Revenue from third-party brands was $0.9 million, representing 20% of CPG revenues. The decline in revenue was adversely impacted by reduced flower yields, resulting in strategic allocation of flower between CPG and bulk revenue channel. And our continued efforts to manage credit and accounts receivable risk. Bulk flower revenue decreased 47% sequentially to $1.2 million and decreased 39% year over year. The 49% decrease in pounds sold through Q2 is primarily due to the 47% reduction in flower production from the farm year over year but offset by a 3% increase in price per pound in the current quarter. Lowell Farm Services revenue increased 384% sequentially to $0.5 million and increased 79% year over year. Out of state licensing revenue decreased 19% sequentially to $0.2 million and decreased 30% year over year.
As related to the Brandco transactions, the company will no longer be reporting on out of state revenue for the Lowell brand. Gross margin as reported was negative 7.1% in the third quarter compared to negative 4.8% in the prior quarter, largely driven by the decline in CPG and bulk volume. Operating expenses were $2.4 million or 38% of sales for the quarter compared to $2.3 million or 33% of sales in Q2 2023 and $3.3 million or 38% of sales in the third quarter last year. This reflects cost reductions realized during the current year. The operating loss in the third quarter was $2.8 million compared to an operating loss of $2.6 million sequentially and an operating loss of $5.2 million year over year. Other expenses in the third quarter were $17.3 million compared to other income of $2.6 million sequentially and other income of $0.5 million annually.
The current period expense includes $13.8 million of debt in purchase charges as a result of the Brandco deal and $1.7 million of nonrecurring yield and processing variances at the cultivation and processing facilities due to low harvest levels impacted by weather conditions and HPLV in prior quarters. Net loss for the third quarter was $20.2 million compared to a sequential net loss of $0.1 million, which compares to a net loss of $4.8 million year over year. Adjusted EBITDA in the third quarter was negative $1.3 million compared sequentially to adjusted EBITDA of negative $1.2 million and adjusted EBITDA of negative $3.5 million year over year. Turning to the balance sheet, working capital was negative $4.4 million at the end of the quarter compared to negative $9.2 million at the end of the second quarter.
Included in working capital is $22.1 million of net convertible debentures at the end of the current quarter and $21.8 million net in the second quarter. The convertible debentures were repurchased during October. Excluding these from working capital, there is $7.7 million of working capital at the end of the quarter. The company had $5.5 million in cash at the end of the current quarter compared to $8.4 million at the end of the second quarter. Now I’ll turn the call over to the operator for questions.
Operator:
Mark Ainsworth: Thank you again for joining the call and for taking the time to get an update on our business. We look forward to talking with you on our next earnings call. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
