Cannabis
1933 Industries Reports Fourth Quarter and Annual Financial Results for Fiscal Year 2019
1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically integrated cannabis consumer packaged goods company, is pleased to announce its fourth quarter (“Q4”) and audited annual financial results for the period ended July 31, 2019 (“Year End”). All amounts expressed are in Canadian dollars.
Highlights:
- Strong balance sheet with a cash position of $17.6 million, a robust increase of 245% over the previous year of $5.1 million, allows the Company to fund capital projects, service its debenture payments and continue to grow its operations
- Working capital was $22.5 million, compared to $11.0 million at July 31, 2018, representing an increase of 105%
- 44% year over year increase in revenue, totalling $18.1 million, with a gross margin of $5.3 million
- 100%-owned Infused Manufacturing (“Infused”) contributed $9.9 million in annual revenues, a 130% increase over the previous year, while 91%-owned Alternative Medicine Association (“AMA”) contributed $8.1 million in total revenues
- Steady growth across these subsidiaries netted $5.2 million in Q4 revenue, the largest reported quarterly revenue to date
- Net loss for the year is $19.1 million of which, $5.0 million is attributed to a one-time non-cash impairment write-down of a non-performing subsidiary, $3.4 million in biomass purchases, non-cash share-based compensation of $2.2 million, $1.5 million in interest payments, a one-time non-cash loss on disposal of property and equipment of $1.9 million and a non-cash accretion expense of $1.2 million
- Adjusted EBITDA loss of $10.1 million, compared to $3.1 million in 2018
- Total assets grew by 49% to $61.7 million from $41.3 million at July 31, 2018
- Total liabilities were $24.5 million at July 31, 2019, compared to $4.4 million at July 31, 2018, of which $13.0 million of this increase is attributed to future rent payments of the Company’s new cultivation facility in Las Vegas, Nevada
- IP includes 5 product lines, 100+ product SKUs with major brand traction across 46 U.S. states as well as six licensing partners
Selected Financial Information
All amounts expressed are in Canadian dollars.
|
Year End 2019 Consolidated Results |
||
|
July 31, 2019 |
July 31, 2018 |
|
|
Revenues |
$18,059,774 |
$12,550,683 |
|
Gross margin |
$5,296,980 |
$6,351,466 |
|
Cash balance |
$17,613,900 |
$5,056,183 |
|
Net loss |
($19,111,991) |
($5,729,052) |
|
Comprehensive loss |
($19,011,564) |
($4,791,300) |
|
Adjusted EBITDA loss |
($10,113,913) |
($3,078,700) |
|
Basic and diluted loss per share |
$0.08 |
$0.03 |
|
Total assets |
$61,654,094 |
$41,339,616 |
|
Total liabilities |
$24,465,690 |
$4,356,119 |
|
Total equity |
$37,188,404 |
$36,983,497 |
|
Results of Operations |
Q4 2019 |
Q4 2018 |
|
Total revenue |
$5,244,946 |
$3,828,993 |
|
Gross margin |
$815,690 |
$2,197,803 |
|
Cash balance |
$17,613,900 |
$5,056,183 |
|
Net loss |
($5,688,422) |
($3,811,765) |
|
Adjusted EBITDA loss |
($4,287,416) |
($2,266,992) |
|
Basic and diluted loss per share |
$0.02 |
$0.02 |
|
Total assets |
$61,654,094 |
$41,339,616 |
44% Year over Year Revenue Growth Without New Facility
The Company’s $5.5 million growth in revenues over the prior year is attributed to the steady increase in AMA’s number of cannabis plants and total annual plant yield as well as to Infused’s significant product distribution expansion in the United States. Infused’s Canna Hemp™ brand of CBD health and wellness products are sold in over 800 retail outlets across 46 states, and via the Company’s E-Commerce site.
16% Gross Margin Decrease Until New Facility Ramps up Cultivation
The Company saw a decrease in gross margin from $6.4 million to $5.3 million primarily due to increased purchases by AMA of third-party biomass to produce concentrates and final products. The Company anticipates producing sufficient amounts of biomass from its new facility thereby reducing third party purchases, which is expected to significantly improve the realized gross margins. Partially offsetting the increased costs of AMA, Infused has significantly increased its customer base, which has resulted in improved economies of scale in the production of CBD-based products, positively impacting overall gross margin.
$37.7 Million Cash Injection by Financing Activities and Strong Cash Position
- The sale of property and equipment increased cash by $13 million
- The issuance of convertible debenture units increased cash by $15.5 million
- Common shares issued pursuant to a private placement increased cash by $4.5 million
- Common shares issued pursuant to exercises of stock options increased cash by $0.7 million
- Common shares issued pursuant to exercises of warrants and agent options increased cash by $3.9 million
- Cash on hand at Year End is $17.6 million
Cost-Cutting Measures in Place to Mitigate Loss
The Company’s net loss for the year is $19.1 million, attributed to a one-time non-cash impairment loss of Spire Global Strategy and one-time non-cash loss on disposal of property and equipment as well as increases in general and administrative costs as the Company continued to scale up its operations and added staffing and resources to support the Company’s growth initiatives. The Company continues to incur costs to support its growing infrastructure requirements.
Significant expenditures during the period include property and equipment expenses related to AMA’s 67,750 square foot cultivation facility and 12,160 square foot production facility in Nevada and the purchase of the remaining 9% of Infused for $5.4 million, of which $1.2 million was cash via a promissory note paid during Q4.
The Company saw an overall increase in expenses as it continues to grow in size and scale. The realignment of core business units such as cultivation, extraction and manufacturing assets and cost-cutting measures in place along all divisions have been a focus in order to lower expenses.
Commentary by Mr. Chris Rebentisch, Chief Executive Officer
“Our second year of operations was met by a surge in market volatility, challenging capital markets and a changing regulatory environment. Although not immune to sector-wide stock pressures and volatility, the Company remains positioned with growth and profitability in mind and we continue on target on this path. We are razor-focused on continuing to ensure the long-term viability of the Company. We have implemented cost cutting measures aimed at reducing our current operating expenses, improving efficiencies and strengthening our product offerings while building a sustainable foundation.
Exceeding expectations, we increased revenues by 44% from our previous year while awaiting our new cultivation facility to become operational. We oversaw a 130% growth in revenues for our CBD brand portfolio, as well as a 245% increase of cash to execute on our growth plan. By the end of this fiscal year, we had completed the construction of one of Nevada’s largest indoor cultivation facilities for premium craft cannabis and had begun to transfer our cannabis plants to the new facility.
Subsequent to the Year End, we entered the California market with a management agreement for cultivation and manufacturing in the state and continue to make progress on our infrastructure projects in Nevada, while targeting promising markets in Arizona and Colorado. Our proprietary Canna Hemp™ brands are emerging as significant players in the industry and continue to grow across the nation. We have also attracted some of the best brands in the industry as licensing partners as we continue to increase market share in Nevada as one of the largest wholesalers of cannabis products to legal dispensaries.
We forecast strong revenue growth in 2020 as we expand our proprietary portfolio of AMA branded THC flower and concentrates, continue innovating our unique, differentiated, quality-based CBD Canna Hemp™ portfolio and as our recently added licensing partnerships bear fruit. We anticipate significant margin improvements as we complete the build-out of new cultivation and production facilities in Nevada and become less reliant on wholesale biomass suppliers. With our focused vision on delivering the highest quality consumer branded goods, we have a disciplined growth path to scale up operations in 2020 and beyond.”
Key Developments During Fiscal 2019
- On September 14, 2018, the Company closed its previous short form prospectus offering for $17,250,000.
- On September 17, 2018, the Company appointed Mr. Chris Rebentisch to its Board of Directors.
- On September 18, 2018, the Company changed its name to 1933 Industries Inc. from Friday Night Inc.
- On December 6, 2018, the Company commenced trading on the OTCQX®, the OTC Markets’ premier tier.
- On March 15, 2019, pursuant to a non-brokered private placement, the Company issued 10,000,000 units at $0.45 per unit for gross proceeds of $4,500,000. Each unit consists of one common share and one common share purchase warrant with an exercise price of $0.50 and an expiry date of March 14, 2021.
- On March 28, 2019, the Company announced that it signed a membership interest purchase definitive agreement (“the Agreement”) between the holder of the nine percent (9%) of the issued and outstanding membership interests of Infused MFG, and the Company, the beneficial holder of ninety-one percent (91%) of the issued and outstanding membership interests of Infused MFG. The purchase consideration comprised of 7,000,000 common shares with a fair value of $0.55 per share, 1,000,000 common share purchase warrants with an exercise price of $0.53 and a fair value of $0.30 per warrant and a $1,248,000 (USD$940,000) promissory note with a 6% interest rate per annum and an expiry date of December 1, 2019, for total purchase consideration of $5,395,722.
- On May 3, 2019, Mr. Brayden Sutton was appointed Chairman of the Board in addition to his previous positions as Chief Executive Officer and President.
- On May 15, 2019, the Company reported that its subsidiary, AMA, completed a sale and lease back (the “Sale Transaction”) for its newly constructed cannabis cultivation facility in Las Vegas, Nevada. The purchase price for the Sale Transaction was USD$10,450,000.
- On May 29, 2019, the Company appointed Mr. Chris Rebentisch as Chief Executive Officer.
- On May 30, 2019, the Company appointed Mr. Terry Taouss to its Board of Directors as Mr. Andrew Richards resigned as a Director.
- On June 5, 2019, Mr. Brayden Sutton resigned as the President of the Company and Ms. Ester Vigil was appointed in his stead.
- On June 17, 2019, Mr. Stephen Radusch was appointed Chief Financial Officer of the Company.
- On July 3, 2019, the Company reported that it had received a permanent occupancy permit for its cultivation facility.
- On July 19, 2019, the Company reported that it received both Clark County and Nevada Department of Taxation final approvals for the transfer of its existing cultivation licenses to its new cultivation facility.
Key Developments Subsequent to Fiscal 2019
- On August 15, 2019, the Company reported that it had signed a management services agreement to provide operational and accounting services, as well as general management and oversight to Green Spectrum Trading Inc., a medicinal and recreational cannabis business licensee in the State of California.
- On August 20, 2019, the Company announced that it commenced the transfer of cannabis plants to its new cultivation facility in Las Vegas following an extensive period of systems-wide testing.
- On September 10, 2019, the Company announced the execution of a licensing agreement for the launch of Blonde™, a high-end California brand making its debut in Nevada. Under the terms of the one-year agreement, the Company’s subsidiary, AMA, receives the exclusive rights to cultivate flower, manufacture pre-rolls, live resin vape pens and cartridges under the Blonde™ brand for distribution to licensed dispensaries throughout Nevada.
- On September 19, 2019, the Company announced a licensing agreement with California-based PLUGplay, a manufacturer of cannabis vaporizer cartridges with proprietary magnetic hardware, for a 12-month term. Under the terms of the Agreement, the Company’s subsidiary, AMA, will manufacture distillate and vape pens under the PLUGplay brand, for distribution to dispensaries across Nevada.
- On September 30, 2019, the Company announced that it commenced the flowering cycle of its cannabis plants in its new indoor cultivation facility located in Las Vegas, Nevada.
- On October 22, 2019, the Company reported that the debut of its Blonde™ Cannabis products in September 2019 was its most successful brand launch to date.
- On November 4, 2019, the Company launched its newest product, the Birdhouse CBD Balm by Canna Hemp X™. The CBD Balm was developed in collaboration with Birdhouse Skateboards™, targeting the action sports market and will be available for sale in dispensaries, wellness stores, skate shops and specialty retailers, including Zumiez in the United States.
SOURCE 1933 Industries Inc.
TORONTO, Sept. 29, 2023 (GLOBE NEWSWIRE) — Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis and consumer packaged goods company, today announced the launch of its expanded product lineup by its quintessentially Canadian cannabis lifestyle brand, CANACA. Introducing its new ‘Let ‘Er Rip’ Campaign, a curated collection of products crafted to elevate intensity while offering flavourful and aromatic consumption experiences. As part of the new campaign, CANACA highlights two product lines, unveiling exciting new offerings just in time for fall, including additional whole flower and Crumble Cones™ pre-rolls.
“We are excited to launch this campaign, which demonstrates CANACA’s redefined brand narrative, emphasizing the innovative enhancements we’ve incorporated into our processes, thereby elevating our product quality,” said Michelle Morin, Senior Brand Manager at Tilray Brands. “Innovation is at the core of the brand’s evolution; it drives us to craft cannabis products that not only meet but exceed consumer expectations.”
CANACA delivers this experience by placing a renewed emphasis on meticulous production. The refined growing and processing techniques, including hang drying, hand trimming, and a 14-day curing period, are distinctly reflected in the quality of our whole flower products. Moreover, our innovative technologies, such as the proprietary process for creating the full spectrum extract, deliver extra smooth smoke in our Crumble Cones.
In select stores, consumers will have the opportunity to explore new educational resources, delving into how each format is offered by CANACA. Immersing themselves in the vibrant visual assets encapsulating the feeling delivered by CANACA products: Let ‘Er Rip!
CANACA’s high-quality whole flower includes:
- Afghaniskunk: For those that love a good skunk strain that’s sour yet sweet, this strain is a cross between Afghan #1 and Skunk, only available in 7g in Ontario and 28g flower in Alberta, Manitoba, and Saskatchewan.
- Ghost Gelato: Nothing like Gelato #9 and Ghost Train Haze to bring you the ultimate sour, fruity and citrus notes to enjoy, available in 7g and 28g flower, along with 14 x 0.35g pre-roll multi-packs.
- Headbanger: One of CANACA’s latest new Fall releases, headbanger brings a trifecta of goodness, featuring fruit, earth, and gas aromas, thanks to its blend of Biker Kush and Sour Diesel. Available in 7g in Ontario and 28g flower in Alberta, Manitoba, and Saskatchewan.
- Alien Guy: A CANACA classic – a blend of Jean Guy and Alien Dawg bringing you citrus, lemon and pine aromas, embracing classically Canadian notes, available 7g and 28g flower, and 14 x 0.35g pre-roll multi-packs.
With boosted potency and smoothness, CANACA also introduces two additional Crumble Cones offerings:
- Grandpa’s Stash: Grandpa’s Stash Crumble Cones combine ground Grandpa’s Stash sativa flower with butane hash oil (BHO) crumble to create infused pre-rolls that embrace sweet, spicy and dank aromas from the dominant caryophyllene, humulene and limonene terpenes from this Super Skunk x OG Kush x Afghan Kush cross with an amped-up BHO infusion. Grab Grandpa’s Stash Crumble Cones in a 3 x 0.5g pack.
- Ghost Gelato: Ghost Gelato Crumbles Cones combines Ghost Gelato indica flower with butane hash oil (BHO) crumble to create infused pre-rolls, achieving higher THC. Experience the power of these pre-rolls with citrus, sour, and earthy aromas from the dominant limonene, caryophyllene, and myrcene terpenes, derived from a cross of Ghost Train Haze x Gelato #9 and amped-up BHO infusion. Grab Ghost Gelato Crumble Cones in a 1 x 1g pack.
CANACA’s ‘Let Er’ Rip’ campaign signifies a new chapter, showcasing products meticulously crafted for enhanced intensity and focusing on potency and aroma. This reinforces our commitment to offering ‘true north strong’ products, introducing additional potent options for consumers.
Our products are available across select regions and retailers throughout Canada.
About CANACA
CANACA is a proudly Canadian brand that indulges your unapologetic love for Canada and cannabis. We’re all about elevated adventures and expanding your horizons. The ones where you’re enjoying the journey, not just the destination. We’re passionate about crafting cannabis that’s consistent, reliable, and full of character — just like the people we serve.
Our products are curated and designed to serve the unique and ever-evolving cannabis needs and wants of Canadians. We’re proud of our work and the people and places that produce our products. That’s why CANACA is grown, produced, and packaged in small-town Canada and always will be. We’re potently Canadian, and dang proud of it.
For more information on CANACA, follow @CANACAyourbud on Instagram.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY and TSX: TLRY) is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.
For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things, the Company’s ability to commercialize new and innovative products worldwide. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
Contacts:
Tilray Brands
Kaitlin Macapagal
news@tilray.com
Investors
Raphael Gross
203-682-8253
Raphael.Gross@icrinc.com
LAS VEGAS, NV, Sept. 28, 2023 (GLOBE NEWSWIRE) — via NewMediaWire – Hemp, Inc. (OTC PINK: HEMP) is perfectly positioned at the forefront of the industrial hemp industry as demand increases and opportunities abound. The recent release of a comprehensive research report, Global Industrial Hemp Market (2023-2031), says the global industrial hemp market is forecast to grow to $134.6 billion by 2030. The report covers trends, investments, tech advancements, and some of the major players in the industry. Of particular interest in this report are the factors that are influencing the market because these are the things creating exponential growth opportunities for industry businesses. For example, did you know hemp seeds are known as a “complete” protein source? By complete, we mean the nine essential amino acids your body typically needs on a daily basis.
These amino acids are essential because they can only be derived from your diet. Let’s delve a little deeper into what those essential amino acids are. They are histidine, isoleucine, leucine, lysine, methionine, phenylalanine, threonine, tryptophan, and valine. Quite a mouthful but quite essential. In fact, in the plant world, there are only five other plants considered a complete protein source (amaranth, buckwheat, chia seeds, quinoa, and soy). More and more people are becoming aware of such benefits and there’s a growing consumer demand for a nutrition-rich diet.
As one of the most rapidly growing plants on the planet, hemp is used to make a variety of products. It can be shifted into rope, paper, textiles, clothing, disposable polymers, paint, insulation, food, and animal feed. (Source) Hemp, Inc. discovered its grounded kenaf hemp blend is the perfect substrate to grow healthy and/or medicinal mushrooms and has the capability to make and/or provide the raw materials to produce hemp-based products such as hempcrete, horse bedding, hemp bio-plastics, and more. With the “growing legalization of industrial hemp farming around the world, the demand for industrial hemp has been exponential. There’s been a rapid expansion of various R&D activities that will benefit the market and the beneficial properties of hemp seed oil and hemp seeds are also significantly influencing the industrial hemp market.” (Source)
With over 14 years of experience in hemp cultivation and processing, Hemp, Inc. plays a pivotal role in the industrial hemp industry. The company’s product line includes CBD, CBDA, CBG, CBGA, and CBN, all derived from hemp and known for their therapeutic properties. Hemp, Inc. distinguishes itself by using pharmaceutical-grade beta-cyclodextrin in combination with cannabinoids for rapid absorption and efficacy. Notably, their CBD/CBG coffee enhancer is highly potent, rapidly absorbed, and competitively priced, offering consumers a premium coffee experience.
Needless to say, Hemp, Inc. continues to have a strong foothold in the market with an invaluable roster of manufacturers and vendors across the country and abroad to see meteoric growth curves on a domestic and international scale and its e-portal (www.hempinc.com) to its CBD products is primed and poised to capture a large share of the marketplace on a global scale.
The Company’s superb lineup of CBD/CBG/CBN products includes a CBD-CBG Topical Pain Relief Roll-on (THC-free with 1,460mg of CBD and 630mg of CBG totaling 2,090mg of cannabinoids in 5ml), CBD/CBG Natural Coffee Enhancers, CBD/CBG Tinctures, and, CBDa/CBGa/CBD/CBG/CBN Capsules.
Hemp has and will continue to play a vital role in maintaining good health and well-being. Read on for how Hemp, Inc.’s current product line is a step above the rest.
About Hemp, Inc.’s Current Product Line
The product line contains CBD, CBDA, CBG, CBGA, and CBN (non-psychoactive compounds found in cannabis plants). These are active ingredients in cannabis that are derived from the hemp plant, which is widely known for pain relief, relaxation, and anxiety relief. A recipe is only as good as its ingredients and how those ingredients are blended. Hemp, Inc. is the only company in America that uses pharmaceutical-grade beta-cyclodextrin (a carbohydrate used during the manufacturing process) which is combined with all the cannabinoids for rapid absorption and uptake. The Company’s CBD, CBDA, CBG, CBGA, and CBN product lines are highly potent therapeutic doses that have received rave reviews.
Hemp, Inc. has also pushed the boundaries with its CBD/CBG coffee enhancer. This powerhouse product is super potent, absorbs rapidly in coffee, and is 4 times more potent (at a fraction of the price) than other hemp-derived coffee enhancers currently on the market. Its high-quality ingredient combination offers 30 servings per bottle and contains a total of 10,000mg of cannabinoids (7,500mg CBD and 2,500mg CBG) in an MCT oil base. Per serving, that’s 250mg CBD and 83mg CBG remarkably mixed in a wonderfully rich cup of coffee.
The CBD/CBG coffee enhancer comes in plain (natural) and vanilla flavors. The plain (natural) coffee enhancer is available now and the vanilla flavor will be available by the end of this month. A single container (7-day supply) retails for $27.95 and a bottle (30-day supply) retails for $99.95. Wholesale bulk orders are single-use packages, available through select restaurants.
For more information on Hemp, Inc.’s products, click here. Catch up on Hemp, Inc.’s latest news below.
Hemp, Inc. Reports: Global Natural Fiber Composites (Hemp, Kenaf, and Flax) Market Set to Reach $424 Million by 2028
Hemp, Inc. Profiled as Key Player in Latest Industrial Hemp Industry Report on Emerging Trends, Growth, and Future Scope by 2027
Hemp, Inc. Reports Higher Education Aims to Harness Hemp’s Full Potential From Field to Fabric
Hemp, Inc. Reports: Hemp Seed and Hemp Fiber Set to Flourish on a Global Scale
Hemp, Inc. Reports: Hemp-Based Product Sales Expected to Reach $16.2 Billion by 2033
Hemp, Inc. Reports: Hemp Recognized as Specialty Crop with US Department of Agriculture
Significant Increase in Revenue Proving 2023 to be a Banner Year for Hemp, Inc.
Hemp, Inc. Reports: Industrial Hemp Act 2023
New Look, New Feel for Hemp, Inc.’s Hempinc.com
Hemp Inc.’s Year-to-Date Sales Increase 315% Over Last Year
Hemp Inc. Reports Third Quarter Results and Removal of “Yield” Sign
Hemp Inc. Reveals Stunning Results of its Hemp Research
Hempcrete Approved for U.S. Residential Construction
Hemp Inc. See Significant Increase in Revenue Over the Last 3 Quarters
Hemp, Inc. Offers CBD-CBG Topical Pain Relief Roll-On
Hemp, Inc.’s Chief Visionary Consultant Bruce Perlowin Brings Opportunity to Hemp, Inc. (August 8, 2022)
Hemp Inc.’s CBDA and CBGA Products on Sale Now (July 19, 2022)
Hemp Inc.’s Chief Visionary Consultant Bruce Perlowin talks with Stock Day podcast about Hemp Inc.’s super potent line of CBD/CBG/CBN Products (July 7, 2022)
Healthy Products for Healthy Living: A Look into Hemp, Inc.’s Pure, Premium, and Potent CBD and Wellness Products (June 16, 2022)
Hemp, Inc. Releases New High Potency CBD/CBG Vanilla Flavored Coffee Enhancer (June 9, 2022)
Hemp, Inc.’s King of Hemp CBD-CBG-CBN Natural Sleep Aid Capsules in Stock and On Sale (May 26, 2022)
King of Hemp Natural and Vanilla-Flavored CBD/CBG “Super” Tinctures Now in Stock (May 12, 2022)
About Hemp, Inc.
With more than 14 years of experience in growing and processing hemp in North America, Hemp, Inc. has an established network of industry professionals in every segment of the industrial hemp industry. Its mission of providing green solutions that help make the world a better place continues to flourish as the company advances an ever-growing portfolio of revenue and value-generating synergistic businesses. Hemp may be the salvation in retooling America for greener, more sustainable domestic manufacturing.
The Company will continue to keep its shareholders up to date on all pertinent material events, product releases, production plans, and inventory availability. Those interested in distributing on a large-scale basis should email sales@hempinc.com or call 877-436-7564 for more information. The entire product line includes tinctures, gummies, capsules, and edibles in a variety of sizes, potencies, flavors, and formulas with a future focus on healthy foods for healthy living.
Forward-Looking Statements
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. The Securities and Exchange Commission (SEC) requires issuers to provide “adequate current information”. Financials for Hemp, Inc. are listed on the OTC Exchange. More information can also be found on the Hemp, Inc. website by visiting www.hempinc.com/financial-disclosures/. The 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 involve risks and uncertainties.
Contact:
Hemp, Inc.
Investor Relations
(720) 220-0037
ir@hempinc.com
AUSTIN, Texas, Sept. 28, 2023 (GLOBE NEWSWIRE) — Astrotech Corporation (Nasdaq: ASTC) (the “Company” or “Astrotech”) reported its financial results for the fiscal year ended June 30, 2023.
Financial Highlights & Fiscal Year Developments
- Astrotech’s consolidated balance sheet remains strong with $42.1 million in cash and cash equivalents and liquid investments which is anticipated to support our research and development, organic growth, and potential acquisition targets.
- Gross margin increased to 41% for the year compared to 22% in the prior period, due to a higher proportion of recurring revenue.
- We appointed Bob McFarland to the Board of Directors to bring his domestic and international executive management and sales experience, as well as his experience working with and for the federal government.
- We appointed Thomas B. Pickens III to the role of Chief Technology Officer. He has consistently demonstrated his proficiency in identifying new applications that can “profit” from our Astrotech Mass Spectrometer Technology™ (the “AMS Technology”) and is key in the design of innovative sample collection, software user interface, and quantitation techniques. Mr. Pickens is also integral in creating value by identifying and integrating OEM suppliers of certain sample collection and chromatography technologies.
- Our 1st Detect subsidiary’s commercial sales of the ECAC-certified TRACER 1000™ explosive trace detector (ETD), consumables and recurring maintenance services has continued leading to $750 thousand in total revenue during the fiscal year ended June 30, 2023. Additionally, 1st Detect has been successful in securing an order for 17 Tracer 1000 units to a Romanian based security and telecommunications company with the majority of these units being delivered in early fiscal year 2024.
- Our AgLAB subsidiary released results from the ongoing field trials of the AgLAB Maximum Value Process™ solution (AgLAB MVP). AgLAB which uses the Company’s proprietary AgLAB 1000-D2™ mass spectrometer has been proven to improve distillation oil yields and bottom-line profits for hemp and cannabis producers. During our field trials, we were able to improve ending-weight yields by an average of 30%.
- Our BreathTech subsidiary continues to collect breath samples from both COVID-19 positive and negative patients as part of the ongoing development of the library for the BreathTest-1000™ lung disease screening instrument. The BreathTest-1000 is a breath analysis tool designed to screen for volatile organic compound metabolites found in a person’s breath that could indicate they may have a bacterial or viral infection. Testing is being done following FDA required regulations.
- On December 5, 2022, the Company effected a reverse stock split primarily intended to bring the Company into compliance with the minimum bid price requirements for maintaining its listing on The Nasdaq Stock Market LLC. On December 19, 2022, the Company received written notice from the Listing Qualifications Department of Nasdaq stating that the Company had regained compliance with the minimum bid price requirement of $1.00 per share for continued listing on The Nasdaq Capital Market. Numbers presented in the financial statements presented have been adjusted to reflect the reverse stock split.
“The Company’s gross profit grew in fiscal year 2023 as recurring revenue related to our TRACER 1000 was a larger proportion of our sales. After having lost traction with passenger airport sales during the pandemic, the Company is very excited about our most recent 17-unit order to Romania. These sales and our recurring revenue should result in an increase in our topline revenue during the next fiscal year,” stated Thomas B. Pickens, III, Astrotech’s Chairman, Chief Executive Officer and Chief Technology Officer.
During fiscal year 2023 we continued to develop and enhance our AMS Technology. This not only benefits our existing platforms but also provides additional versatility for the future.
“In addition, our AgLAB 1000-D2 field trials with potential customers have proven that the AgLAB MVP solution is an effective tool to improve potency and yields for any distiller of hemp or cannabis. We believe this technology has the ability to directly increase processors’ bottom line. We are actively demonstrating the AgLAB MVP solution to several potential customers and are hopeful to secure our first deployments of the AgLAB 1000-D2” stated Thomas B. Pickens, III.
About Astrotech Corporation
Astrotech (Nasdaq: ASTC) is a mass spectrometry company that launches, manages, and commercializes scalable companies based on its innovative core technology through its wholly-owned subsidiaries. 1st Detect develops, manufactures, and sells trace detectors for use in the security and detection market. AgLAB develops and sells chemical analyzers for use in the agriculture market. BreathTech is developing a breath analysis tool to screen for volatile organic compounds that could indicate bodily infections and critical conditions. Astrotech is headquartered in Austin, Texas. For information, please visit www.astrotechcorp.com.
About the AgLAB 1000™ and the BreathTest-1000™
This press release contains information about our new products under development, AgLAB 1000 and BreathTest-1000. Product development involves a high degree of risk and uncertainty, and there can be no assurance that our new products will be successfully developed, achieve their intended benefits, receive full market authorization, or be commercially successful. In addition, FDA approval will be required to market BreathTest-1000 in the United States. Obtaining FDA approval is a complex and lengthy process, and there can be no assurance that FDA approval for BreathTest-1000 will be granted on a timely basis or at all.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, the adverse impact of recent inflationary pressures, including significant increases in fuel costs, global economic conditions and events related to these conditions, including the ongoing war in Ukraine and the COVID-19 pandemic, the Company’s use of proceeds from the common stock offerings, whether we can successfully complete the development of our new products and proprietary technologies, whether we can obtain the FDA and other regulatory approvals required to market our products under development in the United States or abroad, whether the market will accept our products and services and whether we are successful in identifying, completing and integrating acquisitions, as well as other risk factors and business considerations described in the Company’s Securities and Exchange Commission filings including the Company’s most recent Annual Report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. The Company assumes no obligation to correct or update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Company Contact: Jaime Hinojosa, Chief Financial Officer, Astrotech Corporation, (512) 485-9530.
Tables follow
| ASTROTECH CORPORATION | ||||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||
| (In thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Years Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
| Revenue | $ | 750 | $ | 869 | ||||
| Cost of revenue | 444 | 677 | ||||||
| Gross profit | 306 | 192 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 5,775 | 6,006 | ||||||
| Research and development | 5,591 | 2,781 | ||||||
| Total operating expenses | 11,366 | 8,787 | ||||||
| Loss from operations | (11,060 | ) | (8,595 | ) | ||||
| Other income and expense, net | 1,418 | 265 | ||||||
| Loss from operations before income taxes | (9,642 | ) | (8,330 | ) | ||||
| Income tax benefit | — | — | ||||||
| Net loss | $ | (9,642 | ) | $ | (8,330 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 1,620 | 1,590 | ||||||
| Basic and diluted net loss per common share: | ||||||||
| Net loss per common share | $ | (5.95 | ) | $ | (5.24 | ) | ||
| Other comprehensive loss, net of tax: | ||||||||
| Net loss | $ | (9,642 | ) | $ | (8,330 | ) | ||
| Available-for-sale securities | ||||||||
| Net unrealized losses, net of zero tax expense | (254 | ) | (1,176 | ) | ||||
| Total comprehensive loss | $ | (9,896 | ) | $ | (9,506 | ) | ||
| ASTROTECH CORPORATION | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share and per share data) | ||||||||
| (Unaudited) | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 14,208 | $ | 26,453 | ||||
| Short-term investments | 27,919 | 26,173 | ||||||
| Accounts receivable | 225 | 56 | ||||||
| Contract Asset | — | 2 | ||||||
| Inventory, net: | ||||||||
| Raw materials | 1,379 | 864 | ||||||
| Work-in-process | 243 | 136 | ||||||
| Finished goods | 373 | 518 | ||||||
| Income tax receivable | 1 | — | ||||||
| Prepaid expenses and other current assets | 365 | 748 | ||||||
| Total current assets | 44,713 | 54,950 | ||||||
| Property and equipment, net | 2,670 | 1,098 | ||||||
| Operating lease right-of-use assets, net | 262 | 162 | ||||||
| Other assets, net | 30 | 11 | ||||||
| Total assets | $ | 47,675 | $ | 56,221 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 546 | $ | 169 | ||||
| Payroll related accruals | 633 | 816 | ||||||
| Accrued expenses and other liabilities | 1,170 | 961 | ||||||
| Income tax payable | — | 2 | ||||||
| Term note payable – related party | — | 500 | ||||||
| Lease liabilities, current | 316 | 234 | ||||||
| Total current liabilities | 2,665 | 2,682 | ||||||
| Lease liabilities, net of current portion | 291 | 303 | ||||||
| Total liabilities | 2,956 | 2,985 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Convertible preferred stock, $0.001 par value, 2,500,000 shares authorized; 280,898 shares of Series D issued and outstanding at June 30, 2023 and 2022, respectively | — | — | ||||||
| Common stock, $0.001 par value, 250,000,000 shares authorized at June 30, 2023 and 2022 respectively; 1,692,045 and 1,685,595 shares issued and outstanding at June 30, 2023 and 2022, respectively; 1,681,729 and 1,685,595 outstanding at June 30, 2023 and 2022, respectively | 190,643 | 190,642 | ||||||
| Treasury shares, 10,316 shares and no shares at June 30, 2023 and 2022, respectively | (119 | ) | — | |||||
| Additional paid-in capital | 81,002 | 79,505 | ||||||
| Accumulated deficit | (225,354 | ) | (215,712 | ) | ||||
| Accumulated other comprehensive loss | (1,453 | ) | (1,199 | ) | ||||
| Total stockholders’ equity | 44,719 | 53,236 | ||||||
| Total liabilities and stockholders’ equity | $ | 47,675 | $ | 56,221 | ||||
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