Business-to-business cannabis company KushCo Holdings, Inc. (OTCQX: KSHB) today released fiscal 2019 financial results showing significantly increased revenue but also much higher losses than the previous year.
The company cited a net loss for the year ending Aug. 30 of $45 million — compared to $26 million in the same period for fiscal 2018 — with incoming revenue during fiscal 2019 of $148.9 million.
KushCo also announced holding a combined $159 million in assets for the fiscal year, with $3.9 million of that amount in cash and $52 million in goodwill.
After the numbers were released, CEO and board chairman Nick Kovacevich announced the company will focus on ramping up higher margin initiatives and enacting cost saving restructuring in the near future in an attempt to hit profitability.
Kovacevich also discussed the impact that a recent vaping health scare crisis has had on operations, issuing this statement:
Washington state enacted a 120-day ban on vape sales back in October, while the Centers For Disease Control warned all U.S. citizens against using any vape products at all, despite their preliminary investigation directly tying most known instances of lung disease to unlicensed THC products.
Despite vape sales seeing a decline after consistent headlines touting 33 known deaths tied to the issue, KushCo is projecting net revenue of $230 – $250 million for fiscal 2020, including an expected $25 million from a newly-launched hemp trading business.
Announced earlier this week, that new aspect of operations joins the company’s CBD retail services division launched back in the summer and will see KushCo servicing all aspects of the CBD industry from farm growth to retail distribution.
Through the newly launched business, KushCo will facilitate transactions between licensed hemp farmers and a network of buyers seeking biomass, crude CBD oil, and both isolates and distillates for a variety of product types.