C21 Investments Files Audited Year End Financial Statements

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VANCOUVER, June 14, 2023 – C21 Investments Inc. (CSE: CXXI and OTCQX: CXXIF) (“C21” or the “Company”), a vertically integrated cannabis company, today announced the filing of its audited financial statements and management discussion and analysis for its fiscal year ended January 31, 2023 on SEDAR. The Company’s audited fiscal year end are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). All currency is reported in U.S. dollars.


Audited Fiscal Year Financial Highlights (February 1, 2022 to January 31, 2023):

  • Revenue of $28.9 million – down 12% year-over-year; state of Nevada cannabis sales were down 16% over the comparative period[1]
  • Net Income from Continuing Operations of $1.4 million (increase of $0.4 million from unaudited results reported in the June 2, 2023 news release)
  • Earnings Per Share from Continuing Operations of $0.01
  • Gross Margin of 46.4%; Adjusted Gross Profit Margin[2] of 49.0%
  • Adjusted EBITDA2 of $7.4 million – a 26% EBITDA Margin
  • Cash Flow from Operations of $6.0 million – a fourth consecutive year of positive quarterly Free Cash Flow2
  • Total Liabilities reduced by $4.1 million ($0.3 million further reduction from unaudited results reported in the June 2, 2023 news release)
  • Senior Note reduced by $6.1 million, with remaining balance fully retired as of June 1, 2023


Changes to the Unaudited Year End Financial Results previously released on June 2, 2023:

The Company previously disclosed its unaudited financial results for the year ended January 31, 2023 in its June 2, 2023 news release (the “Prior News Release”). There have been no changes to Revenue, Gross Profit, Income from Operations, adjusted EBITDA2, or Cash Flow from Operations in the audited financial results as compared to the unaudited financial results disclosed in the Prior News Release.

There are no material changes from the unaudited financial results disclosed in the Prior News Release other than the adjustments to Net Income from Continuing Operations and Net Income in the current period due to the tax provision changes previously disclosed in the Prior News Release and the news release dated June 6, 2023. Changes to the Prior News Release’s Income Statement and Balance Sheet for the current and the comparative previous period are listed below as well as highlighted in red in the summary tables provided.

The British Columbia Securities Commission (“BCSC”) issued a cease trade order (the “CTO”) on June 6, 2023 in respect of the Company’s securities in connection with the delay in the Company filing its audited consolidated financial statement for the year ended January 31, 2023, annual management’s discussion and analysis for the same period and management certifications of annual filings (collectively, the “Annual Filings”). The Company has provided notice to the British Columbia Securities Commission (“BCSC”) of the completion of the Annual Filings and has been informed that the CTO will be revoked June 15, 2023.

“We are pleased to announce the release of our audited year-end financial statements. We appreciate the patience of our shareholders during this delay while our tax provision changes for our previous fiscal year were corrected and restated,” stated CEO and President, Sonny Newman.


Non-GAAP Measures:

C21 reports its financial results in accordance with GAAP and uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with GAAP. The Company refers to certain Non-GAAP financial measures such as “Free Cash Flow”, “Adjusted Gross Profit”, “Adjusted Gross Profit Margin” and “Adjusted EBITDA”. These measures do not have any standardized meanings prescribed by GAAP and may not be comparable to similar measures presented by other issuers. The Company considers these measures to be an important indicator of the financial strength and performance of its business. The Company believes the adjusted results presented provide relevant and useful information for investors because they clarify the Company’s actual operating performance, make it easier to compare the Company’s results with those of other companies and allow investors to review performance in the same way as the management of the Company. Since these measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the Company’s reported results as indicators of the Company’s performance, and they may not be comparable to similarly named measures from other companies. The tables below provide reconciliations of Non-GAAP measures to the most directly comparable GAAP measures.

“Free Cash Flow” is defined as Cash Provided by Operating Activities from Continuing Operations in a period minus capital expenses of property and equipment. Management believes that Free Cash Flow, which measures our ability to generate additional cash from our continuing business operations, is an important financial measure for use in evaluating the Company’s financial performance.  Free Cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.

Free Cash Flow:

Fiscal Year Ended January 31, 2023 January 31, 2022

Cash Provided by Operating Activities from Continuing Operations


OCF Margin%



Purchase of Property and Equipment (442,285) (2,562,304)
Free Cash Flow 5,528,982 5,876,305


Adjusted Gross Profit” and “Adjusted Gross Profit Margin” are defined as Gross Profit and Gross Profit Margin adjusted for certain material non-cash items including the one-time relief of fair value of inventory on acquisition, non-cash write downs of inventory, non-recurring expenses related to the strategic maintenance of cultivation facilities and other one-time adjustments to gross profit that management does not believe are reflective of ongoing operations.

Adjusted Gross Profit:

Fiscal Year Ended January 31, 2023 January 31, 2022

Gross Profit

Gross Profit Margin %





Production curtailment, non-cash inventory adjustments 759,000

Adjusted Gross Profit

Adjusted Gross Profit Margin%






Adjusted EBITDA” is defined as EBITDA (earnings before depreciation and amortization, depreciation and interest in cost of sales, income taxes, and interest) less accretion, loss from discontinued operations, one-time transaction costs and all other non-cash items. The Company has presented “Adjusted EBITDA” because its management believes it is a useful measure for investors when assessing and considering the Company’s continuing operations and prospects for the future.  Furthermore, “Adjusted EBITDA” is a commonly used measurement in the financial community when evaluating the market value of similar companies.

Adjusted EBITDA:

FY2023 Q4 Q3 Q2 Q1  
  Jan 31, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022  
Net Income (Loss) $  293,211 $  (2,119,159) $  248,507 $  1,857,043 $  306,820  
Interest expenses, net 456,691 60,530 98,657 133,455 164,049  
Provision for Income Taxes 2,809,768 672,164 1,154,189 485,152 498,263  
Depreciation and Amortization 1,365,018 340,664 341,782 341,286 341,286  
Depreciation and Interest in COGS 812,367 203,091 203,093 203,091 203,092  
EBITDA $  5,737,055 $  (842,710) $  2,046,228 $  3,020,027 $  1,513,510  
Change in fair value of derivative liabilities (742,483) 14,830 (127,813) (629,500)  
Share based compensation 209,441 20,803 31,788 54,064 102,786  
Loss from discontinued operations 1,088,329 713,712 (11,154) (344,554) 730,325  
One-time special project costs 345,790 206,459 89,331 50,000  
Production curtailment, non-cash inventory adjustments 759,000 1,012,000 (253,000)  
Other gain/loss 49,722 18,723 13,173 21,972 (4,146)  
Adjusted EBITDA $  7,446,854 $  937,358 $  1,905,681 $  2,211,340 $  2,392,475  


FYE Balance Sheet Summary:

                                     (US$) January 31, 2023 January 31, 2022  
Cash 1,891,772 3,067,983  
Inventory 4,173,573 4,054,473  
Other current 2,677,027 3,162,018  
Current Assets 8,742,372 10,284,474  
Fixed Assets/Goodwill/Intangibles, deferred tax 49,569,032 51,559,976  
Total Assets 58,311,404 61,844,450  
Accounts payable 2,921,426 2,508,869  
Promissory note – current portion 2,026,667 6,080,000  
Income taxes payable 7,736,858 4,870,170  
Other notes, current lease, deferred tax etc. 2,289,316 2,515,077  
Current Liabilities 14,974,267 15,974,116  
Lease liabilities 8,554,702 8,953,425  
Promissory note 2,026,667  
Derivative liability and other 467,359 1,161,640  
Total Liabilities 23,996,328 28,115,848  
Shareholders’ Equity 34,315,076 33,728,602  
Total Liabilities and Shareholders’ Equity 58,311,404 61,844,450  


FY Financial Summary:    



  FY 2023 FY 2022  
 (US$) January 31, 2023 January 31, 2022  



28,888,410 32,982,976  
Cost of Sales 15,487,264 14,172,991  

Gross Profit  

                                                  Gross Margin%





Total Expenses 9,445,908 9,055,175  
Income from Operations 3,955,238 9,754,810  

Adjusted EBITDA2

                                                                       EBITDA Margin%








Changes to the Unaudited Year End Financial Results:

 Audited Balance Sheet (as at year ended January 31, 2023)

  • Current Assets – decrease of $0.18 million
  • Total Assets – decrease of $0.16 million
  • Current Liabilities – decrease of $0.25 million
  • Total Liabilities – decrease of $0.25 million
  • Equity – increase of $0.09 million
  • Equity + Liability – decrease of $0.16 million


Audited Income Statement (year ended January 31, 2023)

  • Revenue, Gross Profit, Income from Operations – No change
  • Net Income from Continuing Operations – increase of $0.4 million
  • Net Income – increase of $0.2 million


Comparative Year Audited Balance Sheet (as at Jan 31, 2022):

  • Current Assets – no change
  • Total Assets – decrease of $0.01 million
  • Current Liabilities – increase of $0.11 million
  • Total Liabilities – increase of $0.11 million
  • Equity – decrease of $0.12 million
  • Equity + Liability – decrease of $0.01 million


Comparative Year Audited Income Statement (ended January 31, 2022)

  • Revenue, Gross Profit, Income from Operations – No change

[1] State of Nevada Cannabis Tax Revenue: https://tax.nv.gov/Publications/Cannabis_Statistics_and_Reports/

[2]  “Free Cash Flow”, “Adjusted Gross Profit”, “Adjusted Gross Profit Margin” and “Adjusted EBITDA” and are non-GAAP measures. See “Non-GAAP Measures” below for a discussion of such non-GAAP measures and a reconciliation to the closest comparable GAAP measures.


For further inquiries, please contact:

Investor contact:                                                                   Company contact:

Investor Relations                                                                   Michael Kidd

info@cxxi.ca                                                                             Chief Financial Officer and Director

+1 833 289-2994                                                                     Michael.Kidd@cxxi.ca


About C21 Investments Inc.

C21 Investments Inc. is a vertically integrated cannabis company that cultivates, processes, and distributes quality cannabis and hemp-derived consumer products in the United States. The Company is focused on value creation through the disciplined acquisition and integration of core retail, manufacturing, and distribution assets in strategic markets, leveraging industry-leading retail revenues with high-growth potential multi-market branded consumer packaged goods. The Company owns Silver State Relief and Silver State Cultivation in Nevada, including legacy Oregon brands Phantom Farms, Hood Oil and Eco Firma Farms. These brands produce and distribute a broad range of THC and CBD products from cannabis flowers, pre-rolls, cannabis oil, vaporizer cartridges and edibles. Based in Vancouver, Canada, additional information on C21 can be found at www.sedar.com and www.cxxi.ca.


Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.