ESCONDIDO, Calif., Nov. 19, 2020 (GLOBE NEWSWIRE) — MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Firm”) (OTC: MCOA), an progressive hemp and hashish company, is happy to announce as we speak its hempSMART™ product gross sales and different monetary highlights for the third quarter and 9 months ending September 30, 2020.
- Complete revenues of hempSMART™ merchandise have been $53,195 for the third quarter ended September 30, 2020 as in comparison with $229,371 for the third quarter ended September 30, 2019. That is regardless of setbacks in gross sales as a result of COVID pandemic and adjustments to the Firm’s advertising and marketing focus. The Firm anticipates will increase through the the rest of the yr on account of worldwide enlargement, extra financing the Firm expects to obtain in This autumn for product and advertising and marketing, and an expanded advertising and marketing mannequin.
- Working expense for the three months ended September 30, 2020 decreased to $607,237 as in comparison with $763,151 for the three months ended September 30, 2019, representing a considerable 20.4% discount in working bills. This resulted in an enchancment to working loss to $591,212 for the third quarter ended September 30, 2020 as in comparison with $624,623 for the third quarter ended September 30, 2019, representing a 5.3% enchancment.
- Web loss decreased materially to $1,872,271 for the three months ended September 30, 2020 in comparison with $6,226,622 for the three months ended September 30, 2019, representing a lower of $4,354,351. This can be a direct results of administration drastically lowering bills, growing effectivity and altering administration earlier this yr.
- Complete yr up to now revenues of hempSMART™ merchandise have been $217,972 for the 9 months ended September 30, 2020 as in comparison with $552,761 for the 9 months ended September 30, 2019, representing a 60.6% lower year-over-year.
- Worldwide revenues represented 43.4% and 39.0% of complete revenues for the 9 months ended September 30, 2020 and 2019, respectively.
- Working expense for 9 months ended September 30, 2020 decreased to $1,966,013 as in comparison with $3,231,298 for a similar interval in 2019, representing a 39.2% discount in working bills. This resulted in an enchancment to working loss to $1,858,604 for the 9 months ended September 30, 2020 as in comparison with $2,838,396 for a similar interval in 2019, representing a 34.5% enchancment.
- Web loss decreased considerably to $4,177,391 for the 9 months ended September 30, 2020 in comparison with a web lack of $10,878,622 for a similar interval in 2019, a lower of $6,701,231. This discount in web loss is the results of administration’s deal with lowering bills and relying much less on convertible debt financing.
- Complete property elevated to $2,013,287 as of September 30, 2020 from $1,143,722 as of December 31, 2019.
- The Firm’s complete present liabilities decreased considerably to $7,681,505 as of September 30, 2020 as in comparison with $11,745,065 for the yr ended December 31, 2019, representing a 35% discount in debt. This can be a results of the corporate settling convertible debt and lowering its operational expense.
- The Firm’s funding in Pure Plant Extract of California (NPE) skilled a number of optimistic adjustments through the second and third quarter. An investor acquired the property and a 40% curiosity within the enterprise in Q2. This helped to settle some legacy money owed and provides favorable phrases for the lease. As well as, NPE was capable of promote its non-storefront retail supply license for $650,000, giving NPE the adequate funds to broaden its marijuana distribution and manufacturing operations. Moreover, throughout Q3, NPE was capable of considerably full the development of the manufacturing lab.
- In the course of the third quarter, the Firm and International Hemp Group (GHG) entered right into a Settlement Settlement referring to the JV funding. GHG agreed to make a $200,000 fee with $125,000 paid earlier than September 30, 2020, and $75,000 payable no later than November 15, 2020, and to challenge GHG widespread inventory to the Firm equal in worth to $185,000 as of the date of the Settlement, or September 28, 2020, topic to a non-dilutive safety provision. In change for the settlement consideration, the Firm has agreed to relinquish its possession curiosity within the three way partnership.
COVID-19 considerably affected our revenues and gross revenue for Q3 and for the 9 months ended September 30, 2020. Nonetheless, the Firm will proceed to market its merchandise aggressively because it continues to a monumental paradigm shift in pivoting and altering its advertising and marketing focus to direct to shopper ecommerce.
Jesus Quintero, CEO and CFO of the Firm acknowledged “We have been very happy to see the drastic discount in overhead this quarter with out negatively impacting operations. This can assist make MCOA a extra lean operation with decrease bills in order that we will higher navigate the ever altering CBD market with out being as reliable on convertible debt. We count on to see sustainable demand for our uniquely formulated hempSMART™ CBD product model throughout the remainder of 2020 and into 2021 as our new advertising and marketing methods and platforms grow to be more practical because the COVID-19 scenario improves. Our aim is to broaden our hempSMART model in america in addition to internationally within the European and Latin American marketplaces.”
Please assessment the Kind 10Q filed with the Securities and Alternate Fee on November 16, 2020 for added monetary particulars.
About Marijuana Firm of America, Inc.
MCOA is an organization that participates in: (1) product analysis and improvement of authorized hemp-based shopper merchandise below the model title “hempSMART™”, that targets normal well being and well-being; (2) an affiliate internet marketing program to advertise and promote its authorized hemp-based shopper merchandise containing CBD; (3) leasing of actual property to separate enterprise entities engaged within the development and sale of hashish in these states and jurisdictions the place hashish has been legalized and correctly regulated for medicinal and leisure use; and, (4) the enlargement of its enterprise into ancillary areas of the legalized hashish and hemp trade, because the legalized markets and alternatives on this phase mature and develop.
About Our hempSMART Merchandise Containing CBD
The USA Meals and Drug Administration (FDA) has not acknowledged CBD as a secure and efficient drug for any indication. Our merchandise containing CBD derived from industrial hemp should not marketed or bought based mostly upon claims that their use is secure and efficient remedy for any medical situation as medicine or dietary dietary supplements topic to the FDA’s jurisdiction.
Ahead Trying Statements
This information launch incorporates “forward-looking statements” which aren’t purely historic and will embody any statements relating to beliefs, plans, expectations or intentions relating to the longer term. Such forward-looking statements embody, amongst different issues, the event, prices and outcomes of recent enterprise alternatives and phrases comparable to “anticipate”, “search”, intend”, “consider”, “estimate”, “count on”, “mission”, “plan”, or comparable phrases could also be deemed “forward-looking statements” throughout the which means of the Personal Securities Litigation Reform Act of 1995. Precise outcomes may differ from these projected in any forward-looking statements on account of quite a few elements. Such elements embody, amongst others, the inherent uncertainties related to new initiatives, the longer term U.S. and world economies, the impression of competitors, and the Firm’s reliance on present rules relating to the use and improvement of cannabis-based merchandise. These forward-looking statements are made as of the date of this information launch, and we assume no obligation to replace the forward-looking statements, or to replace the explanation why precise outcomes may differ from these projected within the forward-looking statements. Though we consider that any beliefs, plans, expectations and intentions contained on this press launch are cheap, there could be no assurance that any such beliefs, plans, expectations or intentions will show to be correct. Buyers ought to seek the advice of all the info set forth herein and must also seek advice from the danger elements disclosure outlined in our annual report on Kind 10-Okay, our quarterly studies on Kind 10-Q and different periodic studies filed from time-to-time with the Securities and Alternate Fee. For extra info, please go to www.sec.gov.