Hexo April 30, 2019 “In Pictures”

Income Statement Drivers and Breakeven Sales: Sales dropped $420k. Gross Margin: Peer and Trends Gross Margin decreased 2$ to 49.5%, but remains in historic range. Gross Margin Larger Peer Group Hexo ranks 5th of 13 in Peer Group. SGA and SBC: Trend Analysis SGA spiked with Selling increasing from 36% to 39% of Sales, and G&A increasing from 61% to 81% of Sales.  Aggregate SGA increase to 120%.   Share Based Compensation also spiked from 40% to 63% of Sales. Aggregate increased from 135% to 183%. SGA and SBC: Peer Analysis Hexo tied for second worst in Peer Group  with Cronos, but remains in…

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Harvest One 1Q F2019 – March 31, 2019 “In Pictures”

Income Statement Drivers and Breakeven: Trend Sales decline 20% QoQ to $3.0 million. They had FG inventory (see “Gas in Tank”) of $2.8 million to start the Q, did they not have the “right type” of FG inventory??? Income Statement Drivers and Breakeven: Peers Gross Margin: Trend & Peers Gross Margin: Larger Peer Base SGA and SBC: Trend . SGA and SBC: Peer Breakeven Sales for +Net Operating Profit divided by Current Sales Breakeven Sales for +EBITDA divided by Current Sales “Gas in the Tank” FG dropping in face of a Sales drop means throughput wasn’t there. WIP double QoQ so something to keep…

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WeedMD 1Q F2019 – March 31, 2019 “In Pictures”

Income Statement Drivers and Breakeven: Trend Sales up 14%... but the worrisome concern is that 73% by KG of Wholesale ($3.3 million) or 20% by Wholesale revenue (as per conference call) went to Extract Grade.  That means Adult rec was only $660k.  Soof the $3.6 million in sale $2.6 million (72%) went to an extractor. I know WMD has a reputation for good product. I have tried some of it and was suitably impressed.  But the amount of product that likely lacked bag appeal at this stage of their development should be monitored going forward. They are launching a new rec brand next Thursday…

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