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48North Cannabis Corp. NCNNF



GREY:NCNNF - Post by User

Comment by ipanemaon May 28, 2019 3:19pm
75 Views
Post# 29779245

RE:RE:RE:RE:RE:RE:RE:RE:Bottom

RE:RE:RE:RE:RE:RE:RE:RE:Bottom One has to be cautious looking at their inventory for 2 reasons. Firstly no weights or volumes are provided and secondly with Fair Value Adjustments managment can determine how much cost they want to put into inventory. It's only at year end when the auditor looks at it that sometimes large hits to cost of sales occur! Secondly, in the 9 months, for example, $4,347,652 of sales were made and the costs attached thereto are $723,842, under inventory expensed, plus $2,195,133 under Realized Fair Value Adjustement on Inventory Sold, leaving only $1,428,677 or a 33% gross margin on revenues of sold product. Dried and drying Cannabis of $2,370,877 at December 31, could using the same % turn into $3,5m of revenues. In conclusion I would encourage analysts to look not just at the revenue line but also to the margins. Also ask management to provide information on weights etc. GLTA
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