LOS ANGELES, CA / ACCESSWIRE / May 24, 2022 / Marijuana Company of America, Inc. (OTC PINK:MCOA) ("the Company"), operates, invests, and acquires companies exclusively in the cannabis sector, today announced the financial results for the first quarter ended March 31, 2022.
Here are some of the notable highlights for the QTR 1 2022:
The Company generated revenues of $561,321 and $34,930 for the three months ended March 31, 2022, and 2021, respectively. The increase of $526,391 or 1,507% is primarily attributed to the Company's new acquisition cDistro which distributes CBD and hemp products throughout the USA.
Ongoing efforts continued to expand into South America and move key parts of the supply chain to Brazil and Uruguay to improve gross margins and overall profitability.
For the three months ended March 31, 2022, and 2021, MCOA's gross profit was $51,059 and $9,750, respectively.
MCOA continues the process of working with VBF Brands Inc. to close the Asset Purchase Agreement. VBF Brands, Inc. is a multi-licensed cannabis cultivation and distribution operation in Salinas, California. The facility provides superior efficiency and sustainable cultivation techniques that allow growers to access locally grown, high-quality clones to grow cannabis crops faster, ensuring greater yields.
The Company's total assets increased to $8,105,699 as of the first quarter ended March 31, 2022.
The Company's Net Loss for the 1st Quarter ended March 31, 2022, decreased to $3,290,292 from $3,657,990 for the same period ended March 31, 2021.
The Company was able to lower cash used in operating activities to $678,108 for the quarter ended March 31, 2022, compared to $962,359 used for the first quarter of 2021.
MCOA's Chief Executive Officer, Jesus Quintero, said, "This first quarter demonstrates that we are off to an exciting start of 2022. This represents our second consecutive quarter with record revenue growth. Our growth is expected to continue to accelerate into the next quarter as we continue to grow our business. We also remain active in strategic acquisitions that fall into diversified cannabis categories and continue to pursue deals to build scale in our existing markets while continuing to look at opportunities that continue to grow our national footprint in the U.S., as well as in emerging markets such as Brazil and Uruguay."
For the three months ended March 31, 2022, and 2021, gross profit was $51,059 and $9,750, respectively. This increase of $41,309 was primarily attributed to MCOA's hempSMART product rebranding and the Company's new acquisition cDistro which sells CBD and hemp products throughout the USA. Quintero added, "We continue to report positive results reflective of the business initiatives undertaken over the past year and we are excited to continue to expand our global market share."
For the three months ended March 31, 2022, and 2021, MCOA had net losses from continuing operations of $(835,794) and $(782,917), respectively, an increase of $52,877. This increase is due primarily to the effects of the restructuring of our sales team and strategies for 2022.
The Company has several potential targeted acquisitions in the pipeline that it is completing preliminary due diligence on and remains in aggressive growth mode. As the cannabis market matures, there are several distressed or mismanaged operational companies that the Company can acquire at a deep discount for mostly shares to help support the growth of the Company.
For further information on Form 10-Q, please visit www.sec.gov.
About Marijuana Company of America, Inc.
Marijuana Company of America (MCOA) operates, invests, and acquires exclusively companies in the cannabis sector. The Company is a multi-state (licensed) operator and the parent company within the cultivation, distribution, and international consumer product sectors.
This news release contains "forward-looking statements," which are not purely historical and may include statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as "anticipate," "seek," "intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's" reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.
SOURCE: Marijuana Company of America, Inc.
View source version on accesswire.com: