Aleafia Health Inc. (OTC: ALEAF) reported net revenue of $15.4 million in the fourth quarter versus $6 million for the same time period in 2019. The net loss though was a whopping $217.3 million versus last year’s net loss of $9.8 million. Aleafia wrote-down $176.0 million of goodwill associated with the acquisition of Emblem Corp., and $1.4 million of goodwill associated with the acquisition of Canabo Medical Corp.

For the full year, Aleafia Health reported net revenue of $44.5 million versus $16.3 million in 2019. Due to the losses in the fourth quarter, the full-year net loss clocked in at $247 million versus 2019’s $39.6 million.

The company said that the net loss was primarily due to non-cash items including fair value changes in biological assets and changes in inventory sold expense of $11.1 million for the quarter and $29.1 million for the full year. Included in the full year amount is a $17 million write-down to net realizable value of saleable inventory to reflect declining wholesale prices.

Aleafia Health CEO Geoffrey Benic said, “Notwithstanding certain non-cash, one-time expenses, our focus on disciplined, profitable growth has paid dividends with our first year of positive adjusted EBTIDA. The commercialization of our business is rapidly accelerating with the shift in revenue mix towards the sale of highly profitable packaged cannabis products providing a sustainable source of continued growth.”

Wholesale Business Climbs

The company said that the net bulk wholesale revenue received from sales to cannabis licensed producers for the quarter and full year was $10.0 million and $29.9 million, an increase of 256% and 783% respectively, over the same periods in the prior year. The increase was primarily due to the sale of flower harvested at the Port Perry Facility’s outdoor cultivation site to other LPs, and a larger harvest in 2020 relative to the prior year, yielding 31,200 kgs of dried flower.

Write Downs

Aleafia said that during the quarter, it incurred a $22.1 million write-down of intangible assets expense. This included a $10.6 million write-off associated with its 51% interest in the Flying High Brands joint-venture. The company said it is now primarily developing its brands and products in-house, rather than licensing them from other cannabis companies.