Losses up at Irish cannabis health company
Published 18/08/2015 | 02:30
An Irish-headquartered company which is mainly focused on the testing of marijuana for medical purposes has seen its losses widen from about €326,000 to €3.3m in the year to the end of 2014.
Full Spectrum Laboratories, which is mostly operational in Canada and the US, was the first independent botanical lab in the US and says it looks to "provide safe meds to the medical marijuana community".
According to accounts recently filed by the firm, it made a full-year loss of CAD$4.89m (€3.3m) in 2014 compared to a loss of CAD$475,317 (€326,091) in 2013.
The large jump in losses was mainly attributable to a write- down of CAD$4.5m made on receiveable balances - money from a sale that has yet to be collected - of a related party.
Its administrative expenses actually fell year on year, dropping from CAD$579,817 to CAD$356,370.
The company's shareholder funds fell from CAD$4.72m to a deficit of CAD$176,319.
The directors noted that the company would only be able to continue functioning if it secures additional funding in the next 12 months.
They said: "The company is currently in discussions to secure additional funding and in the event that funding is not available, a director will make sufficient funding available to the company to ensure it can meet its financial obligations as they fall due for a period of at least 12 months."
The directors also noted that one of the potential risks facing the firm is strict regulation surrounding the testing of cannabis in the US.
They said: "The company operates in an industry that is highly regulated. The directors address this risk by close monitoring of the activities of the company."
The company had no employees based in Ireland during either 2013 or 2014.