4Front Ventures Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
Total revenues for Q3 2024 were $17.1 million, a decrease of 26% from $23.0 million in Q3 2023. Revenue from the sale of goods also fell by 24%, from $20.1 million to $15.3 million. For the nine months ended September 30, 2024, total revenues decreased by 29% to $54.6 million, down from $76.5 million in the same period of 2023. The decline in revenue was attributed to reduced sales across both the Illinois and Massachusetts segments, with net revenues from Illinois dropping to $7.3 million and Massachusetts to $7.9 million.
Despite the revenue decline, the company reported a net loss from continuing operations of $6.5 million for Q3 2024, an improvement from a loss of $26.4 million in Q3 2023. For the nine months, the net loss from continuing operations was $30.1 million, compared to $39.6 million in the prior year, marking a 24% improvement. The reduction in losses was primarily due to a significant decrease in operating expenses, which fell by 62% to $9.0 million in Q3 2024, driven by lower selling, general, and administrative expenses.
4Front Ventures also made strategic moves during the period, including the acquisition of Euphoria, LLC and Westside Visionaries, LLC, aimed at expanding its dispensary licenses in Illinois. The company reported a gain on the disposal of its retail dispensary, Om of Medicine, amounting to $0.6 million. Additionally, the company ceased operations at its California cultivation and production facilities, classifying these as discontinued operations.
As of September 30, 2024, total assets increased to $278.1 million from $263.9 million at the end of 2023, while total current liabilities rose to $112.9 million, leading to a working capital deficit of $74.8 million. The company’s cash position decreased to $1.2 million, down from $3.4 million at the end of 2023.
The company continues to face challenges, including a substantial doubt regarding its ability to meet obligations over the next year. It plans to fund operations through sales and capital reserves while focusing on scaling operations in key markets to enhance market share and drive growth.
About 4Front Ventures Corp.
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