Newstrike Brands (TSXV:HIP,OTC Pink:NWKRF) released its Q4 and year end 2018 financial results.
As quoted in the press release:
During the three month period ended December 31, 2018, the Company generated net revenue of $4,652 (December 31, 2017 – $Nil). $2,611 of revenue was from shipments of dried cannabis to the provincial government wholesale distributors in Alberta, British Columbia, Nova Scotia, Ontario and Prince Edward Island for the adult-use market. $2,041 of revenue was from wholesale sales of cannabis.
During the three month period ended December 31, 2018, $2,160 of costs incurred during the production process and capitalized to inventory were expensed upon initial sale of inventory. This resulted in gross margin of $2,492 (53.5 [percent] of net revenue) before the fair value adjustment on the sale of this inventory. The expense of $2,219 for the fair value changes in biological assets included in inventory sold represents the amount of non-cash fair value adjustment being realized upon the sale of this inventory.
As at December 31, 2018 the Company had total assets of $152,808, including cash and cash equivalents of $96,640, up from total assets of $24,881, including cash and cash equivalents of $811 as at December 31, 2017. The increase is due to the net proceeds from the two bought deal equity offerings, the receipt of a termination fee comprising $9,500 in connection with the termination of an arrangement agreement with CanniMed Therapeutics Inc. on January 24, 2018, and the increase in fair market value of its strategic investments.