Sales Increase 25% to $1.7 Million from Previous Quarter
NEW YORK, NY / ACCESSWIRE / August 23, 2016 / Grow Solutions Inc. (OTC: GRSO), a provider of comprehensive support services in the broad area of high-yield indoor agriculture, specializing, though not limited to, the regulated growing and processing of cannabis, today announced financial results for the second quarter of 2016 ended June 30, 2016.
For the second quarter of 2016, net sales were $1,689,282, an increase of 25% from sales of $1,353,624 for the first quarter ending March 31, 2016, and an increase of 420% from sales of $325,051 for the second quarter of 2015. The increase in net sales is primarily related to the Company executing on its expansion strategy and completing the acquisitions of OneLove in May, 2015 and Hygrow in September, 2015.
Gross profit was $352,094 for the three months ended June 30, 2016, an increase of 484% compared to gross profit of $60,140 for the three months ended June 30, 2015. The increase is due to the acquisitions of OneLove and Hygrow.
Selling, general and administrative expenses for the second quarter ended June 30, 2016 and 2015 were $802,007 and $408,481, respectively. Selling, general and administrative expenses consisted primarily of public company expenses as well as payroll expenses from the operations of OneLove and Hygrow. Grow Solutions went public through a reverse merger in April 2015. Included in SG&A for the second quarter of 2016 were expenses related to the launch and ramp up of FutureTech, which develops proprietary products for smoke shops, dispensaries, and distributors. Interest and other expenses related to the issuance of convertible notes totaled $270,564 during the second quarter of 2016.
Net loss for the three months ended June 30, 2016 was $601,778 compared to $523,898 for the three months ended June 30, 2015.
"Grow Solutions made great strides during the second quarter with sales increasing 25% and 420% over the previous quarter and last year's second quarter, respectively," said Jeffrey Beverly, President and Director of Grow Solutions. "During the quarter, the management team continued to execute on our expansion strategy, completing the acquisition of Mile High Hydro, a full service online grow store. We also launched FutureTech, a new product division that sells higher margin proprietary products that is expected to quickly reach profitability. Grow Solutions is now at an annualized revenue run rate of approximately $8.0 million and we believe that we are well positioned to continue to execute our roll-up growth strategy to offer a comprehensive service solution for high-yield indoor agriculture growers."
About Grow Solutions Inc.:
Grow Solutions Holdings, Inc. (GRSO) is a publicly traded company providing comprehensive support services in the broad area of high-yield indoor agriculture, specializing though not limited to the regulated growing and processing of cannabis. The company's diversified platform of operations and services for this industry comprises the following three divisions: Growth Technologies, Consumer Technologies and Digital Properties. The vertical integration of GRSO's divisions, the horizontal integration of customers through the Company's divisions, and its sustainable acquisition strategy of profitable companies, earmarks the lucrative growth of GRSO in this ever burgeoning industry.
Forward-Looking Statements:
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission.
CONTACTS:
Grow Solutions
Rachel Wexler
Director of Administration
D: 917-780-2381
PCG Advisory Group
Stephanie Prince
Managing Director
D: 646-762-4518
SOURCE: Grow Solutions Inc.