Item 9 Labs Corp Becomes a Fully Reporting SEC Issuer
“Becoming a fully reporting public company is a milestone that sets the stage for our commitment to our growth strategy and we are grateful for our shareholders’ continued support. After strong results in the last fiscal quarter and our Fully Reporting status, we plan to move forward with expediency with a uplisting on the OTCQX,” Bobby Mikkelsen, CFO at Item 9 Labs.
Item 9 Labs Corp. and its subsidiaries continued their revenue growth in the three month and nine month periods ending June 30, 2019. Operating efficiency increased dramatically as seen in the margins growth over the same periods compared to fiscal year 2018. The expansion of the Arizona facility, completed in March 2019, should prove to increase the efficiency and revenues beginning in Q4.
“Throughout this fiscal quarterly period ended June 30, 2019, we have exhibited exponential revenue growth and expansion of our business operations. We accomplished our construction initiatives for our core facilities in Nevada and Arizona, more than doubling our cultivation space allowing us to bring new and diverse product suites to market. In addition, we have solidified partnerships in North Dakota, keeping us on pace towards applying, and managing cultivation, processing, distribution, and dispensary operations in six to 10 U.S markets by the end of 2019,” said CEO Sara Gullickson.
“As a Company, we have achieved significant milestones on a national and local level, including filing our Form 10 Registration Statement, ranking as one of the fastest growing cannabis concentrate brands in Arizona, and receiving first place honors for the second consecutive at the ERRL Cup Awards for our Sativa flower strain. Moving forward, we intend to build upon this momentum and are grateful for our shareholders support,” Gullickson said
Chief Financial Officer Bobby Mikkelsen added, “Our Form 10 filing coupled with our solid financial results are evidence of our continued commitment to strategic growth as a fully reporting public company. In the final fiscal quarter, we remain focused on opportunities to enhance revenue growth, increase margins, and maximize shareholder value.”
Overview for the three months ending June 30, 2019, as compared to the three months ending June 30, 2018:
Revenue increased 251% to $1,542,067.
Operating margins increased to 55% from 14%.
Pre-tax earnings of Item 9 Labs operating entities totaled $491,553.
Net loss of $864,176.
Diluted loss per share of $.01.
Overview for the nine months ending June 30, 2019 as compared to the nine months ending June 30, 2018:
Revenue increased 284% to $3,627,951.
Operating margins increased to 53% from 27%.
Pre-tax earnings of Item 9 Labs operating entities totaled $987,962.
Net loss of $2,077,363.
Diluted loss per share of $.03.
Filed Form 10 Registration Statement with the US Securities and Exchange Commission.
Completed construction and received approval to operate on Arizona expansion , more than doubling cultivation space.
Strive Grand Forks North Dakota opened on May 22nd, 2019 through strategic partnership.
Construction broke ground on new corporate offices in downtown Phoenix.
Kyle Jennings, vice president of marketing and Josh Buckheister, creative director were added to the team and began employment March 1st. The official release for their hiring was announced on June 28th.
Recorded largest sales month in Item 9 Labs history in April at $573,000.
Record “420” sales, released April 20th promotional box with first look at broad spectrum cartridge, prepackaged jarred flower, and marketing collateral.
º The week prior to April 20 sales hit $218,000.
Successfully activated “On the Grass Music Festival” title sponsorship.
º 15,000 attendees.
º Item 9 Labs branded stages, 40 x 60 lounge, and VIP area.
º 470% increase in social media and web impressions week prior and immediately following event with 170,000 impressions, up from an average of 30,000 impressions.
º 100 exclusive Item 9 Labs festival boxes leveraged in partner dispensaries.
Secured three-year category exclusive sponsorship with Marquee Theater in Tempe, Arizona:
º Average of 115 shows per year.
º Average attendance of 1,500 per show with an expected annual attendance of more than 170,000.
º Item 9 Labs interior branding.
º Item 9 Labs inclusion on web, print, radio, and social media.