NEWS SAN DIEGO, July 1, 2020 /PRNewswire/ -- Medical Marijuana, Inc. (OTC: MJNA) (the "Company"), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today financial results for the quarter ending March 31, 2020, and provided an overview of recent operational highlights.
First Quarter 2020 Financial and Operational Highlights
Generated $13.3 million in net revenue in first quarter of 2020;
GAAP Net ordinary loss was $67,000;
Gross profit for the period ending March 31, 2020, was $11.2 million;
Gross Margins increased from 78.2% in the first quarter of 2019 to 83.8% in the first quarter of 2020
GAAP Sales & Marketing expense decreased as a percentage of sales from 51.1% in the first quarter of 2019 to 45.5% in same period in 2020;
Cash position at the end of the first quarter of 2020 was $4.6 million, an increase of 27.7% over the same period 2019;
Investment company AXIM® Biotechnologies, Inc. acquired leading oncology research and development company, Sapphire Biotech, Inc.;
Subsidiary HempMeds® Mexico opened a new office in Mexico City to support its growing team;
Subsidiary Kannaway® was named the Most Popular Cannabidiol (CBD) MLM Company by HealthMJ and Business for Home;
Subsidiary Kannaway® expanded international operations into Russia, Kazakhstan and Kyrgyzstan and became the first company to legally import CBD products into Russia;
Subsidiary HempMeds® Brasil appointed Dr. Rubens Wajnsztejn as its Chief Medical Officer to head the Company's current clinical trials in Brazil;
Subsidiary Kannaway® welcomed renowned wellness expert and Certified Nutrition Coach Daniel Miller to its team;
The Company published results from its clinical study conducted in Mexico using its Real Scientific Hemp Oil-X™ CBD in the EC Neurology (ECNE), an internationally peer-reviewed journal that publishes articles related to worldwide research in neuroscience;
Portfolio investment company Kannalife, Inc. completed its phase 1 study funded by a grant from the National Institutes of Health's (NIH) National Institute on Drug Abuse (NIDA);
The Company appointed Squar Milner LLC as its new independent auditor;
The Company celebrated over $2 million in CBD product donations to non-profit organization ECHO Connection
"The focus of our organization over the past year has been on fiscal responsibility and profitability and these financials show the result of some of these efforts taking effect," said Medical Marijuana, Inc. CEO Dr. Stuart Titus. "Our results demonstrate that despite uncertain economic conditions and unpredictable variations in consumer spending, we are able to adapt quickly and maintain core business operations. We are steadfast in our commitment to drive shareholder value through a solid fiscal strategy. Our margins remain stronger than ever, our spending on the corporate side as percentage of sales continues to decrease, and our cash position is solid when compared to previous periods. From an operational standpoint, we accomplished many important milestones in terms of international expansion and scientific research through our investments in Kannalife, Inc. and AXIM Biotechnologies. I believe shareholders will see that we are well positioned to capitalize on the diverse opportunities that the cannabinoid-based product market represents."
"I am extremely proud of the many operational accomplishments of the Company during the first quarter of 2020," said Medical Marijuana, Inc. COO Blake Schroeder. "We were able to announce the Company's expansion into new markets such as Russia and Vietnam. Our pharmaceutical investment companies announced clinical studies as well as acquisitions that further position the portfolio of companies as global leaders in the cannabis sector."
Financial Data: First Quarter 2020 Compared to Fourth Quarter 2019
(in thousands)
Gross Revenue:
Q1 2020 – $13,351
Q4 2019 – $16,928
Cost of Goods Sold:
Q1 2020 – $2,163
Q4 2019 – $3,704
Gross Margin:
Q1 2020 – 83.8%
Q4 2019 – 78.1%
Net Ordinary Income/(Loss):
Q1 2020 – ($67)
Q4 2019 – $2,817
