After the market closed on Thursday, Stem Holdings, Inc. (OTCQX: STMH) (CSE: STEM), the publicly traded US cannabis company, announced its financial results for the 2021 fiscal year ending in September on revenue totaling $41.8 million. This was a 155% increase over fiscal year 2020 revenue of $16.4 million.
Highlights of 2021
Net revenue after discounts and royalties was $35.8 million, an increase of 156% compared to $14.0 million for the same period in the prior year.
Total impairment expense was $52.5 million, “mostly relating to intangible assets and related party receivables of Driven Deliveries, Inc.recently abandoned by the company.
Total EBITDA loss was $5.8 million, compared to $5.4 million in the same period last year.
In December, Stem divested its founders from Driven Deliveries, for 12.5 million Stem shares, to cut total expenses by $9.6 million annually, putting Stem for positive adjusted earnings in 2022.
“In December 2021, we announced the divestiture of Driven Deliveries, its assets and liabilities. This divestiture allows us to “return” to our roots. Our initiative currently focuses on our operations in Oregon and California,” Interim CEO Steve Hubbard He said in a press release.
“Oregon, where we are vertically integrated with five retail locations, we see significant growth opportunity as two of our stores perform poorly and the other three locations can incrementally increase sales. As productivity increases and the harvest of new, higher quality strains we expect to increase distribution through retail channels And our wholesale. TJ Gardens And good herb Our leading flower brands will remain for consumer products, while canavour, doses, And Artifact excerpt are our primary brands of edibles and extracts.”
Image courtesy of Lilin Rueti.