Unrivaled Brands, Inc. (OTCQB: UNRV) unveiled its financial prowess for the three months ending Sept. 30, 2023, with revenue landing at $8.6 million, representing an 11.4% year-over-year dip. Notably, the lion’s share of this revenue, standing at 94%, stemmed from the company’s four retail stores and sales of in-house cultivated flower and Korova-branded products, driving the retail gross margin to a solid 52%.
Facing the mighty headwinds in the regulated cannabis market, Unrivaled’s CFO, Patty Chan, emphasized the company’s resilience. She reiterated Unrivaled’s steadfast dedication to cultivating an exceptional retail experience through top-tier, curated products and customer-centric strategies. With an eye on the evolving cannabis landscape, particularly in California, the team remains vigilant, poised to seize opportunities in a fully federally legal market.
Q3 2023 Financial Results
- Gross profit surged to approximately $4 million, a remarkable leap from the $42,000 gross loss in the corresponding quarter of the preceding year.
- The gross profit margin stood at 46%, showcasing the company’s resilience amidst changing market dynamics.
- The net loss shrunk to $3.4 million, a substantial improvement from the $119.9 net loss in the same period of the prior year.
- Adjusted EBITDA mirrored this resilience, impressively switching gears from a $9.2 million adjusted EBITDA loss in the prior year’s period to a modest negative at $1.2 million.
- Moreover, the company effectively downsized its selling, general, and administrative expenses by 7% compared to the previous quarter ending June 30, 2023.
- The quarter also saw the company bag a $1.3 million gain on investments but faced a $1.5 million loss on the disposal of assets, alongside $0.9 million of interest expense and $0.9 million of non-cash expense for income taxes, depreciation, and amortization.
Settlement Of Litigation And Debt
In a groundbreaking move, Unrivaled announced a binding settlement term sheet to reconcile a $4.12 million debt, inclusive of interest and penalties, with third-party accredited and institutional investors. This historic settlement comes after the company’s agreement to sell $3.5 million in aggregate principal amount of its senior convertible promissory notes to numerous accredited and institutional investors back in January 2021. As a testament to its optimistic trajectory, the company anticipates recording a gain of approximately $2.37 million in its 2023 financial statements from the settlement of this debt.
UNRV Price Action
Unrivaled’s shares were observed trading at $0.0105 per share, marking a 4.09% decline at the time of this writing on Wednesday.
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