RE:RE:Some charts on Canopy's Quarter Both good posts on the negative and positive numbers out of Q2. Although I do like the $118m in gross revenues and then subtract $32.7m write down in returns to get to the $85.6m in the net gross revenue, its the expenses related to cash burn that really hurts.
Their expenses related to sales and marketing, General and administrative, and then stock options, the company is a real mess and desperately needs to get these costs under control if they are to survive. They have $2.71b in cash and at the rate they are going, they have less than 2 years left to survive, which means they will need to be cash flow positive(profitable) by then.
if you look at their financials and go to Note 19 on page 22, you will see the breakdown of their revenue which everyone should look at. Their international medical of $18.1m is much better than their CDN at $14.1m which is a good sign and their other revenue of $$23.6m is also a good sign (most of that would be fron Storz & Bickel I presume). The gross revenue are good, its their freakin expenses that will burn them that need drastic cuts if they are to survive. They now have a total of $40.7m in allowances for returns which is also positive going forward.
Now imagine you are one of three possible candidates for the new CEO. You weren't going to make any decision until you saw their most recent financials to see what you were in for. Now, you see the fact that you need to come in and make drastic cuts to expenses (layoffs, get rid of some senior management, sell assets, no more acquisitions, no stock options, etc.). It's going to be a tough job and requires a very special person to take this mess on and turn this company around. Also, you may be CEO, but STZ will be making most of the big decisions. It's going to be very interesting who the new CEO and his/hers previous experience.