LOS ANGELES, CA / ACCESSWIRE / November 29, 2022 / MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC PINK:MCOA), an innovative hemp and cannabis corporation, is pleased to announce today its financial results and other financial highlights for the third quarter and nine months ending September 30, 2022.
Regarding the Q3 results, Jesus Quintero CEO stated, "MCOA shareholders should be happy with the overall 34% decline in operating expenses and cash expenditures so far this year. This is due to our focus on efficiency and scaling back overhead. We are also pleased with the increase in our gross margins at 59%. We expect these positive trends to continue as we focus more on distribution of products through our subsidiary, cDistro. While other cannabis companies in our sector are struggling, we are aggressively pursuing M&A activity as there are numerous opportunities of distressed cannabis companies. We have also made significant progress in reducing our debt over the last month as critical step in our corporate restructuring."
Q3 Financial Highlights
- Total revenues were $142,394 for the third quarter ended September 30, 2022 as compared to $442,178 for the third quarter ended September 30, 2021. This is despite setbacks in sales due to the effects of Hurricane Ian and the phase-out of its hempSMART products in the United States. The Company anticipates increases on an ongoing basis as it recovers from Hurricane Ian and also based on its international expansion for hempSMART in South America.
- We are pleased to report that Gross Profit for Q3 2022 increased to $84,194 generating 59.1% in gross margin, compared to a gross profit of $63,687 for the same period ended September 30, 2021, representing 14.4% in gross margin. The increase in gross margin is attributed to sales of CBD and hemp products by our wholly-owned subsidiary CDistro inc.
- We are also happy to report that operating expense for Q3 2022 decreased to $976,961 as compared to $1,483,351 for Q3 2021, representing a substantial 34.1% reduction in operating expenses. This resulted in an overall decline in the operating loss to $892,767 for Q3 2022 as compared to $1,419,664 for Q3 2021, representing a 37.1% improvement.
Total Net loss
increased to $3,937,541 for the three months ended September 30, 2022 compared to $1,764,591 for the three months period ended September30, 2021, representing an increase of $2,172,950. This is a direct result of losses on various equity investments.
- Total year to date revenues were $962,343 for the nine months ended September 30, 2022 as compared to $493,988 for the nine months ended September 30, 2021, representing a 94.8% increase year-over-year.
- Gross profit for nine months ended September 30, 2022 increased to $355,282 generating 37% in gross margin, compared to a gross profit of $87,016 for the same period ended September 30, 2021, representing an 18% in gross margin.
- Operating expense for nine months ended September 30, 2022 decreased to $3,007,002 as compared to $3,315,719 for the same period in 2021, representing a 1.0% reduction in operating expenses. This resulted in an improvement to operating loss to $2,651,720 for nine months ended September 30, 2022 as compared to $3,228,703 for the same period in 2021, representing a 18% improvement.
- Net loss increased to $10,066,431 for the nine months ended September 30, 2022 compared to a net loss of $7,250,698 for the same period in 2021, an increase of $2,815,733. This increase in net loss is the result of reductions in long-term investments by the Company.
- Total assets decreased to $3,468,297 as of September 30, 2022 from $7,959,899 as of December 31, 2021.
- The Company's total current liabilities increased to $8,982,412 as of September 30, 2022 as compared to $7,729,010 for the year ended December 31, 2021, representing a 16.2% increase in debt.
- Net Cash used in Operating Activities decreased substantially from $2,693,632 for the nine month period ended 9/30/21 to $1,757,153 for the period ended September 30, 2022. This decline represents a decrease of over 34% in cash spent on operation in 2022.
Please review the Form 10Q filed with the Securities and Exchange Commission on November 14, 2022 for additional financial details.
About Marijuana Company of America, Inc.
MCOA is a corporation that participates in: (1) product research and development of legal hemp-based consumer products under the brand name "hempSMART™", that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreational use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA's jurisdiction.
Forward Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Contact:
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SOURCE: Marijuana Company of America, Inc.