Yep, just about a $5 million lossWords cannot capture how big this hit is.
Combine this with no doubt further cash burn, the debt structure, and the gst liability, shareholders, you are screwed. Completely.
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. 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: • Gross margin before fair value adjustments decreased by $838,566 as a result of the decrease in sales and impairment of inventory. • Impairment of $1,437,000 in harvested cannabis inventory recognized due to the capitalized costs exceeding the estimated net realizable value of that inventory in the three months ended August 31, 2022. • Loss for changes in fair market value of biological assets increased by $2,455,985 due to decline in the market prices. • Bank fees and interest increased by $122,597 as a result of increase in interest on outstanding loans received.