GrowLife Inc (PHOT)

[RMF Gambler]

"While GrowLife incurred higher expenses this quarter due to these acquisitions and their integration, non-cash charges accounted for the majority of the total. Subtracting out these non-cash expenses, the company’s net loss moved from a GAAP $(1,616,967) to a non-GAAP $(442,674), representing costs associated with consulting, accounting, and advertising. And many of these expenses were investments that should result in higher revenues down the road.

For example, the $177,976 spent on new business development, which included $71,000 in non-cash stock issuance. These funds were used to create the company’s Cannabis.org portal, setup GrowLife Productions Inc., and contribute to two joint ventures, including the one with STVB. These efforts could pay big dividends down the road by expanding awareness of its products and/or opening up new high margin revenue streams."

http://secfilings.com/News.aspx?title=growlife_%28phot%29_revenues_jump_319%_amid_ongoing_expansion&naid=506