Latest News Release and First Quarter BreakdownThis is my interpretation thus far....
Firstly, the release is the first quarter results. Which is the time spent between January and March of this year. The company did not have any revenue until they acquired a store 9 business days before the end of the quarter.
This means that in 9 days they made $159,000 of revenue. $18,000 per day, which they readjusted from revenue to income to approximately $5,666.67CAD profit per day.
And, they announced that they are doubling the square footage of that currently operational store in Red Deer from 980Sq.Ft. to 1,960Sq.Ft.. This store has a great location in downtown Red Deer too. Research the location on Google Maps 5111 49 St, Red Deer, AB T4N 1V6
Secondly, as I mentioned before, SOLO had 23 applications with the AGLC and they have narrowed it down to 12. This means they cancelled or, as they say in the press release, "offset by G&A costs (G&A = General and Administrative Costs), depreciation and terminated lease asset costs.
This is a great move as they strategically and systematically evaluated and chose which locations needed to be eliminated during the current production shortage and they saved cash by doing so.
Thirdly, is the confusing mentioning of IFRS 16 (International Financial Reporting Standard). This is an accounting regulation that forces companies like SOLO to be even MORE transparent with their assets and liabilities, especially as it relates to leasing. In the past lease financing could be put into the shadows by manipulative accounting calculations that could mislead investors (which is very deceitful and is used).
This is positive as SOLO, soon to be YSS, is letting major investors know it is a serious organization that is willing to strive for the long-term (20+ years) and be more open to investors.
Lastly, YSS, is aiming for sustainability for the next 3 years according to their plan to reduce costs and maximize their revenue by concentrating on (and I quote) "establishing the critical components to deliver an exceptional retail experience in store including understanding of customer demands, implementation of standardized procedures, investment in brand and retail design, creation of a robust product catalogue, as well as the development of staff training, development and sales tools. Investments in our customer’s experience align with the Company’s stated goal of becoming the trusted destination for cannabis in Canada and are expected to help drive customer loyalty, brand recognition and ultimately future business."
If you compare this statement to META (National Access Cannabis) , operating as NewLeaf and META Cannabis, the noticeable difference is that SOLO (YSS) is concentrating on developing fundamental retail operations and has a great concern for the customers' experience rather than just getting more people, more locations, and more product.
The first Edmonton store is expected to be inspected by AGLC in June, but I think this company is going to benefit from locations in smaller municipalities with optimal locations. Such as, Vegreville and Vermilion.
........
Now let's look at the numbers and consider everything as "all else equal".
(SOLO) YSS, currently Greentown in Red Deer, is only open 5 days a week. So, let's say from April 1st to May 31rd has 45 Operational Days (In Second Quarter).
They have had nearly 2 months of operation, which equates to approximately 45 days.
One could guess simply, the revenue just after this reported quarter can be estimated as:
($18,000 per day) X 45 Operational Days =$810,000.
This projection is truly not accurate, but it can help with understanding SOLO's current potential.