RE:RE:QuinlashPicker77 wrote: We have an my shop on every corner how do they do that and alot of the buildings are brand new I want to know how they do that when their not making money.???????
When you first start a business you will have expenses without sales / revenue. Sales and profits follow, over time, as the business gains more and more of a customer base and captures market share. Eventually the profit from sales exceeds the cost to operate and the company turns cash-flow positive. Money to operate (in the meantime) comes from the pocket of the business owner(s) or (in the case of publically traded companies) it comes from the sale of shares in the company.
Different types of companies have different kinds / levels of expenses. For example, a company that provides interior design consulting may have very little in terms of expenses. They might have an office, salaries for staff and some car allowances etc however the overhead (cost to operate) is limited. If we compare this to a company that is into manufacturing then the cost is much higher. Staffing levels will likely be high, the cost to purchase equipment will be high etc.
Companies with lower overhead have much less time to wait in order to turn profitable. Companies with high overhead take much longer. I believe Telsa took over 9 years to turn a profit (that number may be low).
For Canopy (and all Cannabis Companies / Growers) they have the initial cost to build or purchase their greenhouses, they need staff, and in most cases they also need to do Research and Development to bring new products to market (not all of which will be home-runs).
Canopy has been around now for apx 8 to 10 years. In that time they expanded the operation (incurred cost) to account for the US coming online but to also service overseas sales and expected sales in Canada. The US didn't come online within that timeframe so their decision to expand was premature and it resulted in them having to drop manufacturing facilities etc in order to reduce cost and re-focuse the operation on turning profitable.
Every three months the company produces a Quarter Report to show what progress they have made in terms of sales and also to report the expense side of the operation. The next report for Canopy Growth is to be released on Nov 9th, at that time ShareHolders will be able to review the numbers and decide for themselves if the progress reported is indeed going in the direction they wish to see.