Red Light Holland Corp. (OTC:TRUFF), the Ontario-based company engaged in the production, growth and sale of functional mushrooms and mushroom home grow kits in North America as well as a premium brand of psilocybin truffles to the Netherlands announced the completion of the filing process on its audited annual financial statements and management analysis for both financial years ended March 31, 2022 and 2021.
Financial highlights for the year ended March 31, 2022 are the following:
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A total revenue of $2,325,589, compared to 2021’s $110,956.
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Gross profit of $617,676, compared to 2021’s $19,349.
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Gross margin percentage of 26.6%, while 2021’s was 17.4%.
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Total cash of $26,093,738.
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Property and equipment value of total $2,877,298.
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Total asset value of $32,938,665.
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Net loss of $14,695,173 (-$0.04 per share), compared to 2021’s $1,644,828 (-$0.01 per share), significantly influenced by non-cash charges related to intangible assets and goodwill and stock-based compensation, as well as the acquisitions of Radix Motion, Happy Caps, AEM Farms and Mera Life Sciences.
Red Light’s CEO, Todd Shapiro, further added: "We realized growth in both the Netherlands and Canada through SR Wholesale and Happy Caps, as increased revenue and gross profit remains our core focus. We are on-track with the strong foundation that we are building, and we are excited about future revenue generation with AEM New Brunswick, which is now in early-stage production, AEM Peterborough, now in early-stage planning, current and future CPG expansion, and other potential strategic acquisitive opportunities."
As for business plans, Shapiro expressed: that the company is “very excited to work with MISTERCAP LLC with marketing advisory services from the one and only Wiz Khalifa,” while it has now “officially closed” the acquisitions of two SmartShops in Oss and Utrecht in the Netherlands.
Regarding the new shops, Red Light is confident in their “fully vertically integrated strategy” and “cannot wait to start rebranding our wholly owned SmartShops to 'Wellness World' in the coming months."
Shapiro affirmed that the company’s mission to “provide affordable and equitable adult access to naturally occurring psilocybin via technology, education, information and responsible use” remains.
On his behalf, Red Light’s CFO, David Ascott, added that "the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future.”
During the year ended March 31, 2022, “we recorded a non-cash impairment loss against the intangible assets and goodwill in the amount of $5.9 million. Through our acquisitions we added tangible capital assets including a mushroom production facility in New Brunswick valued at $2.5 million," Ascott explained.
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