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Medicine Man Technologies Reports Record Quarterly Operating Revenue of $4.6M, Quarterly Investment Related Income of $2.6M, and its Third Consecutive Quarter Profit Posting of $4.9M
DENVER, CO / ACCESSWIRE / November 8, 2018 / Medicine Man Technologies Inc. (OTCQB: MDCL) (“Medicine Man Technologies” or “Company”), one of the United States’ leading cannabis branding and consulting companies today provided financial results for the quarter ended September 30, 2018.
During the three months ending September 30, 2018, the Company generated operating revenues of $4,647,163, an increase of approximately 400% as compared to revenues of $928,264 in the three months ending September 30, 2017. Other income for the three months ending September 30, 2018 increased to $2,605,672 as compared with losses in the three months ending September 30,2017 of <$165,881>. This substantial increase in the Company’s overall revenue stream is related to both internal revenue source growth as well as the Company’s Canada House Wellness (CHV) Master Licensing Agreement as announced in July of this year.
The Company reported cost of goods and services totaling $459,280 during the three months ended September 30, 2018. This is compared to $297,185 during the same time period in 2017. The increase is primarily due to an increase in overall product sales volume.
Operating expenses during the three months ended September 30, 2018, increased by $892,051 to $1,824,876 over the prior period of $950,825, ended September 30, 2017 noting $673,500 of this expense increase was related to stock compensation.
The Company reported net income related to the three months ending September 30, 2018 of $4,950,679 or $0.18 per share as compared with losses of <$485,627> as related to the three months ending September 30, 2017.
Year to date total income performance increased dramatically to $9,917,476 for the nine months ending September 30, 2018 as compared to total income of $2,585,479 as reported for the nine months ending September 30, 2017.
Year to date net income performance increased dramatically to $5,157,717 or $0.19 per share for the nine months ending September 30, 2018 as compared to losses of <$4,868,859> or <$0.22> per share as reported for the period ending September 30, 2017.
While the Company continues to grow its organic revenues, the Master Licensing Agreement as noted was responsible for a large portion of this revenue growth however, organic growth still increased to $3,782,921 in the nine months ended September 30, 2018 from $2,485,479 as related to the nine months ended September 30, 2017.
We continue to prove out our path to profitability model and demonstrate strong organic as well as one-time revenue growth as we conclude our third consecutive profitable quarter, followed closely by achieving our seventh quarter of consecutive revenue growth.
Brett Roper, Medicine Man Technologies’ co-founder, and CEO
We are also exploring other globally sourced master license agreement opportunities and are pleased to also acknowledge our Company’s move to QX status on the OTC markets as achieved this past September.
Joshua Haupt, Medicine Man Technologies Chief Operating Officer added, “With this exceptional progress and the lack of any debt, I am very excited about what our future holds as we move into 2019. With our Grow Ohio Pharma client’s Zanesville Ohio facility coming online coupled with our Calypso client’s Erie Pennsylvania facility planned for operational status in the second quarter of 2019, we have many new opportunities ahead for the Company. I also look forward to attending next week’s MJ Business Conference in Las Vegas Nevada and connecting with my many colleagues in the industry.”
With the Colorado Governorship going to Jared Polis, a seasoned advocate of the cannabis industry and states’ rights this provides new momentum for the continuation of the industry’s success which has continued to bolster the state’s economy, generating record-setting revenue and creating thousands of jobs for the citizens of Colorado.
Andy Williams, Medicine Man Technologies’ Chairperson of the Board
As a result of regulatory advancements made by legislative bodies on the local, federal and international levels, the national cannabis market place continues to expand as further evidenced by this week’s election cycle. Medicine Man Technologies’ multi-jurisdictional business model has positioned the Company to leverage this dramatic growth nationally setting a clear path to Colorado based public company ownership in 2019.
Conference Call Instructions
The Company will host a conference call on Friday, November 9, 2018 at 10:30 AM Eastern Time to discuss the results.
Participant Dial-In Numbers:
- TOLL-FREE 1- 877-407-9716
- TOLL/INTERNATIONAL 1-201-493-6779
Participants should request the Medicine Man earnings call or provide confirmation code 13684963.
Investors are invited to listen via webcast available on the Medicine Man Technologies investor section of the Company’s website at http://www.medicinemantechnologies.com/investor-calendar.html. Please visit the website 15 minutes prior to the call to register, download, and install any necessary audio software. For interested individuals unable to join the conference call, a replay of the call will be available through November 23, 2018, at 1-844-512-2921 (U.S. Toll Free) or 1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 13684963. The online archive of the webcast will be available on the investor section of the Company’s website for 30 days following the call.
Brett Roper, Co-Founder and Chief Executive Officer of Medicine Man Technologies, and Jonathan Sandberg, Chief Financial Officer, will be answering shareholder questions at the conclusion of the call. Should you have questions prior to the conference call please send an email to MDCL@kcsa.com with ‘MDCL Question’ in the subject line. Management will answer as many questions as time will allow.
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. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Oklahoma, Missouri, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. We continue to focus 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 our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.
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