GTBIF operates the Thrive brand dispensary chain operating in more than a dozen US states. In addition, the company grows, processes, packages, transports and distributes retail products, and owns dozens of brands of various retail self-manufactured products.
Financial statements tick off many positive boxes – positive tangible equity, health current ratio, actual earnings per share. A caution – like all young companies rolling up operators, accounting standards don’t fit well. They require companies to create intangible assets during acquisitions that can lead to unrealistic valuations of intangible assets. If startup stock prices are initially overvalued by an empassioned market, then accounting rules usually require high values for acquired intangible assets. Other accounting standards require the company to reduce those inflated intangibles to something reasonable, once the dust settles. That results in a loss recorded against earnings. Had accounting standards not required its initial valuation too high, there would be no such loss.
Nevertheless, GTBIF’s combined positive cash flow and earnings, relatively modest rate of stock dilution and string of improved tangible-assets-per-share growth are encouraging. The Annual Report is expected around March 1.