Medical Marijuana, Inc. Reports $20.7 Million in Revenue in Q2 2019, Up 30% Year-Over-Year in Financial Results
SAN DIEGO, Aug. 15, 2019 /PRNewswire/ -- Medical Marijuana, Inc. (OTC: MJNA) (the "Company"), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today its financial results for the quarter ending June 30, 2019, and provided an overview of recent operational highlights.
Second Quarter 2019 Financial and Operating Highlights
"We are excited to continue our tremendous sequential success with the second quarter of 2019 proving to be the largest sales revenue quarter in the history of our Company," said Dr. Stuart Titus, Chief Executive Officer of Medical Marijuana, Inc. "As the world continues to become more receptive to learning about the benefits of hemp-derived CBD, we are enthusiastic about being at the forefront of the global cannabis industry which, according to Arcview Market Research, could be worth $57 billion by 2027."
Operating Results – Q2 2019 Compared to Q2 2018
Sales for the second quarter of 2019 exceeded $20.6 million, an increase of more than 30% over Q2 2018. Second quarter sales growth reflects the Company's international and domestic expansion into all sales channels, including direct-to-consumer, wholesale and direct selling channels.
The Company reported net ordinary income of $877,964 in the second quarter of 2019, compared to a LOSS of $2 million in the second quarter of the prior year.
The Company executed on a strategic profitability and sales growth plan that resulted in gross margins increasing from 61% in Q2 of 2018 to 74% in Q2 of 2019 as well as decreased General & Administrative Expenses as they relate to percentage of sales revenue.
"We hope that these impressive results excite our valued shareholders and look forward to providing more transparency and accountability moving forward," said Medical Marijuana, Inc. COO Blake Schroeder. "Our number one priority is profitability and we are not only reaching our quarterly goals for this but are surpassing them."
Non-GAAP Adjusted EBITDA for the second quarter of 2019 was $1.5 million or 7.4% of net revenue, compared to $0.7 million or 4.2% of net revenue, in the second quarter of 2018.
Finally, the Company generated $1.9 million of cash flow, with total cash balance increasing to $5.4 million at quarter end.
Financial Data: Q2 2019 Compared to Q2 2018 Numbers
Cost of Goods Sold:
Sales & Marketing Expense (includes direct selling commissions):
General & Administrative Expense:
Net Ordinary Income/(Loss):
Conference Call and Webcast
The Company will host a conference call and webcast to discuss these results Thursday, Aug. 15, at 4:30 pm EST/1:30 pm PST. Investors interested in attending the conference call can dial 1-857-232-0157 and enter access code 422095. For those unable to attend the conference call, a replay will be available at https://www.smallcapvoice.com/tag/mjna/ shortly after the call has concluded.
About Medical Marijuana, Inc.
We are a company of firsts®. Medical Marijuana, Inc. (MJNA) is a cannabis company with three distinct business units in the non-psychoactive cannabinoid space: a global portfolio of cannabinoid-based nutraceutical brands led by Kannaway® and HempMeds®; a pioneer in sourcing the highest-quality legal non-psychoactive cannabis products derived from industrial hemp; and a cannabinoid-based clinical research and botanical drug development sector led by its internal R&D and scientific team and its pharmaceutical investment companies and partners including AXIM® Biotechnologies, Inc. and Kannalife, Inc. Medical Marijuana, Inc. was named a top CBD producer by CNBC. Medical Marijuana, Inc. was also the first company to receive historic import permits for CBD products from the governments of Brazil, Mexico, Argentina, and Paraguay and is a leader in the development of international markets. Medical Marijuana, Inc.'s headquarters is in San Diego, California, and additional information is available at OTCMarkets.com or by visiting www.medicalmarijuanainc.com.
To see Medical Marijuana, Inc.'s corporate video, click here.
Shareholders and consumers are also encouraged to buy CBD oil and other products at Medical Marijuana, Inc.'s shop.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.
FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease.
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SOURCE Medical Marijuana, Inc.
Company Codes: OTC-PINK:MJNA