Nutraceutical firm Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) (FRA: 97X) is still struggling to achieve profitability, despite selling off underperforming ketamine clinics while still developing its international cannabis industry footprint, the company reported in its third-quarter financials.
Irwin posted a $1.9 million loss for the quarter that ended Sept. 30, a significant jump from its $583,000 in losses a year prior, but down from the $5.4 million loss reported in the second quarter 2023. Year-to-date losses now stand at $15 million, down from $16 million for the first nine months of 2022.
Revenue also fell 13.4% for the most recent quarter, to $19 million from $22 million a year ago, and are down year-over-year for the first nine months of 2023, to $63.7 million from $66.4 million.
Irwin attributed much of the operational income downturn in the third quarter to “continued startup costs related to the company’s 2022 and 2023 acquisitions at Irwin Naturals Emergence,” a series of ketamine clinics Irwin purchased in an expansion spree.
During the quarter, Irwin tried to stanch the financial bleeding by selling off “assets of underperforming clinics” so the company could focus on the clinics that are wholly owned by Irwin Naturals Emergence.
Irwin also continued building its cannabis brand in the U.S. and Canada where it has marijuana licensing deals, which include California, Colorado, Michigan, Mississippi, New Mexico, Oklahoma, and Oregon.
In a statement, CFO Sean Sand said that cannabis sales have “exceeded our expectations, and we look forward continuing our licensing efforts in the space.”
“We also continued to expand our mental health footprint through the acquisition of an industry leading marketing and patient acquisition platform, Ketamine Media, enabling greater treatment availability and market expansion,” Sand said, referring to an acquisition from March.
At the end of September, Irwin had $70.8 million in total assets, including $5.4 million in cash, against $56.9 million in total liabilities.
The nutraceutical company has a broad cannabis, hemp, and psychedelics footprint that dates back to 1994 when the business was founded.
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