TORONTO, Aug. 29, 2019 /CNW/ - Mimi's Rock Corp.
(TSXV:MIMI) "The Company", an online dietary supplement and
wellness company operating the Dr. Tobias brand, today announced
its financial results for the quarter ended June 30, 2019.
For the three months ended June 30,
2019, the Company incurred a net loss of $1,240,051 compared to a net loss of $nil for the
three months ended June 30,
2018. For the three months ended June
30, 2019, EBITDA was $460,008,
compared to EBITDA of $nil for the three months ended June 30, 2018. Adjusted EBITDA, which
excludes non-cash share based compensation expense, investment
income and acquisition costs, was $1,382,117, compared to Adjusted EBITDA of $nil
for the same period in the prior year. For the six months
ended June 30, 2019, the Company
incurred a net loss of $848,134
($0.04 per share), compared to a net
loss of $nil ($0.00 per share) for
the six month period ended June 30,
2018. EBITDA for the six months ended June 30, 2019 was $1,557,921, compared to $nil EBITDA for the same
period in the prior year. Adjusted EBITDA was $2,700,637 for the six months ended June 30, 2019, compared to $nil for the same
period in 2018.
The Company reported a net loss for the three and six months
ended June 30, 2019 primarily due to
one-time costs related to its reverse takeover and public listing
expenses as part of the Qualifying Transaction completed in
May 2019, as well as non-cash
share-based compensation expense. Tax expense in the period
was also higher due to derecognition of tax loss carryforwards in
Germany as a result of the reverse
acquisition. During the second quarter, the Company began to
generate sales from its own e-commerce site, drtobias.com, as well
through additional online retail outlets. The Company also
launched a private label brand in conjunction with its e-commerce
channel partner.
Dave Kohler, CEO of Mimi's Rock
commented, "We are pleased that during the quarter, we executed
three important strategic initiatives as planned. We added a
new product family and opened a new online channel, in addition to
launching our own e-Commerce site. Together, these
accomplishments position us well to execute our scaling and
expansionary plans."
Revenues for the three months ended June
30, 2019 were $8,770,904,
compared to $nil for the three months ended June 30, 2018, due to the acquisition of the DTI
business in July 2018. Revenues
represent sales of nutraceutical products in the U.S. market. Gross
margin for the three months ended June 30,
2019 was $6,208,319 (70%)
compared to $nil for the three month period ended June 30, 2018. Gross margin ratios have
improved slightly on a quarter over quarter basis as the Company
works with its supplier to obtain better pricing and
efficiencies.
While the Company's sales do not experience significant
seasonality, there is some fluctuation on a quarterly basis due to
natural demand fluctuation as well as promotional impacts. The
Company continues to redevelop its brand strategy. As online
advertising in the period was scaled back to evaluate returns on
investment, sales volumes were somewhat lower while margins
remained consistent.
The Company incurred selling and marketing expenses of
$3,523,242, or approximately 40% of
revenue, for the three months ended June 30,
2019, compared to $nil for the three months ended
June 30, 2018. Sales and
marketing expenses for the period consist primarily of fulfillment
costs related to delivering products to customers, direct online
advertising placements, costs related to marketing the Dr. Tobias
brand and other promotional and awareness initiatives. The
Company will continue to actively monitor its selling and marketing
expenses, particularly those directly related to advertising and
expects that these will increase in relation to sales revenues
going forward.
General and administrative expenses for the three months ended
June 30, 2019 were $1,302,960, compared to $nil for the same period
in 2018. General and administrative expenses consist
primarily of salaries and benefits, professional fees, occupancy
costs and insurance. General and administrative expenses
in the current period have normalized somewhat now that one-time
costs associated with operational start-up and time and efforts
spent engaged in understanding and integrating the DTI business
have diminished. Share based compensation expense for the
three months ended June 30, 2019 was
$194,800 compared to $nil for the
three months ended June 30, 2018.
Share based compensation expense relates to awards under the
Company's incentive stock option plan and is based on the estimated
number of awards that will eventually vest using the Black-Scholes
option pricing model.
On May 27, 2019, the Company
completed its Qualifying Transaction pursuant to an amalgamation
agreement between the Company and Mimi's Rock Inc. The
Qualifying Transaction constituted a reverse take-over ("RTO") for
accounting purposes, as former MRI shareholders hold a majority of
outstanding shares in the Company, the Board of Directors is
comprised of MRI Board members and the senior management of MRI
became senior management of the Company. Although the Company will
be regarded as the legal parent, MRI is considered to be the
acquirer for accounting purposes. Consequently, the Company
is deemed to be a continuation of MRI. As a part of the
Qualifying Transaction, the Company changed its name from "Commerce
Acquisition Corp." to "Mimi's Rock Corp."
Listing expenses related to the acquisition and reverse takeover
transaction for the three months ended June
30, 2019 were $697,787,
compared to $nil for the same period in the prior year.
Listing expenses consist primarily of legal, accounting and other
professional fees associated with the reverse takeover and
amalgamation, as well as non-cash costs related to equity
instruments issued for the acquisition.
Interest and financing costs of $533,475 were incurred during the three months
ended June 30, 2019, compared to $nil
for the three months ended June 30,
2018. Interest and financing expenses in the current quarter
include approximately $189,644 in
non-cash charges related to amortization of expenses incurred in
securing the Company's senior secured loan, as well as $88,212 related to dividends in kind paid on the
Preferred B shares prior to conversion in connection with the
reverse takeover transaction.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
About Mimi's Rock Corp.:
Mimi's Rock Corp. is an online dietary supplement and wellness
company operating under the Dr. Tobias brand. The brand features
over 30 products including the top selling colon cleansing product
and the #1 selling Omega 3 Fish Oil on Amazon.com. Mimi's Rock
currently serves customers in the United
States and has rapid growth plans to expand into other
markets. For more information, visit
https://mimisrock.com.
Forward-Looking Information
This news release includes "forward-looking information," as
such term is defined in applicable securities laws. Forward-looking
information includes, without limitation, Mimi's Rock Corp.'s
business and business results, goals or outlook, risks associated
with financial results and stability, development projects such as
those referenced herein, sales to foreign jurisdictions,
engineering and construction, production (including control over
costs, quality, quantity and timeliness of delivery), foreign
currency and exchange rates, maintaining adequate working capital
and raising further capital on acceptable terms or at all, and
other similar statements concerning anticipated future events,
conditions or results that are not historical facts. These
statements reflect management's current estimates, beliefs,
intentions and expectations; they are not guarantees of future
performance. The Company cautions that all forward looking
information is inherently uncertain and that actual performance may
be affected by a number of material factors, many of which are
beyond the Company's control. Accordingly, actual future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. All statements are made as of the date
of this news release and represent the Company's judgement as of
the date of this new release, and the Company is under no
obligation to update or alter any forward-looking information.
Please visit www.mimisrock.com or www.sedar.com for
recent Mimi's Rock Corp. filings.
SOURCE Mimi’s Rock Corp.