Medicine Man Technologies Releases First Quarter Results
DENVER, CO, May 16, 2017 (GLOBE NEWSWIRE) — Medicine Man Technologies Inc. (OTCQB: MDCL), one of the country’s leading cannabis branding and consulting companies, announced that the Company has filed its Form 10-Q for the three months ended March 31, 2017 with the SEC.
The Company’s CEO, Andrew Williams stated, “It was gratifying that the revenue projections included in our press release filed in conjunction with the filing of our 2016 annual report on April 18th was accurate when combined with our March Success Nutrients performance. This value was included as a net line item in our other income or expense under management fee contracts. As noted in our results of operations statement, we generated approximately $677,000 in revenues which represented more revenue in this quarter than we generated in all of 2016.”
We are continuing to expand our nutrient company presence, including entering into several new Denver based grower supply store relationships. Our next planned expansion of our nutrients business will be to the west coast this summer. This internal growth, combined with our planned acquisition of the Denver Consulting Group and their extensive client base, should provide an extraordinary opportunity for expansion over the balance of this year.
Joshua Haupt, Chief Cultivation Officer
Financial Summary of 1st Quarter of Operations, Fiscal Year 2017
- Total revenue for Q1 of FY 2017 was up by 270%, to $541,136, in comparison to revenues in Q1 FY 2016 of $199,615. Management attributes this increase in revenue to both consulting as well as licensing fees as new states continue to adopt new legal cannabis laws. It should be noted that this report did not include revenues related to a management fee contract with Success Nutrients and Pono Publications that generated approximately $140,000 which were reflected as a net number within the other income or expense item under the Gain <Loss> on Management Fee Contracts.
- Total costs of services increased by 20%, or $27,718, for the 1st quarter of FY 2017, rising to $165,159 in comparison to cost of services in the 1st quarter of FY 2016 of $137,441. The increase in this expense category was primarily attributable to the addition costs related to our delivery of services in Pennsylvania.
- Total operating expense increased by 23%, or $52,855, in the 1st quarter of FY 2017, rising to $228.885 in comparison to operating expense in the 1st quarter of FY 2016 of $176,030. This increase in this expense category is fully attributable to increased staffing costs in our services provider team.
- Other income/expense in the 1st quarter of FY 2017 was $32,929 noting this category had no value in the 1st quarter of FY 2016.
- Net income before taxes for the 1st quarter of FY 2016 was $111,163, compared to losses in the 1st quarter of FY 2016 of <$113,856>.
The Company’s COO, Brett Roper, announced the Company’s continued participation as a Platinum Sponsor of the Marijuana Business Conference and Expo this year. “We are pleased to be a substantial presence this week in the Washington DC event where several of our team members are being featured as speakers. We have found Anne Holland Ventures, the operator of this event, to be at the top of their game, offering the industry two events annually that are ‘the place to be’ for most any Cannabusiness. We are also looking forward to the Las Vegas Show in November, now to be held in the Las Vegas Convention center as it sold out last year’s Las Vegas show at the Rio.”
Revenue Guidance Q2 FY 2017
While management expects revenues to increase in the 2nd quarter of 2017 based upon interim deposits and anticipated billings, it also notes that there are substantial contingent residual values related to application support in Pennsylvania, as well as new clients coming online in Michigan, Ohio, Arkansas, and California. Success Nutrient and Pono Publication income is a part of the consideration for the Company’s 2nd quarter performance, noting projected revenues for those businesses are expected to generate revenue of at least $450,000 as it adds several new Denver based grower supply stores to its list of clients.
About Medicine Man Technologies, Inc.
Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. It currently has twenty eight active clients in 12 states and Puerto Rico, focusing on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company’s highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will ‘share’ the ever-improving experience and knowledge of the network, and 5) continuing the expansion of its Brands Warehouse concept.