Strengthened Balance Sheet with Increases to $17.0 Million in Total Assets and $6.2 Million in Stockholders Equity
HICKSVILLE, NY, May 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Can B Corp. (OTCQB: CANB) (“Can B'' or the “Company”), a health and wellness company specializing in developing, producing, and selling hemp-derived cannabinoid products, today announced the Company's financial results for the first quarter ended March 31, 2022.
Key Financial Highlights for Q1 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 stockholders’ equity increased to $6.2 million
Key Business Highlights for Q1 2022
Solidified and integrated vertical processing capabilities from recent acquisitions
Advanced build-out of first CBD lounge in Miami, Florida
Continuing path for potential NASDAQ up-listing
Marco Alfonsi, Can B’s Chief Executive Officer, stated, “We are extremely pleased with our tremendous quarterly results, having achieved the highest quarterly revenue in our company history. We generated the $1.9 million in quarterly revenue while reducing our cash burn as demonstrated by the decrease in adjusted EBITDA to $0.9 million. The strategic moves we have made over the past several months have completed our vertical processing capabilities and put us in great position to accelerate our revenue growth and strengthen our balance sheet. This quarter’s results prove our plans are working as our team continues its hard at work integrating and ramping up the various operations to continue this momentum into the future.”
Alfonsi concluded, “Can B is now a full-service hemp-derived cannabinoid company that can facilitate servicing the large box types as well as the boutique vape and smoke store. Our dramatic revenue improvements, coupled with our acquisitions and asset base increases, position us solidly to continue our application process for a NASDA up listing.”
Vertical Processing Capabilities
Secured hemp biomass and winterized crude to create over 13,000 Liters (1 Liter = 1.05 Quarts) of isomers, including Delta-8, with a potential wholesale value exceeding $10 million at today's market price. Can B's late 2021 acquired facilities in Colorado will receive harvested hemp biomass and convert it to winterized crude. These same facilities will then process it to distillate, then to isolate which will be shipped to Company-owned facilities in Florida and Tennessee to produce Delta-8 or other isomers, or to its manufacturing facility in Lacey, Washington for its line of CBD tinctures, salves, gels, and drops. This processing is expected to take 5-6 months to produce 13,000 liters of Delta-8 and other isomers with potential revenue of $10 million.
300,000 Square Foot Facility in McMinnville, Tennessee
Acquisition of Assets from TWS Pharma included leases on a total of 15,000 square foot of facilities located in Mead and Ft. Morgan Colorado.
Acquisition of Assets from Music City Botanicals added additional volume in extraction, isomer lab production, and R&D into the evolving isomer market with such products 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 with $0.3 million for the same period last year. The increase is due to the wind-down of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company’s Duramed product lines and ultrasound device associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands related to an increase in sales compared to 2021 of $0.6 million.
Gross Profit: For the three months ended March 31, 2022, gross profit was $0.7 million, an increase of $0.4 million, or 291%, compared with $0.2 million for the same period last year. The resulting gross margin was 36.0%, compared with 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 with $2.0 million for the same period last year, as a direct result of professional fees and other accounting and legal fees related to the Company’s registration statement S-1 filing efforts.
Of note, $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 with an operating loss of $1.8 million 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 with an Adjusted EBITDA loss of $1.3 million for the same period last year, after deducting non-cash and one-time expenses.
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 with $2.2 million for the same period last year. The 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. (OTCQB: CANB) is a health & wellness company providing the highest quality hemp-derived cannabinoid products, including under its own brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil, and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. Can B Corp. operates R&D and production facilities in Lacey, WA, and Florida. To learn more about Can B Corp. and our comprehensive line of high-quality products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
For more information about Can B Corp., please visit: CanBCorp.com
Forward-looking statements and risks and uncertainties discussed in this release 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. Except as required by law, we undertake no obligation to update or revise publicly 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 unanticipated events.
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