LAS VEGAS, May 20, 2014 /PRNewswire/ -- CannaVest Corp. -
("CannaVest" or "the Company") (OTC:BB CANV) is reporting financial
results for the quarter ending March 31,
2014.
Logo -
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During this time, CannaVest made tremendous progress, including
an expansion of its laboratory and administrative facilities,
expanding its team to support marketing and public relations, and
establishing a solid domestic industrial hemp cultivation and
production infrastructure.
"This is an exciting time for CannaVest and our team," said
Michael Mona, President and Chief
Executive Officer of CannaVest Corp. "By making key investments in
our team, and infrastructure we can be laser focused on increasing
awareness and understanding of industrial hemp as a vital
commodity. From here, we intend to build on the first quarter, and
increase revenues throughout the year."
First Quarter 2014 Operating Results
The Company's net loss for the first quarter of 2014 was
$118,416, or $0.00 per share (basic and diluted), compared to
a net income of $682,533, or
$0.09 per share (basic and diluted)
for the same period in 2013.
The net loss for the first quarter 2014 included $589,474 in amortization of a discount on the
note payable and accrued interest of $25,870 for the quarter related to the note
payable to Roen Ventures, LLC, which was converted to 10 million
shares of common stock during the quarter. Net income from
operations was $535,480 for the
quarter ended March 31, 2014 and
$682,533 for the same period in
2013.
Selling, general and administrative expenses for the first
quarter of 2014 were $924,365
compared to $194,392 for the same
period in 2013. The increase was related to the continued growth of
the operations of the Company, additional personnel related to
farming operations, web development and increased legal and
marketing costs.
Research and development costs for the first quarter of 2014
were $151,021. This includes the cost
of process development, rental of laboratory space, personnel
costs, laboratory supplies, product development and testing.
Balance Sheet Highlights
As of March 31, 2014, the Company
has cash of $8.372 million.
Stockholders equity amounted to $21.441
million as of March 31,
2014.
For a further discussion of the Company's financial results for
the period ended March 31, 2014,
please refer to the Company's consolidated financial statements and
related Management Discussion and Analysis, which can be found at
www.cannavest.com or EDGAR at
www.sec.gov/edgar/searchedgar/webusers.htm.
About CannaVest Corp.
CannaVest Corp. is in the business of investing and developing
hemp-based cannabinoid companies. CannaVest develops, markets and
sells end-consumer products to the nutraceutical industry
containing the hemp plant extract, cannabidiol (CBD). Additionally
the company resells to third parties raw product acquired by
CannaVest Corp. pursuant to its supply relationships in
Europe. CannaVest Corp. seeks to
take advantage of an emerging worldwide trend to re-energize the
production of industrial hemp and to foster its many uses for
consumers. Cannabinoids (cannibidiol/CBD) are natural constituents
of the hemp plant, and CBD is derived from hemp stalk and seed.
Additional information is available from OTCMarkets.com or by
visiting www.cannavest.com.
About CannaVest Laboratories
CannaVest Laboratories is a global phytocannabinoid
biotechnology company and a wholly-owned subsidiary of CannaVest
Corp. The company utilizes advanced cultivation methods and
state-of-the-art processing technology leading to development of
pharmaceutical, nutraceutical and food products.
About US Hemp Oil
US Hemp Oil seeks to develop the
United States industrial hemp industry. The company is
dedicated to the procurement, processing, marketing and
distribution of bulk wholesale hemp seed, hemp oil, protein, food
and hemp body care products. US Hemp Oil currently has three
brands: RSHOTM, CibadermTM, and CibdexTM. US Hemp Oil is determined
to bring hemp products into the mainstream by creating greater
public awareness of and media exposure for the exceptional
nutritional profile of hemp and the environmental benefits of
growing industrial hemp. For more information, please visit:
USHempOil.com.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking
statements and information, as defined within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and is subject to the Safe Harbor
created by those sections. This material contains statements about
expected future events and/or financial results that are
forward-looking in nature and subject to risks and uncertainties.
Such forward-looking statements by definition involve risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of CannaVest Corp. to be
materially different from the statements made herein.
LEGAL DISCLOSURE
CannaVest Corp. does not sell or distribute any products that
are in violation of the United States Controlled Substances Act
(US.CSA). The company does grow, sell and distribute hemp-based
products and is involved with the federally legal distribution of
medical marijuana-based products within certain international
markets.
Corporate Contact: CannaVest Corp. 2688 S. Rainbow Blvd., Ste. B
Las Vegas, NV 89146 Office:
866-290-2157
[Tables to Follow]
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CANNAVEST
CORP. AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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Unaudited
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For the
three months ended
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March
31,
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2014
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2013
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Product Sales
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$
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2,631,869
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$
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1,082,375
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Cost of Goods Sold
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1,021,003
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205,450
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Gross
Profit
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1,610,866
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876,925
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Operating Expenses:
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Selling, general and
administrative
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924,365
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194,392
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Research and
development
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151,021
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–
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Total operating
expenses
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1,075,386
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194,392
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Operating income
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535,480
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682,533
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Other expenses:
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Interest expense
(net)
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(615,344)
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–
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Loss on equity
investment
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(38,552)
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–
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Income (Loss) before income
taxes
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(118,416)
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682,533
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Provision for income
taxes
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–
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–
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NET INCOME (LOSS)
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$
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(118,416)
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$
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682,533
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Earnings (loss) per
Share
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$
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(0.00)
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$
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0.09
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Weighted Average Number of
Shares – Basic & Diluted
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26,343,641
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7,616,584
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CANNAVEST
CORP. AND SUBSIDIARIES
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BALANCE
SHEET DATA
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Unaudited
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March 31,
2014
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December 31,
2013
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Cash
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$
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8,372,181
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$
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2,243,670
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Working capital
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15,562,338
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7,633,717
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Total assets
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21,711,200
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14,232,028
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Total liabilities
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269,983
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5,925,220
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Stockholders' equity
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21,441,217
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8,306,808
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