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LEEF Brands, Inc. (CSE: LEEF)(OTC: LEEEF) (formerly Icanic Brands) released its audited financial statements for the year ended 2023 along with the interim financial statements for the quarter ending March 31, 2024. In the fourth quarter revenue rose sequentially to $5.9 million versus the third quarter revenue of $5.7 million.

Leef Brands sales in 2023 increased by 13% to $30.5 million over 2022’s revenue of $27 million. Total operating expenses were $46 million for the year, which was higher than 2022’s operating expenses of $39 million. The net loss for the year increased to $33 million versus 2022’s net loss of $27 million.

Leef Brands ended 2023 with an accumulated deficit of $96,363,268, a net loss of $33,888,782, and net cash provided by operating activities of $990,985. Despite filing its earnings as a going concern, the company estimates it will continue to meet its obligations as they become due in the short term.

“I am proud of the team and their performance in the past year and specifically in this quarter” Anderson continued. “We’ve seen stronger margins and EBITDA in the first quarter of the year and believe Q1 results are the beginning signs of success stemming from the efforts to reduce redundancies after our merger with Icanic Brands. We’re right on schedule for planting at Salisbury Canyon Ranch this spring. This project is not only expanding our operations but also building strong momentum for continued financial health and growth.”

Looking ahead

The company gave a heads-up to investors regarding the first quarter of 2024 earnings. Leef said its net sales increased sequentially by 35% to $7.9 million, however, this was lower than the first quarter of 2023, which had sales of $9.6 million. The company also reported that it had record gross margins of 40.6% in the first quarter of 2024.

Leef Brands also reported it had a net loss in the first quarter of $1.5 million versus $1.4 million for the same period in 2023. Cash has dropped to $4.5 million at the end of the first quarter versus $6.4 million at the end of 2023.

On August 3, 2023, the company bought the 1,900-acre Salisbury Canyon Ranch in Santa Barbara, California for cannabis cultivation. This property was financed by a $7 million note payable. The company said it is on track to plant by late spring, targeting a fall harvest.

“We’ve achieved record gross margins of 40.6% in Q1 2024, alongside positive cash flow from operations throughout 2023 and into the first quarter of 2024” added Kevin Wilson, Chief Financial Officer. “These milestones are a testament to the LEEF team’s exceptional management of our supply chain and our commitment to partnering with high-quality customers. The dedication and strategic focus have been crucial in reaching these financial highs. As we move forward with our plans to plant at Salisbury Canyon Ranch, we’re confident in our team’s ability to sustain and build on this momentum throughout the year and into 2025.”

The post LEEF Brands sales rise in 2023, but net losses remain high appeared first on Green Market Report.

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Debra Borchardt, KahliBuds, 420GrowLife