John Schroyer
Multistate operator Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) eked out net income of $200,000 in its first fiscal quarter of 2024, which ended Oct. 31, the company reported in its most recent financials.
That’s a huge improvement over all of its 2023 fiscal year, in which Body and Mind lost $20.6 million, including $3 million in the first quarter a year ago.
But revenue was down 7% year-over-year to $5.5 million from $5.8 million in the first quarter, and the profit may not be sustainable, since the company attributed the income difference to the sale of one of its Ohio dispensaries for $8.2 million in July, a transaction that closed in October.
The company recorded an operating loss of $1.2 million for the quarter, an improvement over the operating loss of $2.2 million a year ago.
A good chunk of the sale proceeds was used to pay down $7.3 million in debt, the company reported.
Body and Mind also finalized the acquisition of a dispensary in Long Beach, California, during the first quarter, a deal that’s been in the works for more than four years.
“We are hyperfocused on cost savings and the full repayment of our senior secured debt will save roughly $1 million dollars per year in interest payments,” CEO Michael Mills said in a statement.
“Additionally, with the closing of the Long Beach dispensary transaction, the company reduced the total shares outstanding by roughly 1% as a result of finalization of seller liabilities. We look forward to opening our dispensaries in Illinois and New Jersey in calendar 2024 and expanding our brand and experienced team to these important markets,” Mills said.
In November after the quarter ended, Body and Mind reported a $2 million deposit for the sale of a processing facility in Ohio, while simultaneously working to get new dispensaries open in Illinois and New Jersey.
At the end of October, Body and Mind had $17.5 million in total assets, including $890,966 in cash, against $27 million in total liabilities.
