schwazze shwz hwz announced financial results for the first quarter ended march 31 2022   revenues of 318 million grew 64 compared to 193 million in first quarter ended march 31 2021 q1 2021   retail sales were 265 million up 124 when compared to q1 2021   gross margin of 109 million was up 344 compared to 73 million in q1 2021 both first quarters were affected by purchase accounting   net loss was 268 million compared to a net loss of 36 million for the same period last year   adjusted ebitda of 79 million was 25 of revenue compared to 58 million for the same period last year justin dye chairman and ceo of schwazze stated as we continued our successful transformation into a regional mso in the first quarter of 2022 we met certain challenges including the comparison cycling of an inflated q1 2021 which was aided by stimulus checks and covid lockdowns colorados high covid rates during q1 2022 also impacted sales and internal staff the devastating marshall fires in and around boulder in january of this year caused one store to temporarily close and the store has been further impacted due to a displaced population in and around boulder county also overall sales and a decrease in wholesale revenue was largely impacted by wholesale distillate pricing pressure and oversupply in the state of colorado q1 2022 revenue  revenues for q1 2022 totaled 318 million including i retail sales of 265 million ii wholesale sales of 52 million and iii other operating revenues of 004 million compared to revenues of 193 million including i retail sales of 118 million ii wholesale of 74 million and iii other operating revenues of 008 million during q1 2021 and represented an increase of 124 million or 64 increased sales are due in large part to additional dispensary sales in q1 2022 we acquired fourteen new retail dispensaries the decrease in wholesale revenue in 2022 was largely due to wholesale distillate pricing pressure and oversupply in the state of colorado cost of goods and services for q1 2022 totaled 208 million compared to cost of goods and services of 121 million during q1 2021 representing an increase of 87 million or 72 this increase was due to increased sales and growth through acquisition the cost of goods and services increased at a higher rate than revenue due to the impact of purchase accounting on retail acquisitions made in the each of the first quarters q1 2022 had 63 million in additional cost of goods and services due to purchase accounting while q1 2021 had 22 million of additional cost of goods and services due to purchase accounting gross profit increased to 109 million for q 1 2022 compared to 73 million during the same period in 2021 gross profit margin declined as a percentage of revenue from 375 to 344 although net of purchase accounting the gross margin increased from 487 to 541 this positive result net of purchase accounting continues to reflect our consolidated purchasing approach the implementation of our retail playbook and vertical product sales in new mexico operating expenses for q1 2022 totaled 157 million compared to operating expenses of 87 million during q1 2021 representing an increase of 7 million or 80 this increase was due to increased selling general and administrative expenses including acquisition costs professional service fees related to acquisitions salaries benefits and related employment costs mostly related to the increased number of dispensaries q1 2022 included four acquisitions in january and february expanding the company in all areas we also found ourselves cycling large numbers from the previous year and were impacted by covid as many businesses in colorado were similarly affected in january as we move forward in quarters not complicated by acquisitions costs we are targeting to have positive operating income we remain focused on continuing to drive our operating playbook through all our businesses and plan to outperform the market nancy huber cfo for schwazze commented