Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

2Q/16 Report: $1.73M Rev, $2.5M loss, 2.947B shares

MJNA filed it pretty late, and the main bullet points from the 2Q/16 filing are as follows:

* Total Rev: $1.73M, down 23% from 2Q/15's $2.24M, but up 12.4% from 1Q/16
* US Operations Rev: $1.36M, down 2.4% from 2Q/15 but up 11% from 1Q/16
* KannaWay saw only $365K revenues in 2Q/16, down 50 from 2Q/15 but up 19% from 1Q/16
* There appears to have been zero revenue from Wellness Managed Services (MPSI security?) in 2Q/16
* The Net Ordinary Loss from Operations was $1.14M
* Interest and loss of the value of securities held added another $3.1M in losses
* MJNA had a mark-to-market writedown on some shares held (AXIM?) of $1.5M

All in all, the net comprehensive loss was $2.5M

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 reported any revenue from Brazil? It has said that the operation is worth $140M on the balance sheet.

At the end of 2Q/16, MJNA had $432K in cash plus $666K in Account Receivable, but nearly $1.2M in Accounts Payable.

While the amount of convertible notes appears to have decreased by $1.5M, MJNA issued 75M shares of common stock in payment, and the OS at the end of the quarter rose to 2.947B from 1Q/16's 2.869B, a 2.7% increase. BTW, since the OS was 1.85B a the end of 2Q/15, the OS has risen 59% in one year.

MJNA continues to severely overvalue both the KannaWay and HempMeds Brazil operations, which creates an artificially high Book Value.

As usual, this was not a good report. MJNA is on pace for less than $7.5M in 2016 revenue, which would be a significant decline from 2015's $9.2M.

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=159439