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The Good Shroom, a Canadian cannabis company, reported $691,382 in net revenue for the quarter ended October 31, 2024 (Q1 2025), but a net loss of $55,222.
This is a year-over-year decrease from the $1.3 million in net revenue and $92,586 in net profit in the company’s Q1 2024 report and $40,603 in net profit in the previous quarter (Q4 2024).
The Good Shroom Company (TGSC) recently reported net profits of $40,000 for 2024.
The company attributes its weaker performance in this most recent quarter primarily to Quebec’s biannual product call system, where it sells the majority of its products. It also recently returned $35,913 worth of cannabis products (plus the associated return fee) from the province of Alberta during Q1 2025. The Good Shroom also recently began selling products in PEI.
From the company’s press release: “This system means that one underperforming product call can result in weaker performance across two consecutive quarters. This was the case for TGSC, as the recent “rationalization” of offerings by the cannabis board of the province affected the entire market, including the Company.”
As a result of this rationalization, TGSC says it received a return of $29,622 plus associated fees and lost sales opportunities during late Q4, Q1 and early Q2. The company says this is the first time this outcome has occurred in its history and expects to rebound with the upcoming product call, beginning in late Q2 and continuing into Q3.
The company says the “significant setbacks” experienced this quarter “are not deeply pernicious.”
Of The Good Shroom’s $824,225 of revenue (before $132,843 in excise), $810,652 were from the sale of cannabis products, while $13,573 were wellness beverages (part of its mushroom business). $818,953 was sold in Canada, while $5,273 was sold in the US.
The company was first licensed as a micro processor in November 2019 before scaling up to a standard processing licence in October 2023. The Good Shroom recently released a THC-infused oral pouch under the Dyp brand in the Alberta market, and it expects to release it into the Ontario market in January 2025.
As at October 31, 2023, the Company had a working capital of $515,672.
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