Lifeist Wellness reports Q1 earnings, revenue up 20%

Lifeist Wellness Inc. NXTTF LFST FRANKFURT: M 5 B released its financial results for the three months ended February 28, 2022, compared to Q 1 2021, when net revenue decreased 1% to CA $5.45 million $4.28 million in Q 1 2022 compared to the same period last year, due to declines in hardware sales in Europe and medical cannabis sales in Canada, both operations have since been discontinued. Revenue increased 20% in Q 1, 2022 compared to Q 1 2021, compared to Q 1 2021 Net loss was CA $4.6 million in Q 1 2022 compared to CA $7.4 million in Q 1 2021, due to improved gross margins and lower non-operating write-downs.

In Q1 of 2022, the gross profit was tripled to CA $1.4 million, compared to CA $0.5 million in Q 1 of 2021, the highest in the past two years, with margins expanding to 26% from 8%.

EBITDA's losses fell to CA $4.2 million in Q 1 2022 compared to a loss of CA $7.0 million in Q 1 2021, representing the sixth consecutive quarter of EBITDA loss improvements. The Q 1 of 2022 EBITDA loss was net of investments into emerging businesses, including approximately CA $650,000 in nutraceuticals.

The first quarter results reflect progress and momentum in our transition to a wellness-driven company, said Meni Morim, CEO of Lifeist. We have raised our focus on cannabis on our B 2 B platform and this has spurred meaningful increases in gross profit for all of Lifeist. In the same quarter last year, we accomplished a tripling of gross profit while simultaneously winding down unprofitable businesses and investing in our wellness future. This includes scaling our innovative health-tech company Mikra, which is going after the large and growing nutraceuticals market, and seeing early consumer interest for its first product, which commenced pre-sales last month. Cash and cash equivalents were $ $9.2 million as of February 28, 2022, compared to a year ago, when it was $12.7 million as of November 30, 2021.

FFLWF purchased Pineapple Express Delivery Inc., a holder of the company's convertible loan payable, during the quarter. Fire Flower assumed and repaid a $2.04 million convertible loan that was owed to the company by PED as part of the purchase. The company received 75,100 common shares in Fire Flower, with additional 258,478 common shares in Fire Flower having been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in its fiscal 2022 year.