CannaVest Reports First Quarter 2014 Financial Results
LAS VEGAS, May 20, 2014
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.
CannaVest Corp - The World's Leading Industrial Hemp Supplier.
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
increaserevenues 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.
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.
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 andis 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]
CANNAVEST CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
Product Sales $ 2,631,869 $ 1,082,375
Cost of Goods Sold 1,021,003 205,450
Gross Profit 1,610,866 876,925
Selling, general and administrative 924,365 194,392
Research and development 151,021 –
Total operating expenses 1,075,386 194,392
Operating income 535,480 682,533
Interest expense (net) (615,344) –
Loss on equity investment (38,552) –
Income (Loss) before income taxes (118,416) 682,533
Provision for income taxes – –
NET INCOME (LOSS) $ (118,416) $ 682,533
Earnings (loss) per Share $ (0.00) $ 0.09
Weighted Average Number of Shares – Basic & 26,343,641 7,616,584
CANNAVEST CORP. AND SUBSIDIARIES
BALANCE SHEET DATA
March 31, 2014 December 31, 2013
Cash $ 8,372,181 $ 2,243,670
Working capital 15,562,338 7,633,717
Total assets 21,711,200 14,232,028
Total liabilities 269,983 5,925,220
Stockholders' equity 21,441,217 8,306,808
SOURCE CannaVest Corp.
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