Allied Corp. Reports $27.7 Million Revenue, Narrowed Losses for Quarter Ending November 30, 2024

Allied Corp. reported its financial results for the three months ending November 30, 2024, revealing a revenue of $27.7 million, a significant increase from $19.0 million in the same period last year. The company's gross margin for the quarter was $13.6 million, down from $17.0 million in the previous year, primarily due to a rise in the cost of sales, which increased to $14.1 million from $2.0 million. The net loss for the quarter was $780,290, an improvement compared to a loss of $836,673 in the prior year, indicating a narrowing of losses despite the challenges faced.

In terms of operational changes, Allied Corp. saw an increase in its customer base, with the number of shares outstanding rising to 115.5 million from 112.5 million since the end of the previous fiscal period. The company also reported a working capital deficit of $8.9 million as of November 30, 2024, slightly worsening from $8.8 million at the end of August 2024. The total assets decreased to $1.95 billion from $2.11 billion, while total liabilities remained relatively stable at $9.59 million compared to $9.66 million in the previous quarter.

Strategically, Allied Corp. continues to focus on its cannabis operations in Colombia, where it operates a licensed cannabis farm. The company has not yet launched new product lines or made significant acquisitions but is actively working on developing its business model to include new medical technologies aimed at trauma survivors and veterans. The company’s management plans to fund operations through equity sales and related party loans until it can generate sufficient cash flow from operations.

The filing also highlighted key operational metrics, including an increase in accounts receivable to $75,939 from $47,955, indicating improved sales performance. However, cash reserves decreased to $195,350 from $359,103, reflecting ongoing liquidity challenges. The company’s employee headcount remains stable, with no significant changes reported in staffing levels.

Looking ahead, Allied Corp. expressed concerns regarding its ability to continue as a going concern, given its ongoing losses and working capital deficit. The management emphasized the need for additional financing to support operations and future development. The company remains committed to exploring opportunities for geographic expansion and product adoption, particularly in the cannabis sector, while navigating the complexities of regulatory environments and market conditions.