LOS ANGELES, April 1, 2014 /PRNewswire/ -- Medbox, Inc. (OTC
Markets: MDBX) (www.medbox.com), a leader in providing consulting
services and patented medicine storage and dispensing systems to
the medical and retail industries, today announced record full-year
revenue. Medbox included its audited numbers for the year ended
December 31, 2013 in its amended Form
10 filing with the Securities and Exchange Commission.
Recent Operational highlights:
- On March 24, 2014, the Form 10
registering Medbox's shares of common stock became effective with
the Securities and Exchange Commission and Medbox is now a
fully-reporting public company.
- The Company added public company experience, naming
Thomas Iwanski as CFO, Matt Feinstein at Vice President, and also
Netflix co-founder and former Redbox president Mitch Lowe as the
Company's first independent director.
- Medbox unveiled a first-of-its-kind, patented dispensing safe,
called the "Secure Safe" for use in the marijuana sector.
- Medbox joined the medical marijuana lobbying effort to call for
the passage of the "Compassionate Care Act." This legislation
legalizes the possession, manufacture, use, delivery, transfer,
transport or administration of medical marijuana by a certified
patient or designated caregiver.
- Medbox also expanded its intellectual property portfolio with
the confirmation that it has been awarded two additional patents
for its Vaporfection brand of products. The patents, awarded to the
company's wholly owned subsidiary, Vaporfection International,
Inc., specifically relate to "Vapor Glass™" technology, which
features the use of laboratory grade glass encased heating element
positioned in the center of the laboratory grade glass heating
chamber air pathway, and "Vapor Sense™" technology, that features a
touch screen interface linked to an automatic temperature sensing
control system.
- The Company issued a 1 for 1 restricted common dividend in
February 2014
"This was a productive and exciting year for Medbox, and the
first 90 days of 2014 have been even more productive," commented
Dr. Bruce Bedrick, Chief Executive
Officer of Medbox. "We have solidified our position as the industry
leader, and in the last three months we have taken specific steps
to improve corporate governance, expand transparency and deliver
shareholder value. During the rest of 2014 we will grow
organically, taking advantage of the tremendous momentum in the
industry. We will also leverage our reputation, presence in the
industry, and our relationships to develop new revenue streams.
This will be an exciting year for Medbox, its clients and its
shareholders."
Full-year revenues were $5.2
million, a 101.7% increase compared to $2.6 million last year. The increase in revenues
was due to primarily the result of recognizing revenue deferred
from 2012 related to the completion of contracts for Arizona customers which was delayed by court
action that was not resolved until 2013. Gross profit for 2013 was
$2.6 million, or 50.5% gross profit
margin, compared to gross profit of $1.5
million, or 59.4% gross profit margin for 2012. The change
in gross profit margin was due to increased costs related to the
build-out of locations for clients and delays in implementing the
Arizona program related to the
litigation.
Total selling, general and administrative expenses were
$3.2 million, or 61.2% of total
revenues, compared to total selling, general and administrative
expenses of $1.9 million, or 72.5% of
total revenues last year. The loss from operations for the year was
$(560,000), compared to a loss from
operations of $(340,000) last year.
Net loss for the year was $(557,000),
or $(0.02) per basic and $(0.01) per diluted share, compared to a net loss
last year of $(344,000), or
$(0.01) per basic and diluted share,
last year.
While the Company's largest operating subsidiary, Medicine
Dispensing Systems, remained profitable with a pretax profit of
$948,443, the net loss for 2013
included $1.2 million in losses from
the parent company's operations, related primarily to accounting
and SEC attorney legal fees (related to the filing of, and
subsequent withdrawing of, a Registration Statement on Form S-1,
and the filing of a Form 10 registration statement in order to
register the common stock of Medbox) and additional legal fees
(related to litigation on behalf of Arizona clients to allow them to move forward
with dispensary licenses the state of Arizona had awarded). In addition, the
Company's Vaporfection subsidiary, acquired on April 1, 2013, recognized a net loss of
$317,000 for nine months of
operations.
"Our primary subsidiary, Medicine Dispensing Systems, has been
profitable each year since commencing operations in 2010, and
remains profitable today," added Vincent
Mehdizadeh, Chairman and Chief Operating Officer of Medbox,
Inc. "However, public company costs, expenses related to financing
efforts, and legal fees related to Arizona litigation resulted in a net loss for
the public company. We do not expect these expenses to impact our
2014 results, however, we are growing our infrastructure in
anticipation of future growth, and expect additional fees related
to public company costs as the Company pursues a listing on a
national exchange.
Fourth Quarter Financial Results
Revenues for the fourth quarter ending December 31, 2013 increased to $423,000 compared to $47,250 for the same period of 2012. The increase
in revenues was due to an increased number of contracts signed and
initial non-refundable consulting fees. Gross profit for the
quarter was $278,000, or 65.7% gross
profit margin, compared to a negative gross profit of $(508,000), or (10.8%) negative gross profit
margin, in the fourth quarter of 2012. This was partially due
to deferral of some revenue for Arizona contracts from 2012 to 2013 because of
Arizona licensing stoppages by
their authorities.
Total selling, general and administrative expenses significantly
increased by $657,007 in the fourth
quarter of 2013 compared to the same period of 2012, this is due to
the fact that the Company incurred higher general and
administrative expenses related to raising capital and regulatory
compliance as described above.
Net loss for the fourth quarter of 2013 was $(513,000) or $(0.02) per basic and $(0.01) per diluted share, compared to a net loss
of $(533,000) or $(0.02) per basic and $(0.01) per diluted share for the fourth quarter
of 2012.
Balance Sheet
The Company completed the year with $168,000 in cash and $185,000 in marketable securities. As of
December 31, 2013, Medbox had
approximately $1.3 million in
inventory, primarily related to increased capitalized location
costs and the addition of almost $200,000 of Vaporfection inventory that was not
part of the company in 2012. This represents an approximately
three-fold increase in inventory compared to December 31, 2012. Management's increased
inventory levels relate to project activity in Illinois, Arizona and Washington in anticipation of 2014 sales.
Subsequent to the end of the fiscal year, and as referenced in a
Form 10a filed with the Securities and Exchange Commission, the
Company increased its cash position through sales of stock to
accredited investors. As a result of these sales, the Company had
approximately $2 million in cash as
of March 31, 2014.
About Medbox, Inc:
Medbox is a leader in the development, sales and service of
automated, biometrically controlled dispensing and storage systems
for medicine and merchandise. Headquartered in Los Angeles, Medbox, through its wholly owned
subsidiary, Medicine Dispensing Systems, offers their patented
systems, software and consulting services to pharmacies, medical
dispensaries and local governments in the U.S. In addition, through
its wholly owned subsidiary, Vaporfection International, Inc.
(www.vaporfection.com), the company offers an industry award
winning medical vaporizer product.
Forward-Looking Statements: The statements in this press release
constitute forward-looking statements within the meaning of federal
securities laws. Such statements are based on our current beliefs
and expectations and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond our control. In addition, such
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change. Potential risks and uncertainties include, but are not
limited to, technical advances in the industry as well as political
and economic conditions present within the industry. We do not take
any obligation to update any forward-looking statement to reflect
events or developments after a forward-looking statement was
made.
Medbox, Inc. is a publicly traded company, and is quoted on the
OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact (800) 762-1452 or
go online to: http://www.medbox.com.
Contacts:
Investor Relations:
Stephen Hart
Hayden IR
+1- 917-658-7878
hart@haydenir.com
Tables to follow
MEDBOX,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
FOR THE YEARS
ENDED DECEMBER 31, 2013 AND 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
|
|
|
|
|
$
5,223,775
|
|
$
2,590,579
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
2,587,656
|
|
1,051,135
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
2,636,119
|
|
1,539,444
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
|
|
|
|
Selling and
marketing
|
|
|
|
|
|
664,383
|
|
806,221
|
Research and
development
|
|
|
|
|
|
74,861
|
|
176,964
|
General and
administrative
|
|
|
|
|
|
|
|
|
2,456,435
|
|
895,798
|
Total selling,
general and administrative expenses
|
|
3,195,679
|
|
1,878,983
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
|
|
|
|
(559,560)
|
|
(339,539)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
|
|
|
|
6,905
|
|
(4,948)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
provision for income taxes
|
|
|
|
(552,655)
|
|
(344,487)
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
|
4,000
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
|
|
|
|
$
(556,655)
|
|
$
(344,487)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to common stockholders
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
$
(0.02)
|
|
$
(0.01)
|
Diluted
|
|
|
|
|
|
|
|
$
(0.01)
|
|
$
(0.01)
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
28,971,983
|
|
25,119,175
|
Diluted
|
|
|
|
|
|
|
|
44,506,230
|
|
55,119,175
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to
consolidated financial statements.
|
MEDBOX,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
DECEMBER 31, 2013
AND 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
168,003
|
|
$
1,026,902
|
Marketable
securities
|
|
|
|
|
184,800
|
|
-
|
Accounts
receivable
|
|
|
|
|
1,864,506
|
|
2,052,000
|
Note
receivable
|
|
|
|
|
|
115,000
|
|
-
|
Inventory
|
|
|
|
|
|
1,269,454
|
|
416,254
|
Prepaid expenses and
other current assets
|
|
|
89,241
|
|
-
|
Total current
assets
|
|
|
|
|
3,691,004
|
|
3,495,156
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of $49,192 and 43,491, respectively
|
|
169,128
|
|
51,018
|
|
|
|
|
|
|
|
|
|
|
Investments, at
cost
|
|
|
|
|
|
1,200,000
|
|
-
|
Intangible assets,
net of accumulated amortization of $32,750
|
|
653,959
|
|
-
|
Goodwill
|
|
|
|
|
|
|
1,090,037
|
|
-
|
Deposits and other
assets
|
|
|
|
|
98,726
|
|
4,850
|
Total
assets
|
|
|
|
|
|
$
6,902,854
|
|
$
3,551,024
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
|
$
598,314
|
|
$
265,737
|
Deferred
revenue
|
|
|
|
|
-
|
|
1,608,280
|
Notes
payable
|
|
|
|
|
|
75,000
|
|
50,000
|
Related party notes
payable
|
|
|
|
|
111,794
|
|
869,038
|
Customer
deposits
|
|
|
|
|
203,186
|
|
-
|
Current portion of
long-term debt
|
|
|
|
-
|
|
16,428
|
Total current
liabilities
|
|
|
|
|
988,294
|
|
2,809,483
|
|
|
|
|
|
|
|
|
|
|
Long term-debt, less
current portion
|
|
|
|
-
|
|
42,420
|
Total
liabilities
|
|
|
|
|
|
988,294
|
|
2,851,903
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value: 10,000,000 authorized; 3,000,000 and 6,000,000 issued and outstanding as of
December 31, 2013 and
|
|
|
|
December 31, 2012,
respectively
|
|
|
|
3,000
|
|
6,000
|
Common stock, $0.001
par value: 100,000,000 authorized, 29,525,750 and 27,367,144 issued and
outstanding as of December 31, 2013 and December 31, 2012, respectively
|
29,526
|
|
27,367
|
Additional paid-in
capital
|
|
|
|
|
6,785,358
|
|
1,150,673
|
Common stock
subscribed
|
|
|
|
|
(15,000)
|
|
(153,250)
|
Retained earnings
(accumulated deficit)
|
|
|
(888,324)
|
|
(331,669)
|
Total stockholders'
equity
|
|
|
|
|
5,914,560
|
|
699,121
|
Total liabilities
and stockholders' equity
|
|
|
$
6,902,854
|
|
$
3,551,024
|
SOURCE Medbox, Inc.