Lotus Ventures Inc. (OTCPK:LTTSF) (CSE:J) released financial and operating results for the six months ended February 28, 2022.
First half financial results
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Revenue of $781,000 compared to the prior year's first half of $2.8 million. The company was completing a transition to full production of its recently announced Tranquil Elephantizer cannabis strain in preparation for an upcoming provincial launch.
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Gross margin before fair value changes in biological assets of 38% represents an efficient low-cost production model yielding premium quality cannabis flower consistently. This compares to a 51% gross margin in the prior year.
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Achieved a fifth consecutive quarter with positive EBITDA while earning $241 thousand during the first six months of the fiscal year.
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During the six months ended February 28, 2022, the company had net income of $241,420 (2021 - $10,421 net loss).
First half operating results
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The company completed its 80th consecutive harvest without a crop failure demonstrating a robust controlled environment agriculture facility prototype. The facility continues to provide reliability on a commercial scale yielding cannabis flower with high THC and terpene results for the consumer.
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The Tranquil Elephantizer strain is now in full production and is expected to be sold to wholesale partners in the Canadian market. From early laboratory tests, the Tranquil has yielded up to 26% THC and up to 3.3% terpenes. The company also has several additional exclusive strains in development expected to help diversify the genetic mix in the future.
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The company completed a first bulk cannabis shipment with two new licensed producers in Canada diversifying its wholesale partners.
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