Simply Solventless Concentrates Ltd (SSC) reported $20.5 million in gross revenue in 2024, $13.7 million in net revenue, $1.2 million in gross profit, but a $5.2 million loss.

While the company’s gross revenue increased 194% from the previous year, and net revenue increased 121%, gross profit decreased 66%, and losses increased 627% from a $1 million profit in 2023. 

The company incurred $6.8 million in excise taxes from its $20.5 million in gross revenue.

Simply Solventless says the increase in its gross revenue was due to an expanded array of product and service offerings, including the introduction of branded products from Astrolab, Frootyhooty and Lamplighter, CannMart’s Roilty and Zest brands (acquired in September 2024), and the acquisition of ANC’s Status brand and their business-to-business pre-rolling services.

All of SSC’s gross revenue in 2024 came from cannabis sales. Product tolling services, which the company reported as bringing in $2.3 million in 2023, did not generate any revenue in 2024. 

This is because during 2023 and for the nine months ending September 30, 2024, the company recognized revenue from tolling services with various arms-length counterparties where payment for the tolling services was paid in-kind with an equivalent value of the processed end product recorded into inventory. 

SSC states that in the fourth quarter of 2024, it reviewed the assessment of non-monetary tolling services and reassessed the relationships in the agreements for tolling services with paid-in-kind payment terms were representative of supplier relationships. 

Because of this, SSC recorded an adjustment to derecognize $4,295,364 of tolling revenue in 2024 with a corresponding reduction in cost of goods sold of $682,975 to reflect the change in cost base of the related inventory. 

Paid-in-kind tolling services are now accounted for as purchases of raw materials with inventory and cost of goods sold reflecting the value of the raw materials purchased. 

“All things being equal, it is SSC’s view that the non-cash changes to accounting treatment will positively impact future revenue, profitability, and cash flow,” said Jeff Swainson, SSC’s President and CEO. 

“Gross margins remain strong, and the size and capability of our asset base improved significantly during 2024. We look forward to filing our Q1 2025 financial statements as soon as possible, and as we proceed through 2025, we are focused intently on maximizing cash flow from operations and on strengthening our balance sheet. We believe that SSC’s positioning today is stronger than ever before, and that the continued execution of our highly impactful business plan is capable of delivering strong value to shareholders.”

Simply Solventless also provided updates on the timing of the filing of its Q1 2025 financials, which have been delayed several times this year. 

As announced on April 30, 2025, and further discussed in news releases dated May 14, 2025, and May 20, 2025, a Management Cease Trade Order (MCTO) was issued by the company’s principal regulator, the ASC, on May 5, 2025 to accommodate additional time required to file the company’s Annual Financials. 

The ASC approved a further extension of the MCTO to June 20, 2025, to provide SSC with enough time to prepare the Q1, 2025 financial results due to the delays incurred in filing the Annual Financials.

On February 28, 2025, SSC acquired all the issued and outstanding shares of Delta 9 Bio-Tech for cash consideration of $3 million.

On March 12, 2025, the company announced that it had entered into an arrangement agreement dated March 11, 2025, pursuant to which SSC will acquire all of the issued and outstanding common shares of CanadaBis Capital Inc.

On April 28, 2025, CanadaBis announced that it was terminating the transaction effectively immediately. On April 29, 2025, SSC issued a demand payment from CanadaBis for the break fee in the amount of $1.2 million, due by no later than April 30, 2025. SSC states that no response or payment has been received from CanadaBis.

On June 2, 2025, SSC negotiated an amendment to the ANC Promissory Note in connection with the outstanding secured ANC Promissory Note in the amount of $3.65 million due on May 31, 2025. 

Pursuant to the terms of the Amending Agreement, the Company agreed to a payment of $3.01 million in connection with the contingent consideration pursuant to the earn-out provisions of the acquisition agreement between the Company and ANC, thereby increasing the ANC Promissory Note to $6.7 million. 

Some $3.4 million of the Revised Promissory Note Balance has been settled by the issuance of 6.89 million Common Shares at a value of $0.50 per share (subject to approval from the TSX Venture Exchange), leaving a remaining Revised ANC Promissory Note Balance of $3.22 million. $1.0 million of the remaining Revised ANC Promissory Note will be due and payable in cash on the first anniversary of the Amending Agreement with no accruing interest charges, and $2.2 million of the remaining Revised Promissory Note Balance will be paid with weekly installments of $25,000 for the first 78 weeks, and thereafter $10,480 for the remaining 26 weeks until the remaining Revised ANC Promissory Note Balance is repaid in full.

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