DENVER, CO / ACCESSWIRE / November 15, 2016 / Medicine Man Technologies Inc. (OTCQB: MDCL), one of the country's leading cannabis branding and consulting companies announced yesterday via a 10Q filing that it had achieved a profitable third quarter of operations.
During the three months ended September 30, 2016, we generated a net income of $18,752 on revenues of $236,593, including consulting/licensing fees of $233,500, with the balance of fees arising from our participation in cannabis seminars, compared to revenue of $241,140 during the similar period in 2015, a decrease of $4,547. This nominal decrease was primarily attributable to a decrease of $28,047 in revenue derived from seminar fees during the three months ended September 30, 2016, due to our participation is less seminars. However, licensing fees increased by $27,000 during the three months ended September 30, 2016 compared to the similar period in 2015. Based upon executed consulting agreements, we expect to recognize substantial deferred income in future quarters related to existing service agreements that have payment triggers.
During the three months ended September 30, 2016 and through the date of this filing, the Company has added fourteen (14) new clients representing business interests in California, Florida, Maryland, Oregon, Puerto Rico, and Pennsylvania. The Company has seen a recent surge in interest in the newly approved State of Pennsylvania as that state works to complete its rules making and application process as associated with the passage of SB3 in April of 2016 and has subsequently closed out accepting new clients in that state.
The Company reaffirms that it has entered into an Interim Products and Services Support Agreement with Pono Publications and Success Nutrients that will allow both companies to work together synergistically while the final details of the acquisition are worked out. The Company also confirms that it is working on the acquisition of Capital G (Funk Sack and Odor No), having also entered into early discussions with other potential acquisition partners in continuing to build out its brand warehouse concept.
The Company acknowledges that it has recently launched a new product branded Cultivation MAX, wherein we are providing cultivation advisory services to existing operators desiring to increase their yields through deployment of our combined efficiencies. We anticipate revenues related to this new deployment to include design fees as well as income derived by formula arising from the anticipated improvement experienced in our client's cultivation practices. While no specific assurances can be provided, we believe this future income stream may be substantial based upon current performance levels noted in the cannabis cultivation landscape within states allowing for access of such related products.
The Company will also have a very strong presence as a Platinum Level Sponsor of the industry's largest conference held in Las Vegas, Nevada this week as held by Marijuana Business Daily noting information for this event that can be found at https://mjbizconference.com/. Mr. Josh Haupt, founder of Pono Publications and Success Nutrients will be a featured speaker at this event where we expect to generate a substantial number of new business contacts given the successful outcome of the recent election cycle where eight new state initiatives were passed.
Both Andrew Williams (CEO) and Brett Roper (COO) noted that while they were pleased with these recent developments they remain focused on building the Company up to a consistent level of performance that would qualify it for listing on a higher exchange at some future date.
About Medicine Man Technologies
Established in March 2014, the Company secured its first client/licensee in April 2014. To date, they have provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. It currently has twenty-seven active clients in 13 states (including Puerto Rico), focusing on working with licensees and clients to 1) utilize its experience, technology, and training to help secure a license, 2) deploy the Company's highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, and 4) stay engaged with an ever expanding team of licensees and partners all focused on quality and safety that will 'share' the ever improving experience and knowledge of the network.
Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks as well as uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues as well as any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Company may not be able to sustain growth or achieve profitability based upon many factors including but not limited to general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing as well as new service lines noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations we will be providing services in, the impact of which cannot be predicted at this time.
Contact Information:
Attention Brett Roper via [email protected]
Telephone (303) 371-0387
Website www.medicinemantechnologies.com
SOURCE: Medicine Man Technologies Inc.