Led by a Significant Increase in Duramed, Music City Botanical and Botanical Biotech Brands
Adjusted EBITDA Loss Decreased by 25% to $1.5 Million
HICKSVILLE, NY, Nov. 22, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Can B Corp. (OTCQB:CANB) (“Can B” or the “Company”), a health and wellness company specializing in developing, producing, and selling hemp-derived cannabinoid products, today announced the Company's financial results for the third quarter and nine months ended September 30, 2022.
Key Financial Highlights for Q3 2022
- Revenue increased 51% to $2.9 million
- Gross profit increased 36% to $1.9 million
- Gross margin decreased to 64.3%
- Adjusted EBITDA loss decreased by 25% to $1.5 million
- Accounts receivable at $7.0 million
- Inventory at $2.3 million
- Total assets at $16.7 million
- Total stockholders’ equity at $4.5 million
Key Financial Highlights for 9 Months Ended September 30, 2022
- Revenue increased 130% to $6.0 million
- Gross profit increased 59% to $2.8 million
- Gross margin decreased to 46.0%
- Adjusted EBITDA loss decreased by 15% to $4.5 million
Key Business Highlights for Q3 2022
- Signed Manufacturing and Distribution Agreement for Superfood Products with Forever Brands and Brooke Burke via BB Body, Inc.
- Consolidated Hemp Division Operations in Colorado
Management Commentary
Marco Alfonsi, Can B’s Chief Executive Officer, stated, “We are thrilled with our tremendous quarterly results, having achieved the highest quarterly revenue in our company history. We generated $2.9 million in quarterly revenue while reducing our cash burn as demonstrated by the 25% decrease in Adjusted EBITDA. Our team made great strides over the past several months integrating and ramping up the various operations we strategically acquired over the past year to complete our vertical processing capabilities.”
Alfonsi concluded, “We had a vision and were confident in the assets we were assembling over the past year. It is great to see all the challenging work pay off and result in accelerating revenue growth and a reduction in cash losses. With our proven manufacturing and distribution capabilities, we are now executing major strategic agreements, such as the recently announced deal with Brooke Burke. Since the end of the quarter, we have started taking orders and shipping Superfood Products with Brooke Burke and are very excited about the early demand and results. Can B is now a full-service hemp-derived cannabinoid company that can facilitate servicing large box retailers, boutique vape and smoke stores, and strategic partners.”
Manufacturing and Distribution Agreement for Superfoods Products with Forever Brands and Brooke Burke via BB Body, Inc.
The initial 3-year worldwide agreement covers the sale, manufacturing, and distribution of Superfoods and related nutritional products. Can B subsidiaries Imbibe Wellness Solutions is the exclusive direct-to-consumer seller of the products and Pure Health Products is a manufacturer and distributor of the products. The products will be marketed under the Longevity by Brooke Burke trademarks and brand. The partnership includes a powdered drink superfood mix, an all-natural metabolic energy drink, and other products that may be mutually agreed from time to time.
Brooke Burke, an American television personality, fitness personality, author, actress, and businessperson, will market, endorse, and promote the products as a monthly online subscription model under her company BB Body, Inc.
Subsequent to the end of the third quarter, the product launched.
Financial Results for the Three Months Ended September 30, 2021:
- Revenue: For the three months ended September 30, 2022, revenue was $2.9 million, an increase of $1.0 million, or 51%, compared with $1.9 million for the three months ended September 30, 2021. The increase is due to the ` winddown of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company’s Duramed product lines and ultrasound devices associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands related to an increase of sales compared to 2021 of approximately $1.5 million.
- Gross Profit: For the three months ended September 30, 2022, gross profit was $1.9 million, an increase of $0.5 million, or 36%, compared with $1.4 million for the three months ended September 30, 2021. The resulting gross margin was 64.3%, compared with 71.7% for the same quarter last year.
- Total Operating Expenses: For the three months ended September 30, 2022, total operating expenses were $8.7 million, an increase of $4.8 million, or 223%, compared with $3.9 million for the same quarter last year. The increase in operating expenses was primarily due to the non-cash stock-based compensation expense of $4.5 million and $0.8 million of other non-cash and non-recurring one-time items.
- Operating Loss: For the three months ended September 30, 2022, operating loss was $6.8 million, an increase of $4.3 million, or 271%, compared with an operating loss of $2.5 million for the same quarter last year.
- Adjusted EBITDA Loss: For the three months ended September 30, 2022, Adjusted EBITDA loss was $1.5 million, a decrease of $0.5 million, or 25%, compared with an Adjusted EBITDA loss of $2.0 million for the same period last year, after deducting non-cash and one-time expenses.
- Net Loss: For the three months ended September 30, 2022, the net loss was $6.9 million, or ($1.98) per share, compared with a net loss of $3.2 million, or a net loss of ($1.61) per share, for the three months ended September 30, 2021.
Financial Results for the Nine Months Ended September 30, 2022:
- Revenue: For the nine months ended September 30, 2022, revenue was $6.0 million, an increase of $3.4 million, or 130%, compared with $2.6 million for the same period last year. The increase is due to the winddown of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company’s Duramed product lines and ultrasound devices associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands related to an increase of sales compared to 2021 of approximately $2.2 million.
- Gross Profit: For the nine months ended September 30, 2022, gross profit was $2.8 million, an increase of $1.0 million, or 59%, compared with $1.7 million for the same period last year. The resulting gross margin was 46%, compared with 66% for the same period last year.
- Total Operating Expenses: For the nine months ended September 30, 2022, total operating expenses were $14.3 million, an increase of $5.7 million, or 243%, compared with $8.6 million for the same period last year. The increase in operating expenses was primarily due to the non-cash stock-based compensation expense of $5.1 million.
- Operating Loss: For the nine months ended September 30, 2022, operating loss was $11.6 million, an increase of $4.7 million, compared with an operating loss of $6.9 million for the same period last year.
- Adjusted EBITDA Loss: For the nine months ended September 30, 2022, Adjusted EBITDA loss was $4.5 million, a decrease of $0.8 million, or 15%, compared with an Adjusted EBITDA loss of $5.3 million for the same period last year, after deducting non-cash and one-time expenses.
- Net Loss: For the nine months ended September 30, 2022, net loss was $12.0 million, or ($3.56) per share, compared with $8.2 million, or ($5.39) per share, for the same period last year.
About Can B Corp.
Can B Corp. (OTCQB:CANB) is a health & wellness company providing the highest quality hemp-derived cannabinoid products, including under its own brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil, and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. Can B Corp. operates R&D and production facilities in Lacey, WA, and Florida. To learn more about Can B Corp. and our comprehensive line of high-quality products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
For more information about Can B Corp., please visit: CanBCorp.com
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Forward-Looking Statements
Forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape, or manner of our future financial condition or stock price. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of latest information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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