Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Why pages seven and nine show different revenue

I noticed that pages seven and nine of the 4Q/13 report show different revenue numbers, and know why.

Let me first say that I believe that there is a completely reasonable explanation, and it's not a negative, but it's a little complicated and could result in confusion when one talks about which page is correct.

On page seven, MJNA shows a total gross income (revenue) of $1,435,720, while page nine shows $1,943,005. Why?

In a nutshell, both numbers are correct, but page 9 shows the numbers before they are allocated to the other owners, while page 7 shows just those for MJNA alone.

The table below shows the consolidated revenue for each group from page nine, the ownership percentage, and then the calculated revenues for MJNA, which essentially equals the total posted on page 7 (the difference is due to rounding):



So to be clear, when one talks about MJNA revenue and income for the purpose of establishing the value of the stock, the numbers on page seven should be used, because those are the dollars earned/kept by MJNA itself.

OTOH, when one discusses the performance of the divisions, one has to take into consideration the ownership percentage when figuring out how each will effect MJNA. For example, HempMedsPX sold $1.4M of products in 4Q/13, and MJNA saw $1.12M of that as its revenue.