Cannabis Suisse Corp. Reports Significant Losses and Decline in Cash Position in Latest Quarter

Cannabis Suisse Corp. reported its financial results for the three months ended August 31, 2024, revealing significant challenges in revenue generation and profitability. The company recorded a net loss of $535,086, a substantial increase from the net loss of $64,757 reported for the same period in 2023. This increase in losses was primarily attributed to a loss on settlement of debt amounting to $551,677, which was not present in the previous fiscal year.

For the quarter, the company generated gross profit of $144,626, with total operating expenses rising to $74,983, compared to $61,243 in the prior year. The increase in operating expenses was linked to higher rental costs associated with additional properties leased in early 2024. The operating loss for the quarter was $(74,839), up from $(60,617) in the previous year.

Total current assets decreased to $174,744 as of August 31, 2024, from $196,453 as of May 31, 2024. Total assets also fell to $833,847 from $896,623 in the same timeframe. Conversely, total current liabilities saw a significant reduction, dropping to $236,794 from $381,000, while total liabilities increased to $2,714,763 from $2,242,453. The accumulated deficit grew to $(3,135,990) from $(2,600,904), and total stockholders’ deficit rose to $(1,880,916) from $(1,345,830).

The company’s cash position showed a decrease, with cash at the end of the period reported at $25,742, down from $28,562. Cash used in operating activities also increased to $(5,320) from $(3,270) year-over-year. Financing activities provided $2,500 in cash, a decline from $4,500 in the previous year.

Cannabis Suisse Corp. has been focusing on real estate operations since February 2023, having leased multiple properties from companies owned by its CEO. The company recognized rent revenue of $7,500 for the quarter, consistent with the previous year. However, the overall financial health of the company raises concerns, as it reported limited revenues and recurring losses, leading to substantial doubt about its ability to continue as a going concern without additional capital.

The company has also faced challenges with its internal controls over financial reporting, identifying material weaknesses that could lead to misstatements in financial statements. As of August 31, 2024, no changes in internal controls were noted that materially affected the reporting processes.