Table of Contents
Revenue:
The company’s revenue for the first quarter of 2023 was $345,368, representing an 18% decrease compared to the first quarter of 2022. The decrease in revenue was primarily attributed to the diminishing impact of the COVID-19 pandemic on the company’s telemedicine services for medical marijuana cards. As the public grew more accustomed to the pandemic and with the availability of vaccinations and booster shots, the demand for remote visits with physicians decreased.
Cost of Revenues:
The cost of revenues for the first quarter of 2023 was $105,401, which accounted for 31% of the total sales. This marked a decrease of 6% compared to the first quarter of 2022. The decrease in the cost of revenues as a percentage of sales was likely due to the company’s efforts to optimize its cost structure and streamline its operations.
Gross Profit:
The gross profit for the first quarter of 2023 was $239,967, representing a 9% decrease compared to the same period last year. However, the gross profit margin increased from 63% to 69% due to the decrease in the cost of revenues.
Expenses:
Total operating expenses for the first quarter of 2023 decreased by 41% compared to the first quarter of 2022. This decrease was primarily driven by reductions in professional fees, depreciation and amortization, wages and salaries, advertising, and general and administrative expenses. The decrease in expenses reflects the company’s ongoing efforts to control costs and improve its financial performance.
Net Loss from Continuing Operations:
The net loss from continuing operations for the first quarter of 2023 was $112,361, representing a 66% decrease compared to the same period last year. The reduced loss was a result of the decrease in operating expenses, partially offset by the decline in revenue.
Liquidity and Capital Resources:
Cannabis Sativa, Inc. reported cash on hand of $102,399 at the end of the first quarter of 2023. The company generated $4,241 in cash from operating activities during the quarter, compared to using $47,799 in cash during the first quarter of 2022. Financing activities provided $11,061 in net proceeds from related party notes during the first quarter of 2023. However, the company acknowledged that it may need to seek additional funding as its current cash position may not be sufficient to meet its immediate needs.
Conclusion:
Cannabis Sativa, Inc. reported an 18% decrease in revenue for the first quarter of 2023 compared to the same period last year. The decline in revenue was attributed to the diminishing impact of the COVID-19 pandemic on the company’s telemedicine services. The company also reported a decrease in operating expenses, resulting in a reduced net loss from continuing operations. However, the company acknowledged the need for additional funding to meet its liquidity requirements.
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