Fluent Corp

some permitting delays, and of course the hurricane pushed our timing back just a bit. We also expect to locate and construct a large greenhouse facility to be completed by the end of 2023. We are currently under contract with two potential sites and have bids for construction ongoing at this time. Going over to Pennsylvania, our most recent store opening in Anvil has been ramping nicely with consistent growth each month. In fact, in October we had record month sales for that store. We expect to continue driving organic growth across all three Pennsylvania locations in 2023 as we further improve our sales and marketing efforts. We're excited and prepared for the possibility of Pennsylvania going to adult use. In Texas, as I mentioned in our last quarterly update, we now have a go-forward plan approved by DPS to build out our footprint in the country's second most populous state. In 2023, we're hoping to open our first delivery center, All packaging, all product formulations, and other necessary components have been approved by DPS at this time. We have began staffing for the delivery center, and we hope to have that location under construction soon. Before I hand the call over to our new interim CFO, Leora, I want to acknowledge the entire consortium team for their hard work and dedication, particularly as we persevered through the disruptions from the hurricane. We had many heroes step up within our ranks. I'm grateful that all of our employees remain safe, and I would like to thank each and every one of them for working so tirelessly to help keep our business closer to normal and operations returned as quickly as possible. Finally, I wish the best to our former CFO, Patricia Fonseca, as she moves on to the next stage of her career, and to Leora. Many thanks for stepping in to fill her role as we search for a permanent replacement. We look forward to continuing our expansion in the final weeks of 22 and into 23, and and are excited to share further updates in the spring when we report Q4 and full year results. With that, I'll pass the call over to Leora to walk through the details of our financials, and then we'll open the call up for Q&A. Leora?

Thank you, Robert, and good afternoon, everyone. Please note that all figures are in U.S. dollars and all various commentary is on a year-over-year basis unless otherwise specified. I'll jump right into results. Third quarter revenues increased by 42% to 22.1 million compared to 15.6 million. The increase was largely driven by a growth of Florida and Pennsylvania as we have more stores open in each market compared to prior year. Florida revenues increased 39% to 18.2 million compared to 13.1 million in over a year ago, period ago. Our adjusted gross profit in Q3 increased 71% to 16.7 million or 75.5% of revenues compared to 9.8 million or 62.7 of revenue in a year-ago period. The increase was primary driven by improved productivity and cultivation yields for the quarter compared to prior year. Third quarter operation expenses remain flat at 8.5 million compared to same period in 2021. However, as a percentage of revenues, operating expenses decreased significantly to 38.2 compared to 54.6 in 2021 as we continue to focus on operational efficiencies. Third quarter net loss totaled 5.6 million or loss of 2 cents per share compared to net income of 7.4 million or 3 cents per share in the same quarter of 2021. Adjusted EBITDA increased by 140% in the third quarter of 2022 to a record of 11.7 million or 53.1 of revenue compared to 4.9 million or 31.3% of revenues in Q3 2021 with an increase due to improved productivity across our cultivation, more stores and better operational efficiencies. Turning to the balance sheet at September 30, 2022, we had 9.1 million of cash and total debt of 69.4 million. Regarding our outlook for 2022, we are revisiting our previously issued revenue guidelines, given some of the impact of our Florida business from Hurricane Ian. Our now expected revenues for the year to range between 85 to 90 million, which compares to our previously issued guidelines of 90 to 95 million. This reflects an approximately 37% increase from 2021 as the midpoint of our guidance. In addition, we now expect adjusted EBITDA to exceed our previous issued guidelines between 25 million and 28 million, reflecting an approximate increase of 35% from 2021. Operator, we now open the call for Q&A. Thank you.

We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from John DeCourcy with BTIG. Please go ahead.