– Revenue up 2984% from Q3 2017 to Q3 2018
– Company achieved a 1057% decrease in net loss from operations from Q3 2017 to Q3 2018
– SG&A expenses decreased by 1007% from Q3 2017 to Q3 2018.
– Total assets increased by 42% from Q3 2017 to Q3 2018.
– Total liabilities decreased by 259% from Q3 2017 to Q3 2018.
ESCONDIDO, Calif., Nov. 20, 2018 (GLOBE NEWSWIRE) — via NetworkWire – MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation, is pleased to announce the financial results for the three and nine months ended September 30, 2018. Here are some of the notable highlights for the third quarter of FY2018:
- Total revenues were $90,276 for the three quarters ended September 30, 2018 as compared to $2,927 for the three quarters ended September 30, 2017, representing a 2984% increase quarter to quarter.
- The net loss from operations decreased by 1057% from $19,047,499 for the three quarters ended September 30, 2017 to $1,801,387 for the three quarters ended September 30, 2018
- Gross profit for the third quarter of 2018 increased to $61,839 on gross sales of $90,276 (6.5% gross margin), compared to a gross margin for the third quarter of 2017 of $986.
- Including non-cash items and one-time transactional expenses, SG&A expenses for the third quarter of 2018 decreased substantially by $17,160,679 or 1007% to $1.89 million, compared to $17.2 million for the fourth quarter of 2017.
- For the third quarter ending September 30, 2018, the Company realized the following other one-time income items: Gain cancellation of debt of $1,500,000 and a gain of $1,175,000 from the change in value of its trading securities investment in Global Payout.
- Total assets increased by 42% from $1,129,958 for the three quarters ended September 30, 2017 to $2,694,929 for the three quarters ended September 30, 2018. This increase is due primarily to the increase in value of the Company’s investment in Global Payout’s stock, which is accounted for using the trading security method of accounting as well as an increase in inventory.
- Total liabilities decreased by 259% from $11,447,710 for the three quarters ended September 30, 2018 to $4,414,752 for the three quarters ended September 30, 2018.This decrease was largely due to the decrease in liabilities related to warrants and joint venture obligations.
- Cash used by operating activities for the three quarters ending September 30, 2018 was $1,010,520, compared to cash used for operating activities of $527,412for the quarter ended September 30, 2017. Cash used by investing activities for the three quarters ending September 30, 2018 was $631,886, compared to $702,419 for the three quarters ended September 30, 2017. Cash provided by financing activities for the three quarters ending September 30, 2018 was $1,460,067, compared to $1,082,345 for the three quarters ended September 30, 2017.
“The third quarter marked an important milestone for MCOA, as our hempSMART sales have ramped up due to our multi-pronged marketing campaign and several newly launched products. We ended the quarter strong with a revenue trend that is now largely stabilized with the strong foundation that we built. We expect sales to continue to increase through Q4 with the holiday season and into next year with our European expansion,” said Don Steinberg, MCOA’s CEO.
Jesus Quintero, MCOA’s Chief Financial Officer, said, “The strength of the third quarter results including a substantial increase in consolidated revenue and achieving a stronger balance sheet illustrates execution of our strategic plan. MCOA is positioned to deliver on increasing levels of cash flow as we seek to stack profitable recurring revenue from our monthly autobill customers while seeking to streamline production and fulfillment costs for our products.”
Further details about the Company’s financial results are available in its annual report on Form 10K, which will be available in the investor relations section of the Company’s website at www.marijuanacompanyofamerica.com.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA’s juridiction.
Forward Looking Statements
This news release contains “forward-looking statements” which are not purely historical and may include any 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 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.