Revenues
We had revenues of $32,765 for the three months ended September 30, 2015 and revenues of $90,597 for the nine months ended September 30, 2015 compared to $36,978 for the three months ended September 30, 2014 and revenues of $36,978 for the nine months ended September 30, 2014. The significant increase in sales for the nine month period ending September 30, 2015 versus the same period in 2014 reflects the fact that there were no corresponding revenues for the first six months of 2014 as our dispensary did not open until July 3, 2014.
Selling, general and administrative expenses increased by $42,753 to $141,450 in the three months ended September 30, 2015 and decreased by $6,145 to $288,499 in nine months 2015 compared to the same period in 2014. The increase for the current three month period versus the same period in the prior year results from expenses associated the Company's launch of their second dispensary location in Salem, Oregon and expenses associated with preparing for the beginning of recreational marijuana sales commencing October 1, 2015.
Professional fee expense
Professional fees decreased by $141,447 to $124,050 in the third quarter of 2015 compared to the same period in 2014. The Company's initial entrance into the medical marijuana market in the prior year resulted in certain one-time expenses that were not necessary to repeat this year.
However, Professional fees increased by $173,007 to $734,260 in the nine months of 2015 compared to the same period in 2014. As previously reported the Company's expenses were substantially more compared to the same period the prior year, but these expenses were mostly stock issuances in the first quarter of 2015 (versus actual cash payments) to key management, consultants and professionals that were integral to the process of the company becoming the first fully reporting U.S. public company to actually own and operate a vertically integrated seed-to-sale legal marijuana enterprise in the United States
October 2015 The first thirty-one days of limited recreational marijuana sales
For the 15 month period that we have had our dispensary operations in Oregon (July 1, 2014 - September 30, 2015), Kaya Shack? sales to medical marijuana patients totaled approximately $170,000 (a monthly average of approximately $10,600). For the 1 month period of (October 2015) sales to both medical and recreational patients totaled $64,480, an increase of over 500%.
To be clear, this one month period included sales from our new South Salem Kaya Shack Marijuana Superstore in addition to our Portland location, but the Salem store opened October 17 and only contributed approximately $12,300 to this figure (note: the Salem opening was a "soft opening" and the various enhanced revenue aspects of the store have yet to be launched).
Accordingly, even though we are dealing with a very short snapshot of the recreational market, the 500%+ increase in total sales for the company and nearly 400% increase in same store revenues at our established Hawthorne location is consistent with our thesis that the recreational marijuana market is much more lucrative for the company than medical sales. Additionally, if you factor in the fact that the "limited recreational sales" are exactly that (limited to flower only and no more than 7 grams to any individual per day) we are confident that revenues will increase once the limits are increased and our recreational customers can purchase larger amounts of flower as well as buy extracts, concentrates and edibles.
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