Body and Mind Inc.

Consolidated revenue for Q3 was $7.88 million, a slight sequential dip and 10% higher than the same quarter a year ago. Gross profit was $2.9 million versus $3.02 million in Q2, and gross margin was 36% versus 37% in Q2. Adjusted EBITDA was a loss of $0.78 million. Total assets were $52.9 million, total liabilities were $22.7 million, cash was $3.7 million, and inventory was $4.3 million. Management said the company ended the quarter with just over 113 million shares outstanding and a fully diluted count of roughly 140 million. Looking ahead, management said recent and ramping assets could support a roughly $30 million revenue run rate, but Illinois license revenue would likely not arrive next week, next month, or maybe even next quarter; no formal next-quarter or full-year guidance was given.

Michael Mills said the quarter reflected a broader slowdown in cannabis sales, especially late last year and early this year, but he emphasized that Body and Mind is still building toward stronger growth from new and limited-license markets. He pointed to Ohio, Arkansas, Michigan, and especially Illinois as future growth drivers, and said the company’s measured approach, low equity issuance, and focus on quality product and licenses remain central to the strategy. His tone was cautious but constructive, stressing flexibility and patience while the company waits for market and licensing catalysts.

Mills, speaking to the financials, said revenue was $7.88 million, gross profit was $2.9 million, gross margin was 36%, and adjusted EBITDA was a loss of $0.78 million. He also detailed the balance sheet: $52.9 million in assets, $22.7 million in liabilities, $3.7 million in cash, $4.3 million in inventory, roughly $5 million in long-term operating lease liabilities, and $7.4 million in long-term debt. He said the company extended its debt maturity by one year and extended the $4 million delayed draw option to March 2023, describing the added terms as a tradeoff for flexibility in a tight capital environment.

Analyst Tony Bowers asked why top-line growth had stalled, and management blamed a nationwide cannabis sales slowdown, startup ramp timing at newer operations like Michigan, and delayed Illinois licensing. He also asked about competitive pressure; Mills said weaker equity markets and tougher conditions are reducing irrational competition, but there is still pricing pressure in flower and consumer competition in some states. On the paused Manistee cultivation project, Mills said falling flower prices, rising construction costs, tight capital, and long lead times for specialty equipment made the pause sensible, and the company may resize or wait for better conditions.