CannaVest Corp – The World’s Leading Industrial Hemp Supplier. (PRNewsFoto/CannaVest Corp.) LAS VEGAS, 7 de abril de 2014 /PRNewswire/ — CannaVest Corp. (“CannaVest” o “la compañía”) (OTCBB: CANV) publicó los resultados financieros para el cuarto…
LAS VEGAS, April 7, 2014 / PRNewswire / – CannaVest Corp. (” CannaVest ” or the “Company ” ) ( OTCBB: canv ) released financial results for the fourth quarter of 2013 and full year ended December 31 , 2013.
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Financial Highlights for FY 2013:
Product sales 2,154 million
Gross margin of 59.1 %
Operating expenses of $ 2.891 million
Operating loss of $ 1.617 million
Net loss of $ 2.3 million , representing a loss of $ 0.23 per share
Invested $ 750,000 to acquire 24.97% of the outstanding value KannaLife Sciences, Inc. , a leading fitomédica company specializing in the development of pharmaceutical products derived from plants.
Acquired certain assets of Phytosphere Systems in exchange for 5,825,000 shares of common stock and $ 950,000 in cash
The President and CEO of CannaVest , Michael J. Mona , Jr. said CannaVest 2013 performance . “I am delighted with our progress in 2013 product sales were started in the third quarter and started to gain traction throughout the year. hope to continue the current progress and growth in 2014 as we continue to expand our product lines , expanding our sales network and boosting our management team. we have been successful in securing large quantities of product to give us a number of opportunities for expansion ” .
The company does not present an overview of its financial performance in the fourth quarter compared to previous quarters or because it has concluded that such comparisons would be wrong. Management has determined that the previously issued financial statements in the company’s quarterly reports on Form 10- Q for the quarters ended March 31, 2013 , the June 30, 2013 and September 30, 2013 (the ” Model 10-Q ” ) should be corrected by the errors associated with the allocation of the purchase price to the assets acquired related Phytosphere Systems. Specifically , management determined that the allocation of the purchase price as previously disclosed on Form 10 – Q did not meet the generally accepted accounting principles ( “GAAP” ) .
The company is in the process of preparing the amended quarterly reports on Form 10- Q for the quarters ended March 31, 2013 , June 30, 2013 and September 30, 2013 . The decision to modify the information was taken with the signing of independent registered public accounting of the company and was made after the discovery of such errors in the information disclosed .
Financial Results for the year ended December 31, 2013
Product Sales of $ 2,154,063 and a gross profit of 1,273,593 , representing a gross profit percentage of 59.1 % for the year ended December 31, 2013 compared to the absence of sales or cost of revenue during 2012. This is the result of the company was restructured in late 2012 and its new business strategy implementase product and sell health and wellness products based natural cannabidiol (CBD ) cannabis.
The selling, general and administrative expenses for the year ended December 31, 2013 were $ 2,366,450 compared to $ 43,018 for the year ended December 31, 2012 . The $ 2,323,432 increase in expenses related to sales , marketing , administrative, legal and accounting associated with implementing the new business model of the company for 2013. Expenses for the year ended December 31, 2013 also included a $ 400,000 provision for bad debts and $ 753,500 in amortization related to intangible assets acquired as part of the asset purchase Phytosphere Systems, LLC which closed during 2013. the company had no intangible assets during 2012 .
The research and development costs for the year ended December 31, 2013 were $ 524,476 . The company did not incur research and development expenses for the year ended December 31, 2012 . These costs included the cost of our laboratory facilities , supplies , personnel and inventory used in developing and amounts paid to third parties for the development of products and processes. The company had not launched all these activities during 2012 .
Interest expense totaled $ 372,109 for the year ended December 31, 2013 compared to interest expense of $ 2,593 for the year ended December 31, 2012 . The interest for the current year included $ 161,583 of interest payable on bonds acquired Ventures Roen more like $ 210,526 discount amortization calculated on a note payable to Roen Ventures , LLC related to a type of beneficial conversion.
A loss of $ 310,754 in our investment in KannaLife Sciences, Inc. This represents our pro rata shares of the total loss for the year ended KannaLife type the December 31, 2013 .
An increase in assets $ 2,243,239 $ 2,243,670 up to .
Totaling $ 4,879,234 were used in operating activities , compared to $ 64,084 for the year ended December 31, 2012 . Totaling $ 2,602,166 were used in increasing the inventory and prepaid inventory . In addition , $ 174,317 was used for prepaid expenses, $ 1,744,064 in use due to the increase in accounts payable . This was overshadowed in part by the increase in accounts payable of $ 24,622 and expenses of $ 222,703 acquired . For the year ended December 31, 2013 , net loss minus depreciation and amortization of assets managed use of $ 1,532,942 compared to $ 45,611 in the year ended December 31, 2012 . Assets used in operating activities included the reduction of accounts payable and expenses acquired $ 20,223 , partially offset by the reduction in prepaid expenses of $ 1,750 .
For the year ended December 31, 2013 , the company used $ 1,875,819 in investing activities . This includes assets received for the acquisition of assets $ 50,775 , 226,594 fewer assets used to purchase equipment , $ 950,000 paid to Phytosphere Systems for the purchase of assets , plus $ 750,000 invested in KannaLife Sciences. No assets are used or provided by investing activities for the year ended December 31, 2012 .
A total of $ 8,998,292 was provided for financing activities for the year ended December 31, 2013 , which included the benefits of loan Roen Ventures , LLC for $ 6,192,069 , $ 2,731,423 received from the sale regular stock and received 175,000 ordinary stock issued in 2014 . This was partially offset by the repayment of $ 100,000 for Roen Ventures , LLC . For the year ended December 31, 2012 , the net assets flow from financing activities included $ 63,347 in related party loan benefits.
For a superior debate about the financial results of the company for the year ended December 31, 2013 refer to the consolidated financial statements of the company and related administrative discussion and analysis , or www.cannavest.com available through EDGAR at www.sec.gov / edgar / searchedgar / webusers.htm .
About CannaVest Corp.
CannaVest is in the business of investment and development companies based cannabinoids in marijuana. CannaVest develops, produces , markets and sells products to final consumers within the nutraceutical industry plant extract containing marijuana , cannabidiol ( CBD). The company also sold to third parties for products purchased CannaVest gross Corp. after its supply relationships in Europe. CannaVest Corp. searches take advantage of the emerging global trend to re- energize the industrial production of marijuana and enhance its many uses for consumers. Cannabinoids (cannabidiol / CBD ) are natural constituents of the marijuana plant , and CBD derived stem and marijuana seeds. More information is available by visiting OTCMarkets.com or visiting the website www.cannavest.com .
Unveiling ADMINISTRATION OF DRUGS AND FOODS (FDA )
These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease.
This 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 , pending the safe harbor created by these sections. This material contains forward-looking statements about expected future events and / or financial results that are forward-looking in nature and are subject to risks and uncertainties. These forward-looking statements by definition involve risks , uncertainties and other factors that could cause actual results from the study , performance or achievements of CannaVest Corp. to be materially different from the statements made here .
CannaVest Corp. will not sell or distribute any product in violation of the United States Controlled Substances Act ( US.CSA ) . The company cultivates , sells and distributes marijuana -based products and is involved with the distribution of federally -based legal medical marijuana in certain international markets. Cannabidiol is a natural constituent of cannabis oil .
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