Can B Corp. reports first trimester
Strengthened balance sheet with increases to $17.0 million in total assets and $6.2 million in shareholders’ equity
HICKSVILLE, NY, May 18, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Can B Corp. ( CANB) (“Can B” or the “Company”), a health and wellness company specializing in the development, production and sale of hemp-derived cannabinoid products, today announced financial results of the Company for the first quarter ended March 31, 2022.
Key financial highlights for the first quarter of 2022
- Revenue increased 606% to $1.9 million
- Gross profit increased 291% to $0.7 million
- Adjusted EBITDA loss decreased 30% to $0.9 million
- Total assets increased to $17.0 million
- Total equity increased to $6.2 million
Key business highlights for the first quarter of 2022
- Solidified and integrated vertical processing capabilities from recent acquisitions
- Advanced construction of the first CBD lounge in Miami, Florida
- Continuing the path to a possible NASDAQ update
Management commentary
Marco Alfonsi, President and CEO of Can B, said: “We are extremely pleased with our excellent quarterly results, having achieved the highest quarterly turnover in the history of our company. We generated quarterly revenue of $1.9 million while reducing our cash burn, as evidenced by the decrease in adjusted EBITDA to $0.9 million. The strategic moves we have made over the past few months have complemented our vertical processing capabilities and put us in an excellent position to accelerate our revenue growth and strengthen our balance sheet. This quarter’s results prove that our plans are working as our team continues to work hard to integrate and scale up the various operations to build on this momentum in the future.
Alfonsi concluded, “Can B is now a full-service hemp-derived cannabinoid company that can make it easier to maintain large box types as well as the vape and smoke shop. Our dramatic improvements in revenue, coupled with our acquisitions and growing asset base, position us solidly to continue our NASDA listing application process.
Vertical Processing Capabilities
Securing hemp biomass and overwintered crude to create over 13,000 liters (1 liter = 1.05 pints) of isomers, including Delta-8, with a potential wholesale value of over $10 million at the price of the current market. Facilities acquired by Can B in late 2021 in Colorado will receive harvested hemp biomass and convert it to overwintering crude. These same facilities will then process it to distill and then isolate it, which will be shipped to company-owned facilities in Florida and Tennessee to produce Delta-8 or other isomers, or to its manufacturing plant in Lacey, Washington for its line of CBD tinctures. , ointments, gels and drops. This processing is expected to take 5-6 months to produce 13,000 liters of Delta-8 and other isomers with a potential revenue of $10 million.
- 300,000 square foot facility in McMinnville, Tennessee
- The asset acquisition from TWS Pharma included leases for a total of 15,000 square feet of facilities located in Mead and Ft. Morgan Colorado.
- Acquisition of assets from Music City Botanicals added additional volume of extraction, laboratory production of isomers and R&D in the evolving isomer market with products such as Delta-10, CBG, CBN and CBDA .
Financial results for the three months ended March 31, 2022:
- Revenue: For the three months ended March 31, 2022, revenue was $1.9 million, an increase of $1.6 million, or 606%, compared to $0.3 million for the same period l last year. The increase is due to the end of the Covid-19 pandemic-related restrictions surrounding elective surgeries, allowing for increased use of the Company’s Duramed product lines and ultrasound devices associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands saw an increase in sales over 2021 of $0.6 million.
- Gross profit: For the three months ended March 31, 2022, gross margin was $0.7 million, an increase of $0.4 million, or 291%, compared to $0.2 million for the same period last year. The resulting gross margin was 36.0%, compared to 75.0% for the same period last year.
- Total operating expenses: For the three months ended March 31, 2022, total operating expenses were $3.9 million, an increase of $1.8 million, or 91%, compared to $2.0 million for the same period last year, as a direct result of professional fees and other accounting and legal expenses. costs related to efforts to file the Company’s S-1 registration statement.
It should be noted that $2.3 million of the Company’s operating expenses for the three months ended March 31, 2022 were non-cash expenses, including depreciation, amortization and stock-based compensation, compared to $0.5 million for the same period last year.
- Operating loss : For the three months ended March 31, 2022, operating loss was $3.2 million, an increase of $1.4 million, compared to an operating loss of $1.8 million dollars for the same period last year.
- Adjusted EBITDA loss: For the three months ended March 31, 2022, Adjusted EBITDA loss was $0.9 million, a decrease of $0.4 million, or 30%, compared to an Adjusted EBITDA loss of $1.3 million for the corresponding period of the previous fiscal year, after deducting non-cash items and an hourly expense.
- Net loss: For the three months ended March 31, 2022, net loss was $3.5 million, an increase of $1.3 million, or 60%, compared to $2.2 million for the same period last year. EPS loss per share for the three months ended March 31, 2022 was ($1.10), compared to ($3.58) for the same period last year.
About Can B Corp.
Can B Corp. ( CANB) is a health and wellness company that provides the highest quality hemp-derived cannabinoid products, including under its own brands Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B uses multi-channel distribution to reach consumers, including medical institutions, doctor’s offices, retailers, online and face-to-face. Can B Corp. operates R&D and production facilities in Lacey, WA and Florida. To learn more about Can B Corp. and our full line of high quality products, please visit: Canbiola.com and www.CanBCorp.comfollow Can B Corp on instagram and Facebook or visit one of over 1,000 retail outlets that carry Can B Corp products.
For more information about Can B Corp., please visit: CanBCorp.com
Forward-looking statements
The forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words “anticipate”, “believe”, “estimate”, “could”, “intend”, “expect” and similar expressions identify such forward-looking statements. Expected and actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive and other factors affecting our operations, our markets, our products and our performance. . The matters discussed herein should in no way be construed in any way, form or manner as to our future financial condition or stock price. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of latest information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unforeseen events.
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