Marijuana Company of America, Inc. MCOA, announced the financial results for the year ended December 31, 2021.
Key Financial Highlights
-
Record revenues for the year end December 31, 2021 were $1.03 million or an increase of 267.1%.
-
Net losses for the year ended December 31, 2021 and December 31, 2020 decreased by 28% to $10.19 million for 2021 as compared to $12.15 million in 2020.
-
For the year ended December 31, 2021 and December 31, 2020, gross profit was $156,878 and $121,349, respectively.
-
Gross margins were 15.2% and 43.2% for the years ended December 31, 2021 and December 31, 2020, respectively. This decline in gross margins is due to cDistro being a distribution company that experiences slim margins as a reseller.
-
MCOA paid off most variable priced convertible notes prior to conversion over the last quarter with funds raised from its Form S-1 registration statement.
-
The company's total stockholder equity increased from a $5.46 million deficit for the year ended December 31, 2020 to an actual stockholder's surplus of $230,889. This is the first time in the company's history that it has had a positive equity position and is solvent. The company is getting close to being a "Penny Stock" exempt company, which requires more than $2M in net assets. It plans on achieving this milestone in Q2 or Q3 this year.
-
The company's total assets increased by $5.85 million from $2.11 million in 2020 to $7.96 million. MCOA expects its assets to continue to increase exponentially if the pending acquisition of VBF closes, as well as with the continued increase in positive operating results.
-
The company successfully negotiated a full settlement of its largest senior convertible note holder at a fixed price, preserving shareholder value and minimizing the impact of the dilutive nature of the notes, resulting in a decrease of the derivative liability from $4.43 million in 2020 to only $749,756 for the year ended December 31, 2021.
Other Highlights
-
MCOA has successfully negotiated and completed acquisitions including cDistro, Inc.
-
Significant efforts to expand into South America and move key parts of supply chain to Brazil and Uruguay to improve gross margins and overall profitability.
Photo: Courtesy of Marijuana Company of America, Inc.
Related News
Marijuana Company of America Inc. To Present At Benzinga Cannabis Capital Conference
Marijuana Company Of America Acquires VBF Brands Strengthening Its Position In California
Marijuana Company Of America Reports Record Q3 Revenue Of $442,178, Net Loss Of $1.77M
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.