Lifeist Wellness Inc V.LFST

RE:RE:RE:RE:Financials are out

[BuyLowKeepLong]

They grew their inventory to 2.6M and they have to include it in COGS even if it's not sold items yet.
All good for me.

All inventory consists of finished goods. The cost of inventory recognized as an expense and included in cost of goods sold...

The Company’s cost of sales for the three months ending May 31, 2017 were $2,632,202 (2016 – $889,422), which resulted in a gross profit of $532,030 (2016 – $384,838). As a percentage of sales the gross margin was 16.8% compared to 47.9% in the comparable quarter in the year before. Gross profits increased 50.6% as compared to the three months ending May 31, 2016. The variation in gross margin between quarters is explained by the difference in timing of booking of purchase orders and the difference in margins achieved by the various operations. For the nine months the gross margin achieved was 28.5% which is more indicative of the gross margin achievable by the Company. The gross margin generated by the Company is due to the mark-up of products sold to retail customers compared to the cost of securing the products from wholesale distributors and manufactures. In addition are costs related to freight to and between warehouses. Management expects that the gross margin will improve as VaporSeller and URT1 migrate to the Linnworks platform for purchasing and inventory management and the product-mix of URT1 includes higher margin glassware. In addition the gross margin achieved by Australian Vaporizers is higher than the average group margin.