Target Group Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, generating revenue of $6,591,625, up from $3,720,169 in the previous year, marking an increase of approximately 77%. The company also achieved a net income of $160,504, a notable recovery from a net loss of $323,670 in 2023. Despite this positive shift, Target Group continues to face challenges, with a working capital deficit of $9,994,548 and an accumulated deficit of $30,946,844 as of the end of 2024.
The company has undergone several strategic developments, including the termination of its joint venture with Thrive Cannabis, which allowed Target Group to consolidate the results of JVCo, increasing its equity interest from 50% to 100%. This transition, effective April 28, 2023, resulted in the acquisition of assets valued at $2,388,428, including inventory and fixed assets, and a non-operating gain of $1,571,742 recognized from the termination of the joint venture. Additionally, Target Group has focused on expanding its product offerings, which now include cannabis flower pods, extracts, pre-rolls, infused beverages, and edibles.
Operationally, the company reported a decrease in customer count, serving 17 customers in 2024 compared to 21 in 2023. However, the average revenue per customer increased, contributing to the overall revenue growth. The company’s inventory decreased to $882,279 from $1,215,928 in the previous year, reflecting a strategic adjustment in response to market conditions. As of December 31, 2024, Target Group employed 41 individuals, maintaining a lean operational structure while relying on independent contractors for various services.
The filing indicates that the company is actively seeking to improve its financial position through various financing operations and anticipates generating positive cash flows from operations in the future. However, the independent auditors have expressed substantial doubt regarding the company's ability to continue as a going concern, emphasizing the need for additional financing or operational improvements to sustain its business. Target Group's management remains focused on leveraging its market position in the Canadian cannabis industry, which continues to evolve amid changing regulations and consumer preferences.
About Target Group Inc.
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