EVE...a review of Key Info from Q1 FinancialsQ2 financials are due before the end of the month.
So, it's a good time to review Q1 so we might better compare when Q2 is released.
March 31, 2020
Average sales price/gm = $1.64
Dried Inventory $7,843,342 / $1.64 = 4,782,525 gms = 4,782.5 kgs.
Cost to produce dried inventory = $5,690,067 = $1.19 per gm.
Sales Q1 = $375,189 divided by $1.64/gm = 228,773 gms = 228.7kgs
Net Loss Q1 = $1,779,805
Since Q1, we have heard that about 30% of the new flowering room [room 3] has been set up growing MJ. Total capacity of room 3 is 272,000 plants.
So, 272,000 x 30 percent = 81,600 plants.
In Q1, yield per plant was 37.14 gms, so we might expect 81,600 plants times 37.14 gms = 3,030,624 gms or 3,030 kgs of new inventory if there was one complete harvest equivilent by June 30, 2020 since there was about 4 months growing time in room 3 from license approval.
Q2 dried inventory should be in the range of 4,728.5 kgs [end of Q1] plus 3,030 kgs [estimated Q2 yield] = 7,758.5 kgs...LESS the quantity sold in Q2.
Big Questions to look for in Q2 results...
1. Did Room 3 perform as might be expected?
2. Were Q2 sales any better than Q1?
3. Does Q2 have a comparable loss?
4. Will there be an inventory writedown due to Q1 inventory aging and/or
Room 3 issues and/or ???
5. What is cash availability if losses continue?
6. When will increased revenue from announced prospects occur?