- East West Bioscience Inc (TSXV:EAST) have posted mixed financials for the quarter ended January 31
- The company’s revenue fell from $528,199 in 2018 to $370,017 in 2019
- East West realised higher margins for the period, lower expenditures and a lower net loss.
- The company’s gross margin for the second quarter increased by 19 per cent to 44 per cent of overall earnings.
- East West Bioscience Inc (EAST) is holding steady at $0.015 per share and has a market cap of $1.2 million
East West Bioscience Inc (TSXV:EAST) have posted a $200,000 dip in revenue for the period ended January 31, but margins increased.
The company’s revenue fell from $528,199 in 2018 to $370,017 in 2019.
East West realised higher margins for the period, lower expenditures and a lower net loss.
Gross margin for the quarter was up to 44 per cent, compared to 25 per cent in the previous corresponding period.
The increase was on the back of increased margins on self-manufactured products made Orchard Vale Naturals, a subsidiary of East West.
The company has changed from high volume low margin products to focus on a different product line.
This follows strategies most cannabis companies are trending towards, as brands become more established in the very young sector.
East West decreased costs by $597,327 from $1.15 million in 2018 down to $555,586 in 2019, a total of 52 per cent.
The decreases came through a huge reduction in consultancy fees, business development, marketing, professional fees, stock-based compensation, lowered rent and a number of other costs.
The company cut costs dramatically by closing it’s head office in Saskatoon and moving into the Penticton production facility.
The company also dramatically reduced it’s use of outside consultants, instead bringing on a greater internal workforce to manage workload.
The company’s joint venture also reduced cost, as mutually beneficial costs were shared with their joint venture partner Azema Sciences Inc.
The joint venture is now in production of CBD distillates and tinctures and is in the process of developing other CBD finished goods for sale.
The company still has $2.5 million in debt, with a working capital deficiency of $1.7 million at the end of Q2 2020 when compared to $1.6 million at the end of 2019.
East West Bioscience (TSXV:EAST) is holding steady at $0.015 per share at 1:54 pm EST.