Highlights of Medical Marijuana, Inc.’s achievements include year over year Q2 revenue growth from 2018 to 2019 of 30% and 13 out of 14 quarters of sequential revenue growth.
Medical Marijuana, Inc. continued our growth trend in Q2 of 2019 by increasing our sales revenue, while also reducing our operating costs. Our company earned record revenue of $20.7 million in the second quarter of 2019, a 30.8% increase over the same quarter in 2018. This second quarter sales growth reflects our company’s international and domestic expansion into all sales channels, including direct-to-consumer, wholesale, and direct selling distribution routes.
Medical Marijuana, Inc. Q2 Results
- Q2 2019 – $20.7 million
- Q2 2018 – $15.8 million
Cost of Goods Sold:
- Q2 2019 – $5.3 million, which represents 25.7% of sales
- Q2 2018 – $6.2 million, which represents 39.5% of sales
- Q2 2019 – $15.3 million
- Q2 2018 – $9.6 million
- Q2 2019 – 74.3%
- Q2 2018 – 60.6%
Sales & Marketing Expense (includes direct selling commissions):
- Q2 2019 – $10.9 million, which represents 53% of sales
- Q2 2018 – $8.2 million, which represents 52% of sales
General & Administrative Expense:
- Q2 2019 – $3.5 million, which represents 16.9% of sales
- Q2 2018 – $3.4 million, which represents 21.6% of sales
Net Ordinary Income/(Loss):
- Q2 2019 – $.09 million
- Q2 2018 – ($2.0 million)
Keep reading for the biggest news from Medical Marijuana, Inc. and our portfolio of companies and investments that drove our success in Q2.
Medical Marijuana, Inc. CEO Speaks Before FDA
Medical Marijuana, Inc. CEO Dr. Stuart Titus addressed the U.S. Food and Drug Administration (FDA) on Friday, May 31, during the agency’s special public hearing to gather opinions on the regulation of cannabidiol (CBD).
The first-of-its-kind FDA Public Hearing on Scientific Data and Information about Products Containing Cannabis or Cannabis-Derived Compounds was meant to collect information about cannabis and its non-intoxicating compound CBD. Following the passage of the 2018 Farm Bill that clarified hemp CBD’s legal status in December, U.S. regulators are now determining how to regulate the hemp-derived compound in food, beverages and dietary supplements.
During his testimony, Dr. Titus encouraged FDA officials to recognize the sound scientific research on the natural benefits and safety of hemp-derived CBD products. He explained that American diets generally do not contain an adequate amount of cannabinoids like CBD, leaving most people deficient in support for a key system in our body.
“Speaking publicly at this hearing was a historic step for our Company,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus of the chance to speak before the FDA. “We feel very fortunate that our voice in the industry was heard and that we were able to educate the FDA on how CBD supports our Endogenous Cannabinoid System (ECS).”
You can learn more about this historic event here.
Kannaway Premier Hemp Event
Medical Marijuana, Inc. subsidiary Kannaway hosted its largest U.S. event ever in its hometown of San Diego. The Believe National Convention was held from April 13-14. The event brought together the company’s international network of thousands of brand ambassadors to experience the latest from Kannaway. At the event, attendees heard from the company’s executive team and top performing brand ambassadors, were the first to see the company’s latest product launches, and recognized the achievements of their fellow brand ambassadors.
Attendees also heard from star athletes like 6 time NFL Pro Bowler Eric Dickerson and from representatives of ECHO Connection, the charitable partner of the Medical Marijuana, Inc. family of companies.
New Product Launches
In Q2 of this year, our portfolio of companies released over a dozen new products to our line of hemp and CBD brands, further expanding the reach of our CBD oil and providing functional CBD products for consumers around the world.
In April, our subsidiary HempMeds® launched its new Personal Care Line of hemp oil products at the Natural Products Expo West, the nation’s premier natural, organic, and healthy products event. A line of hemp oil bath and body products, the HempMeds® Personal Care Line lets consumers take advantage of the benefits of hemp and CBD for their skin and hair. This product line was originally launched with a shampoo, conditioner, body wash, and body lotion, with more products on the horizon.
The company also launched its new Everyday Wellness line at the Sixth Annual Cannabis World Congress & Wellness Expo, held from May 30-June 1. The supplements in this product line were specifically formulated to blend the benefits of CBD hemp oil with those of natural ingredients like peppermint, chamomile, and turmeric to support everyday wellbeing. Everyday Wellness products include Digestive Support, Sleep Support, and Immune Support, all featuring our full-spectrum CBD. There is also daily Multivitamin Gummies formulated with over 99% pure CBD isolate and natural mango flavor.
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You can shop the HempMeds® brand now in the Medical Marijuana, Inc. store.
Later that same month, Kannaway launched four new product groups at its Believe National Convention. The company revealed its newly revamped Cannabis Beauty Defined anti-aging skincare line, new CBD-infused cat treats, CBD gum, and single serve CBD-infused coffee and tea pods. These products, like all Kannaway products, are sold exclusively through the company’s team of brand ambassadors.
To end the quarter, Medical Marijuana, Inc. brand Dixie Botanicals® introduced its new CBD-infused sunscreen to consumers. Dixie Botanicals® + Surface® CBD-Infused SPF 50 Sheer Touch Sunscreen was developed through a partnership with Surface®, Southern California makers of top quality sunscreen and after sun care, to create a long lasting, water-resistant sunscreen that also supports overall skin health.
Our new CBD sunscreen is made with 99% pure CBD isolate, refined from our top quality hemp oil, infused with Surface®’s unbeatable Sheer Touch SPF 50 sunscreen. Each 4 ounce bottle contains a total of 100 mg of CBD that, when applied, is absorbed by the skin to interact with cannabinoid receptors there, helping to restore healthy looking skin. This CBD sunscreen offers UVA/UVB broad spectrum sun protection and defense against damage caused by free radicals and environmental exposure, and relief from the effects of the sun’s rays.
AXIM® Biotechnologies signed an agreement in April to begin research on a pair of new drugs. Both products are chewing gums containing cannabinoids and utilize the company’s patented chewing gum delivery mechanism. CanChew® Rx is formulated with cannabidiol (CBD); MedChew® with Dronabinol makes use of synthetic THC. CanChew® Rx is being developed for symptoms associated with drug-related psychosis. MedChew® intended for treatment of chemotherapy-induced nausea and vomiting in cancer and AIDS patients.
The company also took steps in Q2 to patent a new cannabinoid based treatment for migraines. The provisional patent application is for a patent on a chewing gum composition comprising of cannabinoids and parthenolide (feverfew extract).
AXIM® Biotechnologies has already built a strong intellectual property portfolio with 5 issued patents, 12 pending patents, and 28 trademarks. The company is looking to expand on this IP portfolio with additional new drugs and consumer products formulated with cannabinoids, including this cannabinoid-based treatment for migraine symptoms.
The Medical Marijuana, Inc. family of companies also helped to financially support important medical research into cannabinoids. HempMeds® sponsored the Harper’s Heroes First Annual Gala in Dallas, Texas, on April 27. The Hope4Harper Foundation is hosting this inaugural event to raise awareness for CDKL5 and fundraise for neurological research to help prevent and treat conditions like CDKL5.
Over the past 7 years, the family hosted the Run4Hope Festival and 5K charity run in their hometown. HempMeds® was a perennial sponsor of these yearly events, helping the organization reach its fundraising goals. This year, Hope4Harper instead hosted the Harper’s Heroes First Annual Gala, featuring speakers like researchers from The Jensen Lab at Penn Medicine and the University of California San Diego Salk Institute Muotri Lab who shared how donations to Hope4Harper help further neurological research.
CBD Education from HempMeds® Brasil
Subsidiary HempMeds® Brasil sponsored TEAbraco 2019 International Autism Week from April 1 to April 7 at the Iguatemi Mall in Ribeirão Preto, Brazil.
In addition to sponsoring the event, HempMeds® Brasil hosted an educational seminar on April 4th where attendees can learn about the medical cannabis market in Brazil, how CBD interacts with the body, and the global landscape of medical cannabis.
Then on April 5, HempMeds® Brasil hosted a CBD workshop led by child psychiatrist Dr. Murielle Moura, who has a background in treating autism and other neurodevelopmental disorders, for researchers and doctors to learn about how CBD interacts with the brain.
Later that same month, HempMeds® Brasil invited some of the countries top doctors and neurological specialists to their home offices in San Diego for a 3 day educational event. The attendees learned about the significant research taking place in San Diego for several conditions such as epilepsy and autism and were able to tour the Muotri Lab at the University of California San Diego’s Department of Pediatrics, the TERI Campus of Life, and our production facilities. The doctors also learned how CBD can be used to the benefit of their patients.
Kannaway was honored as one of the top direct selling companies worldwide. Respected network marketing publication Direct Selling News announced its Global 100 list of top direct selling companies this week, and for the first time ever, our portfolio company Kannaway has been listed among the most successful direct selling companies in the world. The 2019 DSN Global 100 also marks the first time that companies in the CBD industry were included on the list, showing how CBD has grown into a mainstream market.