![]() Adjusted for the impairment the gross margin at MDT was -1.1% in Q1 2020, compared with 2.4% in Q2 2020. [Q1 2020, included a $951,813 impairment of inventory at MDT. The increase of gross margin at ANM more than offset the loss of margin at CH and HLO Ventures, Halo’s Nevada operations. Excluding the loss on the value of biological assets, ANM’s gross margin was 32.1% (Q1 2020: 31.1%). The improvement in gross margins followed from an increase of the gross margin to 29.1% at ANM (Q1 2020: 23.8%). Excluding the loss on biological assets, the gross profit was $1,151,801. The gross profit for Q2 2020 was $1,026,875 including a loss on biological assets of $124,926. In addition, MDT sold 46,610 grams of live resin at an average price of $9.29 per gram. In Q2 2020, MDT in California sold 72,855 grams of distillate, at an average price of $10.61 per gram. The trim price declined to $28 per pound (Q1 2020: $32), which has helped to reduce raw material costs and increase margins. The conversion yield of trim into oil was 8.1% in Q2 2020 (Q1 2020: 7.4%). The impact of lower flower and pre-roll sales in Q2 2020 compared with Q1 2020 had a positive impact on the mix-price.Įxtract sales increased 6.7% to 571,389 grams (Q1 2020: 535,725 grams). The change in mix price is explained by the lower selling prices of flower ($1.07 per gram) and pre-rolls ($1.36 per gram) in ANM’s product-mix in comparison with $6.38 for extracts and edibles (Q1 2020: $5.84). In Q2 2020, the Company’s subsidiary ANM, Inc. The cash burn was reduced significantly during Q2 2020. In July 2020, the Company also re-initiated bulk distillate sales directly from CH to other California licensed distributors and manufacturers which is expected to have both a positive impact on revenues and gross margin in the quarter which will end Septem(“Q3 2020”).Īs at June 30, 2020, the Company had a working capital surplus of $6,950,513. This distillate was exclusively used by Mendocino Distribution and Transportation(“MDT”), the Company’s California distribution division to fill vaporizer cartridges that are being sold to California dispensaries. ![]() In Q2 2020 the Company reopened bulk distillate operations in Cathedral City focused on remediation of distillate. This decision adversely impacted revenues, but preserved cash over the past three quarters. in Cathedral City, California (“CH”) to preserve working capital and cash until market conditions improved. Adjusted for specific items that are significant but not reflective of the Company’s underlying operations, adjusted negative EBITDA 2 was $2,616,719 in Q2 2020 (Q1 2020: negative adjusted EBITDA $5,778,968).Īt the end of the three months ended Ma(“Q3 2019”), a decision was made by the Company to shut down bulk distillate operations at Coastal Harvest, Inc. The operating loss, defined as earnings before interest taxes depreciation and amortization (“EBITDA 1”), decreased. Gross margins show a similar improving trend from -3.9% in Q1 2020 to 19.6% in Q2 2020. Since the fourth quarter of 2019 (“Q4 2019”), Company revenues have increased quarter over quarter and Q2 2020 revenues increased 17.8% when compared with the three months ended Ma(“Q1 2020”). (“ Halo” or the " Company") (NEO: HALO OTCQX: AGEEF, Germany: A9KN) is pleased to announce the Company’s financial results for the three months ended J(“Q2 2020”).
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