Wow - this is looking horrible, a ~10m negative swing straight into the opening quarter. How could it go so far in the red. Slow growth, 31% drop in sales and no profitability in sight. Burning through cash, they will have to do another CR!
Given they are building a much higher capacity Colorado facility, they will need a degree of private label sales they've ditched to fill the capacity and ensure US competitors don't out produce them - Private label does have its place in a companies portfolio as retailers are usually more willing entertain ranging their brands if a manufacturer plays ball on some private label products. Also, using a broker who controls retail relationships and takes a cut - what does this look like long term?
Some facts, they burnt through $15m in cash in 1st quarter with not much to show (acquisitions, sales growth etc.):
Also expected outflows next quarter ~25m, surely that gives them 4-6 months runway before CR given no profitability:
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