Delta 9 Cannabis Inc. T.DN

Blindside

[Deltauser]

So was anyone else caught completely off guard by our dramatic loss from the status of profitability?

I mean really, I didn't see this coming. How were they able to have such a massive drop in per gram costs, yet go from a profitable company to a money losing venture?

Unexpected to say the least, and I'm not sure what could help them next quarter to return to profitability if they were unable to do so with such a low cost/gram..

HUGE let down.

You owe me an apology Delta 9 :(

I'm also wondering if the write down products are going to be available for a discount, asking for a friend....

[gnote1]

This is an explanation they gave for the Loss in the the discussion MD&A. Management would also note that gross profitability in the Company’s wholesale cannabis segment was negatively impacted during the three-month period ending September 30, 2020 due to a one-time sale of aging bulk cannabis inventory at a sales price per gram which is below inventory cost, resulting in a gross profit

[Deltauser]

Thanks for the added colour, but if I'm reading this correctly they are saying that a one-time loss of 207k is 'contributing' to a loss of 2 million.  That's like blaming a heart attack in a 500 lb man on high humidity....

[johnabo]

From my read they are saying that about $207,000 and $2,050,000 are from a single transaction at a loss between gross profit and biological asset adjustment. Beyond that the gross profit was squeezed by lower selling prices but that should be improved next quarter by the decrease in production cost to $0.74.  Otherwise higher costs mostly due to Covid but Im not seeing anything here that is

[Alioops15]

I know how you feel I bought more thinking it would go up tomorrow.  The guildance which came out 13 days ago makes no mention of an over supply of cannabis needing to be sold before it spoils.  Disappointing indeed.

[LiveStreamss]

This post has been removed in accordance with Community Policy

[Debentures]

This is a crop after-all. I don't have an issue with an inventory write-off - we had old product and we decided it would be in our best interest to free up shelf space for fresh product. It's a non-cash paper write-off. Obviously, like all of your it wasn't exactly expect, but I understand the logic of doing it now. If they didn't write-off product it would of led to a bigger write

[Warrant]

Both are pretty good money makers! Higher revenue in retail but great margins on wholesale this quarter. I agree this is just a bump in the road and possibly an opportunity to pick up some cheap shares if we see a pullback...doubt we will though...market sentiment has been positive since MSO's have been reporting some solid numbers. Delta 9 will too in the next few Q's!! I think we could

[StuffMonger]

How can there be "old" product if on the bottle it says no expiration date determined??

[Debentures]

Do cucumbers have an expire date posted on them?

[golfyeti]

Too funny Debentures. Stuffmunger's line of questioning still has merit in my opinion though.  I can pull out of storage stuff I harvested two years ago and it will still blow the top of your head off today. I wouldn't mind getting a better explanation / guidance on the typical shelf life guideline they go by.  How it is stored, how do they go about to determine "

[Debentures]

Feel free to reach out to IR and ask. Please share with the group. 

[StuffMonger]

You can obviously see a cucumber going bad, how can you tell when weed goes bad though? Serious question because I thought if it was stored properly the shelf life was indefinite 

[DeltaJeff]

Could this be a compliance issue? Shelf life determined by a Health Canada/ Canada Food Inspection Agency (CFIA) limit as part of a licence contract? If this is true then FIFO (First In, First Out) would apply to always be rotating your completed on-hand ready-for-retail supplies. If there was an issue in the processing/packaging that MIGHT create a question of storage integrity then strength of

[gnote1]

I dont think John said that the cannabis was going bad.  Maybe they wanted to make room for high potent product that make for more greater revenues instead of shelving/storing the cheap stuff.  Taking up space. Apple Fritter now out of stock in Ontario- OCS.  

[DirtyCadillac69]

What was the strain? maybe it was one that was less popular??? Maybe the potency was so low it was not fifnacially worth running through an extraction process? Maybe it was CBD??? Maybe it just tasted like a skunks a$$???? If the product didnt match the quality standards that are now held by the company it would make sense to sell at a discount and still see some funds return for the investment