Goodness Growth Holdings, Inc. (CSE:GDNS) (OTCQX:GDNSF) reported financial results for its first quarter ended March 31, 2022.
First Quarter 2022 Financial Summary
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Total revenue in the first quarter was $15.6 million, an increase of 18.2% as compared to Q1 2021.
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Gross profit was $2.5 million, or 15.9% of revenue, as compared to gross profit of $5.6 million or 42.6% of revenue in Q1 last year.
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Total operating expenses in the first quarter were $10.2 million, a reduction of $0.2 million as compared to $10.4 million in the first quarter of 2021.
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Total other expenses were $8.5 million during Q1 2022, compared to other expense of $0.5 million in Q1 2021.
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Adjusted EBITDA was a loss of $2.6 million in Q1 2022, as compared to a loss of $1.8 million in Q1 2021.
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Net loss in Q1 2022 was $14.6 million, as compared a loss of $6.9 million in Q1 2021. The variance compared to the prior year was driven by the write-down of Arizona inventory to realizable value, the impairment of long-lived assets and increased interest expenses.
"Our first quarter results reflected continued growth across all of our markets besides Arizona, where we have been working through the loss of biomass related to weather impacts we've discussed previously," stated chairman and CEO, Kyle Kingsley, M.D. "The recent launch of flower sales in Minnesota's medical market is going exceptionally well for our Green Goods retail stores in the state, and we also expect the recent transition to adult-use sales in New Mexico to contribute to stronger sales growth throughout the remainder of this year. Our business will continue to benefit from these recent regulatory transitions in our markets, and we also believe it's possible that adult-use sales could begin in New York sometime during the second half of 2022."
As of March 31, 2022, the company had 128.11 million equity shares issued and outstanding on an as-converted basis, and 159.69 million shares outstanding on an as-converted, fully diluted basis.
As of March 31, 2022, total current assets were $38.8 million, including cash on hand of $8.6 million. Total current liabilities were $20.5 million.
Photo: Courtesy of Esteban Lopez on Unsplash
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