StateHouse Holdings Inc Stock Price, News & Analysis

StateHouse Holdings Inc. reported Q3 2022 financial results, highlighting a 77% increase in total net revenues to $30.8 million, driven by acquisitions and new dispensaries. The company achieved a 35% reduction in annualized SG&A expenses and expects to achieve positive EBITDA and cash flow in the second half of 2023. Gross profit was $11.1 million, up 31% year-over-year, despite a decline in gross margins to 35.9% due to market challenges. The company continues to streamline operations, targeting further synergies and cost savings in 2023.

StateHouse Holdings Inc. announces the launch of sungrown craft cannabis brands, Swami Select and Sonoma Hills Farm, available at selected stores starting Nov. 10 and Nov. 21, 2022. This initiative supports small-scale California growers and emphasizes sustainable cultivation methods. The CEO highlights the environmental benefits and high-quality standards of these products, likening them to fine wines. The brands promote regenerative farming practices, ensuring superior flavor and cannabinoid profiles, further enhancing the consumer experience. StateHouse aims to foster growth and accessibility in the California cannabis market.

StateHouse Holdings Inc. (STHZF) applauded President Biden's proposed cannabis reforms, including a blanket pardon for federal marijuana possession convictions and a review of cannabis scheduling. CEO Ed Schmults highlighted the potential benefits of reclassifying cannabis from Schedule I, which could attract investment, lower taxes, and reduce uncertainty for the legal cannabis industry. Currently, cannabis's Schedule I status hinders institutional investment and access to banking. StateHouse, a California-focused cannabis enterprise, operates multiple dispensaries and production facilities.

StateHouse Holdings Inc. (CSE: STHZ, OTCQX: STHZF) has announced a strategic partnership with Nabis, California's largest cannabis distributor, to outsource its distribution operations. Effective immediately, this partnership aims to achieve significant cost savings by reducing headcount and operational expenses. The collaboration is expected to enhance StateHouse's product reach across California, potentially creating millions in savings. CEO Ed Schmults expressed optimism about the benefits of this alliance, anticipating an EBITDA-positive outcome next year.

StateHouse Holdings Inc. (CSE: STHZ, OTCQX: STHZF) reported revenues of $34.6 million in Q2 2022, marking a 125% increase year-over-year. The company aims to achieve EBITDA positivity by 2023, supported by cost-saving measures from the Loudpack acquisition, which is expected to yield annual savings of $10.3 million. Despite challenging California market conditions, management remains optimistic about operational efficiency and product development. The company also reported a one-time non-cash gain of $16.1 million from a tax agreement with the IRS. Total gross profit reached $14.7 million with a margin of 42.6%.

StateHouse Holdings Inc. (CSE: STHZ, OTCQX: STHZF) has reached a Partial Payment Installment Agreement with the IRS to resolve federal tax liabilities totaling approximately $22.1 million related to its subsidiary PMACC for fiscal years 2007-2012 and 2020. The agreement reduces the owed amount to $5.8 million, payable in $50,000 monthly installments over 116 months. This will lead to a non-cash accounting adjustment of around $15.8 million, improving StateHouse's financial position by reclassifying liabilities as non-current. The deal is seen as a significant step for the company's competitiveness in the cannabis sector.