Staff
Massachusetts-based MariMed Inc. (MRMD) delivered its third quarter financial results for the quarter ending September 30, 2017, with revenue increasing 96% to $1.7 million last year’s $873,000. Gross profits popped to $1.2 million over last year’s $422,000 for the same time period.
Still, MariMed reported a loss of $314,000 versus last year’s loss of $6,800. The company took a $222,000 loss on the write-off of deferred revenue. This wasn’t mentioned at all in the press release and requires a trip to the SEC filing to find out exactly what happened here. According to the filing, “Deferred revenue represented the conversion of a promissory note issued to a third party by the Company’s former parent, which was assumed by the Company in 201l, for future products and services of the Company’s online portal business segment.” The filing went on to say, “In the third quarter of 2017, the Company wrote off the entire carrying amount of deferred revenue in accordance with an agreement with the third party whereby the Company was released from all of its obligations to the third party and any actions or demands related thereto.” Had the company not had this one-time event, net income would have been $208,000.
Assets increased to $21 million, a 149% increase over last year’s $8.5 million and a 28% increase sequentially. The company has raised $9 million over the past nine months.
“Successful development of our consumer and medical brands is one of our key strategies for long-term profitable growth,” said Robert Fireman, MariMed Chairman, and Chief Executive Officer. “In Q3, we achieved significant distribution gains and saw significant market uptake for Kalm Fusion, our new Betty’s Eddies, and the Tikun Olam clinically-proven medical strains. We are aggressively pursuing expansion to markets where we have facilities coming online and to other markets in distribution agreements, where we assure manufacturing to uniform quality standards.”
Company Milestones
- In October 2017, the Company received a certificate of occupancy for its recently completed facility in Hagerstown, MD, which is leased to a third party that has been awarded a medical marijuana license in the state.
- In November 2017, the Company purchased a 137,500 square foot industrial building in New Bedford, MA, a portion of which is tenant-occupied, and a portion of which will be renovated into a state-of-the-art medical cannabis facility to be leased to a cannabis licensee in the state.
- In November 2017, the Company entered into an exclusive licensing agreement for the production and distribution of its branded cannabis products in the state of Nevada, which is expected to commence in the fourth quarter of 2017.
“MariMed is one of the few companies in the U.S. cannabis industry delivering on a commitment for rapid, high quality, multi-state expansion,” said Jon Levine, MariMed Chief Financial Officer. “Our business model and strong financial results enable us to secure the necessary capital to build our national presence in owned facilities and production agreements for licensed brands. In Q3, the Company delivered milestone achievements on multiple state facilities and expanded brand distribution that will translate to significant new revenue streams in calendar 2018.”
Shares ballooned to 163 million over last year’s 64 million and the shares are trading at roughly 40 cents, down from the 52-week high of 83 cents.
