HICKSVILLE, NY / ACCESSWIRE / August 18, 2021 / 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 second quarter ended June 30, 2021 ("Q2 2021").
Key Financial and Business Highlights during and subsequent to Q2 2021
- Revenue increased 96% over Q2 2020 to $0.4 million for Q2 2021
- Adjusted EBITDA loss of $2.1 million (for the 1st half of 2021)
- Partnered with group of professional Hollywood stuntmen and world champion action sports athletes for CBD products
- Purchased additional equipment to increase production at its hemp facility in Colorado
Management Commentary
Marco Alfonsi, Can B's Chief Executive Officer, stated, "We witnessed a nice uptick in business during the quarter as elective surgeries resumed and our medical durable equipment segment benefitted. Our business pipeline remains strong for both our own branded lines and our private label contract manufacturing. Additionally, our high activity of strategic corporate discussions and negotiations have led to meaningful opportunities such as the TWS Pharma asset acquisition announced via an 8K filing on August 17, 2021, adding over $5 million in assets to our balance sheet. Opportunities like these we believe will accelerate our growth and further solidify our balance sheet."
Financial Results for the Three Months Ended June 30, 2021:
- Revenue: For the three months ended June 30, 2021, revenue was $0.4 million, an increase of $0.2 million, or 96%, compared with $0.2 million for the three months ended June 30, 2020. This increase was primarily due to the resumption of elective surgeries in 2021 which were temporarily paused through Q2 of 2020 due to the impact of the Covid-19 outbreak. Medical durable equipment utilized in elective surgeries is the Company's primary medical device revenue. In addition, the increase was related to operations of the Company's delta-8 synthesizing business which began in March 2021.
- Gross Profit: For the three months ended June 30, 2021, gross profit was $0.1 million, a decrease of $0.1 million, or 9%, compared with $0.2 million for the three months ended June 30, 2020. The resulting gross margin was 35.6%, compared with 76.6% for the same quarter last year. The decrease in gross margin is due to an increase in medical durable equipment contribution to revenue and an increase in inventory pricing.
- Total Operating Expenses: For the three months ended June 30, 2021, total operating expenses were $2.7 million, an increase of $1.5 million, or 115%, compared with $1.3 million for the same quarter last year. The increase in operating expenses was primarily due to professional fees incurred and attributable to the Company's asset acquisitions and Regulation A offering.
- Operating Loss: For the three months ended June 30, 2021, operating loss was $0.6 million, an improvement of $0.2 million, compared with an operating loss of $0.8 million for the same quarter last year.
- Net Loss: For the three months ended June 30, 2021, net loss was $2.8 million, or ($0.12) per share, compared with a net loss of $1.2 million, or a net loss of ($0.33) per share, for the three months ended June 30, 2020.
- Cash: Cash and cash equivalents totaled $1.1 million as of June 30, 2021.
Financial Results for the Six Months Ended June 30, 2021:
- Revenue: For the six months ended June 30, 2021, revenue was $0.7 million, a decrease of $0.1 million, or 9%, compared with $0.8 million for the same period last year. The Company began to rebound and increase revenues compared to prior periods in Q2 of 2021 due to the resumption and surge of elective surgeries in Q2 2021. In addition, certain distributors lost clients due to business closings which had an additional impact on the Company's overall revenue activity.
- Gross Profit: For the six months ended June 30, 2021, gross profit was $0.4 million, a decrease of $0.2 million, or 38%, compared with $0.6 million for the same period last year. The resulting gross margin was 52.7%, compared with 78.1% for the same period last year.
- Total Operating Expenses: For the six months ended June 30, 2021, total operating expenses were $4.8 million, an increase of $1.9 million, compared with $2.8 million for the same period last year.
- Of note, $2.8 million of the Company's operating expenses for the six months ended June 30, 2021, were non-cash expenses, including depreciation, amortization, and stock-based compensation.
- Operating Loss: For the six months ended June 30, 2021, operating loss was $4.4 million, an increase of $2.2 million, compared with an operating loss of $2.2 million for the same period last year.
- Net Loss: For the six months ended June 30, 2021, net loss was $4.9 million, or ($0.26) per share, compared with $2.4 million, or ($0.65) per share, for the same period last year.
The Company filed its Form 10-Q on August 16, 2021, which can be viewed at https://www.otcmarkets.com/filing/conv_pdf?id=15167899&guid=DQM1kK7YUFBbNyh
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. also 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
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Forward-Looking Statements
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 new 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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SOURCE: Can B Corp.
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