Marijuana Company of America Reports Q3 2022 Financial Results and Operational Highlights
LOS ANGELES, CA / ACCESSWIRE / November 29, 2022 / MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC PINK:MCOA), an innovative hemp and cannabis corporation, is pleased to announce today its financial results and other financial …
LOS ANGELES, CA / ACCESSWIRE / November 29, 2022 / MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC PINK:MCOA), an innovative hemp and cannabis corporation, is pleased to announce today its financial results and other financial highlights for the third quarter and nine months ending September 30, 2022.
Regarding the Q3 results, Jesus Quintero CEO stated, "MCOA shareholders should be happy with the overall 34% decline in operating expenses and cash expenditures so far this year. This is due to our focus on efficiency and scaling back overhead. We are also pleased with the increase in our gross margins at 59%. We expect these positive trends to continue as we focus more on distribution of products through our subsidiary, cDistro. While other cannabis companies in our sector are struggling, we are aggressively pursuing M&A activity as there are numerous opportunities of distressed cannabis companies. We have also made significant progress in reducing our debt over the last month as critical step in our corporate restructuring."
Q3 Financial Highlights
- Total revenues were $142,394 for the third quarter ended September 30, 2022 as compared to $442,178 for the third quarter ended September 30, 2021. This is despite setbacks in sales due to the effects of Hurricane Ian and the phase-out of its hempSMART products in the United States. The Company anticipates increases on an ongoing basis as it recovers from Hurricane Ian and also based on its international expansion for hempSMART in South America.
- We are pleased to report that Gross Profit for Q3 2022 increased to $84,194 generating 59.1% in gross margin, compared to a gross profit of $63,687 for the same period ended September 30, 2021, representing 14.4% in gross margin. The increase in gross margin is attributed to sales of CBD and hemp products by our wholly-owned subsidiary CDistro inc.
- We are also happy to report that operating expense for Q3 2022 decreased to $976,961 as compared to $1,483,351 for Q3 2021, representing a substantial 34.1% reduction in operating expenses. This resulted in an overall decline in the operating loss to $892,767 for Q3 2022 as compared to $1,419,664 for Q3 2021, representing a 37.1% improvement.
Total Net loss