Third Quarter 2020 Highlights
- Total Net Revenue of $678,050
- Achieved Gross Profit of $114,529
- Continuation of Sales & Marketing Buildout
- Alibaba Storefront Launch
DELRAY BEACH, FL / ACCESSWIRE / November 19, 2020 / Exactus, Inc. (OTCQB:EXDI) (the "Company") a leading supplier of hemp-derived ingredients (CBD/CBG) and feminized hemp genetics, reported its financial results for the third quarter 2020.
During the third quarter of 2020, and through a time of pandemic, Exactus continued to generate year over year revenue growth up from $60,153 in the third quarter of 2019 to $678,050 in the third quarter of 2020, producing a gross profit of $114,529 for the quarter ended September 30 2020.
As the company continues to grow its digital sales infrastructure, it has invested into its back end systems to strengthen the foundation of the global sales platform that supports the company's objectives for long term growth and scalability including the launch of the Exactus Alibaba storefront. The sector is maturing and taking a turn for the positive. The industry as a whole has experienced a major influx of investment into the space resulting in a recent departure of overleveraged companies. The company is pleased to see that consumer demand is growing, resulting in new opportunities for Exactus including distressed assets and underserved markets.
The company is proud to announce its first profitable quarter. Exactus achieved this through the reduction of operational expenses and liabilities, continued build out of marginable revenue, and development of new distribution channels including outsourced logistics and automation of the sales processes for scalable revenue growth.
Emiliano Aloi, Interim CEO of Exactus stated, "We see renewed energy in the space, from investors to consumer markets. Our processes are streamlined from outreach all the way to fulfillment. With these new tools in place, our team can scale up sales and plug in new skus in a much faster, cost efficient, and organized manner. We have a clear direction, expanding supply chain, and growing sales. We look forward to ending the year strong, and on track with our M&A growth strategy as we make Exactus healthier, leaner, and more profitable."
Third Quarter 2020 Financial Summary
Total net revenue for the third quarter 2020 was $678,050 versus $60,153 in the third quarter of 2019. The increase in revenue was primarily attributable to a new customer who represented approximately 24% of the Company's net sales in the quarter ended September 30, 2020. Net loss for the quarter was -$3,056,718 versus -$2,025,768 million in the prior year. The net loss for the third quarter 2020 was due, primarily, to a non-cash impairment of intangible assets related to farm leases due to management's intent of not pursuing further farm operations in Oregon.
To learn more about Exactus, Inc., visit the website at www.exactushemp.com.
Exactus Inc. (OTCQB:EXDI) is a leading producer and supplier of hemp-derived ingredients and feminized hemp genetics. Exactus is committed to creating a positive impact on society and the environment promoting sustainable agricultural practices. Exactus specializes in hemp-derived ingredients (CBD/CBG/CBC/CBN) and feminized seeds that meet the highest standards of quality and traceability. Through research and development, the Company continues to stay ahead of market trends and regulations. Exactus is at the forefront of product development for the beverage, food, pets, cosmetics, wellness, and pharmaceutical industries.
For more information about Exactus: www.exactushemp.com.
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our most recent Form 10-K for the fiscal year ended December 31, 2019 filed with the Securities and Exchange Commission (the "SEC") on May 22, 2020, and in other periodic and current reports we file with the SEC. If any of these risks were to occur, our business, financial condition, or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor" below.
Safe Harbor - Forward-Looking Statements:
The information provided in this press release may include forward-looking statements relating to future events or the future financial performance of Exactus, including statements concerning harvest expectations, the impact of Exactus' acquisition of Green Goddess, LeVor Collection, and interests in the 2019 harvest on its supply and product line expansion, Exactus' ability to monetize its harvest, Exactus' ability to expand its product lines and brands, the amount of future orders for Exactus products, and Exactus' future revenue, gross margins and working capital. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "plans," "expects," "intends," "will," "potential," "hope" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of Exactus and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to Exactus may be found in Exactus' periodic and current filings with the SEC, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which such statement is made, and Exactus does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Chief Strategy Officer
SOURCE: Exactus Inc.