MariMed Inc. (MRMD:OTCQX) reported that its revenues rose 163% to $9.6 million for the second quarter versus $3.7 million for the same time period in 2019. Still, the company delivered a net loss of $1.2 million versus last year’s income of $4.6 million. The net income per share was flat at zero versus last year’s earnings per share of $0.02 for the same time period.
Operating expenses for the second quarter of 2020 rose to $4.1 million versus $3.6 million in 2019. The company blamed the increased expenses on increased personnel costs as MariMed transitions to a direct owner and operator of seed-to-sale cannabis operations.
Bob Fireman, CEO of MariMed said, “Our renewed focus on our core cannabis business and the consolidation of our managed assets are the key drivers of MariMed’s positive Q2 results. In Massachusetts, we have now ramped up our New Bedford manufacturing facility to produce over 1,000 pounds of cannabis flower per month. Our Nature’s Heritage Flower brand and our Betty’s Eddie’s natural chews infused brands are leading sellers in their respective categories in both Massachusetts and Maryland. Our two dispensaries in Illinois are thriving in the new adult-use program. We intend to open our third dispensary in Illinois in September and a projected fourth by the new year.”
The company is slowly improving its financial status. On June 30, 2020, the company’s negative working capital improved to approximately $21.5 million from approximately $29.3 million at December 31, 2019. In addition, during the six months ended June 30, 2020, MariMed’s operating activities provided positive cash flow of approximately $540,000, compared to approximately $22.1 million of negative cash flow used by such activities during the same period of 2019. The company said in its filing that it is looking to raise more capital but can’t be assured that it will be successful.
Year-to-date revenues totaled $17.1 million, a 138% increase compared to $7.2 million for the first six months of 2019. The company reported that its gross profit from the core cannabis business was $6.2 million for the quarter, a 133% increase from the $2.6 million for the comparative period in 2019. The adjusted EBITDA of $3.3 million for the second quarter of 2020 compared to a loss of $250,000 for the same period in 2019.
Jon Levine, CFO, added “I am pleased with the revenue growth from both our consolidated and managed licensed cannabis businesses. We are confident that the marketplace will recognize the positive track that our revenue and earnings are on. At the same time, we also took decisive actions in the second quarter by restructuring our short-term debt which significantly strengthens the Company’s financial position.”