Marley Coffee Quarterly Revenue Increases 309 Percent for Quarter Ended October 31, 2013 Compared to Quarter Ended October 31...
December 17 2013 - 7:30AM
Marley Coffee (OTC:JAMN) (www.marleycoffee.com), the sustainably
grown, ethically farmed and artisan-roasted gourmet coffee company,
reports financial results for the three and nine months ended
October 31, 2013 and 2012, including increases in revenue, gross
profit and gross profit margins, for the year-over-year periods.
Highlights of the third fiscal quarter and nine months
include:
- Revenue for the 2014 third fiscal quarter (i.e., the three
months ended October 31, 2013) increased 309 percent to $2.2
million vs. $536 thousand compared with fiscal 3Q 2013. For the
nine-month period ended October 31, 2013, revenue increased 228
percent to $4.6 million compared with $1.4 million in the year-ago
nine-month period.
- Increased grocery retailer penetration to 8,000 authorized
locations as of October 31, 2013, compared with 500 locations at
the end of the third quarter last year helped contribute to the
growth in revenue.
- Gross profit increased to $811 thousand in the 2014 third
fiscal quarter compared with $153 thousand in the year-ago third
fiscal quarter. For the nine months ended October 31, 2013, gross
profit was $1.8 million compared with $295 thousand in the year-ago
nine-month period.
- Gross profit margins increased to 37 percent in the third
quarter of fiscal 2014 from 29 percent in the year-ago third fiscal
quarter.
- Operating expenses for the third fiscal quarter 2014 were $1.5
million compared with $1.0 million in the year-ago third fiscal
quarter, and $3.1 million for the nine months ended October 31,
2013 compared with $3.0 million in the year-ago nine-month period.
While operating expenses increased by 50%, revenues increased by
309% highlighting the companies ability to scale well.
- Net loss was $1.4 million or $0.01 per share for the third
fiscal quarter of 2014, compared with a net loss of $945 thousand,
or $0.01 per share, in the year-ago third fiscal quarter. October
31, 2013 was a non-cash loss on extinguishment of debt of $684
thousand and $1.1 million, respectively and non-cash equity
compensation of $601 thousand and $1.6 million, respectively. That
loss on extinguishment of debt was specifically due to the
financing transaction by Ironridge. The losses relate to a non-cash
true up of certain amounts due to Ironridge under the July 2013
transaction and represent the value of shares of common stock
issuable to satisfy certain liabilities previously purchased by
Ironridge. Moreover, excluding these non-cash transactions, net
loss for the three months ending October 31, 2013 would have been
$93 thousand or $0.00 per share and net income for the nine-month
period would have been $200 thousand or $0.00 per share.
- Cash flows from operations improved from a net cash burn of
$998 thousand for the nine months ending October 31, 2012 to a
positive net cash flow of $990 thousand for the nine months ending
October 31, 2013. The positive cash flow was due to the significant
increase in revenues during the period, in addition to the use of
equity financing to pay down and manage debt. The Company believes
that this decrease in debt will help minimize the risk for any
current and potential investors, and plans to transition from
equity-based compensation to cash compensation for the management
team during the fiscal year ending January 31, 2015.
- Generated distribution with several leading supermarket chains
and retail outlets including Giant Food Stores, Stop & Shop,
Natural Grocers by Vitamin Cottage®, AKiN's Natural Food Markets,
Chamberlin's Market & Cafe, Richard's Foodporium, Market
District, Vitamin Discount Center, Hen House Market, Ball's Price
Chopper, and Brookshire Brothers, were added during the fiscal
third quarter.
- Garden of Life®, named the #1 selling brand in the natural
products industry by SPINScan, launched fair trade Marley Coffee
flavors of its best-selling Raw Protein and Raw Meal.
- AVT, Inc., a leader in automated retailing systems,
self-service stores and kiosks, placed 360 Marley Coffee automated
kiosk in Los Angeles' Westwood Pavilion.
- Introduced three varieties of Marley Coffee espresso capsules
for the Coscolina and Verona espresso machines, manufactured by the
Martello Cafe line.
- Marley Coffee named as primary refreshment option at the New
York City headquarters of Spotify, the innovative online music
streaming service.
- Launched "Smile Jamaica," a blend of 20 percent Jamaican Blue
Mountain (JBM) coffee and 80 percent Rainforest Alliance Certified
coffee, the first authorized JBM blend in North America.
- Company management featured in a series of media outlets
including Bloomberg TV and Fox Business News.
- Subsequent to the end of the quarter, the Company generated
distribution with Kroger-owned Quality Food Centers, Fred Meyer,
Ralphs and all 14 New York City metropolitan area locations of
Fairway Market.
- Subsequent to the end of the quarter, the Company purchased the
majority of assets of BikeCaffé Franchising Inc., a Denver-based
company that owns and sells mobile coffee carts worldwide.
Rohan Marley, Founder and Chairman of Marley Coffee, said, "The
progress during this quarter was a result of our company's
dedication and vision for Marley Coffee. As we continue to grow our
business and introduce more and more customers to our unique
blends, we also intend to remain true to our ideals—including
sustainability, environmental awareness and community-based
responsibility—that truly sets Marley Coffee apart as a coffee
company."
Brent Toevs, Chief Executive Officer of Marley Coffee, added,
"As we increase our presence in traditional retail markets, we also
continue to concentrate on expanding our domestic and international
distribution channels. We believe there are many exciting
opportunities for us to increase sales of our products, and the
recognition of the Marley Coffee brand."
About Jammin Java Corp., d/b/a Marley
Coffee
Marley Coffee (corporate name Jammin Java Corp.) is a US-based
company that provides premium, artisan roasted coffee to the
grocery, retail, online, service, hospitality, office coffee
service and big box store industry. Under its exclusive licensing
agreement with 56 Hope Road, the company continues to develop its
coffee lines under the Marley Coffee brand. The company is a fully
reporting company quoted on the OTCQB under the symbol "JAMN".
Learn more at www.MarleyCoffee.com or visit the corporate website
at www.JamminJavaCorp.com.
Join us on Facebook at http://www.facebook.com/MarleyCoffee, or
follow us on Twitter at http://twitter.com/marleycoffee, where we
post information that's material and non-material about the
company.
Forward-Looking Statement
This Press Release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Acts"). In particular, the words "believe," "may,"
"could," "should," "expect," "anticipate," "estimate," "project,"
"propose," "plan," "intend," and similar conditional words and
expressions are intended to identify forward-looking statements and
are subject to the safe harbor created by these Acts. Any
statements made in this news release about an action, event or
development, are forward-looking statements. Such statements are
based upon assumptions that in the future may prove not to have
been accurate and are subject to significant risks and
uncertainties. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the company. These risks and others are included from
time to time in documents we file with the Securities and Exchange
Commission ("SEC"), including but not limited to, our Form 10-Ks,
Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors
also could have material adverse effects on our future results.
Accordingly, you should not place undue reliance on these
forward-looking statements. Although the company believes that the
expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that its forward-looking
statements will prove to be correct. Investors are cautioned that
any forward-looking statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected. The forward-looking statements in
this press release are made as of the date hereof. The company
takes no obligation to update or correct its own forward-looking
statements, except as required by law or those prepared by third
parties that are not paid by the company. The company's SEC filings
are available at http://www.sec.gov.
JAMMIN JAVA
CORP. |
STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
Three Months Ended
October 31, |
Nine Months Ended
October 31, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Revenue |
$ 2,193,118 |
$ 536,055 |
$ 4,615,605 |
$ 1,405,154 |
|
|
|
|
|
Cost of sales: |
|
|
|
|
Cost of sales products |
1,382,067 |
382,741 |
2,833,587 |
1,110,002 |
Total cost of sales |
1,382,067 |
382,741 |
2,833,587 |
1,110,002 |
|
|
|
|
|
Gross Profit |
$ 811,051 |
$ 153,314 |
$ 1,782,018 |
$ 295,152 |
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Compensation and benefits |
686,241 |
567,668 |
1,373,394 |
1,778,397 |
Selling and marketing |
15,777 |
191,566 |
139,709 |
494,338 |
General and administrative |
758,635 |
237,774 |
1,627,383 |
731,546 |
Impairment of license |
-- |
36,000 |
-- |
36,000 |
Total operating expenses |
1,460,653 |
1,033,008 |
3,140,486 |
3,040,281 |
|
|
|
|
|
Other income (expense): |
|
|
|
|
Other expense (Including loss
on extinguishment of liabilities of $1,120,593) |
(728,705) |
(11,200) |
(1,044,891) |
(11,200) |
Interest income |
-- |
48 |
-- |
461 |
Interest (expense) |
(244) |
(53,896) |
(108,918) |
(69,285) |
Total other income
(expense) |
(728,949) |
(65,048) |
(1,153,809) |
(80,024) |
|
|
|
|
|
Net Loss |
$ (1,378,551) |
$ (944,742) |
$ (2,512,277) |
$ (2,825,153) |
|
|
|
|
|
Net loss per share: |
|
|
|
|
Basic and diluted loss per share |
$ (0.01) |
$ (0.01) |
$ (0.03) |
$ (0.04) |
|
|
|
|
|
Weighted average common shares outstanding -
basic and diluted |
96,466,602 |
77,618,723 |
90,255,429 |
77,037,802 |
|
|
|
|
|
See accompanying notes to
financial statements |
|
JAMMIN JAVA
CORP. |
BALANCE
SHEETS |
|
|
|
|
October 31, |
January 31, |
|
2013 |
2013 |
|
(Unaudited) |
|
Assets |
|
|
Current Assets: |
|
|
Cash |
$ 806,414 |
$ -- |
Restricted cash |
-- |
65,382 |
Accounts receivable |
2,661,906 |
415,721 |
Notes receivable - related
party |
2,724 |
-- |
Inventory |
2,249,684 |
-- |
Prepaid expenses |
217,979 |
173,264 |
Other current assets |
26,160 |
24,387 |
Total Current Assets |
5,964,867 |
678,754 |
|
|
|
Property and equipment,
net |
182,668 |
19,705 |
License agreement |
669,167 |
705,667 |
Deferred financing costs |
-- |
43,490 |
Other assets |
15,716 |
-- |
Total Assets |
$ 6,832,418 |
$ 1,447,616 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 1,201,255 |
$ 762,663 |
Common shares due to
Ironridge |
1,395,025 |
-- |
Accounts payable - related
party |
-- |
2,258 |
Accrued royalty - related
party |
162,245 |
-- |
Accrued expenses |
137,352 |
92,586 |
Accrued expenses - related
party |
21,000 |
30,073 |
Bank Overdraft |
-- |
8,931 |
Notes payable - Related
party |
-- |
9,454 |
Secured promissory note -
net of discount of $-0- and $29,925, respectively |
-- |
320,075 |
Notes payable |
4,965 |
-- |
Derivative liability |
-- |
120,006 |
Total Current Liabilities |
2,921,842 |
1,346,046 |
|
|
|
Total Liabilities |
2,921,842 |
1,346,046 |
|
|
|
Stockholders' Equity: |
|
|
Common stock, $.001 par value,
5,112,861,525 shares authorized; 95,388,136 and
79,373,546 shares issued and outstanding, as of October 31,
2013 and January 31, 2013, respectively |
95,388 |
79,377 |
Additional paid-in-capital |
13,386,283 |
7,081,011 |
Accumulated deficit |
(9,571,095) |
(7,058,818) |
Total Stockholders' Equity |
3,910,576 |
101,570 |
|
|
|
Total Liabilities and
Stockholders' Equity |
$ 6,832,418 |
$ 1,447,616 |
|
|
|
See accompanying notes to
financial statements |
CONTACT: Dian Griesel Int'l.
212-825-3210
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