Hi everyone, happy Friday.
This document details certain changes between Next Green Wave’s last two quarters.
Next Green Wave
CSE: NGW
OTCQX: NXGWF
Comparing Next Green Wave’s latest two quarterly results:
Q2 (April-June 2020) to Q3 (July-September 2020)
All in USD
CASH: Increase of 789,171 or 53% to 2,266,690
TOTAL ASSETS: Increase of 630,602 or 3% to 19,152,690
TOTAL CURENT LIABILITIES: Decrease of 1,643,506 or 78% to 463,556
TOTAL LIABILITIES: Decrease of 1,021,367 or 20% to 4,021,027
TOTAL SHAREHOLDER EQUITY: Increase of 1,651,969 or 12% to 19,152,690
REVENUES: Increase of 408,880 or 13% to 3,582,416
OPERATING EXPENSES: Increase of 193,120 or 25% to 956,094
GROSS PROFIT: Increase of 1,331,651 or 342% to 1,720,978
NET INCOME: Decrease of 2,491,778 or 86% to 402,007
CASH FLOW USED IN OPERATING ACTIVIES: Increase of 1,003,827 or 172% to 1,584,845
Basically, this was the first profitable quarter from operations for Next Green Wave!
Interestingly, the selling price per gram increased this quarter from 4.21/g to 5.07/g, representing a 20% increase! This is probably due to the fact that Next Green Wave’s products are in high demand.
Post harvest costs (0.75) yield per plant (56g) and wastage (5%) remain unchanged though the stage of growth has decreased from 9 weeks to 5! Looks like Mike has fine-tuned Facility A for maximum efficiency, which should lead to an increase in total output and thus higher revenues.
I still believe the path to quickly increasing revenues will be for the company to become totally vertically integrated, which means retail (stores).
Opening a retail store would increase the selling price per gram from 5.07 to 8 dollars or higher, an increase of roughly 60% in revenues.
Remember, the US House votes on the MORE act today, which will create headlines if passed.
It is widely expected to pass as the House is controlled by the Democratic Party.
The next step will be the Senate, currently under Republican control though this could change on January 5th following the Georgia Runoff election.
