Red Light Holland Corp. (TRUFF), a prominent player in the functional mushroom and psilocybin truffle market, announced its second-quarter 2024 financial results on Friday, revealing substantial growth and a clear trajectory toward profitability. The company reported revenue of CA$1.37 million ($998,263) for the three months ending September 30, 2024, marking a significant 39.1% increase compared to CA$983,324 in the same period of 2023. This robust growth extends to the six-month period, with revenue reaching CA$2.93 million—a 33.9% rise from CA$2.19 million during the same period in 2023.
The Ontario-based company’s success stems from its diverse portfolio, encompassing the production and sale of functional mushrooms and home grow kits across North America and Europe, and a range of psilocybin truffles for the legal recreational market in the Netherlands. CEO and director Todd Shapiro attributed the positive results to “an unwavering commitment to sustainable growth, strategic partnerships, and strong financial discipline.” He emphasized the company’s progress towards long-term profitability, noting that nearly all income-generating portfolio companies experienced growth, with most achieving positive operating cash flow over the past 12 months (excluding depreciation, corporate costs, and other non-operational expenses). The exception was Mush Room & More.
Financial Highlights:
The financial results further substantiated the company’s positive trajectory. Key highlights include:
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Gross Profit:
CA$551,931 for Q2 and CA$1.18 million for the six-month period, compared to CA$444,668 and CA$967,765, respectively, in the prior year.*
Net Loss:
While the company still reported a net loss (CA$590,455 for Q2 and CA$1.11 million for the six months), this represents a significant improvement compared to losses of CA$2.04 million and CA$2.99 million in the corresponding periods of 2023.*
EBITDA Loss:
A substantial reduction in EBITDA loss was observed, from CA$897,100 and CA$2.57 million in 2023 to CA$319,903 and CA$1.53 million in 2024 for the respective periods.*
Adjusted EBITDA Loss:
Similarly, adjusted EBITDA loss showed marked improvement, decreasing from CA$1.05 million and CA$1.48 million in 2023 to CA$480,720 and CA$715,189 in 2024.*
Strengthened Cash Position:
Red Light Holland received a significant sales tax refund and interest of CA$868,960 on November 19, 2024, and a Costco payment of CA$468,668 on November 8, 2024. This boosted the cash balance to approximately CA$13.5 million. As of September 30, 2024, the cash balance stood at CA$12.79 million (including restricted cash). Total assets amounted to CA$23.3 million.Board Changes and Future Outlook:
The company also announced that Ann Barnes has stepped down from the board of directors, with a new member expected to be appointed in the coming weeks. Looking ahead, Red Light Holland remains steadfast in its commitment to profitability and actively advocates for the legalization of, and adult access to, psilocybin. Shapiro concluded by expressing optimism for the future, reiterating the company’s motto: ‘Mind, Body, Gain – Grow your health, Build your wealth.’
Red Light Holland shares closed at $0.034 per share on Friday. The company’s strong Q2 performance and positive outlook signal its potential for continued growth and success within the evolving functional mushroom and psilocybin market.
