Tuesday, May 18, 2021 3:01:10 AM
In case anyone is confused - net revenue is being reported at the subsidiary level. The two main subsidiaries are Oasis Cannabis and City Trees and both are posting positive net revenues.
The parent company, CLS Holdings, as far as I know, doesn't generate any revenue. My guess is that it also holds most of the debt.
So, while the two main subsidiaries are generating profits each month, the company as a whole is not (yet) profitable. In order to get there, the company needs to expand, replicating these proven and profitable models. City Trees needs to expand through partnerships, which they've started and Oasis Cannabis needs to expand by opening more locations.
In order to expand, the company will take on more debt, which generally means share dilution because US cannabis companies can't borrow through traditional channels, i.e. bank loans. Another huge 'loss' is the inability to deduct expenses and such at the federal level (IRS). The IRS is not allowing these deductions because marijuana is still federally illegal. I think it's stupid myself that the IRS says they have to claim revenues but cannot take deductions.
When Oasis Cannabis has 3-5 locations and City Trees has a few more partnerships in place, I would imagine CLS Holdings will start posting net profits every quarter or at minimum EBITDA positive.
US legalization is very important to US based marijuana businesses and they will all continue to struggle to make a profit until that happens. I think $CLSH is going quite well, considering the limitations they have had to face.
Recent CLSH News
- Form SCHEDULE 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 05/08/2024 01:28:20 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 12:15:42 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 08:31:11 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/26/2024 04:31:07 PM
- Form SC 13D - General statement of acquisition of beneficial ownership • Edgar (US Regulatory) • 02/15/2024 08:32:15 PM
- Form SC 13D - General statement of acquisition of beneficial ownership • Edgar (US Regulatory) • 02/12/2024 09:38:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/07/2024 09:14:38 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/18/2024 07:24:24 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 01/11/2024 09:01:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 08:08:13 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 01/04/2024 05:03:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/02/2024 10:18:43 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/04/2023 07:39:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/04/2023 01:17:10 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 10/16/2023 01:00:30 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 10/12/2023 07:57:54 PM
- Form 10-K/A - Annual report [Section 13 and 15(d), not S-K Item 405]: [Amend] • Edgar (US Regulatory) • 10/04/2023 09:06:42 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 08/24/2023 08:01:07 PM
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