Medical Marijuana Inc (MJNA)

[Alan Brochstein]

Another huge disappointment:

In Q2 2012, Wellness Managed Services signed a major facility management contract, as announced April 24, 2012, which is forecasted to produce $1.7 million in annual revenue.

Q1 sales for Wellness Managed Services was $748,446.

Q2 sales for Wellness Managed Services was $326,000

Q3 sales for Wellness Managed Services was $331,000

Q4 sales for Wellness Managed Services was -$251,143

Source: MJNA Annual Report filed 4/24/2013

Yup. The only audited quarter was negative. Add all those up and the grand total is $1.154mm. It was only $1.405mm before the negative quarter. This "major facility management contract" was supposed to produce $1.7mm in annual revenue, but it fell far, far short, especially considering that they had revenue previously. Why? Do any of the MJNA press releases detail this failure? I sure haven't seen anything. The update in the filing, which also talks about a chain of retail stores the company hopes to buy and close in Q2, did give them a little of an out. That was an annual number and they only had it part of the year. But, it says that they realized $1mm. Maybe they did, but that means that the prior contracts lost money - no explanation.