Medipharm Labs Corp T.LABS

Nextleaf profitable moving into 2021.

[DonRudy]

Nextleaf showing profitability in cannabis extraction within their first year of operations, substantiating their claims of being a low cost supplier of distillate. 

https://www.linkedin.com/posts/paulepedersen_cannabis-cbd-activity-6750500333539213312-5E7I

[lscfa]

Nextleaf "in the black" for how long?   MediPharm and Valens were in the black too for awhile but business dried up. I bet Nextleaf experiences the same damn thing.        

[DonRudy]

@iscfa for how long we shall see. For Nextleafs first year in operation with the wholesale pricing for distillate where it is, I'd say they proved the low cost extraction method they have been claiming since day 1. valens and Labs were profitable when distallite pricing wasn't compressed by 60%. For Nextleaf to be profitable in todays environment is promising moving into 2021. Props

[lscfa]

I think Nextleaf got into the black by doing a lot of volume in a short time. The volume can from compressing the volume of 1 year contracts into a 1 or 2 month time frame, which is not sustainable.  Co. is pumping to get the stock price up.   

[lscfa]

p.s. what the hell does "in the black" even mean? Maybe the gross margin was finally positive. What about operating income? ebitda? Net income?   

[DonRudy]

We will have to wait for financials to determine operating income, ebitda and net income.  I mentioned Nextleaf being in the black as you were claiming Nextleaf needed to roll back shares. 

[DonRudy]

Regardless of how you think they processed their distillate and when. The fact is Nextleaf became profitable in today's market of sales compression. When a leading supplier like labs had to pivot their business model as they didn't see extraction as a viable business.  announcing being profitable to shareholders is not pumping to get the stock price up. It's announcing a major

[lscfa]

"In the black" is BS.  Some (most?) of Nextleaf's contracts are structured so it is paid with a share of the oil it produces, which it then has to sell into the market to get generate cash. If they are booking revenue at the time they are accepting their share of oil and not when it is sold into the market, my hunch is they will have an inventory writedown just like Valens and

[DonRudy]

Nextleaf is a different extraction process than labs and valens which is why they're profitable in today's market.  Being a step later in the game than labs and valens is an advantage as a company can learn from their mistakes. Structuring their contracts to split the final product is what will cause write downs to not take place.  The 100kg of CBD oils is a contract for