After the market closed on Thursday, Stem Holdings, Inc. (OTCQX:STMH) (CSE:STEM), a publicly-traded U.S. cannabis company, reported its financial results for the 2021 fiscal year ending in September with revenue totaling $41.8 million. This was an increase of 155% versus the 2020 fiscal year revenue of $16.4 million.
Highlights of 2021
Net revenue after discounts and returns totaled $35.8 million, an increase of 156% as compared to $14.0 million for the same period the year prior.
Impairment expenses totaled $52.5 million, “predominantly related to the intangible assets and a related party receivable of Driven Deliveries, Inc., which the Company recently divested of."
Adjusted EBITDA loss totaled $5.8 million as compared to $5.4 million in the prior-year period.
In December Stem divested of Driven Deliveries to its founders, in return for 12.5 million shares of Stem, to reduce total expenses by $9.6 million annually, positioning Stem to achieve a positive Adjusted EBITDA in 2022.
“In December 2021, we announced the divestiture of Driven Deliveries, its assets, and liabilities. This divestiture allows us to ‘get back’ to our roots. Currently, our initiative is focused on our operations in Oregon and California,” interim CEO Steve Hubbard said in a press release.
“Oregon, where we are vertically integrated with five retail locations, we see a considerable growth opportunity as two of our stores are under-performing and the other three locations can incrementally increase sales. As we increase productivity and harvest new high-quality strains, we expect to increase distribution through both our retail and wholesale channels. TJ’s Gardens and Yerba Buena will continue to be our leading consumer product flower brands, while Cannavore, Doseology, and Artifact Extracts are our primary edibles and extracts brands,” Hubbard added.
Photo Courtesy of Lelen Ruete.