Canbiola Announces Fourth Quarter and Full Year 2018 Results
April 17 2019 - 9:10AM
InvestorsHub NewsWire
Canbiola Announces Fourth Quarter and Full Year 2018
Results
Annual Revenue Increased 445%
Maintained Gross Margin of
50%
HICKSVILLE, NY
-- April 17,
2019 -- InvestorsHub NewsWire -- Canbiola,
Inc. (OTCQB: CANB) (“Canbiola” or
the “Company”), a developer, manufacturer and seller of a variety
of Cannabidiol (Hemp) based products such as oils, creams,
moisturizers, chews, isolate, gel caps, and concentrate, announced
today operating and financial results for the fourth quarter
and year ended December 31, 2018.
“2018
was very much of a set-up year for what we expect in 2019 and 2020
and beyond, as we laid the groundwork by assembling our team,
advancing our production capabilities and branded and launched our
line of CBD products,” commented, Marco Alfonsi, Canbiola’s Chief
Executive Officer. Mr. Alfonsi, continued, “We now have our line of
proprietary CBD products in the hands of over 300 medical offices
and health professionals and successfully launched our
revolutionary Sustained Acoustic Medicine wellness solution. We
continue to explore additional and unique ways to bring our
products to market and believe we are well-positioned for accretive
revenue growth in 2019, which will be reflective in our first
quarter results in mid-May, as we are off to a positive start to
the year.”
Key Business Highlights for Q4 and Full
Year 2018:
-
Acquired Pure Health
Products
-
Launched Pure Leaf Oil as
its Consumer Brand
-
President Trump Signs Farm
Bill Legalizing Hemp CBD
Nationwide
-
Johnny Mack PhD Joins
Corporate Advisory Board
Key Financial Highlights for Full Year
2018:
-
Revenues increased by 445%
to $668,603
-
Gross margin of
50%
-
Operating loss of $4.4
million, included $3.4 million in non-cash stock-based
compensation
-
Cash balance of $0.8
million
Key Financial Highlights for Q4
2018:
-
Revenues increased by 395%
to $281,315
-
Gross margin of
46%
-
Operating loss of $2.6
million, included $2.1 million in non-cash stock-based
compensation
Subsequent to the end of
2018, Canbiola launched its revolutionary
Sustained Acoustic Medicine wellness solution via formation of its
wholly owned subsidiary Duramed, Inc., This device, along
with proprietary Gel Capture Patches, has been indicated in
accelerating tissue healing of musculoskeletal injuries and chronic
pain reduction and has proven to be reimbursable by health
insurance companies. The sam Pro 2.0 is
the first and only FDA cleared wearable low intensity ultrasound
device delivering multi-hour treatment to accelerate healing and
improve function for musculoskeletal injuries (muscle, tendon,
ligament) and reducing chronic pain (without opioid pain
medication). Canbiola and its Duramed subsidiary have attained
distribution of sam Pro 2.0 in the United States for no-fault and
workers comp insurance programs.. The Company’s proprietary
CBD gels patches coupled with the unique ultrasound delivery
system, should drive profitable revenue throughout 2019.
Financial Results for the Year Ended
December 31, 2018:
Revenue for the year ended December 31, 2018 was
$668,603, an increase of $545,857 or 445%, compared to $122,746 for
the year ended December 31, 2017. This increase was mainly
attributable due to the growth of CBD product sales.
Gross profit for the twelve-month period ended December 31, 2018
was $334,589, resulting in a gross margin of 50%, compared to
$78,280 and 64% for the twelve-month period ended December 31,
2017. Absolute gross profit increased due to the growth of product
sales and outreach into additional market segments such as
wholesale and private label opportunities.
Operating expenses for the year ended December 31, 2018 were $4.7
million, an increase of $3.9 million or 497%, compared to $0.8
million for the year ended December 31, 2017. This increase was
mainly attributable due to an increase of $2.2 million in officer’s
and director’s compensation and payroll taxes and an increase of
$1.5 million in consulting fees, which included additional
stock-based compensation of $1.7 million and $1.7 million,
respectively, for a total of $3.4 million in stock-based
compensation for the twelve months ended December 31, 2018.
Operating loss for the twelve months ended December 31, 2018 and
2017, was $4.4 million and $0.7 million, respectively, an increase
of $3.7 million.
Net loss for the twelve months ended December 31, 2018 and 2017,
was $8.9 million and $2.1 million, respectively, an increase of
$6.8 million. The resulting EPS loss for the twelve months ended
December 31, 2018 was a ($0.03), as compared to an EPS loss of
($0.00) for the twelve months ended December 31, 2017.
At December 31, 2018, Canbiola had $0.8 million of cash, $0.8
million of notes payable, and 423.9 million shares issued and
outstanding, on a fully diluted basis.
Financial
Results for the Three Months Ended December 31,
2018:
Revenue for the three months ended December 31,
2018 was $281,315, an increase of $224,509 or 395%, compared to
$56,806 for the three months ended December 31, 2017. This increase
was mainly attributable due to the growth of CBD product
sales.
Gross profit for the three months ended December 31, 2018 was
$128,358, resulting in a gross margin of 46%, compared to $24,038
and 42% for the three months ended December 31, 2017. Absolute
gross profit and gross margin increased due to the growth of
product sales and outreach into additional market segments such as
wholesale and private label opportunities.
Operating expenses for the three months ended December 31, 2018
were $2.7 million, an increase of $2.4 million or 843%, compared to
$0.3 million for the three months ended December 31, 2017.
Operating loss for the three months ended December 31, 2018 and
2017, was $2.6 million and $0.3 million, respectively, an increase
of $2.3 million.
Net loss for the three months ended December 31, 2018 and 2017, was
$4.2 million and $1.7 million, respectively, an increase of $2.5
million. The resulting EPS loss for the three months ended December
31, 2018 was a ($0.03), as compared to an EPS loss of ($0.00) for
the three months ended December 31, 2017.
About Canbiola,
Inc.
Canbiola, Inc. (OTCQB: CANB) is
a developer, manufacturer and seller of a
variety of Cannabidiol (Hemp) based products such as oils, creams,
moisturizers, chews,, isolate, gel caps, and concentrates. Canbiola
has developed its own line of proprietary products as well as
seeking synergistic value through acquisitions in the CBD and the
medical cannabis industry. Cannabis is currently federally illegal
and has legalized for medical purposes in some form in a limited
number of states, but pure CBD products are legal in all 50
states. Hemp CBD is the non-psychoactive
component (No THC) used for treatment of pain, inflammation, and
wellness programs. For more
information about Canbiola, Inc., please visit: https://canbiola.com.
Additionally, Canbiola’s wholly owned subsidiary
Pure Health Products, based in Lacey, WA, is its prime development
laboratory and production facility. Canbiola’s Duramed division has
recently rolled out a durable medical device via its Doctor network
to treat patients with injuries via application of an in-home
ultrasound sustained acoustic device (SAM) for pain and
inflammation reduction.
Forward-Looking
Statements
Forward-looking
statements and risks and uncertainties discussed in this letter
contain forward-looking statements. The words "anticipate,"
"believe," "estimate," "may," "intend," "expect," and similar
expressions identify such forward-looking statements. Expected,
actual results, performance, or achievements could differ
materially from those contemplated, expressed, or implied by the
forward-looking statements contained herein. Forward-looking
statements are subject to a number of risks and uncertainties,
including but not limited to, risks and uncertainties associated
with, among other things, the impact of economic, competitive, and
other factors affecting our operations, markets, products, and
performance. The matters discussed herein should not be construed
in any way, shape or manner of our future financial condition or
stock price.
Follow Canbiola
on:
Twitter
@CanbiolaHealth
Instagram
@canbiola.inc or @canbiola_cbd or
@canbiola_medical_cbd
Follow us
on Facebook
Investors and Media:
IR@StratConAdvisory.com
(516) 595-9544
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