Massachusetts-based cannabis company MariMed Inc. (MRMD) reported annual earnings for 2017 with revenues increasing 70% over 2016. Revenue clocked in at $6.11 million over last year’s $3.6 million and was mostly attributed to higher income from fees, rents and consulting.
Gross profits for the year were $3.5 million, an increase of 58% over 2016’s increase of 55%. Operating income rose to $1.2 million over last year’s $775,000.
Still, MariMed delivered a net loss for the year of $1 million versus a net income in 2016 of $321,000. The loss was attributed to “large non-cash expenses which had no impact on the company’s operating income or cash flow. Without these non-cash items, net income would have been approximately $694,000 for the year ended December 31, 2017.”
“2017 was a year of transformative growth for MariMed,” stated Robert Fireman, CEO of MariMed Inc. “We generated record revenue from managed services and the leasing of our cannabis facilities. This was a direct result of our licensed cannabis clients flourishing under our professional management. We made significant progress in the development of our licensing and branded product lines, which are being validated with partners in multiple states. With the opening of our Maryland and Massachusetts facilities and businesses and the expansion of our licensing brands to additional states we anticipate continuing our growth momentum in 2018 and beyond.”
During 2018, the company said it expects the investments in Maryland and Massachusetts to begin to generate significant revenue. MariMed also said that it will continue to look to win additional licenses in states with new or expanded cannabis programs such as Pennsylvania, Ohio, Michigan, Virginia, and Florida.
The company also expects to launch our licensed branded product lines into many additional states across the country. In late 2017, MariMed acquired the intellectual property, formulations, recipes, proprietary equipment, and know-how of the Betty’s Eddies brand of cannabis-infused fruit chews which are handcrafted with all-natural ingredients and sweetened with non-GMO organic fruits and vegetables. The company plans to roll out the Betty’s Eddies product line throughout its licensee network and to hundreds additional legal dispensaries in multiple states in 2018.