Cannabis Suisse Corp. Reports Improved Quarterly Net Income but Increased Six-Month Loss

Cannabis Suisse Corp. has reported its financial results for the three and six months ended November 30, 2024, revealing a net income of $5,062 for the quarter, a significant improvement compared to a net loss of $54,797 in the same period last year. However, for the six-month period, the company recorded a net loss of $530,024, which is an increase from a loss of $119,554 in the prior year. The company generated total revenues of $7,500 and $15,000 for the three and six months ended November 30, 2024, respectively, consistent with the same revenue figures from the previous year. The cost of goods sold for the respective periods was $7,356 and $14,712, leading to a gross profit of $144,626 for the quarter.

The financial performance indicates a notable increase in operating expenses, which rose to $92,453 for the three months and $167,436 for the six months ended November 30, 2024, compared to $51,328 and $112,570 in the previous year. This increase is attributed to higher rental expenses as the company expanded its leased properties in early 2024. The company also reported a significant change in other income and expenses, with a total of $97,371 for the quarter, primarily due to a gain on the amortization of debt premium, contrasting with a loss of $4,095 in the same quarter last year.

In terms of operational developments, Cannabis Suisse Corp. has focused on real estate operations since June 2022, having leased additional properties from companies owned by its CEO. The company has also subleased a portion of its leased properties, generating consistent rental income. As of November 30, 2024, the company had total assets of $751,847, down from $896,623 as of May 31, 2024, with current liabilities amounting to $278,647. The company’s stockholders’ deficit increased to $1,875,854, reflecting ongoing financial challenges.

The company’s cash position has also deteriorated, with cash in escrow dropping to $4,100 from $28,562 at the end of the previous fiscal period. The working capital deficit stood at $143,584, raising concerns about the company's liquidity. Management has indicated that the company will continue to rely on additional investment capital and related party funding to cover operating expenses. The outlook remains uncertain, as the company has not established a stable revenue source sufficient to cover its operating costs, leading to a "going concern" opinion in its financial statements.

Looking ahead, Cannabis Suisse Corp. aims to raise additional funds through capital markets and related party investments to support its operations. However, there are no assurances regarding the success of these efforts or the company's ability to achieve financial viability in the near future. The company’s management continues to monitor its financial condition closely, emphasizing the need for strategic decisions to navigate the current market challenges.