Staff
Long after the market closed on Tuesday, Australis Capital Inc. also knowns as Audacious (CSE: AUSA) (OTC: AUSAF) announced that it had filed its financials and management discussion and analysis for the three-month period ending December 31, 2021, its fiscal third quarter of fiscal 2022 (the year ending March 31, 2022). Audacious reported that it had total revenues of $2.37 million, an increase of 2,623% year-over-year from $90,378 in the third fiscal quarter of 2021 and even grew 4% sequentially.
The net losses were trimmed to $4.7 million in the quarter versus last year’s $19.2 million for the same time period. A 16% reduction in operating loss was recorded $(4.3) million as compared to $(5.1) million for the prior year, with growth in margins offsetting increased operating costs.
“The third quarter saw us expand internationally through our partnership with Green Triangle Health (“GTH”), where we have already started generating revenues,” said CEO Terry Booth. “Our partner is exceptionally well-connected, which is translating into commercial arrangements with major regional and international distributors. In the U.S., we continue to make good headway too, with an important partnership with First Americans of the Saint Regis Mohawk Tribe, which sees us move into New York well ahead of statewide commencement of adult-use sales, providing us with a significant early mover advantage. Our partnership with PBR has seen us launch our Wreck Relief brand, which is now starting to generate online sales, and our Provisions and LOOS brands continue to do very well in California, in part through our partnership with EAZE, the world’s largest legal cannabis delivery company.”
During the quarter under review, the company said it recorded its first billings in California, offset by lower kiosk income as the Cocoon business is wound down. Furthermore, as the company exits its investment in Body and Mind, no further consulting fees were generated from this relationship.
Jon Paul, CFO of AUDACIOUS, added, “The third quarter was an important pivot for us, as we spent heavily towards future growth opportunities while moving further from our past. We successfully launched the AUDACIOUS brand at our highly trafficked booth at MJBizCon and the Roll-Up Launch Event featuring Machine Gun Kelly. We had our first sales in California while also investing heavily in key raw materials to expand our capacity for future quarters. We began funding our relationship with PBR and built inventory in Wreck Relief for the Q4 release. Even with loss of revenue from past fintech and consulting lines, we still grew sales over Q2 and have multiple opportunities for even faster sales growth in the quarters ahead.”
Looking Ahead
Audacious said that in the coming months it will continue to execute on its strategy with further growth in its current markets and anticipates entering new jurisdictions, including New York, New Jersey, and others, as well as further expansion of its product line portfolio. “Additionally, the company will be pursuing multiple initiatives to increase production volume, further driving growth. The company is following rigorous financial discipline and anticipates reducing certain operating expenses in the coming months. Additionally, following conversations with the regulators in Nevada, the company is confident the license transfers relating to the GT acquisition will be completed shortly, following which the Company can consolidate the GT results, further boosting growth.”
