WOODLAND HILLS, Calif.,
March 31, 2014 /PRNewswire/ --
GrowLife, Inc. (OTCBB: PHOT), a diversified company operating in
the legal cannabis industry which develops, markets and deploys
products and services of legal cannabis, is pleased to announce the
timely filing of its Annual Report and financial results for the
fiscal year ending December 31, 2013.
The full 10k filing is available in its entirety at
www.GrowLifeInc.com or on the SEC's website
http://edgar.sec.gov/.
GrowLife revenues for 2013 revenue from sales increased to
$4,858,976 from $1,450,745, an increase of $3,408,231 or 235% compared against audited
revenues in 2012. For the quarter ended December 31, 2013, Q4, revenue was $1,912,311, an increase of $1,237,691, an 183% increase compared to the
$674,620 in revenues recorded for the
same period in 2012.
As the Company describes in detail in the full regulatory filing
the improved results in 2013 were primarily attributable to
GrowLife's (1) strategic acquisitions, (2) product expansion, (3)
business alliances, and (4) continually improving market
conditions. The Company's reported results reflect costs of
certain important initiatives including GIFT transactions, GrowLife
reintroduction and expansion of private label products under the
Stealth Grow product line as well as other recent initiatives the
Company has developed but as yet not derived revenue to date.
The rapid growth of the company in 2013, combined with our focus
on market share and expansion has resulted in some margin
compression, which the Company believes is temporary.
Moreover, the Company's financial results also include substantial
non-cash, one time charges related to warrants that were issued by
the company in 2013 and expensed by the company in accordance with
GAAP requirements. The reported net loss of the Company for
2013, on a non-GAAP basis, exclusive of non-cash one-time charges,
was $2,038,907.
"We are extremely pleased with the 2013 financial results,
especially the fourth quarter, which reflects the first period of
fully amalgamated sales revenue from our store acquisitions earlier
in the year," stated GrowLife CEO and Chairman Sterling Scott. "We also made key
investments in 2013, to position the company for future expansion
and maximize our ability to scale with the market."
Highlights from the period include:
- Acquisition of Rocky Mountain Hydroponics, LLC and Evergreen
Garden Center, LLC, commencing GrowLife Hydroponics retail presence
in Colorado, Massachusetts, New
Hampshire, and Maine. The
Companies were acquired in the 2rd quarter of fiscal
2013. Revenue from these acquisitions is only fully
expressed in the Q3 and Q4 totals.
- Opening of our Northern
California, Santa Rosa
based GrowLife Hydroponics Store in Q4.
- CANX joint venture in Q4 to provide GrowLife with the financial
capital to accelerate acquisitions and take advantage of market
opportunities.
"For a company that is so tremendously focused forward, the 10K
filing is an important opportunity for us to pause and look back on
2013 with complete transparency," added Scott. "In addition
to strong financial results, 2013 represents a year of investing in
our people – from the tremendous customer-service approach of our
front-line store personnel, to the depth and breadth of our
leadership team and independent Board, I'm very proud of the team
we've assembled.
"With the exception of one-time, non-cash charges in 2013, the
important metrics of the Company are sound and improving.
Importantly, as the legislative environment continues to shift
favorably for legal cannabis, GrowLife is very well positioned to
increase our market leading presence in a revenue diversified
manner that is profitable to the Company and its
shareholders."
From time to time, GrowLife will provide market updates and news
via its websites GrowLifeInc.com, Cannabis.org or the Company's
Facebook page at
https://www.facebook.com/tellthetruthfederalgovernment
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) develops, markets
and deploys products and services addressing the needs of legal
cannabis growing and retail operations, including hydroponic
growing equipment and retail support software. The Company provides
these solutions in our nationwide retail network, as well as online
sites Greners.com, Phototron.com and StealthGrow.com. The Company
also operates the political and social forum, Cannabis.org
Cautionary Language Concerning Forward-Looking
Statements
This release contains "forward-looking statements" that include
information relating to future events and future financial and
operating performance. The words "may," "would," "will,"
"expect," "estimate," "can," "believe," "potential" and similar
expressions and variations thereof are intended to identify
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times at, or by,
which that performance or those results will be achieved.
Forward-looking statements are based on information available
at the time they are made and/or management's good faith belief as
of that time with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. Important factors that could
cause these differences include, but are not limited to:
fluctuations in demand for GrowLife's products, the introduction of
new products, the Company's ability to maintain customer and
strategic business relationships, the impact of competitive
products and pricing, growth in targeted markets, the adequacy of
the Company's liquidity and financial strength to support its
growth, and other information that may be detailed from
time-to-time in GrowLife's filings with the United States
Securities and Exchange Commission. Examples of such
forward-looking statements in this release include statements
regarding future sales, costs and market acceptance of products as
well as regulatory actions at the State or Federal level. For
a more detailed description of the risk factors and uncertainties
affecting GrowLife, Inc. please refer to the Company's Securities
and Exchange Commission filings, which are available at
www.sec.gov. GrowLife, Inc. undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Investor Relations Contact:
Integrity Media
(702) 396-1000
kurt@integrityir.com
SOURCE GrowLife, Inc.