Annual Revenue Increased 445%, Maintained Gross
Margin of 50%
HICKSVILLE, NY, April 17, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Canbiola, Inc. (OTCQB: CANB) (“Canbiola†or the “Companyâ€), a developer, manufacturer and seller of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews, isolate, gel caps, and concentrate, announced today operating and financial results for the fourth quarter and year ended December 31, 2018.
“2018 was very much of a set-up year for what we expect in 2019 and 2020 and beyond, as we laid the groundwork by assembling our team, advancing our production capabilities and branded and launched our line of CBD products,†commented Marco Alfonsi, Canbiola’s Chief Executive Officer. Mr. Alfonsi continued, “We now have our line of proprietary CBD products in the hands of over 300 medical offices and health professionals and successfully launched our revolutionary Sustained Acoustic Medicine wellness solution. We continue to explore additional and unique ways to bring our products to market and believe we are well-positioned for accretive revenue growth in 2019, which will be reflective in our first quarter results in mid-May, as we are off to a positive start to the year.â€
Key Business Highlights for Q4 and Full Year 2018:
· Acquired Pure Health Products
· Launched Pure Leaf Oil as its Consumer Brand
· President Trump Signs Farm Bill Legalizing Hemp CBD Nationwide
· Johnny Mack PhD Joins Corporate Advisory Board
Key Financial Highlights for Full Year 2018:
· Revenues increased by 445% to $668,603
· Gross margin of 50%
· Operating loss of $4.4 million, included $3.4 million in non-cash stock-based compensation
· Cash balance of $0.8 million
Key Financial Highlights for Q4 2018:
· Revenues increased by 395% to $281,315
· Gross margin of 46%
· Operating loss of $2.6 million, included $2.1 million in non-cash stock-based compensation
Subsequent to the end of 2018, Canbiola launched its revolutionary Sustained Acoustic Medicine wellness solution via formation of its wholly owned subsidiary Duramed, Inc. This device, along with proprietary Gel Capture Patches, has been indicated in accelerating tissue healing of musculoskeletal injuries and chronic pain reduction and has proven to be reimbursable by health insurance companies. The sam Pro 2.0 is the first and only FDA cleared wearable low intensity ultrasound device delivering multi-hour treatment to accelerate healing and improve function for musculoskeletal injuries (muscle, tendon, ligament) and reducing chronic pain (without opioid pain medication). Canbiola and its Duramed subsidiary have attained distribution of sam Pro 2.0 in the United States for no-fault and workers comp insurance programs. The Company’s proprietary CBD gels patches coupled with the unique ultrasound delivery system, should drive profitable revenue throughout 2019.
Financial Results for the Year Ended December 31, 2018:
Revenue for the year ended December 31, 2018 was $668,603, an increase of $545,857 or 445%, compared to $122,746 for the year ended December 31, 2017. This increase was mainly attributable due to the growth of CBD product sales.
Gross profit for the twelve-month period ended December 31, 2018 was $334,589, resulting in a gross margin of 50%, compared to $78,280 and 64% for the twelve-month period ended December 31, 2017. Absolute gross profit increased due to the growth of product sales and outreach into additional market segments such as wholesale and private label opportunities.
Operating expenses for the year ended December 31, 2018 were $4.7 million, an increase of $3.9 million or 497%, compared to $0.8 million for the year ended December 31, 2017. This increase was mainly attributable due to an increase of $2.2 million in officer’s and director’s compensation and payroll taxes and an increase of $1.5 million in consulting fees, which included additional stock-based compensation of $1.7 million and $1.7 million, respectively, for a total of $3.4 million in stock-based compensation for the twelve months ended December 31, 2018.
Operating loss for the twelve months ended December 31, 2018 and 2017, was $4.4 million and $0.7 million, respectively, an increase of $3.7 million.
Net loss for the twelve months ended December 31, 2018 and 2017, was $8.9 million and $2.1 million, respectively, an increase of $6.8 million. The resulting EPS loss for the twelve months ended December 31, 2018 was a ($0.03), as compared to an EPS loss of ($0.00) for the twelve months ended December 31, 2017.
At December 31, 2018, Canbiola had $0.8 million of cash, $0.8 million of notes payable, and 423.9 million shares issued and outstanding, on a fully diluted basis.
Financial Results for the Three Months Ended December 31, 2018:
Revenue for the three months ended December 31, 2018 was $281,315, an increase of $224,509 or 395%, compared to $56,806 for the three months ended December 31, 2017. This increase was mainly attributable due to the growth of CBD product sales.
Gross profit for the three months ended December 31, 2018 was $128,358, resulting in a gross margin of 46%, compared to $24,038 and 42% for the three months ended December 31, 2017. Absolute gross profit and gross margin increased due to the growth of product sales and outreach into additional market segments such as wholesale and private label opportunities.
Operating expenses for the three months ended December 31, 2018 were $2.7 million, an increase of $2.4 million or 843%, compared to $0.3 million for the three months ended December 31, 2017.
Operating loss for the three months ended December 31, 2018 and 2017, was $2.6 million and $0.3 million, respectively, an increase of $2.3 million.
Net loss for the three months ended December 31, 2018 and 2017, was $4.2 million and $1.7 million, respectively, an increase of $2.5 million. The resulting EPS loss for the three months ended December 31, 2018 was a ($0.03), as compared to an EPS loss of ($0.00) for the three months ended December 31, 2017.
About Canbiola, Inc.
Canbiola, Inc. (OTCQB: CANB) is a developer, manufacturer and seller of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews,, isolate, gel caps, and concentrates. Canbiola has developed its own line of proprietary products as well as seeking synergistic value through acquisitions in the CBD and the medical cannabis industry. Cannabis is currently federally illegal and has legalized for medical purposes in some form in a limited number of states, but pure CBD products are legal in all 50 states. Hemp CBD is the non-psychoactive component (No THC) used for treatment of pain, inflammation, and wellness programs. For more information about Canbiola, Inc., please visit: https://canbiola.com.
Additionally, Canbiola’s wholly owned subsidiary Pure Health Products, based in Lacey, WA, is its prime development laboratory and production facility. Canbiola’s Duramed division has recently rolled out a durable medical device via its Doctor network to treat patients with injuries via application of an in-home ultrasound sustained acoustic device (SAM) for pain and inflammation reduction.
Forward-Looking Statements
Forward-looking statements and risks and uncertainties discussed in this letter contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements. Expected, 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, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner of our future financial condition or stock price.
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