Lowell Farms Inc. (CSE:LOWL) OTCQX: LOWLF), a California innovator in cannabis cultivation and maker of the legendary Lowell Smokes, announced its unaudited revenue and operating results for the fourth quarter and fiscal year ended December 31, 2021.
“We’re proud of our standing as California’s leading seller of packaged flower and full-flower prerolls, despite significant headwinds from market flower pricing,” said Mark Ainsworth, co-founder and CEO of Lowell Farms.
“It’s been a long journey for us to reach this point, and we still have many more goals to reach, but this is a milestone that all of us can celebrate together.”
Fourth Quarter and Fiscal Year Financial Highlights:
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Revenue generated for the quarter ended December 31, 2021 was $15.1 million; an increase of 65% from the fourth quarter last year and a 21% sequential increase from the third quarter.
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Revenue for the year ended December 31, 2021 was $53.7 million, reflecting a company record and 26% growth over the prior year.
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Revenue from Lowell Farm Services (LFS) was $3.2 million for the quarter.
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Sales of bulk wholesale products increased 30% sequentially to $2.6 million during the quarter on increased volumes from both cultivation and LFS sources.
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Total revenues from out-of-state licensing reached $1.1 million in Q4, up 80% from the prior quarter.
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Out-of-state licensing exited the year with a GMV run-rate of $15 million in annual sales, up 37% from the end of the prior quarter.
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Excluding an inventory impairment charge of $2.8 million, gross profit during the quarter was $1 million, up from $0.1 million in the prior quarter; operating losses during the quarter were $5.3 million compared to $7.0 million in the third quarter.
Net loss for the fourth quarter was $10 million and net loss for the year was $24.7 million compared to a net loss of $21.9 million in 2020. -
Adjusted EBITDA in the fourth quarter was negative $3.6 million compared sequentially to adjusted EBITDA of negative $5.2 million and negative adjusted EBITDA of $1.6 million in the fourth quarter of 2020. Adjusted EBITDA for the year was negative $14.4 million compared to negative adjusted EBITDA of $8.2 million in 2020. Adjusted EBITDA is a non-GAAP financial measure.
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