Vertically integrated cannabis dispensary franchisor and operator Item 9 Labs Corp. (OTCQX:INLB) reported its operating and financial results Tuesday for the 12 months ended Sept. 30, 2021.
Andrew Bowden, the company's CEO, said that Item 9 has "never been in a better position."
"With Arizona's adult-use sales going live in January 2021, our products and brand have been gaining tremendous traction," Bowden added. "We have grown to $2 million in revenue per month and solidified our spot in Arizona as one of the top brands in every dispensary we sell through, which is more than 50% of Arizona's dispensaries."
Key Financial Highlights For 2021 Fiscal Year
- Revenue increased 170% year-over-year to $21.9 million.
- Gross profit increased 161% year-over-year to $8.6 million.
- The gross margin remained flat at approximately 40%.
- Operating loss amounted to $5.6 million compared with an operating loss of $5.4 million in the 2020 fiscal year.
- Operating expenses as a percentage of revenue declined to 65%, from 107% in the prior year.
- Net loss totaled $10.9 million compared with a net loss of $12.3 million.
- Net loss included $5.3 million ($700,000 cash) of interest expense compared with $7.0 million ($450,000 cash) in fiscal 2020.
- Adjusted EBITDA was a loss of $1.7 million, compared with an adjusted EBITDA loss of $2.5 million in the prior year's period.
Key Business Highlights During $ Subsequent To 2021 Fiscal Year
- Won seven first-place awards for product excellence in 2021.
- Secured a $19 million construction-financing Loan from Pelorus Equity Group for expansion of cultivation and lab sites in Arizona and Nevada.
- Undertook asset purchase agreement for a Colorado-based dispensary.
- Expanded footprint of Unity Rd. dispensary franchise into New England.
- Signed first Unity Rd. agreement in South Dakota.
- Joined the International Franchise Association (IFA)
Item 9 Will Double Its Grow Operations With $13.5M Cultivation Expansion board of directors with two independent appointments, including Eric C. Kutscher and Lawrence X. Taylor.
Bolstered franchise and marketing team by hiring Mike Keskey II, Kristen Mathis as vice president of marketing, Tracy Timko as director of franchise support, Erica Tarnowski as franchise development manager, and Emily Gritti as senior manager of trade, marketing, and events.
More recent news from Item 9 Labs:
- Item 9 Will Double Its Grow Operations With $13.5M Cultivation Expansion
- Item 9 Expands Colorado Retail Footprint Via Cannabis Dispensary Franchise Brand Unity Rd.
INLB Price Action
Item 9's shares traded 22.92% higher at $1.15 per share at the time of writing on Tuesday morning.
Photo: Courtesy of Towfiqu barbhuiya on Unsplash
