Marijuana Company of America Inc. (OTC:MCOA) announced on Tuesday its financial results and other financial highlights for the third quarter and nine months ending September 30, 2022.
Jesus Quintero, the company's CEO, said that the company is "aggressively pursuing M&A activity as there are numerous opportunities of distressed cannabis companies."
Q3 2022 Financial Highlights
- Total revenues were $142,394 for the third quarter that ended September 30, 2022, as compared to $442,178 for the third quarter ended September 30, 2021.
- Gross profit increased to $84,194, generating 59.1% in gross margin, compared to a gross profit of $63,687 for the same period that ended September 30, 2021, representing 14.4% in gross margin.
- Operating expenses decreased to $976,961 as compared to $1.48 million for the same quarter of 2021, representing a substantial 34.1% reduction in operating expenses.
- Decline in the operating loss to $892,767 as compared to $1.42 million for the corresponding quarter of last year, representing a 37.1% improvement.
- Total net loss increased to roughly $4 million for the three months ended September 30, 2022, compared to $1,764,591 for the three months ended September 30, 2021, representing an increase of $2,172,950.
Year-To-Date Financial Highlights
- Revenues were $962,343 as compared to $493,988 for the nine months ended September 30, 2021, representing a 94.8% increase year-over-year.
- Gross profit increased to $355,282, generating 37% in gross margin, compared to a gross profit of $87,016 for the same period last year, representing an 18% in gross margin.
- Operating expenses declined to $3 million as compared to $3,315,719 for the same period in 2021, representing a 1.0% reduction in operating expenses.
- Net loss increased to $10 million for the nine months ended September 30, 2022, compared to a net loss of $7.25 million for the same period in 2021, an increase of $2,815,733.
- Total assets decreased to $3.46 million as of September 30, 2022, from nearly $8 million as of December 31, 2021.
- The company's total current liabilities increased to around $9 million as of September 30, 2022, as compared to $7.72 million for the year ended December 31, 2021, representing a 16.2% increase in debt.
"MCOA shareholders should be happy with the overall 34% decline in operating expenses and cash expenditures so far this year," Quintero said. "This is due to our focus on efficiency and scaling back overhead. We are also pleased with the increase in our gross margins at 59%."
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