WOODLAND HILLS, Calif., March 31, 2014 /PRNewswire/ -- GrowLife, Inc. (PHOT), a diversified company operating in the legal cannabis industry which develops, markets and deploys products and services of legal cannabis, is pleased to announce the timely filing of its Annual Report and financial results for the fiscal year ending December 31, 2013. The full 10k filing is available in its entirety at www.GrowLifeInc.com or on the SEC's website http://edgar.sec.gov/.
GrowLife revenues for 2013 revenue from sales increased to $4,858,976 from $1,450,745, an increase of $3,408,231 or 235% compared against audited revenues in 2012. For the quarter ended December 31, 2013, Q4, revenue was $1,912,311, an increase of $1,237,691, an 183% increase compared to the $674,620 in revenues recorded for the same period in 2012.
As the Company describes in detail in the full regulatory filing the improved results in 2013 were primarily attributable to GrowLife's (1) strategic acquisitions, (2) product expansion, (3) business alliances, and (4) continually improving market conditions. The Company's reported results reflect costs of certain important initiatives including GIFT transactions, GrowLife reintroduction and expansion of private label products under the Stealth Grow product line as well as other recent initiatives the Company has developed but as yet not derived revenue to date.
The rapid growth of the company in 2013, combined with our focus on market share and expansion has resulted in some margin compression, which the Company believes is temporary. Moreover, the Company's financial results also include substantial non-cash, one time charges related to warrants that were issued by the company in 2013 and expensed by the company in accordance with GAAP requirements. The reported net loss of the Company for 2013, on a non-GAAP basis, exclusive of non-cash one-time charges, was $2,038,907.
"We are extremely pleased with the 2013 financial results, especially the fourth quarter, which reflects the first period of fully amalgamated sales revenue from our store acquisitions earlier in the year," stated GrowLife CEO and Chairman Sterling Scott. "We also made key investments in 2013, to position the company for future expansion and maximize our ability to scale with the market."
Highlights from the period include:
- Acquisition of Rocky Mountain Hydroponics, LLC and Evergreen Garden Center, LLC, commencing GrowLife Hydroponics retail presence in Colorado, Massachusetts, New Hampshire, and Maine. The Companies were acquired in the 2rd quarter of fiscal 2013. Revenue from these acquisitions is only fully expressed in the Q3 and Q4 totals.
- Opening of our Northern California, Santa Rosa based GrowLife Hydroponics Store in Q4.
- CANX joint venture in Q4 to provide GrowLife with the financial capital to accelerate acquisitions and take advantage of market opportunities.
"For a company that is so tremendously focused forward, the 10K filing is an important opportunity for us to pause and look back on 2013 with complete transparency," added Scott. "In addition to strong financial results, 2013 represents a year of investing in our people – from the tremendous customer-service approach of our front-line store personnel, to the depth and breadth of our leadership team and independent Board, I'm very proud of the team we've assembled.
"With the exception of one-time, non-cash charges in 2013, the important metrics of the Company are sound and improving. Importantly, as the legislative environment continues to shift favorably for legal cannabis, GrowLife is very well positioned to increase our market leading presence in a revenue diversified manner that is profitable to the Company and its shareholders."
From time to time, GrowLife will provide market updates and news via its websites GrowLifeInc.com, Cannabis.org or the Company's Facebook page at https://www.facebook.com/tellthetruthfederalgovernment
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) develops, markets and deploys products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software. The Company provides these solutions in our nationwide retail network, as well as online sites Greners.com, Phototron.com and StealthGrow.com. The Company also operates the political and social forum, Cannabis.org
Cautionary Language Concerning Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for GrowLife's products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in GrowLife's filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level. For a more detailed description of the risk factors and uncertainties affecting GrowLife, Inc. please refer to the Company's Securities and Exchange Commission filings, which are available at www.sec.gov. GrowLife, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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