HICKSVILLE, NY
-- November 20, 2019 -- InvestorsHub
NewsWire -- Canbiola, Inc. (OTCQB: CANB) (“Canbiola” or
the “Company”), a developer, manufacturer and seller of a variety
of hemp-derived THC-Free Cannabidiol (CBD) Isolate products such as
oils, drops/tinctures, creams, moisturizers, chews, and capsules,
announced today the company's financial results for the third
quarter ended September 30, 2019.
Key Financial
Highlights for Q3 2019:
- Revenues increased by 277%
from the three months ended September 30, 2018, to
$615,422
- Gross margin of 77% for
three months ended September 30, 2019
- Operating loss of $935,264,
included $602,823 in non-cash stock-based
compensation
Key Business
Highlights for Q3 2019:
- Closed on joint venture
with NY SHI and Shi Farms to operate NY Hemp Depo’s
Facility
- Launched dedicated
Canbiola-branded CBD dispensing machine
Management
Commentary
“We are very pleased with
our third quarter results as we continue to ramp our business
across all of our brands, with Pure Leaf Oil and Seven Chakras
targeting consumers through retail and internet channels and the
Canbiola brand and product line focused on marketing through the
medical professionals’ market,” commented Marco Alfonsi, Canbiola’s
Chief Executive Officer. “Our 277% year-over-year revenue growth is
reflective of our increasing traction with existing and new
customers and sales channels. Our high gross margins of 77%
demonstrate our ability to efficiently source and manufacture our
ingredients and formulations.”
Mr. Alfonsi concluded, “Our
all-natural ingredients and state-of-the-art processing and
packaging equipment in a “clean room” environment add to the
product quality story of the company. Our portfolio of 120+
products span oils, creams, moisturizers, chews, gel caps, bath
bombs, massage oils, and concentrate continue to lead the way in
the CBD category. We look forward to continuing to communicate our
business progress.”
Financial Results
for the Three Months Ended September 30,
2019:
Revenue for the three
months ended September 30, 2019, was $615,422, an increase of
$452,094 or 277%, compared to $163,328 for the three months ended
September 30, 2018.
Gross profit for the three
months ended September 30, 2019, was $473,572, an increase of
$399,882 or 543%, compared to $73,690 for the three months ended
September 30, 2018. The resulting gross margin was 76.9% for the
three months ended September 30, 2019, compared to 45.1% for the
three months ended September 30, 2018.
Operating expenses for the
three months ended September 30, 2019 were $1,408,836, an increase
of $668,233 or 90%, compared to $740,603 for the three months ended
September 30, 2018. For the three months ended September 30, 2019,
operating expenses included non-cash stock-based compensation of
$602,823 paid to officers, employees, and service of consultants,
compared to $518,317 for the three months ended September 30,
2018.
Operating loss for the
three months ended September 30, 2019 was $935,264, an increase of
$268,351, or 40%, compared to $666,913 for the three months ended
September 30, 2018.
Adjusted operating loss for
the three months ended September 30, 2019 was $332,441, an increase
of $183,845, or 124%, compared to $148,596 for the three months
ended September 30, 2018. Adjusted operating loss does not include
non-cash stock-based compensation.
Net loss for the three
months ended September 30, 2019, was $941,099, a decrease of
$3,214,600, or 77%, compared to $4,155,699 for the three months
ended September 30, 2018. The resulting EPS loss for the three
months ended September 30, 2019 was ($0.00) per diluted share,
compared to ($0.00) per diluted share for the three months ended
September 30, 2018.
Financial Results
for the Nine Months Ended September 30,
2019:
Revenue for the nine months
ended September 30, 2019 was $1,766,161, an increase of $1,387,873
or 356%, compared to $387,288 for the nine months ended September
30, 2018.
Gross profit for the nine
months ended September 30, 2019, was $1,062,554, an increase of
$856,343 or 415%, compared to $206,211 for the nine months ended
September 30, 2018. The resulting gross margin was 60.2% for the
nine months ended September 30, 2019, compared to 53.2% for the
nine months ended September 30, 2018.
Operating expenses for the
nine months ended September 30, 2019 were $4,607,298, an increase
of $2,631,048 or 133%, compared to $1,976,250 for the nine months
ended September 30, 2018. For the nine months ended September 30,
2019, operating expenses included non-cash stock-based compensation
of $2,390,967 paid to officers, employees, and service of
consultants, compared to $1,276,493 for the nine months ended
September 30, 2018.
Operating loss for the nine
months ended September 30, 2019 was $3,544,744, an increase of
$1,774,705, or 100%, compared to $1,770,039 for the nine months
ended September 30, 2018.
Adjusted operating loss for
the nine months ended September 30, 2019 was $1.153.777, an
increase of $660,231, or 134%, compared to $493,546 for the nine
months ended September 30, 2018. Adjusted operating loss does not
include non-cash stock-based compensation.
Net loss for the nine
months ended September 30, 2019, was $3,551,104, a decrease of
$1,171,913, or 25%, compared to $4,723,017 for the nine months
ended September 30, 2018. The resulting EPS loss for the nine
months ended September 30, 2019 was ($0.00) per diluted share,
compared to ($0.00) per diluted share for the nine months ended
September 30, 2018.
About Canbiola, Inc.
Canbiola, Inc. (OTCQB: CANB) is a
vertically integrated conglomerate specializing in the
manufacturing, formulation, and sale of THC-Free Cannabidiol
(CBD) Isolate products such as oils, drops/tinctures, gels, creams,
moisturizers, chews, and capsules. All Canbiola products are
organic and Non-GMO, free of impurities and contaminants, and
formulated with the finest ingredients to the highest manufacturing
standards. All products are certified for purity and accuracy
by third-party laboratory verification.
Canbiola pursues an
aggressive growth strategy through the continual development of
proprietary products and the expansion of its offerings via
strategic acquisitions in the healthcare and CBD
industries.
Canbiola has created
several innovative CBD product lines, marketed through targeted
channels including:
The Canbiola clinical line,
which is marketed and promoted through healthcare practitioners in
the medical setting.
The Pure Leaf Oil (consumer
brand) and Seven Chakras (spa brand) lines are sold through both
online and brick & mortar retail outlets.
Canbiola’s state-of-the-art
manufacturing facility in Lacey, WA is operated by Pure Health
Products LLC (PHP), a wholly-owned subsidiary that produces all of
the Company’s CBD Isolate products, in addition to providing
private label and white label solutions for companies looking to
add high-quality CBD items to their offerings. Canbiola is
passionate about improving people’s lives and we take pride in
providing pure CBD products infused with organic and natural
ingredients. We want customers to know that they are buying
lab-tested, high-quality natural products at a great
price.
Canbiola’s Radical Tactical
LLC subsidiary produces CBD products in other forms including vapes
and gums.
Duramed Inc. and Duramed NJ
LLC, wholly-owned subsidiaries of Canbiola, further the mission of
providing innovative products designed to improve people’s lives,
aiming to reduce their use of opioid substances through the
utilization of durable medical devices. This product line includes
a wearable low-intensity ultrasound SAM (Sustained Acoustic
Medicine) device delivering multi-hour treatment intended to
accelerate healing, improve function for musculoskeletal injuries
(muscle, tendon, ligament) and reduce chronic pain (without opioid
pain medication).
With the creation of its
newest wholly owned subsidiary, NY Hemp Depot LLC, Canbiola has
attained complete vertical integration, allowing it to fully
control the supply chain from seed to sale, develop customized
products and maximize profit margins. Through the utilization of
its newly acquired NY State Hemp Cultivation License, the Company
contracts with farmers throughout the state of NY to cultivate
specific strains of hemp, which is then processed into CBD Isolate
products to Canbiola’s exacting manufacturing standards and
specifications at the Company’s laboratory and production
facility.
For more information about
Canbiola, Inc., please visit: Canbiola.com
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. We
undertake no responsibility to update forward-looking statements
should actual results differ.
Follow Canbiola
on:
Twitter
@CanbiolaHealth
Instagram @canbiola.inc or
@canbiola_cbd or @canbiola_medical_cbd
Investors and
Media:
IR@canbiola.com
(516)
595-9544