemcclanaghan@gmail.com
(604)-644-9844
Investor Relations
Daniel McRobert
investors@lotuscannabis.ca
(604)-842-4625
To learn more, visit lotuscannabis.ca and follow the Lotus Cannabis Co.™ brand on social.
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.
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