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SAN DIEGO, Nov. 17, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Medical Marijuana, Inc. (OTC: MJNA) (the “Company”), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today financial results for the quarter ending September 30, 2020, and provided an overview of recent operational highlights.
Third Quarter 2020 Financial and Operational Highlights
Generated $12.2 million in net revenue in the third quarter of 2020, an 11.25% increase when compared to the previous quarter in 2020;
Positive adjusted EBITDA of $175,755
Gross profit for the period ending September 30, 2020, was $9.1 million;
GAAP Sales and Marketing expense decreased as a percentage of sales from 51.9% in the second quarter of 2020 to 49.3% in the third quarter of 2020;
New Ordinary Loss decreased by $.41 million when compared to second quarter of 2020
The Company’s subsidiary HempMeds® launched a retail partnership with Gelson’s Market to sell the Company’s cannabidiol (CBD) topical and beauty products throughout Southern California;
The Company’s investment company Kannalife, Inc. (“Kannalife”) (OTCQB: KLFE), now known as Neuropathix, Inc. (OTCQB: NPTX), was granted patents in 16 European territories and Canada;
Promoted Todd Morrow to Chief Financial and Information Officer and the Company’s co-founder Michelle Sides, Esq. as the Company’s Chief Legal Officer;
Hired financial executive Robert A. Wells as Vice President of Finance;
The Company’s subsidiary Kannaway® began recruiting CBD users to participate in the ValidCare CBD safety study;
Expanded its production and warehouse facility to keep up with demand, further vertically integrating the Company’s supply chain, enabling broader product R&D and internal manufacturing;
The Japanese division of the Company’s subsidiary Kannaway® had its best revenue month ever in Company history in August 2020;
The Company’s CEO Dr. Stuart Titus was honored with a Gold Stevie® Award for Executive of the Year – Food & Beverage, HempMeds® was awarded a Gold Stevie® Award for Consumer Products – Food & Beverage, Kannaway® CEO Blake Schroeder was honored with a Silver Stevie® Award for Maverick of the Year and Kannaway® earned a Bronze Stevie® Award for Achievement in International Expansion;
In the 2020 World CEO Awards, the Company’s CEO Dr. Stuart Titus was named a Bronze Award winner for Top CEO of the Year – The Visionary and Blake Schroeder, CEO of the Company’s subsidiary Kannaway®, was honored with a Silver Award for Top CEO of the Year;
Became the first company to reach a two-year milestone in high-level CBD hemp oil stability study through long-term stability testing on its flagship THC-free CBD oil product Real Scientific Hemp Oil-X™ (RSHO-X™).
“It’s encouraging to see our costs, specifically in the area of sales and marketing, decrease while our sales increased in this quarter when compared to the previous one, and a positive adjusted EBITDA,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “We feel very optimistic about finishing out the year strong, with consumers interested in wellness at an all-time high headed into the holidays. Additionally, we are very optimistic about the overall landscape with so many states entering the cannabis industry through recently passed legislation, signaling that the stigma for the entire plant, including hemp, is diminishing.”
"Our international expansion is forging ahead with full force and we will continue to further establish our Company’s products as the best available to consumers throughout the world," said Medical Marijuana, Inc. COO Blake Schroeder.
Financial Data: Third Quarter 2020 as Compared to Second Quarter 2020
Q3 2020 – $12,221
Q2 2020 – $10,986
Cost of Goods Sold:
Q3 2020 – $3,084
Q2 2020 – $2,234
Q3 2020 – ($106)
Q2 2020 – $9,699
Net Ordinary Income/(Loss):
Q3 2020 – ($857)
Q2 2020 – ($1,274)
About Medical Marijuana, Inc.
We are a company of firsts®. Medical Marijuana, Inc. (MJNA) is a cannabis company with three distinct business units in the non-psychoactive cannabinoid space: a global portfolio of cannabinoid-based nutraceutical brands led by Kannaway® and HempMeds®; a pioneer in sourcing the highest-quality legal non-psychoactive cannabis products derived from industrial hemp; and a cannabinoid-based clinical research and botanical drug development sector led by its pharmaceutical investment companies and partners including AXIM® Biotechnologies, Inc. and Kannalife, Inc. Medical Marijuana, Inc. was named a top CBD producer by CNBC. Medical Marijuana, Inc. was also the first company to receive historic import permits for CBD products from the governments of Brazil, Mexico, Argentina, and Paraguay and is a leader in the development of international markets. The company’s flagship product Real Scientific Hemp Oil has been used in several successful clinical studies throughout Mexico and Brazil to understand its safety and efficacy.
Medical Marijuana, Inc.’s headquarters is in San Diego, California, and additional information is available at OTCMarkets.com or by visiting www.medicalmarijuanainc.com. To see Medical Marijuana, Inc.’s corporate video, click here.
Shareholders and consumers are also encouraged to buy CBD oil and other products at Medical Marijuana, Inc.’s shop.
ADJUSTED EBITDA CALCULATIONS
Adjusted EBITDA is defined by the company as EBITDA (net income (loss) adjusted for interest income/(expense), income taxes, depreciation and amortization), further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
A reconciliation from our net income /(loss) to adjusted EBITDA, a non-GAAP measure, for the quarter ended September 30, 2020
Period Ending September 30, 2020
Net Income (loss) … ($106,713)
Interest Expense … $267,177
Interest Income … ($101,400)
Adjusted EBITDA … $175,755
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.
FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
Medical Marijuana, Inc. does not sell or distribute any products that are in violation of the United States Controlled Substances Act.
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