Excellent, CANB Continues to make All The Right Moves! Love this part by Management:
Management Commentary
Marco Alfonsi, Can B’s Chief Executive Officer, stated, “2022 was a transition year for us, for as we increased revenue as expected and achieved record annual revenue of $6.7 million, we had to deal with consolidating business and integrating our acquisitions. We are pleased with the position of our business heading into the remainder of 2023.”
Alfonsi concluded, “While we generated an all-time high in annual revenue, we were able to also reduce our cash burn as demonstrated by the 25% decrease in Adjusted EBITDA loss to $2.1 million. Our team made great strides over the past several months integrating and ramping up the various operations. We strategically acquired additional processing equipment to complete our vertical hemp processing capabilities from biomass to crude to distillate to isolate to isomers- all now located in our Colorado operation. We are executing on major strategic agreements, such as Pure Health Products’ deal with Brooke Burke Superfood, and are very excited about the demand and results thus far. As we look forward in 2023, we are enthusiastic regarding the growth opportunities and prospects for our business and are in position for an uplisting to a national securities exchange.”
Financial Results for the Twelve Months Ended December 31, 2022:
Revenue: For the twelve months ended December 31, 2022, revenue was $6.7 million, an increase of $2.1 million, or 45%, compared with $4.6 million for the twelve months ended December 31, 2021. The increase is largely due to an increase in the Company’s Duramed division of $1.8 million due to surgical procedures and healthcare services which enabled the Company to continue to grow within the ultrasound device sales associated with patient recovery.
Gross Profit: For the twelve months ended December 31, 2022, gross profit was $2.6 million, a decrease of $0.4 million, or 13%, compared with $3.0 million for the twelve months ended December 31, 2021. The resulting gross margin was 39.1%, compared with 65.0% for the twelve months ended December 31, 2021, due to higher revenue percentage mix from Duramed.
Total Operating Expenses: For the twelve months ended December 31, 2022, total operating expenses were $16.8 million, an increase of $3.5 million, or 27%, compared with $13.3 million for the twelve months ended December 31, 2021. The increase in operating expenses was primarily due to the non-cash stock-based compensation expense of $7.2 million and $1.4 million of depreciation of property and equipment related to the acquisition of property and equipment via asset purchases.
Operating Loss: For the twelve months ended December 31, 2022, operating loss was $14.2 million, an increase of $3.9 million, or 38%, compared with an operating loss of $10.3 million for the twelve months ended December 31, 2021. Contributing to the increase in operating loss was additional incurred costs to start the Company’s operations in Miami and Tennessee during the first quarter of 2022 and a decrease in the Company’s gross margin due to unforeseen integration issues at the Company’s operations in Miami and Tennessee resulting in the relocation and consolidation in Colorado.
Adjusted EBITDA Loss: For the twelve months ended December 31, 2022, Adjusted EBITDA loss was $2.1 million, a decrease of $0.7 million, or 25%, compared with an Adjusted EBITDA loss of $2.8 million for the twelve months ended December 31, 2021, after deducting a total of $12.1 million in non-cash and one-time expenses, including $9.6 million non-cash stock-based compensation, $1.4 million depreciation, $0.5 million amortization, $0.3 million impairment and $0.3 million loss on sale of property and equipment.
Net Loss: For the twelve months ended December 31, 2022, net loss was $14.9 million, or ($4.18) per share, an increase of $2.8 million, or 23%, compared with a net loss of $1.2 million, or a net loss of ($9.06) per share, for the twelve months ended December 31, 2021. On a per-share basis this loss is a 46% reduction over 2021.
About Can B Corp.
