Debra BorchardtiAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQB: ITHUF) reported its unaudited financial results for the second quarter ending June 30, 2024. iAnthus reported revenue rose 11.1% to $43 million versus last year’s $38.7 million. It was a sequential increase of 3.5% from the first quarter.
The company also delivered a net loss of $9.8 million, or a net loss of less than $0.01 per share, compared to a net loss of $14.0 million, compared to a net loss of $20.1 million, or a net loss of $0.01 per share, in the same quarter in the prior year.
The company remains a going concern. At the end of the quarter, it had unrestricted cash of $16.5 million, which was higher than the $13.1 million at the end of 2023. However, the company still has an accumulated deficit of $1.3 billion and a working capital deficit of $67 million, although that improved from the working capital deficit of $79.9 million at the end of 2023.
Revenue breakdown
Digging into the revenue streams, sales in the eastern region were $32.4 million versus $24.8 million in 2023, which represents an increase of 30.4%. The company told investors that the main drivers for the increases were the launches of our adult-use programs in both Maryland and New Jersey. Further, retail revenues increased in Florida and New York from increased marketing and promotions offered in these markets during the quarter. However, the company said it was partially offset by lower revenues in Massachusetts, resulting from reduced production volumes of in-house products to be sold during the quarter.
Sales revenues in the western region fell to $10.6 million from $13.8 million for the second quarter of 2023, which represents a decrease of 23.2%. The decrease in revenues in the western region was attributable to lower wholesale revenues in Nevada, as well as a decrease in retail revenues in Arizona. That was attributed to higher discounts to improve customer retention.
Looking ahead, iAnthus told investors it can own and/or operate up to an additional five dispensary licenses and/or dispensary facilities in two states, plus an uncapped number of dispensary licenses in Florida, and up to 18 cultivation, manufacturing and/or processing facilities. The company also has the right to manufacture and distribute cannabis products in seven U.S. states, all subject to the necessary regulatory approvals.
