Namaste Technologies Inc. (NXTTF) announced its unaudited quarterly financial statements for the second quarter of fiscal 2018. Sales for the quarter were $5.6M, a 195% increase quarter-over-quarter. Gross profits were $1.9M, a 150% increase over the same time period for last year. Namaste said that the gross profit increase related primarily to the growth in revenue outside the United States.
“We are very pleased with the Q2 financials. The Company continues to see quarter-on-quarter growth at a rapidly accelerating rate, even after having divested our US assets,” said Sean Dollinger, President, and CEO of Namaste. “Our management team remains focused on ramping up patient acquisition through NamasteMD, and we anticipate launching medical cannabis sales through Cannmart in the near future. We feel that the Company is now positioned for significant growth going forward which will be achieved by accelerating patient acquisition, adding medical cannabis sales to our platform and by implementing new technologies to an already impressive platform.”
Namaste’s management team said it anticipates seeing accelerated growth in Q3 and Q4 of 2018. The Company has been focused on launching many new initiatives, the most significant of which is the addition of medical cannabis sales through the Company’s wholly-owned subsidiary, Cannmart Inc. Namaste will focus on expanding its international platform and in developing new opportunities domestically and abroad. The companies top five markets were the United Kingdom, Australia, United States, Brazil and finally Canada.
Operating costs for the second quarter grew to $5.5M versus $2.4M for the second quarter of 2017. According to the company statement, the quarter-over-quarter increase in operating costs was due to non-cash charges of $1.5M, which included share-based compensation, amortization of intangible assets, and depreciation.
Selling expenses also jumped in the second quarter, coming in at $1.7M compared to $0.6M for the previous year. The company said that the increase was due in part to an increase in advertising expenses of $0.6M and consulting expenses of $0.5M. “Advertising expenses related to online search services as well as other online promotional and social media tools utilized by the company to generate sales. These costs further represent the Company’s significant investment into search engine optimization and its ongoing customer acquisition strategy.”
Namaste stock jumped over 4% on the earnings news to lately trade at $1.25, down from its 52-week high of $3.47, but above the year’s low of 13 cents.