Grapefruit USA, Inc. (OTCPINK “GPFT”) Reports 230% Revenue Growth Quarter over Previous Quarter, Expects Higher Second Quarter Revenue

Los Angeles/Desert Hot Springs, CA, May 11, 2020 (GLOBE NEWSWIRE) -- Grapefruit USA, Inc., (“GPFT”, “Grapefruit” or the “Company”) (OTCPink: GPFT) a California based cannabis company, is announcing today that in its quarterly report on Form 10-Q for the three months ended March 31, 2020 filed with the SEC last Friday, the Company reported net revenues of $393,559, an increase of 230% over revenues of $119,155 for the three months ended ended December 31, 2019, and an increase of $64,863 or 20% over revenues for the three months ended March 31, 2019. This significant increase in revenues occurred despite the fact that the Company lost two transaction in March, 2020 which would have resulted in an additional approximately $575,000.00 of revenue for the March 31, 2020 quarter. $550,000 of this amount was caused by the closure of a customer’s extraction lab at the end of March due to the pandemic, thereby preventing the Company from completing the transaction. For the March 31, 2020 three month period, the Company suffered a loss from operations of $363,987 as opposed to a loss from operations of $705,034 for the three months ended December 31, 2019 an approximate 50% decrease attributable much lower general and administrative expenses connected with reduced reorganization expenses, legacy debt and public company expenses. $2,483,040 of the Company’s reported $2,772,723 net loss was attributable to non-recurring changes in the value of derivative instruments and non-cash interest expense. For a full analysis of the Company’s results of operations see the Company’s Form 10-Q at pages 3-6 and 19-21.

With respect to Grapefruit’s 2020 first quarter report, Bradley J. Yourist, Grapefruit CEO, stated, “As we stated in the release of our 10-K for 2019 four weeks ago, 2020 is off to a positive start with a now verified 230% increase in revenue over the previous quarter and a sharply decreased operating loss due the end of reorganization and early stage public company transaction expense. To put it in perspective, revenues for the first quarter of 2020 almost matched revenues for all of 2019. We are disappointed that we lost a sizable distribution transaction in early April due to the pandemic because our customer’s extraction lab had to close temporarily to protect its workers, but that was beyond our control. These first quarter results clearly demonstrate that Grapefruit has moved past the disruption caused by the public company reorganization and related audit issues and expenses, has regained its momentum and is now laser focused on revenue growth in our distribution and extraction lab businesses as well as the introduction of our potentially disruptive THC+ CBD Patchless Patch which is scheduled for release by the end of the second quarter. We believe, based on early trends, that our second quarter results will be significantly better as refocused Grapefruit marches inexorably toward its goal of becoming a leading U.S. based fully integrated cannabis company.”