2022-08-02 16:41 ET - News Release
AUDACIOUS REPORTS UNAUDITED FISCAL 2022 RESULTS
Australis Capital Inc. has released its unaudited results for its fiscal year ended March 31, 2022. The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), expressed in Canadian dollars ($CAD). The Company's independent auditors are auditing these statements, and the Company anticipates filing audited statement within the next 30 days. The Company's unaudited financial statements can be accessed at https://ausa-corp.com/investor-information/financials/
Fiscal Year 2022 Financial Highlights (April 1, 2021, to March 31, 2022)
- Revenues increased by over 1,200% to nearly $9.5 million, driven predominantly by a full year of ALPS revenue consolidated (51% of ALPS acquired on March 8, 2021), as well as growth in the ALPS business throughout the year, along with management fee income starting in Fiscal '22 related to the Green Therapeutics ("GT") business.
- Gross margins turned positive at nearly $5.9 million, due predominantly to results at ALPS, along with the GT-related management fee income.
- Operating loss increased 38% to $19.4 million due to higher personnel and administrative costs related to the ALPS business, as well as investments in new product lines and initiatives related to expansion into other states.
- The Company raised $5.8 million in equity and debt financings during FY 2022.
- Total Assets stood at $63.3 million at the end of FY 2022, down from $82.4 million at the end of FY 2021, due to the sale and drop in value of the marketable securities owned (totally sold as of FY 2022) and the sale of land.
- Total Liabilities increased 12% to $17.7 million.
- Total Equity stood at $45.6 million as at March 31, 2022.
Operational highlights & Management Commentary
During the year ended March 31, 2022, the Company made significant progress through its expansion into multiple states, as well as internationally. The Company focused on driving sales in its core business (ALPS & GT), as well as launched new brands and product lines (LOOS, Mr. Natural, and Wreck Relief).
During the year under review, AUDACIOUS successfully entered into partnerships in Thailand (Green Triangle Holdings) and New York State (First Americans LLC, Hempire Inc.). Consequently, the Company is now present in New York with two projects, both aimed at the adult use market, that are able to operationalize and start selling well in advance of the introduction of general regulations and licensing, due to exemptions granted to licensed operations on first nations land and those related to hemp licensees. Furthermore, AUDACIOUS successfully applied for licenses in New Jersey.
Consequently, the Company is well positioned to drive further growth in Fiscal 2023.
Terry Booth, CEO, commented, "We have been able to develop a number of unique assets, from our award-winning GT brands, though our unique LOOS, Mr. Natural and Wreck Relief product lines, as well as our early mover initiatives in Thailand (revenue generating) and New York State. With our recently granted provisional license in New Jersey, where we are progressing towards conversion into a full adult use license, we believe we have assembled a portfolio of assets, the value of which is well in excess of what the market currently values us at. With our recently announced credit line and further capitalization initiatives under way, we believe AUDACIOUS is positioned exceptionally well to benefit from the strong anticipated growth on the U.S. East Coast, as well as internationally."
Subsequent Events since March 31, 2022
Thailand
- The Company announced considerable progress at its partnership in Thailand with Golden Triangle Holdings ("GTH"). Following the successful harvest of a trial crop, GTH has now commenced cultivation at commercial scale. Furthermore, the Company announced it had secured major distribution channels in the region, including 7eleven Pharmacies, Loxley, King Power International and others. The Company's first cannabis clinic in Thailand, Herbidus, has proven to be a hit with many hundreds of visitors monthly.
- In April the Company issued 17,369,317 shares in Australis for the initial investment, in a swap for 3,600,000 shares in GTH.
- In July the Company issued 38,878,435 shares in Australis for the second and final tranche to GTH.
New Jersey
- The Company announced it had received a provisional license in New Jersey for the cultivation, processing, and manufacturing of cannabis products. The Company is progressing towards meeting the requirements for conversion into a full adult use license.
New York
- AUDACIOUS announced a partnership with Hempire, recipient of an adult use cultivation license.
- The Company, through its partnership with First Americans LLC of the Saint Regis Mohawk tribe, was able to secure commence preparations for operations on the territory. The Company's planned dispensary is currently being constructed (immediately opposite the casino resort with 2.4MM visitors annually), while groundwork for cultivation has commenced.
- Hempire: licensee through the NYS hemp program for cultivation, manufacturing, and distribution into the adult use market in New York State. Land secured, first outdoor planting to happen shortly.
- The Company also announced it is working with Bertha Lewis and The Black Institute on its social equity initiatives in New York.
Mr. Natural
- The Company launched its first product in Nevada under the Mr. Naturals brand: Full Spectrum Hash RSO. The powerful medicinal oil - rich in major and minor medicinal cannabinoids including THC, CBD, and CBN - is known for its therapeutic benefits and potential to provide relief for people suffering from post-traumatic stress disorder (PTSD), chronic illness and pain.
Credit Facility
- AUDACIOUS secured a $2.5 million credit facility from Lola Ventures, an entity controlled by CEO Terry Booth. Funds will go towards general working capital purposes, as well as growth initiatives.
Board
- On July 5, 2022, the Company announced the election of Jill Swainson, former Chief Legal Officer at Aurora Cannabis, to the board, who replaced Avi Geller, who resigned for personal reasons.
ausa table 1
AUSTRALIS CAPITAL Balance Sheet Summary (Unaudited): Fiscal Year Ended CAD$ March 31, 2022March 31, 2021 Assets Cash 727,694 3,531,357 Accounts Receivable 4,442,198 1,696,656 Inventory 626,673 473,185 Other Current Assets 1,496,505 1,186,013 Marketable Securities 12,803,638 Land Held for Sale 4,151,551 Current Assets 7,293,070 23,842,400 Fixed Assets 6,421,514 2,525,852 Intangibles & Goodwill 33,838,855 29,285,257 Derivative Financial Instrument - 7,320,630 Other Non-Current Assets 15,768,552 19,480,840 Total Assets 56,028,921 58,612,579 Liabilities Accounts Payable 10,169,211 5,915,674 Other Current Liabilities 464,120 1,506,722 Current Liabilities 10,633,331 7,422,396 Contingent Consideration 1,249,600 3,698,980 Loans & Leases 2,447,856 1,433,306 Deferred Taxes 3,396,145 3,205,244 Total Liabilities 17,726,932 15,759,926 Shareholders Equity Attributable to Company 26,207,399 61,301,176 Non-Controlling Interest 19,387,660 5,393,877 Total Equity 45,595,059 66,695,053 Total Liabilities & Equity 63,321,991 82,454,979 AUSTRALIS CAPITALIncome Statement Summary (Unaudited): Fiscal Year Ended CAD$ March 31, 2022 March 31, 2021 Revenues 9,474,528 717,151 Cost of Sales 3,605,300 920,042 Gross Profit 5,869,228 (202,891) Depreciation and amortization 1,702,956 595,886 Selling, general and administrative 12,025,864 5,947,983 Share-based payments 4,836,273 1,390,158 Wages and benefits 6,686,250 5,898,508 Loss from Operations (19,382,115) (14,035,426) Other Income (expense) net (31,782,679) (11,502,039) Tax recovery (expense) (309,615) 78,154 Other Comprehensive Income (expense) (12,468) (293,939) Net Loss (51,486,877) (25,753,250) Attributable to Company (50,101,460) (25,554,829) Non-Controlling Interest (1,385,417) (198,421) Net Loss per Share Attributable to Company (0.20) (0.14) Weighted Average Shares Outstanding 247,486,896 177,116,372 AUSTRALIS CAPITALCash Flow Summary (Unaudited): Fiscal Year Ended CAD$ March 31, 2022 March 31, 2021 Cash Provided (Used) in Operations (14,168,117) (9,465,836) Cash Provided (Used) in Investment Operations 5,156,445 (2,915,233) Cash Provided (Used) in Financing Activities 5,756,469 (304,971) Foreign Exchange Effect 451,540 (115,103) Decrease in Cash (2,803,663) (12,801,143) Cash, Beginning 3,531,357 16,332,500 Cash, Ending 727,694 3,531,357