Financial statements are reports that quantitatively reflect the origin and application of resources used in a business. In other words, they are a structured representation of the company’s financial position, performance and cash flows. RIV shared its financial results for the fourth quarter and fiscal year 2022, recognizing that the year was more expensive than the last.
Tilray reported an unaudited operating loss of $2.0 million for Q4 2022. This compares with $0.7 million operating income for the same period in the previous fiscal year. The increase in the provision for credit losses on royalty and interest receivables was the main driver of the loss.
For Q4 2022, Tilray reported total operating expenses of $4.8 million, which is a decrease of $7.9 million from the previous year. General and administrative expenses totaled $2.2 million, more than the $2.0 million for last year. This is primarily due to employee compensation and other general administrative activities (including business development, insurance, and general company costs).
Professional and consulting fees were $0.1 million for Q4 2022, as compared to $0.7 million last year. Transaction costs for Q4 2022 were $1.8 million. This was primarily due to legal fees and other advisory expenses incurred in connection with the Etain Acquisition.
The goal of becoming a licensed, vertically integrated cannabis operator in the US took a big step forward after the company completed the acquisition of Etain. In addition, the appointment of Mike Totzke as COO, plus the company’s robust balance sheet and strong liquidity, have helped the company to be in a highly competitive position to execute its strategy in the US market.
According to Mark Sims, President and CEO of RIV Capital, the company spent much of fiscal 2022 moving strategy to successfully enter the US market. One of those major accomplishments was the purchase of the rights to Entain, a New York-based firm. Sims says he is excited to represent a great opportunity for the New York market, especially after learning that the Empire State recreational market is getting closer to becoming a reality.
The acquisition includes one of only ten vertically integrated licenses in New York, in addition to four active dispensaries that have so far shown great results. The company’s plans include completing the expansion of Etain’s existing cultivation capacity and preparing its existing retail locations for the expected increase in sales.
In addition, the company intends to build four new dispensaries as soon as it is permitted to do so under state regulations. As a result of such a move, it would bring the total New York footprint to eight outlets, three of which will be co-located for adult use.