Yep! Was unaware they were able to deduct some reported SG&A expenses under COGS because they are only a cultivator which reduces tax expense quite a bit.
Yes - one of the challenges fo cannabis is that "Adjusted EBITDA" doesn't really convert at the same percentage to cashflow as you look across MSOs because of varying retail exposure. Not always a bad thing as sometimes you want retail because benefit of increased sales/margins > marginal increase in taxes, but just makes it a bit more difficult to look at things apples to apples.
Is Grown Rogue really profitable though? If you back out the NOLs and after taxes your left with negative net income.
Are you backing out biological asset adjustments?
Cash generation also doesn't lie on this one.
Hey sorry, cleared this up with management and meant to delete the comment.
No worries - always happy to have some thoughtful engagement
Yep! Was unaware they were able to deduct some reported SG&A expenses under COGS because they are only a cultivator which reduces tax expense quite a bit.
Yes - one of the challenges fo cannabis is that "Adjusted EBITDA" doesn't really convert at the same percentage to cashflow as you look across MSOs because of varying retail exposure. Not always a bad thing as sometimes you want retail because benefit of increased sales/margins > marginal increase in taxes, but just makes it a bit more difficult to look at things apples to apples.