EVIO, Inc. provides Shareholder
HENDERSON, NV -- October 15, 2021 -- InvestorsHub NewsWire --
EVIO, Inc. (OTC:EVIO)
is pleased to provide this update to shareholders. This update
includes a summary of the financial results for fiscal year 2020,
notification of a withdrawal of LOI, discussion of the turnaround
efforts to date, and announcement of new initiatives.
On September 23, 2021 the company released its financial results
for its fiscal year 2020.
EVIO, Inc. gross margin improved to $148,927 in 2020 from
($936,040) in 2019 while revenues decreased 5% to $3.6 million from
$3.8 million. Improved margins are primarily due
consolidation of labs to locations in Oregon, California, and
Canada. Revenue increased in Oregon but was offset by
reduction in licensing revenue, loss of revenue due to COVID
shutdowns and cost of relocation of the Berkeley laboratory.
The company had 23% lower cost of testing services and 30%
reduction in selling, general and administrative costs year over
year. Lower cost of testing services is due to the increased
scale at fewer labs. SG&A expense reduction is largely
due to lower corporate overhead by maintaining fewer locations,
reducing the size of its executive team, and shifting to outsourced
finance and accounting staff.
“Although revenue was down slightly in 2020,
lab consolidation and reduced overhead put the remaining
operating labs into a stronger financial position", said Lori
Glauser, CEO. "EVIO’s goal for 2021 has been to continue to reduce
costs, improve its debt position, and evaluate new business
opportunities to diversify its portfolio."
Continued cost reductions include reduction of the executive
team to just a CEO and CSO with outsourced financial and accounting
staff; transition the executive team from its office in Henderson,
NV to remote work, and restructuring of compensation plans for
certain sales and administrative personnel.
Since the end of 2020, the company has retired substantial
liabilities, including $1.8 million in debt and lease
liabilities from the Massachusetts, Medford, and Humboldt
Convertible note holders are also reducing debt by converting
their shares. Approximately, $1.8 million of the outstanding
$3.6 million in convertible notes have been settled.
Withdrawal of LOI with Leading Edge Pharms
On July 12, 2021, the Company announced it had engaged in a LOI
with Leading Edge Pharms, Inc. (“LEP”), a formulator of topical CBD
products, to merge the two companies together.
Upon further review, both companies have mutually agreed to
terminate the LOI and withdraw from the process of a potential
merger. The rationale behind the withdrawal is regulatory and
market uncertainty as it pertains to the combined company’s ability
to both produce and test CBD products. “While Leading Edge
Pharms has a robust suite of CBD products and proprietary
formulations, such an acquisition could result in a conflict of
interest for EVIO, as the company would both test and sell
products. That presents a possible conflict with both regulators,
and our labs growing base of clients that produce similar
New Lab Initiatives
Recently, Health Canada has allowed accessing psychedelics as
controlled substances for special cases, exempted persons, and
clinical trials. In September, 2021, Keystone Labs submitted
its application for a Controlled Substance License. This
license would allow Keystone to perform safety testing of
psychedelic substances including psilocybin, MDMA, and ketamine
used for certain new applications including clinical trials.
Also in November, 2020, voters passed Oregon Ballot
Measure 109, making Oregon the first state to both
decriminalize psilocybin and also legalize it for therapeutic
use. The program will be administered by the Oregon Health
Authority, which plans to take applications in 2023 EVIO Labs
Portland intends to be prepared to assist emerging producers and
manufacturers in both testing, compliance consulting, and research
EVIO Labs Portland also recently expanded its testing services
to test to include novel cannabinoids including THC-O. This
further expands the already robust list of cannabinoids tested that
includes THCV, CBDV, and Delta 8 THC.
About EVIO, Inc.
EVIO, Inc. is a provider of analytical testing services for
cannabis, hemp, and CBD products. EVIO maintains full-service,
licensed and accredited laboratory operations in California,
Oregon, and Canada. EVIO also provides clients with quality
analytical R&D and consulting services to help them produce the
best, compliant products. For more information, visit www.eviolabs.com.
Safe Harbor Statement
Any statements in this press release that are not statements of
historical fact may be considered forward-looking statements
pertaining to anticipated or projected plans, performance, and
developments, as well as other statements relating to future
operations and results. Words such as "may," "will," "expect,"
"believe," "anticipate," "estimate," "intends," "goal,"
"objective," "seek," "attempt," or variations of these or similar
words, identify forward-looking statements. These forward-looking
statements by their nature are estimates of future results only,
and involve substantial risks and uncertainties, including but not
limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development
of new products, the Company's ability to complete product testing
and launch product commercially, the acceptance of product in the
marketplace, the uncertainty of the laws and regulations relating
to cannabis, the impact of competitive products or pricing,
technological changes, the effect of economic conditions and other
uncertainties detailed from time to time in Company reports
available at www.sec.gov or www.eviolabs.com.
For Further Information, contact:
Lori Glauser, CEO
EVIO (PK) (USOTC:EVIO)
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