FYI… awaiting Sedar publishing to complete Rundown. Not a good Q.

Pluses and Minuses:

This Q:

Pluses

• Gross Adult Use revenue QoQ +$3 million or +8% (Note: excise tax increase $1 million QoQ, which, given medical is flat, is likely attributable to adult use.  This would reduce the adult use revenue by $1 million or +$ 2million)
• Distribution revenue QoQ +$4 million or + 7%
• Wellness revenue QoQ increases $1.5 million or + 10%

Minuses

• Net Revenue QoQ declines $10 million or -6%
• Net cannabis revenue QoQ (all segments) -$1.3 million or -2%
• International cannabis revenue QoQ decreases $2 million or -11%
• Alcohol, despite Breckenridge for full Q, decreases $4 million or -19%
• Gross Margin negative as $47.5 million in cannabis inventory and $7.5 million in distribution inventory was impaired.
• SGA (remember … last Q they ran an insurance claim credit from CC Pharma through SGA of $5 million) increased $7.5 million QoQ.
• aEBITDA (my figure) was $4 million or +$1.4 million QoQ
• Impairment of Long-term assets of $378 million. Attributable to rationalization of production assets given Hexo working agreement.