Debra Borchardt
Long after the markets closed on the east coast, The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF) delivered its financial results for the fourth quarter ending December 31, 2021, and for the full-year 2021. The Green Organic Dutchman reported revenues rose 46% to $11 million in the quarter over last year’s $3.4 million for the same time period. It was a sequential increase of 27%.
The Adjusted EBITDA loss was $3.31 million for the quarter, representing a 40% improvement compared to the third quarter, and was $22.60 million for the Fiscal Year being a 35% improvement of $11.93 million over 2020. The loss from operations for TGOD in the quarter was $5.67 million, an improvement of $3.48 million over the third quarter. Losses from operations were $28.74 million for the Fiscal Year 2021, compared to $40.96 million for the same period in the prior year primarily due to the improvement in revenues and reduction of G&A expenses.
Full-Year Results
For the full year of 2021, TGOD reported revenue rose 146% to $39 million versus 2020’s $15.7 million. The net loss for the year was $43.5 million.
“We closed 2021 with strong momentum as we saw significant growth quarter-over-quarter, reflecting continued execution of our strategic plan as we remain focused on quality, consistency and transparency. We are seeing the early benefit of our enhanced sales strategy which has accelerated sell-through. Our two-prong approach of onboarding key retail chains while having boots on the ground with our dedicated sales force is starting to bear fruit,” said Sean Bovingdon, CEO of TGOD. “We are on track to hit our positive Adjusted EBITDA target in Q2 2022, with continued monthly sales progression from the strong month of December,” added Bovingdon.
Going Concern
The company’s auditors did note that the net loss from operations was $42 million for the year and the accumulated deficit was $487 million. The filing stated, “The Company used cash in operating activities of $18 million (year ended December 31, 2020 – $35 million) resulting primarily from the loss from operations $28 million (year ended December 31, 2020 – $40 million) offset by items not affecting cash such as depreciation, amortization and share-based compensation. The company has insufficient cash on hand to fund its planned operations. The company’s ability to continue as a going concern is dependent upon its ability to generate sufficient revenues and positive cash flows from its operating activities and/or obtain sufficient funding to meet its obligations.”
As of December 31, 2021, the company said it had positive working capital of $25.72 million (December 31, 2020 – $22.0 million negative working capital) primarily due to the repayment of its senior secured first-lien credit facility, modifying its debt under its secured revolving facility to amend the maturity date to June 2023, and reducing accounts payable with the funds received from the Revolver Loan, ATM equity financings and warrant exercises in 2021. The total consolidated cash position was $4.31 million including $0.22 million of restricted cash (December 31, 2020 – $11.83 million of which $0.62 million was restricted cash).
