Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

1Q/16 Report: $1.54M Rev, $9.7M loss, 2.868B shares

MJNA filed it pretty late, and I don't want to spend too much time tonight dealing with trying to figure out everything, but the main bullet points from the 1Q/16 filing are as follows:

* Total Rev: $1.54M, down 57% from 1Q/15's $3.56M, and also down 2.2% from 4Q/15
* US Operations Rev: $1.23M, down 43.5% from 1Q/15 and also down 15% from 4Q/15
* KannaWay saw only $306K revenues in 1Q/16, down 71% from 1Q/15 and also down 24% from 4Q/15
* There appears to have been zero revenue from Wellness Managed Services (MPSI security?) in 1Q/16
* The Net Ordinary Loss from Operations was $405K
* Interest and loss of the value of securities held added another $10.7M in losses
* MJNA had a mark-to-market gain on some shares held (AXIM?) of $1.4M

All in all, the net comprehensive loss was $9.7M

There was no reporting of any revenue from Brazil or Mexico, despite the statement in the report that Brazil is MJNA's largest international client.

Why hasn't MJNA broken out revenue from Brazil?

If Brazil and Mexico are supposed to bring in so much income, why are revenues continuing to fall?

While the amount of convertible notes appears to have increased, there appears to have been zero note conversion in 1Q/16. Perhaps this is a matter of the timing of the maturation of the notes. More research is needed.

There was a <2M increase in the OS due to a bill being paid with shares.

As usual, this was not a good report, and MJNA remains severely overvalued, especially considering the continually declining revenues, the lack of profits and the large share count.

http://www.otcmarkets.com/financialReportViewer?symbol=MJNA&id=155719