Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

3Q/14 Revenue down 29%, $834K operating loss

Too late to really get into this tonight, but it's a pretty bad report.

http://www.otcmarkets.com/financialReportViewer?symbol=MJNA&id=129007

Total 3Q/14 consolidated revenue was $3.43M, which was down 29% from 2Q/14's $4.82M, and the consolidated operating loss was $834K.

HempMeds revenue was $2.75M, which was down 20% from 2Q/14's $3.43M.

The big shocker was HempVAP, which saw an 80% revenue decline from 2Q/14 ($130K in 3Q/14 vs. $659K in 2Q/14). This is probably due to the initial surge of KannaWay orders in April and May ending.

Margins did improve, and expenses were 4% lower in 3Q/14.

MJNA will probably trumpet the net income of $400K, but that profit was only possible because of the $1.16M in extraordinary income from the 2M preferred shares received from LiveWire for HempWire.

It's too late to perform more analysis tonight (I found the report an hour ago,) and I'll be out all day tomorrow, so it will have to wait until the weekend.

Surprised at the early release of the report, but I have a theory about that, and will explore it over the next few days.

I think management did rush it out, as the filing doesn't include financials for the first nine months, as is standard.

Total revenue YTD is $12.2M

One final thing: On Oct 31, two weeks ago, I wrote the following: [Emphasis mine]

Considering Hempmeds falling-out with CannaVest and the fact that KannaWay's comp plans sound more and more desperate, I think there's a real good possibility of a sequential revenue decline in 3Q/14 from 2Q/14, perhaps to $3.4M - $3.7M and another $900K - $1.1M operating loss.

Revenue was at the low end of my range, while the net operating loss was a little smaller than I expected.