Dan Bilzerian Broke – Is Dan Company in Loss?

August 31, 2021

Is This Dan Bilzerian’s Weed Company’s Last Year of Loss?

Dan Bilzerian Broke

Dan bilzerian broke : Ignite, the publicly traded cannabis-related company established, directed, and promoted by social media sensation Dan Bilzerian, is on the rise.

According to audited annual financial statements filed with Canadi, the company posted its first-ever profitable quarter last year, after a rough 2019 in which the company lost $69 million—and an even rougher 2020, when a former company executive accused Bilzerian of using investor cash to fund his Instagram-luxe lifestyle of private planes, hired yachts, and platoons of bikini models—the company posted its first-ever profitable quarter last year.

(Because Ignite is publicly traded in Canada, all figures in this article are in Canadian dollars.)

According to data filed with the Canadian Securities Exchange, instead of losing $69 million in 2020, Ignite only lost $19.7 million.

Ignite actually turned a profit in the fourth quarter of 2020, with a net income of $3.1 million.

Bilzerian is back, baby, instead of bankrupt! How did he pull it off?

For one thing, Ignite lowered expenditures by over 75% on a promotional budget.

Pandemics meant fewer parties, which meant more business for Ignite.

The biggest shift on the balance sheet, however, was the exchange of debt for stock.

Despite finding cash and reporting sales, Ignite only managed to stay afloat after ballooning its accumulated deficit to more than $100 million.

Ignite’s major income streams are debt and shares in its own stock, which touched a low of $0.35 Canadian last October despite the firm reporting an all-time high of $16 million in sales.

For one thing, Ignite lowered expenditures by over 75% on a promotional budget.

Pandemics meant fewer parties, which meant more business for Ignite.

The biggest shift on the balance sheet, however, was the exchange of debt for stock.

Despite finding cash and reporting sales, Ignite only managed to stay afloat after ballooning its accumulated deficit to more than $100 million.

Ignite’s major income streams are debt and shares in its own stock, which touched a low of $0.35 Canadian last October despite the firm reporting an all-time high of $16 million in sales.

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Ignite made nearly all of its revenues ($12.8 million out of $16.9 million) as a distributor rather than a reseller of branded products.

On those sales statistics, Ignite only made a $6.4 million gross profit, and the firm is still drowning in administrative expenditures.

Ignite incurred $22.66 million in operating expenses, which, along with additional losses such as interest on existing debt, resulted in a loss of $19.371 million.

The company raised $3 million by offering shares and another $8 million by issuing convertible debt and payable notes, according to its audited financial statement.

As a result of these actions, the company’s total deficit has risen to $103 million, up from $83 million at the end of 2019.

Dan Bilzerian, as a businessman, functions as a sort of debt king of the twenty-first century.

However, Bilzerian did not indicate how he planned to repay those creditors in a statement on Friday, in which he referred to 2020 as a “tough transition year.”

In addition to the lawsuit filed by former CEO Curtis Heffernan, which Ignite replied to with a countersuit, the firm also changed management.

In a statement, Bilzerian stated, “The new management team had to face the hurdles of functioning during a pandemic and a damaged worldwide supply chain.”

“This posed an unprecedented challenge in terms of introducing new items and maintaining an adequate supply of old products.

The corporation also profited from the sale of its stock.

The corporation made a $3.6 million profit in December when it sold 3 million shares in a company called Numinus.

And the company did receive some help from former President Donald Trump’s federal government, in the form of $1.2 million in Small Business Administration and Payroll Protection Program loans.

All of this begs the question: What type of business is Ignite? Is it a real firm that sells products, or is it a pink-sheet stock that only exists in the eyes of accountants?

For the time being, it appears to be both. Despite appearances to the contrary, civilization and Ignite both survived 2020.

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