This Leef Is Getting Ripped
- Alan J. Brochstein
- Nov 4
- 2 min read
I shared a piece in mid-August warning investors about cannabis stock Leef Brands (LEEEF). The company reported its Q3 today, and it is already bad and about to get worse in my view. On 8/18, LEEEF closed at $0.2347, and today, before its report came out after the close, it closed at $0.2105. This is a decline of 10.3%. In the piece, I had pointed out ow it was up so much less than MSOS, which is an ETF that I think is horribly run. LEEEF is down now in 2025, but MSOS is up:
Here are the filings for Q3. Again, the company doesn't file with the SEC (yellow flag):
The income statement shows that revenue did increase from a year ago by 24% to $8.4 million. Gross profit grew faster and was 45.1% of sales. Operating income was slightly negative due to operating expenses coming down but still being high. The share-count soared from a year ago.
The balance sheet should alarm investors. First, the total liabilities exceed the total assets, leaving negative equity. It actually got worse from year-end, as assets declined and liabilities increased. Cash is just $1.9 million, which is down from year-end, and current assets total just $10.0 million. This is way below the current liabilities of $27.9 million, a red flag. Tax payable is huge now at $15 million.
Cash flow from operations has been -$1.7 million year-to-date, which is worse than what it was in the first three quarters of 2024.
I continue to see this as a terrible company and a worse stock. There are 185 million shares outstanding, which gives it a market cap of $39 million. There are options that are in-the-money and also RSUs that could boost the market cap further. The CEO seems like a terrible person to be running the company. He has a "highly respected" person working there who I am not at all impressed with, Jesse Redmond, who should be smart enough to realize that LEEEF IS GARBAGE.
