Tue, May 14, 9:31 PM (305 days ago)
Blum Holdings, Inc. (Blüm) reported its consolidated financial results for the quarter ended March 31, 2024. The company experienced a decline in revenue, reporting $6.78 million, down 21.3% from $8.62 million in the same period in 2023. This decrease was primarily due to reduced retail revenue and a significant drop in distribution revenue. Gross profit also fell by 23.1% to $3.61 million, with a gross margin of 53.2%, down from 54.5% in the prior year. Operating expenses increased by 9.9% to $6.1 million, largely due to the absence of a $1.51 million gain on settlement of liabilities recognized in the prior year. Consequently, the company reported an operating loss of $2.49 million, up from a $0.86 million loss in the same period in 2023. Other income (expense) shifted to a net expense of $0.51 million from a net income of $1.94 million, primarily due to the absence of a $3.03 million gain on debt extinguishment recognized in the prior year. Blüm's financial position remains challenging, with a working capital deficit of $60.86 million and a cash balance of $1.18 million as of March 31, 2024. The company continues to focus on improving cash flow through operational efficiencies and reducing non-core assets and expenditures. Management has implemented a turnaround plan to stabilize operations and aims to achieve positive cash flow through various strategic initiatives.