SAN DIEGO, Aug. 15, 2012 /PRNewswire/ -- Medical Marijuana, Inc. (OTC: MJNA), one of the medical marijuana (MMJ) industry's premier cannabis and hemp industry innovators, today announced its second quarter earnings. The company earned net income of approximately $1.47 million on gross revenues of $2.40 million for the quarter ended June 30, 2012. This represents a gross revenue increase of 1200 plus percent quarter-over-quarter when compared to revenue of $196,748 for the quarter ended June 30, 2011. Operating expenses and cost of goods sold totaled approximately $930,000 for the quarter.
Operational and development highlights
Operating highlights of the quarter were as follows:
- Completed the acquisition of Dixie Elixirs & Edibles brand, intellectual property, proprietary formulas and extraction processes. In conjunction it formed Red Dice Holdings, as was announced in late April, to develop manufacturing and distribution partnerships for Dixie in every state and country that has legalized medical cannabis. Finalized national and international product development for Q 3 online and retail sales launch.
- Begun hemp-based extraction product development beyond the medical marijuana industry, crossing into the nationally legal category of health and wellness with such products as sleep aids, topical and pain management. A market launch of the new products is expected by the end of the second quarter.
- Brought PhytoSPHERE systems on-line and will begin to market the benefits of its seed-to-sale product growth and cultivation technology worldwide.
- Completed Hemp Oil CBD production at facility "1". Commercialized and expanded production to meet next 12-24 month demand.
- Completed the acquisition of CanCHEW Bio-Technologies, secured regional GMP manufacturing partner, as well as produced first U.S. based sample production.
- Submitted company's portfolio of products to European Health Authorities for Over-The-Counter (OTC) approvals.
- Started clinical development five of the fifty five products.
In addition, since the close of the second quarter, Medical Marijuana, Inc. has:
- Finalized U.S. and International CBD product launch plan.
- Produced over 35-million doses worth of CBD Oil for MJNA product sales.
- Formally started the negotiations and final terms for the acquisition of a chain of retail health and wellness facilities in the U.S. with revenues in excess of $8.0 million annually.
- Sold its first batch of commercialized CBD Oil.
- Contracted for the production of 300KG of CBD oil for $7.5 million.
- Sourced Arizona, California, European Dixie Brand and CanCHEW distribution partners.
- Signed closing docs for Lotus Capital $2.0 million line of credit.
Comments regarding operations and outlook
"The second quarter of 2012 cemented Medical Marijuana, Inc.'s path," said Michael Llamas, President of Medical Marijuana, Inc. "We have spent this last year and a half essentially getting our house in order by clarifying the growth strategy and systematically identifying, acquiring and growing early stage companies across the spectrum of the MMJ and hemp industries from product development and production, to retail sales. As witnessed by our strong quarter-over-quarter and year-over-year growth, there is tremendous opportunity in this industry and that opportunity is growing rapidly at home and abroad. With the acquisition of the Dixie brand we have secured our product development, manufacturing, sales and customer services platform, which now enables the company to focus on developing its online sales and retail sales, while allowing MJNA to develop and acquire additional brands and integrate them seamlessly into our overall sales platform thus allowing our strong growth to continue. With the investment and development of CanCHEW, the company has cemented MJNA's place in the future cannabinoid pharmaceutical drug delivery system. We feel this is truly a revolutionary product."
"In 2012 we have continued to build a strong foundation in which grow the MJNA's portfolio. We appreciate the continued support of our dedicated team and shareholders," stated Michael Llamas, President of Medical Marijuana, Inc.
Financial Tables
|
Three months ended Jun. 30, 2011 |
Three months ended Sept. 30, 2011 |
Three months ended Dec. 31, 2011 |
Three months ended Mar. 31, 2012 |
Three months ended Jun. 30, 2012 |
|
|
Revenue |
$196,748 |
$198,813 |
$430,140 |
$1,788,445 |
$2,403,624 |
|
Assets |
$568,116 |
$1,443,251 |
$1,948,165 |
$6,356,301 |
$7,908,677 |
|
Debt |
$103,464 |
$14,879 |
$26,785 |
$101,778 |
$156,778 |
|
Net Income |
($1,292,722) |
($1,067,473) |
($62,711) |
$1,208,136 |
$1,471,596 |
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.
About Medical Marijuana, Inc.
Our mission is to be the premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate and purchase value-added companies and products, while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, develop environmentally friendly, economically sustainable businesses, while increasing shareholder value. For more information, please visit the company's website at: www.MedicalMarijuanaInc.com.
Corporate Contact:
Medical Marijuana, Inc.
Toll Free: 888-OTC-MJNA (888-682-6562)
www.medicalmarijuanainc.com
www.facebook.com/mjnainc
Investor Relations Contact:
Stuart T. Smith
SmallCapVoice.Com, Inc.
P. 512-267-2430
F. 512-267-2530
Skype: SmallCapVoice.com
AIM: SmallCapVoice7
SOURCE Medical Marijuana, Inc.