OTCPK:NCNNF - Post by User
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ILIKETAon Oct 16, 2019 8:11am
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Post# 30235126
Companies count newly produced cannabis products as revenue
Companies count newly produced cannabis products as revenue
So I think this means that the autoflower portion (estimated at about 1/10th of the outdoor harvest), which was harvested in Sept can be counted as revenue as part of this first quarter, which I believe comes out at the end of November 2019.
The rest of the outdoor harvest can be counted as revenue at the end of Feb 2020.
Cannabis Summary for Oct. 15, 2019
2019-10-15 21:36 ET - Market Summary
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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index rose 12.52 points to 452.36 Tuesday, lifted by positive results from Aphria Inc. (APHA). Aphria jumped 96 cents to $7.17 on 13.3 million shares after reporting its second straight profitable quarter. The company earned $16.4-million in the fiscal first quarter (ended Aug. 31, 2019), up from earnings of $15.8-million in fiscal Q4. Aphria's $16.4-million profit from this quarter is largely the result of fair value adjustments. (Under accounting rules, fair value adjustments for cannabis companies count newly produced marijuana/cannabis products as revenue (before it is even sold), minus production expenses.) The company had a net gain of $17.8-million on these fair value adjustments in fiscal Q1.
Aphria's total revenue of $126.1-million in fiscal Q1 was slightly down from the $128.6-million that it recorded in the previous quarter, and below analyst expectations of $130.6-million. The decrease is the result of a small decline in revenue from Aphria's German distribution business, CC Pharma. That decline was partially offset by increased net revenue on cannabis sales, which reached $30.8-million in Q1, up from $28.6-million. It could have been a more significant increase, but Aphria lost an estimated $1.5-million of cannabis sales as a result of a fire at its Broken Coast facility on Vancouver Island. While Aphria's cannabis sales were up, so were its costs to produce that cannabis; Aphria spent $1.43 per gram in fiscal Q1, compared with $1.35 in the quarter before.
[url=https://www.stockwatch.com/News/Item.aspx?bid=Z-C:*MKTPOT-2819851&symbol=*MKTPOT®ion=C]https://www.stockwatch.com/News/Item.aspx?bid=Z-C:*MKTPOT-2819851&symbol=*MKTPOT®ion=C[/url]