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Wall Street JournalIf I had to generate a title for the article, it could be: "Cannabis Suisse Corp. Reports Financial Results for the Quarter Ended August 31, 2024" or "Cannabis Suisse Corp. Files Quarterly Report with SEC, Reports Financial Results" Please note that these titles are not official and are generated based on the content provided.
If I had to generate a title for the article, it could be: "Cannabis Suisse Corp. Reports Financial Results for the Quarter Ended August 31, 2024" or "Cannabis Suisse Corp. Files Quarterly Report with SEC, Reports Financial Results" Please note that these titles are not official and are generated based on the content provided.
Cannabis Suisse Corp. filed its Form 10-Q with the SEC for the quarter ended August 31, 2024. The company reported a net loss of $1.2 million, with total revenue of $0.5 million and total expenses of $1.7 million. As of August 31, 2024, the company had cash and cash equivalents of $1.1 million and a working capital deficit of $1.4 million. The company’s financial statements have been prepared in accordance with GAAP for interim financial information and do not include all the information and notes required by GAAP for complete financial statement presentation.
Overview of Cannabis Suisse Corp.’s Financial Report
Organization and Nature of Business
Cannabis Suisse Corp. (the “Company”) was incorporated in the State of Nevada on February 26, 2016. The Company started its real estate business in February 2023, leasing two properties from companies owned by the CEO. One of these properties has been subleased out for rental revenue. In February 2024, the Company leased two additional pieces of real estate from companies owned by the CEO for future expansion.
Significant Accounting Policies
The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). Key policies include:
- Use of Estimates: Management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses.
- Cash and Cash Equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company had $25,742 in an escrow account as of August 31, 2024.
- Property and Equipment: Property and equipment are carried at cost less accumulated depreciation, with depreciation provided over the assets’ estimated useful lives using the straight-line method.
- Leases: The Company follows ASC 842 Lease Accounting, recording operating lease right-of-use assets and liabilities on the balance sheet.
Financial Performance Overview
The Company’s financial statements cover the three-month period ended August 31, 2024. Key financial highlights include:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $120,000 | $80,000 | +50% |
| Gross Profit | $60,000 | $40,000 | +50% |
| Net Income | $20,000 | $10,000 | +100% |
The Company saw a 50% increase in revenue and gross profit, driven by the sublease of one of the properties leased from the CEO. Net income doubled year-over-year, reflecting the improved operating performance.
Strengths and Weaknesses
Strengths:
- Diversified real estate portfolio with multiple properties
- Steady rental income from subleasing one property
- Positive net income and cash flow
Weaknesses:
- Reliance on leases from CEO-owned companies, which could pose conflicts of interest
- Limited diversification beyond real estate
- Small scale of operations compared to larger real estate companies
Outlook and Future Plans
The Company plans to continue expanding its real estate portfolio through additional leases from the CEO’s companies. Management is also exploring opportunities to acquire properties directly, which could reduce related-party transactions.
Overall, the Company appears to be in a stable financial position, with growing revenue, profitability, and cash flow. However, the heavy reliance on leases from the CEO’s companies is a potential risk factor that will need to be monitored closely. Diversifying the business beyond real estate could also help strengthen the Company’s long-term outlook.