ResultsAfter looking through the 2021 financials, here are some of my takeaways:
- core dispensaries (Port City/Stockton, Sacramento & Redding) are the only profitable things we have going, and they are even showing declining revenues
- Portland (aquired from Ventura) and Palm Springs are duds, likely extremely unprofitable (though management no longer discusses individual dispensaries specifically, which pisses me off)
- all the dispensaries, when taken together, are borderline unprofitable as a whole and certainly not enough to float the rest of the cash-sucking company (i.e. cultivation and corporate)
- who cares if overall dispensary revenue is up yoy? we added 2 dispensaries during that period, it had better be up - even worse it DECLINED yoy for Q4, with the extra 2 dispensaries running
- the drop in overall revenue from Q3 - Q4 is shocking, I anticipated a dip for seasonality, but nothing like this (17%!!!)
- impairment costs show that something we bought (they wouldn't name it specifically but looks like Palm Springs?) turned out to be worth much less than what we paid
- we barely sell any of what we cultivate to anyone else (which may be intentional and expected)
- taxes are a huge problem (kudos to Sampic for pointing this out repeatedly - I did not realize it was as big an issue as it is)
I'm sure I've missed a lot in there, so if anyone has any corrections or additions, I'm open to feedback. Here are some questions I have:
- We have $9 million dollars, how long will that last us?
- Did anyone else find management's 'analysis' to be completely lacking? It's easy to rattle off numbers comparing quarters, but where is the plan for the future?
- How much money are we committed to spending to finish the cultivation projects in Sacramento, Monterey and Massachusetts?
- Why the hell are we even in Massachusetts in the first place?
- How long can we defer those taxes? Are we going to be out $5 million cash in Q1 to play catch-up on that?
Overall, in my opinion, management needs to come out and provide some more guidance and explanation to what is going on here. I'm not optimistic.
Since I messed up pegging this release date, anyone know when Q1 comes out?