Reports Fiscal Full Year 2021 Financial Results BOCA RATON, Fla., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Stem Holdings, Inc. (OTCQX: STMH) (CSE: STEM) (the “Company” or “Stem”), a vertically integrated cannabis operator, today reported its financial results for the fiscal year ended September 30, 2021. All amounts are expressed in U.S. dollars unless indicated otherwise and are prepared under International Financial Reporting Standards (“IFRS”). Management will host a conference call to discuss its financial results today, January 13th at 4:30 p.m. ET.
Steve Hubbard, Interim CEO of Stem, commented, “In December 2021, we announced the divestiture of Driven Deliveries, its assets and liabilities. This divesture allows us to ‘Get back to our roots’. Currently, our initiative is focused on our operations in Oregon and California. Oregon, where we are vertically integrated with five retail locations, we see a considerable growth opportunity as two of our stores are under-performing and the other three locations can incrementally increase sales. In our multiple cultivation facilities, we have significant upside to improve yields, while at the same time, bring the quality of our flower back to the level of top shelf that our customers expect. As we increase productivity and harvest new high-quality, high demand, strains, we expect to increase distribution through both our retail and wholesale channels. TJ’s Gardens and Yerba Buena will continue to be our leading consumer product flower brands, while Cannavore, Doseology and Artifact Extracts are our primary edibles and extracts brands.”
Financial Results for the Fiscal Full Year 2021:
Revenue for the fiscal year 2021 totaled $41.8 million, an increase of 155% as compared to $16.4 million for the same period the year prior. The Company’s revenue for the fiscal year of 2021 net of Driven’s portion totaled $24.4 million, which is an increase of 49% from prior year. Net revenue after discounts and returns totaled $35.8 million, an increase of 156% as compared to $14.0 million for the same period the year prior. The Company’s net revenue after discounts and returns net of Driven portion totaled $20.9 million, an increase of 49% for the same period the year prior.
During fiscal year-end 2021, the Company reported impairment expenses totaling $52.5 million, predominately related to the intangible assets and a related party receivable of Driven Deliveries, Inc., which the Company recently divested of.
Adjusted EBITDA loss for the fiscal year 2021 totaled $5.8 million as compared to $5.4 million in the prior year period.
Net loss for the fiscal year 2021 totaled $64.6 million, predominately attributable to a $52.5 million impairment charge related to Driven Deliveries.
About Stem Holdings, Inc.
Stem is a multi-state, vertically integrated, cannabis company that, through its subsidiaries and its investments, is engaged in the manufacture, possession, use, sale, distribution or branding of cannabis and/or holds licenses in the adult use and/or medical cannabis marketplace in the states of Oregon, Nevada, California, and Massachusetts. Stem has ownership interests in 29 state issued cannabis licenses including nine (9) licenses for cannabis cultivation, three (3) licenses for cannabis processing, two (2) licenses for cannabis wholesale distribution, three (3) licenses for hemp production, five (5) adult-use medical retailers (non-storefront) which were subsequently divested and seven (7) cannabis dispensary licenses.
https://stemholdings.com/
https://www.globenewswire.com/news-release/2022/01/13/2366911/0/en/Stem-Holdings-Reports-Fiscal-Full-Year-2021-Financial-Results.html