Welcome!

News Feed Item

CannaVest Corp. Announces Fourth Quarter and Fiscal 2013 Financial Results

LAS VEGAS, April 3, 2014 /PRNewswire/ -- CannaVest Corp. ("CannaVest" or "the Company") (OTCBB: CANV) reported financial results for the fourth quarter and year ended December 31, 2013.

Logo - http://photos.prnewswire.com/prnh/20140403/LA98016LOGO

Financial highlights for fiscal year 2013 include the following:

  • Product sales of $2.154 million
  • Gross margin of 59.1%
  • Operating expenses of $2.891 million
  • Operating loss of $(1.617 million)
  • Net loss of $(2.3 million) representing a loss of $(0.23) per share
  • Invested $750,000 to purchase 24.97% of the outstanding equity in KannaLife Sciences, Inc., a leading phytomedical company specializing in the development of pharmacological products derived from plants
  • Purchased certain assets of PhytoSPHERE Systems in exchange for 5,825,000 shares of common stock and $950,000 in cash

CannaVest President and Chief Executive Officer, Michael J. Mona, Jr. commented on CannaVest 2013 performance, saying "I am pleased with our progress for 2013.  Product sales were initiated in the third quarter and began to gain traction throughout the year. I look forward to ongoing progress and growth in 2014 as we continue to broaden our product lines, expand our sales network and bolster our management team. We have been successful at securing large quantities of product that give us a myriad of expansion opportunities going forward."

The Company is not presenting an overview of its Q4 financial performance or comparison to prior quarters as it has concluded that those comparisons would be in error. Management has determined that the previously issued financial statements contained in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013 (the "Forms 10-Q") should be restated because of errors associated with the purchase price allocation for the assets acquired related to PhytoSPHERE Systems. Specifically, management determined that the allocation of the purchase price as previously disclosed in the Forms 10-Q was not in accordance with Generally Accepted Accounts Principals ("GAAP"). 

The Company is in the process of preparing the restated Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013.  The decision to restate the disclosure was discussed with the Company's independent registered public accounting firm and was made after discovery of such errors relating to its disclosures. 

Financial results for the year ended December 31, 2013

  • Product sales of $2,154,063 and gross profit of $1,273,593, representing a gross profit percentage of 59.1% for the year ended December 31, 2013 versus no sales or cost of revenues during 2012. This is the result of the Company restructuring in late 2012 and implementing its new business strategy of producing and selling hemp-based health and wellness products based on natural cannabidiol (CBD).
  • Selling, general, and administrative expenses for the year ended December 31, 2013 were $2,366,450 compared to $43,018 for the year ended December 31, 2012. The increase of $2,323,432 was related to increases sales, marketing, administrative, legal and accounting expenses associated with the implementation of the Company's new business model throughout 2013. Expenses for the year ended December 31, 2013 also included a $400,000 provision for bad debts and $753,500 in amortization related to intangible assets purchased as part of the purchase of assets from PhytoSPHERE Systems, LLC that closed during 2013. The Company had no intangible assets during 2012.
  • Research and development costs for the year ended December 31, 2013 were $524,476. The Company incurred no research and development costs for the year ended December 31, 2012. These costs included the cost of our laboratory facility, supplies, personnel, inventory used in process development, and amounts paid to third parties for product and process development. The Company did not have those activities ongoing during 2012.
  • Interest expense was $372,109 for the year ended December 31, 2013 versus interest expense of $2,593 for the year ended December 31, 2012. Interest for the current year includes $161,583 interest accrued on the note payable to Roen Ventures plus $210,526 as amortization of the discount calculated on the note payable to Roen Ventures, LLC related to a beneficial conversion feature.
  • A loss of $310,754 on our investment in KannaLife Sciences, Inc. This represents our pro rata share of KannaLife's total loss for the year ended December 31, 2013.
  • An increase in cash by $2,243,239 to $2,243,670.
  • A total of $4,879,234 used in operating activities versus $64,084 for the year ended December 31, 2012. A total of $2,602,166 was used on increases in inventory and prepaid inventory. In addition, $174,317 was used on prepaid expenses, $1,744,064 was used due to an increase in accounts receivable. This was offset by an increase in accounts payable of $24,622 and accrued expenses of $222,703. For the year ended December 31, 2013, net loss less depreciation and amortization resulted in a use of cash of $1,532,942 versus $45,611 in the year ended December 31, 2012. Cash used in operating activities included a decrease in accounts payable and accrued expenses of $20,223, offset by a decrease of prepaid expenses of $1,750.
  • For the year ended December 31, 2013, the Company used $1,875,819 in investing activities. This included cash received from the acquisition of the assets of $50,775, less $226,594 used for the purchase of equipment, $950,000 paid to PhytoSPHERE Systems for the purchase of assets, and $750,000 invested in KannaLife Sciences. No cash was used in or provided by investing activities for the year ended December 31, 2012.
  • A total of $8,998,292 was provided by financing activities for the year ended December 31, 2013, which included proceeds from the loan from Roen Ventures, LLC of $6,192,069, $2,731,423 received from the sale of common stock, and $175,000 received for common stock issued in 2014. This was offset by repayment of $100,000 to Roen Ventures, LLC. For the year ended December 31, 2012, net cash flows from financing activities included $63,347 in proceeds from a related party loan.

For further discussion of the Company's financial results for the year ended December 31, 2013, please refer to the Company's consolidated financial statements and related Management Discussion and Analysis, which can be found at www.cannavest.com or EDGAR at www.sec.gov/edgar/searchedgar/webusers.htm

About CannaVest Corp.
CannaVest is in the business of investing and developing hemp-based cannabinoid companies.  CannaVest develops, produces, markets and sells end-consumer products to the nutraceutical industry containing the hemp plant extract, cannabidiol (CBD). Additionally, the company resells–to third parties–raw product acquired by CannaVest Corp. pursuant to its supply relationships in Europe. CannaVest Corp. seeks to take advantage of an emerging worldwide trend to re-energize the production of industrial hemp and to foster its many uses for consumers. Cannabinoids (cannabidiol/CBD) are natural constituents of the hemp plant, and CBD is derived from hemp stalk and seed. Additional information is available from OTCMarkets.com or by visiting www.cannavest.com.

FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease.

FORWARD-LOOKING DISCLAIMER
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. This 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 by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of CannaVest Corp. to be materially different from the statements made herein.

LEGAL DISCLOSURE
CannaVest Corp. does not sell or distribute any products that are in violation of the United States Controlled Substances Act (US.CSA). The company does grow, sell and distribute hemp-based products and are involved with the federally legal distribution of medical marijuana-based products within certain international markets. Cannabidiol is a natural constituent of hemp oil.

Corporate Contact:
CannaVest Corp.
2688 South Rainbow Avenue, Suite B
Las Vegas, NV 89146
Phone: 866-290-2157
www.cannavest.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
SaaS companies can greatly expand revenue potential by pushing beyond their own borders. The challenge is how to do this without degrading service quality. In his session at 18th Cloud Expo, Adam Rogers, Managing Director at Anexia, discussed how IaaS providers with a global presence and both virtual and dedicated infrastructure can help companies expand their service footprint with low “go-to-market” costs.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.