Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

CanChew sales declined in Q4/13 from Q3/13

The new SA article about CanChew mentioned 2013 revenue discrepancies which AB couldn't explain, because MJNA wasn't clear. That inspired me to take another look, and I'm pretty sure that the difference lies in the way MJNA showed Consolidated Revenue in the FY2013 report (as I discussed in the Stickies, above).

Total consolidated revenue for CanChew for 2013 was $144,996, and for 4Q/13, it was $57,620, of which 50% would go to MJNA, with the rest to CanChew.

The Q2 and Q3 reports don't make any reference to consolidated revenues, and so are MJNA only. Therefore it's likely that the CanChew consolidated quarterly revenues for 2Q and 3Q of 2013 are double what was reported.

You end up with Q2: $19,602 ($9,801 + 2) and Q3: $67,774 ($33,887 *2)

So for the full year, you have: $19,602 + $67,774 + $57,620 = $144,996, which matches the consolidated annual revenue on page 10 of the filing.

Of course, this means that CanChew revenue was down 15% sequentially from Q3 to Q4, which may be why MJNA "spit it out".

2Q/13: $19,602
3Q/13: $67,774 (+ 246%)
4Q/13: $57,620 (-15%)