BEND, Ore., May 16, 2018 /PRNewswire/ -- EVIO Inc. (OTCQB: EVIO) ("EVIO" or "the Company") a leading provider of cannabis
testing and scientific research for the regulated cannabis industry, announces its financial and operating results for the
quarter and six months ended March 31, 2018.
Second Quarter Fiscal 2018 Financial Summary
- Second quarter revenue was $732,311, a decrease of $56,415 or
12.1% from second quarter last year.
- Second quarter gross loss was $66,077, a decrease of $284,800
or 130.2% from second quarter last year.
- Second quarter testing revenue was $689,011, a decrease of $56,415 or 7.6% from second quarter last year.
- Second quarter cash position has increased to $3,021,247.
Six Months Ending March 31, 2018 Financial Summary
- Six months revenue was $1,679,176, an increase of $177,997 or
11.9% from the first six months of last year.
- Six months gross profit was $144,525, a decrease of $152,575 or
51.4% from the first six months of last year.
- Six months testing revenue was $1,576,360, an increase of $262,356 or 20.0% from the first six months of last year.
Executive Commentary
"EVIO's second quarter focused greatly on broadening the Company's portfolio. With our recent private placement of
$5.973 million, we expanded the Company's footprint by acquiring additional labs, namely in
California, a market that we have identified as having unparalleled potential," said
William Waldrop, CEO of EVIO. "We expect the state of California
to enforce mandated compliance testing by July 1, 2018. With operational facilities in both
Humboldt and Berkeley and the goal of further expansion into
the state, we feel like EVIO is well-positioned to meet California's demand for cannabis
testing. Another significant milestone was our entrance into the Canadian market and launched EVIO Canada with the acquisition of
Keystone Labs ahead of the country's legalization of adult recreational use this summer," said Waldrop.
In the second quarter, the company invested $800,000 in new equipment upgrades at its EVIO Labs
Massachusetts facility and its EVIO Labs Colorado licensee. The state-of-the-art upgrades will substantially increase testing
volumes, resulting in enhanced operating productivity and revenue growth. Waldrop says, "With investments in the most advanced
lab equipment and the best, most qualified personnel, we are confident that this investment will improve the efficiency and speed
of our cannabis testing operations within these jurisdictions for our valued customers and improve our financial performance for
our valued shareholders. We have also made substantial headway in obtaining ISO 17025 accreditations in our operational
facilities."
The decrease in testing revenue for the second quarter ending March 31, 2018 was due to a few
factors. In Oregon the cannabis market has experienced softening due to excess cannabis
inventory. In California, growers and distributors are taking advantage of the non-mandated
testing grace period selling current harvested inventory. July 1st testing deadline will mandate
licensed retailers to sell only lab tested product. "We have taken the tactical strategy to have expansion plans to support
the demand for analytical testing services required," Waldrop says.
"We have also built out our management team as we embark upon our next stage of rapid growth. As we enter Q3, the Company will
continue to build on our already strong foundation," Waldrop stated.
About EVIO Inc. (OTCQB: EVIO)
EVIO Inc. is a leading provider of cannabis testing and scientific research for the regulated cannabis industry. The Company's
EVIO Labs division operates coast-to-coast providing state-mandated ancillary services to ensure the safety and quality of the
nation's cannabis supply. EVIO is on track to have 18 of its state-of-the-art testing facilities by year-end 2018.
For more information, visit www.eviolabs.com.
Safe Harbor Statement
Any statements in this press release that are not statements of historical fact may be considered to be forward-looking
statements. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans,
performance and developments, as well as other statements relating to future operations and results. Words such as "may," "will,"
"expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or
similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future
results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty
of future financial results, additional financing requirements, development of new products, our ability to complete our product
testing and launch our product commercially, the acceptance of our product in the marketplace, the uncertainty of the laws and
regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic
conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission,
available at www.sec.gov or www.eviolabs.com.
CONTACT INFORMATION
Company Contact:
Cheryl Kramp
Director of Marketing
EVIO Inc.
888.544.EVIO
info@EVIOLabs.com
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SOURCE EVIO Inc.