Blum Holdings, Inc. (Blüm) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on cannabis retail and distribution in California, experienced a substantial increase in revenue, with total revenue for the three months reaching $4.36 million, up 181.7% from $1.55 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $9.93 million, a 74.4% increase from $5.70 million in the prior year. This growth was primarily driven by the addition of three dispensaries in Northern California, which contributed $2.93 million in revenue during the quarter.

Gross profit for the third quarter of 2024 was $2.45 million, reflecting a 365.4% increase from $0.53 million in Q3 2023. The gross margin improved to 56.1%, up from 34.0% in the previous year. Operating expenses decreased to $4.65 million from $6.45 million, leading to a reduced operating loss of $2.20 million, compared to $5.93 million in Q3 2023. However, the net loss for the quarter was $3.74 million, slightly higher than the $3.36 million loss reported in the same quarter last year.

For the nine months ended September 30, 2024, Blum reported a net income of $16.57 million, a significant turnaround from a net loss of $6.20 million in the prior year. This improvement was bolstered by a $15.18 million gain on extinguishment of debt. The accumulated deficit decreased to $437.02 million from $454.18 million at the end of 2023.

Strategically, Blum has made several key moves, including the acquisition of Coastal Pines Group for $1.26 million, which added goodwill of $17.99 million to its balance sheet. The company also executed a management services agreement with Safe Accessible Solutions, Inc. to manage a Sacramento dispensary and sold its Blüm Santa Ana location in June 2024.

As of September 30, 2024, Blum's total assets increased to $38.68 million from $32.07 million at the end of 2023, while total current liabilities decreased to $51.87 million from $62.55 million. The company’s cash and cash equivalents rose to $1.03 million, up from $0.42 million at the end of the previous fiscal year. Despite these positive developments, management anticipates further net losses in 2024 and is exploring options to reduce cash requirements and raise additional funds.