Lifeist announces drop in revenue
Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF) (formerly known as Namaste Technologies) released its financial results for the fourth quarter and year ended November 30, 2021. Net sales decreased 11% to $6.4 million during the quarter compared to $7.2 million for the same period in 2020. Net loss was $4.0 million during the quarter compared to $6.4 million in the fourth quarter of 2020. The improvement was attributed to improved gross margins and a gain in the fair value of a convertible note receivable.
Lifeist said the revenue decline was due to lower hardware sales in Europe through Lifeist Bahamas and lower medical cannabis sales in Canada through CannMart, all of which effectively ceased operations in 2022. The company said that this was partially offset by continued growth in Canadian recreational cannabis sales, Australian Vapes hardware revenue which increased 15%, and Findify SaaS revenue which increased 16%. Excluding Lifeist Bahamas hardware and CannMart medical cannabis, net revenue increased 4%. All financial figures are in Canadian dollars, unless otherwise indicated.
Full Year Results
Net revenue decreased 9% to $22.8 million for the full fiscal year ending November 30, 2021 from $25.1 million for the fiscal year ending November 30 2020. This decline is due to lower hardware sales in Europe through Lifeist Bahamas and lower medical cannabis sales. in Canada through CannMart, with all such operations effectively ceasing in 2022. This was partially offset by continued growth in fiscal 2021 of Canadian recreational cannabis revenue which grew 25%, Findify SaaS revenue which increased by 16% and revenue from Australian Vapes hardware which increased by 10%. %, in each case over fiscal 2020. Excluding Lifeist Bahamas equipment and medical cannabis, net revenue increased 19% over fiscal 2020. The company said the working capital position of 16 .4 million at the end of the year remains solid.
“The past year has been one of transitioning to wellness, refining our strategic focus and investing to drive sustainable growth,” said Meni Morim, CEO of Lifeist. “As a portfolio of wellness companies, Lifeist is expanding its B2B recreational cannabis manufacturing and distribution business and growing its new nutraceutical division. We believe these opportunities provide the most direct and viable path to value creation, allowing Lifeist to leverage its capabilities and expertise to differentiate itself in the growing wellness economy.
Subsequent to quarter end, Fire & Flower Holdings Corp. entered into a definitive agreement to acquire Pineapple Express Delivery Inc., a holder of the company’s convertible loan payable. On January 25, 2022, Fire & Flower completed the acquisition of PED, and as part of the purchase, Fire & Flower assumed and repaid a $2,040,077 convertible loan owed to the company by PED. In addition, the company received 75,100 common shares of Fire & Flower upon closing of the acquisition, and an additional 258,478 common shares of Fire & Flower were placed in escrow pending completion of customary working capital adjustments and subject to the achievement of certain milestone performance objectives for its 2022 fiscal year.
Mr. Morim added, “With Mikra’s first nutraceutical product, CELLF, a new cellular therapeutic compound targeting systemic fatigue, already on pre-order and our distribution, logistics and CannMart Labs businesses driving the growth of our recreational cannabis B2B, we believe we have the platform for sustainable growth.