Debra BorchardtiAnthus Capital Holdings Inc. (CSE: IAN) (OTCQB: ITHUF) reported earnings for the fourth quarter and year ending Dec. 31, 2023.
In the fourth quarter, revenue fell 4.7% sequentially to $40.9 million, but increased 8.8% over the previous year. iAnthus delivered a net loss of $18.7 million for a net loss of less than $0.01 per share. This was slightly lower than the net loss of $19.2 million in the third quarter and much improved over last year’s net loss of $43.7 million for the same period.
Full-year Results
iAnthus reported revenue fell by 2.4% to $159.2 million for 2023 from 2022. The company also delivered a net loss of $76.6 million, or a net loss of $0.01 per share, compared to a net loss of $449.4 million or $0.13 per share in the prior year.
iAnthus said in its annual report that it expects to continue to have positive cash flows from operations in 2024. However, the company continues to report as a going concern. While revenue continues to flow into the company, losses also keep piling on. The company has an accumulated deficit of $1.3 billion.
iAnthus said that in January 2024, New York State approved the company’s application for an adult-use license for its medical marijuana dispensary Citiva. However, Citiva has not paid the licensing fees necessary to begin adult-use operations.
Asset sales
Kicking off 2024, iAnthus managed to sell its Nevada and Massachusetts assets.
On Feb. 9, its wholly-owned subsidiary, Mayflower sold its assets associated with its Holliston, Massachusetts cultivation and product manufacturing facility for $3.0 million. The company said that it would be paid with $1 million in cash at closing and the remaining $2 million to be paid in equal monthly installments over 36 months with interest accruing at 7% per annum under a promissory note.
On Feb. 23, the company’s wholly-owned subsidiary, GMNV sold its assets to an “NV Buyer”. GMNV currently operates a co-located medical and adult-use cultivation and production facility in North Las Vegas, Nevada, and an adult-use dispensary in Las Vegas, Nevada, and holds two conditional adult-use dispensary licenses to be located in Henderson and Reno, Nevada. The aggregate proceeds to be received from the sale are $6.5 million.
Bridge note extensions
Also in February, the company amended its senior secured bridge notes originally issued by INJ on February 2, 2021, that had a principal amount of $11 million and a maturity date of Feb. 2, 2024. The maturity date was extended from Feb. 16, 2024, to Feb. 16, 2026 and the interest rate of the Senior Secured Bridge Notes remains at 12% per annum, but interest accruing after Feb. 16, 2024 will be payable in quarterly cash payments.
In addition, the NJ Amendment provided for an amendment fee equal to 10% of the principal amount of the Senior Secured Bridge Notes as of the date of the NJ Amendment, which was paid in stock. The NJ Amendment now has a principal amount outstanding of approximately $15.8 million. The company also agreed to use 25% of Non-Operational Cash Receipts over $5.0 million to make payments towards the principal amount outstanding under the Senior Secured Bridge Notes, without penalty.
