Quarterly Revenue Increased 741% and Almost
Matching Entire Year 2018; Revenue Maintained Gross Margin of
49%
HICKSVILLE, NY -- May 28, 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 first quarter
ended March 31, 2019.
“I am pleased to report our successful progress to
begin 2019, as is evident by our first quarter revenue, which
almost matched our entire revenue for the year 2018,” commented
Marco Alfonsi, Canbiola’s Chief Executive Officer. Mr. Alfonsi
continued, “Our line of proprietary CBD products are in the hands
of over 300 medical offices and health professionals and being used
by thousands of consumers and patients. Our revolutionary Sustained
Acoustic Medicine wellness solution continues to ramp its market
penetration and awareness in accelerating tissue healing of
musculoskeletal injuries and chronic pain reduction has proven to
be reimbursable by health insurance companies as a clinically
proven solution to combat the Opioid Pain medication crisis. I am
also proud to report that our cash burn during the first quarter
was reduced to just $200,000 as we continue to carefully manage our
cash as we grow our business.”
Key Business Highlights for Q1
2019:
- Added Mr. Jason Winn and Dr. Mehran Peter Ghazvini to
Corporate Advisory Board
- Attained Registration in the GSA’s System for Award
Management and Department of Defense
- Finalized Asset Purchase Agreement with Seven
Chakras
- Appointed NFL Great Leonard Marshall to Sports Advisory
Board
- Launched CBD Wellness Solution for Tissue Healing and
Chronic Pain
- Senator Ronald A. Silver Joined Corporate Advisory
Board
- Acquired Pure Health Products and Launched Pure Leaf Oil
as its Consumer Brand
Key Financial Highlights for Q1
2019:
- Revenues increased by 741% to $517,160
- Gross margin of 49%
- Operating loss of $1.2 million, included $0.8 million in
non-cash stock-based compensation
- Cash balance of $0.6 million
Subsequent to the end of 2018, Canbiola increased
its investment in Duramed by 300% to continue the initial
deployment of the sam® Pro 2.0 device to treat Chronic Pain and
decrease/eliminate the crisis level use of Opioid-based Pain
Medication for Workers Comp, Personal Injury, Wounded Warriors and
Veterans. The sam® Pro 2.0 rollout offered to patients via its
physician office program continues to ramp successfully and has
dozens of clinics prescribing the sam® Pro 2.0 to treat Chronic
Pain Patients to date.
Financial Results for the Three Months
Ended March 31, 2019:
Revenue for the three months ended March 31, 2019
was $517,160, an increase of $447,391 or 741%, compared to $69,769
for the three months ended March 31, 2018. This increase was mainly
attributable due to the growth of CBD product sales and the launch
of new product sales in Duramed.
Gross profit for the three months ended March 31,
2019 was $254,607, resulting in a gross margin of 49%, compared to
$25,182 and 36% for the three months ended March 31, 2018. 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
March 31, 2019 were $1.4 million, an increase of $0.8 million or
116%, compared to $0.7 million for the three months ended March 31,
2018. The 2019 expense includes stock-based compensation of $0.8
million paid to officers and employees and for the service of
consultants.
Operating loss for the three months ended March
31, 2019 was $1.2 million, an increase of $0.6 million or 85%,
compared to $0.6 million for the three months ended March 31,
2018.
Net loss for the three months ended March 31, 2019
was $1.2 million, an increase of $1.6 million, compared to net
income of $0.4 million for the three months ended March 31, 2018.
The resulting EPS loss for the three months ended March 31, 2019
was a ($0.00), as compared to an EPS profit of $0.00 for the three
months ended March 31, 2018. The three months ended March 31, 2018
included $1.1 million income from derivative liability.
At March 31, 2019, Canbiola had $0.6 million of
cash, $0.0 million of notes payable, and 548.5 million shares
issued and outstanding, on a fully diluted basis.
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 Physician
network to treat patients with injuries via application of an
in-home ultrasound sustained acoustic device (sam® Pro 2.0) for
chronic 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 Twitter and Facebook
Investors and Media:
StratCon Advisory
IR@StratConAdvisory.com
(516) 595-9544