Nextleaf loses C$1 million in most recent quarter, despite growing revenue

Canadian cannabis processing firm Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) reported a net loss of C$1 million for its second fiscal quarter, which ended March 31, despite growing revenue year-over-year by 57% to C$4.6 million.

The British Columbia-based company blamed the loss on “a non-cash charge related to a Share-Based Compensation expense,” according to a press release. The company then focused optimistically on its revenue growth and expansion plans across Canadian provinces.

“We have been diligently focused on executing our commercialization road map and product pipeline throughout this past quarter. We’ve made strategic investments into building up our inventory to strengthen our position, boost commercialization efforts, and expand territory sales,” interim CEO Emma Andrews said in the release.

Losses for the fiscal year are only at C$879,000 due to income in the first quarter, however, and revenue for the first six months of Nextleaf’s fiscal year reached C$8.7 million, the company reported. That’s more than twice the revenue for the same time period a year ago.

Nextleaf cited the launch of nine new product lines in the most recent quarter, including a new line of infused cannabis pre-rolls in Alberta, British Columbia, and Ontario, as evidence of its forward progress. It also debuted a new line of softgel edibles, vape cartridges, and oil drops, and reported product category sales growth for its softgels of 21% and vape cartridges of 32%.

Nextleaf also reported contracting for a new wholesale shipment of vaporizer cartridges to a white label cannabis brand customer, suggesting a possible new revenue stream.

In a revised forecast, Nextleaf said it plans on prioritizing brand building, expansion of its distribution channels, product development, increasing inventory, improving operational efficiencies, and expanding its client base for wholesale sales, contract manufacturing, and white labeling.

At the end of March, Nextleaf had C$9.6 million in total assets, including C$831,571 in cash, against C$5.1 million in total liabilities.