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 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.
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