On May 31, Namaste Technologies (TSXV:N) (OTCQB:NXTTF) filed its long-awaited audited 2018 Annual Financial Statements along with its Q1 2019 statement. Unfortunately, Namaste stock tanked once it did. The financials didn't look too healthy and paired with the delay in filing them, it seems investors have had enough.
At present, N stock is selling for $0.72 CAD.
Namaste Stock Tanks on Long-Awaited Financial Results
The company is in the throes of repairing self-inflicted damage, and it is a monumental task. Between CEO scandals, key-management departures, delayed filings, and plummeting stock prices, Namaste Technologies is straddling a knife edge.
Its fall from grace was rather unprecedented because, in 2018, Namaste's business model was doing great things. The company's e-commerce platform sells a variety of cannabis accessories such as vapes and to coincide with that, it also runs an online portal called Namaste MD—built to serve medical cannabis patients.
But its potential came crashing down in 2019 as negative events surrounding the company came to light.
Namaste Stock and Operational Performance
Now, going forward, there is uncertainty associated with Namaste's operational performance, and its recent filing has helped to put a nail in that coffin.
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The company delivered revenue of $15 million in its latest filing. Along with that, it showed earnings per share of -$0.16. This underperformance sent Namaste stock on a downward spiral; shares have lost over 20% since the eve of the results.
Lack of Growth
Prior to these results, the last performance indicator that investors got from the company was its fourth fiscal quarter of 2018 release.
In this instance, Namaste Technologies showed net revenue of $3.9 million, which was flat against the same period in 2017. Further, the company showed no growth in its vaporizer business; its online shop, CannMart, generated sales of just $32,000 USD in the quarter. Its NamasteMD medical portal generated sales of $61,000.
But the biggest blow to Namaste stock was that while the company made a gross profit of $930,000, it lost over $8.7 million on operational expenses. Ouch.
Overall, the report showed a company that was stagnating on growth and burning through a lot of cash on its operations.
Coupling that report with the latest one paints a picture of a company that is struggling. Can Namaste stock recover from this? It has a long road ahead, but what do you think?
Featured Image: Canva
