More and more people are talking about cannabidiol, or CBD as it is more commonly known. As a treatment for pain, to mental health, to acne, interest is higher than ever in what this chemical compound is capable of.
According to a letter published by JAMA Network Open, millions of Americans are equally or more interested in CBD than they are in any other health products and topics.
In taking that interest from the internet to the street, where can someone continue and enhance their search? An established CBD life sciences Company, that is also a multi-state operator of medical health & wellness clinics has an answer.
Empower Clinics Inc. (CSE: CBDT, OTCQB: EPWCF, Forum) is seeing this surge of interest first-hand. The Company is advancing its business through market leading technology, a swath of new products and the launch of a nationwide health franchise.
Further details were revealed when CBDT released its Q3 2019 financial report in November 2019. In the Company’s update to the public, it highlighted year-over-year revenue growth of roughly 137% and total direct clinic expenses reduced by around 40%. The number of patients has also been increasing, with 5,807 visits, which generated revenue of $663,003. This is a substantial increase compared to the 1,864 patient visits that generated $279,850 in Q3 2018. Empower also improved its cash flow for operating activities by reducing cash used in operations by more than $1.3 million over this time, to ($1,819,670) for 2019 year to date, compared to ($3,129,583) for year to date 2018.
This increase over the prior year can be attributed to the acquisition of the Sun Valley Health clinic network, CBDT has recently been expanding its services , including CBD product sales in-clinics and online, and now have launched expanded physician based services and modalities. Despite the increase in revenues, direct clinic expenses declined due to improved operational controls to align labor cost with direct patient consultations. The Company employs a diverse mix of physicians and practitioners.
Financial Summary:
|
$, except patient visits
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2019
|
2018
|
2019
|
2018
|
|
Patient visits
|
5,807
|
1,864
|
11,304
|
6,293
|
|
Clinic revenues
|
663,003
|
279,850
|
1,406,872
|
894,477
|
|
Direct clinic expenses
|
(55,397)
|
(88,956)
|
(177,560)
|
(301,392)
|
|
Loss from operations
|
(843,897)
|
(405,048)
|
(2,547,276)
|
(3,716,474)
|
|
Net loss
|
(504,531)
|
(378,657)
|
(2,359,579)
|
(5,132,848)
|
|
Net loss per share
|
0.00
|
(0.01)
|
(0.02)
|
(0.09)
|
Serving 165,000 patients in its database, Empower Clinics has been transforming its overall strategy to become a vertically integrated health and wellness brand that uses data to connect to its patients with products, technology and health systems. This update in strategy included the launch of new physician-based modalities and it has commenced booking appointments and providing the new services. With each new service, the Company sees the opportunity for increased patient retention, as well as higher revenue per patient visit and increased patient visits every year.
Empower has been plugging away at keeping costs under control and maintaining a consistent operational standard, as Company Chairman & CEO Steven McAuley puts it, over time revenues and patient visits have been going up while direct clinic expenses have gone down.
“The Company is beginning to fulfill its promise of vertical integration with the build-out of the extraction and production center in Portland, OR plus with an increased focus on our proprietary CBD product lines and diversified clinic revenues, the Company has a clear path of growth and profitability going forward.”
It has been a busy quarter in a busy year for Empower Clinics. CEO McAuley noted that the Company has opened its first hemp-derived CBD extraction facility in greater Portland. Since taking possession of this new extraction facility in June, it has been awarded its hemp-handlers licence from the Oregon Department of Agriculture, allowing Empower to enter the next phase of build-out and full operations.
The first extraction system is expected to have the capacity to produce approximately 6,000 kg of extracted product per year. Looking ahead, it expects preliminary production of its Sollievo CBD line to take place in the extraction centre in Q1 2020. CBDT recently added to this when it formed a joint venture with Heritage Cannabis (CSE: CANN) to produce hemp-derived CBD oils and formulated products in Oregon.
empowerclinics.com
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.