Medical Marijuana, Inc. Reports 2020 Second Quarter Financial and Operational Results; Reports Net Income of $9.7 Million
SAN DIEGO, CA, Aug. 25, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE ‒ (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 June 30, 2020, and provided an overview of recent operational highlights.
Second Quarter 2020 Financial and Operational Highlights
- Generated $10.9 million in net revenue in second quarter of 2020;
- GAAP Net Income was $9.7 million, as compared to a loss of $15 million for the same period in 2019;
- Gross profit for the period ending June 30, 2020, was $8.7 million;
- Gross Margins improved for the period, from 74.3% in the second quarter of 2019 to 79.7% in the second quarter of 2020;
- GAAP Sales and Marketing expense decreased as a percentage of sales from 52.6% in the second quarter of 2019 to 51.9% in the same period in 2020;
- Portfolio investment company was issued a Notice of Allowance from the United States Patent and Trademark Office (USPTO) on its trademark application for its patented monotherapeutic compound, "Atopidine";
- Subsidiary promoted Chief Marketing Officer Stephen Jones to President;
- Blake Schroeder, CEO of the Company's subsidiary Kannaway®, was honored as the Top CEO of the Year by the International Association of Top Professionals;
- Subsidiary named Caroline Heinz and Raul Elizalde as co-CEOs;
- Subsidiary Kannaway® launched the first-ever cannabidiol (CBD) fitness program, , in partnership with certified nutrition coach and Kannaway® spokesperson Dan Miller;
- The Company and its subsidiaries received five prestigious Stevie® Awards in the 18th Annual American Business Awards®, including the Gold Stevie® Award winner for Company of the Year - Food & Beverage - Small for Medical Marijuana, Inc.;
- Investment company filed a utility patent application relating to a novel biomarker for the detection of cancer in blood serum and urine;
- Subsidiary HempMeds® hired Vince DiMella as its U.S. Director of Sales and Marketing
“As the world navigates the financial and logistical burden of the COVID-19 pandemic, our portfolio of companies has continued to not only operate, but innovate, adapt and expand,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “Our sales organizations have shifted focus to online sales and virtual events that are experiencing tremendous participation. Our international operations continue to experience growth in distribution, while we push for further acceptance of CBD products in Europe and neighboring countries, where we have a significant presence. Our investment companies and have made many noteworthy breakthroughs during the second quarter of this year and we are excited to continue to support them in their scientific missions. Our executive leadership team continues to evolve with the additions and promotions of world-class talent at our home office. All in all, I remain extremely optimistic about the future of Medical Marijuana, Inc.’s portfolio of companies and our positioning in the global cannabis industry.”
"Like most, we experienced unprecedented challenges in the second quarter of 2020; however, I could not be prouder of how our team continued to execute throughout the pandemic and regulatory hurdles," said Medical Marijuana, Inc. COO Blake Schroeder. "As a , we knew it would never be easy to introduce wellness products on a global scale but we continue to do just that. Our direct selling organization Kannaway continues to be the primary driver of revenue for our portfolio of companies, specifically in its international operations. Additionally, we have introduced first-of-its-kind wellness and sports programs with renowned experts that elevate our company and products over any of our perceived competitors. We will continue to forge ahead in our mission of bringing the highest quality, most innovative cannabinoid-based products to consumers around the world with a standard of trust and transparency.”
Financial Data: Second Quarter 2020 as Compared to First Quarter 2020
(in thousands)
Gross Revenue:
Q2 2020 – $10,986
Q1 2020 – $13,351
Cost of Goods Sold:
Q2 2020 – $2,234
Q1 2020 – $2,163
Gross Margin:
Q2 2020 – 79.7%
Q1 2020 – 83.8%
Net Income/(Loss):
Q2 2020 – $9,699
Q1 2020 – ($90,782)
About Medical Marijuana, Inc.
. Medical Marijuana, Inc. () 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 and ; 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 and. Medical Marijuana, Inc. was named a top CBD producer by . 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 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 or by visiting . To see Medical Marijuana, Inc.’s corporate video, .
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FORWARD-LOOKING DISCLAIMER
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.
LEGAL DISCLOSURE
Medical Marijuana, Inc. does not sell or distribute any products that are in violation of the United States Controlled Substances Act.
CONTACT:
Public Relations Contact:
Andrew Hard
Chief Executive Officer
CMW Media
P. 858-264-6600
Investor Relations Contact:
P. (858) 283-4016
