Tue, May 14, 9:36 PM (73 days ago)
Flora Growth Corp.'s Q1 2024 report reveals a net loss of $3.4 million, a slight improvement from the $3.9 million loss in Q1 2023. Revenue decreased to $18.0 million from $19.3 million, impacted by a decline in JustCBD sales due to discontinued unprofitable product lines and regulatory issues in Florida. Gross profit dropped to $3.9 million from $5.3 million, with gross margins falling to 21% from 28%, attributed to a higher sales mix from lower-margin pharmaceuticals. Operating expenses reduced to $6.3 million from $7.7 million due to cost-cutting measures. The company faces substantial doubt about its ability to continue as a going concern, with cash reserves at $4.2 million and plans to raise additional capital. Adjusted EBITDA showed a loss of $1.5 million, reflecting ongoing operational challenges. The company is focused on achieving profitability through cost reductions, strategic acquisitions, and expanding its product and geographic footprint.