It’s time for your Daily Hit of cannabis financial news for April 17, 2019.
On The Site
MariMed Inc. (OTCQB: MRMD) reported its fourth-quarter and 2018 results. For the quarter ending December 31, 2018, revenues grew 118% to $3.44 million versus $1.58 million for the same time period in 2017. The company did not break out additional details for the quarter, opting instead to just release the details for the full year.
Full Year 2018
For the full year 2018, revenues grew to $11.85 million, up 95% over $6.07 million reported for 2017; Adjusted EBITDA grew 53% to $2.4M. The company delivered a net loss for the year of $13.6 million which they attributed to the result of non-cash amortization relating to equity compensation granted during the year ($13.97 million). Loss per share was $0.71 for the full year.
The cannabis consumer is typically characterized as a “stoner” – a lovable, slacker with no ambition wandering around in a high stupor. So, it’s pretty unusual to read the account of a sober millennial working in one of the biggest cannabis companies in the country. Jackson D. Tilley’s full-time job is the vice president of strategic partnerships and communications for Organa Brands, a vape company that has sold over $100 million in cannabis products. Somehow, he has found time to write this book Billion Dollar Dimebag: An Insider’s Account of America’s Legalish Cannabis Industry.
The key to the long-term success of every medical or adult-use cannabis business in California will be found in the management of tax liabilities. The usual reasons for long-term success in business – creativity, perseverance, experience, business acumen and connections – are important. The management of the direct and indirect impact of the multiple taxes to which California cannabis businesses are subject, and the preparation and maintenance of the financial records required for the management of these tax liabilities, will, however, prove to be the single most important factor in the success of a California cannabis business in the long-term.
In Other News
Acreage Holdings (ACRG.U) stock rose over 9% on rumors of an acquisition by Canopy Growth (CGC). Both CEO’s Bruce Linton and Kevin Murphy are scheduled to be on CNBC tomorrow morning at 6:50am.
Medicine Man Technologies, Inc. (OTCQX: MDCL) announced its financial results for the year ended December 31, 2018. The company generated operating revenues of $9,442,555, an increase of approximately 168%, compared to revenues of $3,529,584 in the year ended December 31, 2017. Revenues for the year ended 2018 included a one-time consideration for an intellectual property license agreement with Abba Medix Corp. (AMC), a wholly-owned subsidiary of publicly-traded Canada House Wellness Group, Inc. (CHV) for $1.15 million in cash.
Other income for 2018 increased to $573,875, compared to $145,222 in 2017. The increase in the company’s overall revenue was driven by an increase in new clients, and new states adopting cannabis legislation and initiatives. The company reported cost of goods and services totaling $6,865,045 during 2018. This is compared to $2,227,303 during the same time period in 2017. The increase is primarily due to an increase in overall product sales volume.
Gross profit during the year ended December 31, 2018, increased 208% to $6,865,045 from $2,227,303 for the year ended December 30, 2017. Operating expenses during 2018 decreased by 37% to $4,694,704 from $7,463,253 during 2017, due primarily to stock compensation.