Cannabis lab testing company EVIO Inc. (OTCQB: EVIO) announced unaudited revenue for its fiscal 2018 fourth quarter ending September 30, 2018. Revenues from North American operations which includes company-owned laboratories in Oregon, California, Massachusetts, and Alberta, in addition to royalty revenues from licensed laboratories in Colorado and Florida, were $1.05 million. Evio said that it plans to post its audited fiscal 2018 full year results in January.
This is a huge improvement over the company’s third-quarter results, which were only $634,338, down 18.3% from Q3:17, on account of a slower performance of testing services segment. Last quarter the testing service segment revenues fell 22.4% to $595,701. Second quarter revenues were $732,311, a decrease of $56,415 or 12.1% from second quarter last year.
EVIO’s fiscal year 2017 revenue was $3,021,030. A review of the past earnings announcements places EVIO’s 2018 revenue at approximately $3.3 million, an increase of 9.9% year over year.
“We are pleased to report unaudited revenue for the fiscal fourth quarter ending September 30, 2018 of $1,054,000 vs. $634,338 for the previous quarter ending June 30, 2018, representing quarterly growth of 66%,” said William Waldrop, EVIO’s Chief Executive Officer. “Key drivers for revenue growth included California’s new testing requirements that came into effect on July 1, 2018, and stabilization of the Oregon market. The company has several strategic initiatives underway to continue its momentum. EVIO Labs Berkeley is prepared for the next increase in state mandated testing requirements commencing January 01, 2019. EVIO Labs Humboldt is completing installation and optimization of equipment and is scheduled to provide full compliance testing services in the first quarter of 2019. Los Angeles and Palm Desert laboratories are in the licensing process and are forecasted to come into service during the first half of 2019.”
Mr. Waldrop went on to say, “We will continue our operations in Massachusetts in January 2019 with the opening of a new state-of-the-art facility in Framingham, MA, where we are completing tenant improvements. We anticipate license approval from the Massachusetts Cannabis Commission in the coming weeks. Further, the Company’s licensees in Colorado and Florida are both providing steady royalty revenues on a monthly basis. We note that our Florida licensee recently opened up its second location in Gainesville, FLA.”
“On the Canadian front, Health Canada finally announced on November 8, 2018, the long-awaited mandated independent pesticide testing that goes into effect January 2, 2019. We are pleased to say we are in the final stages of completing the installation of CDN$1.1M of new laboratory equipment at our facility in Edmonton, Alberta. This positions EVIO as one of a few licensed laboratories that may fully serve the testing requirements of Canadian licensed producers. We look forward to providing our compliance and safety services across Canada where as of October 17, 2018, cannabis use is federally regulated for both medicinal and recreational purposes.”