Medical Marijuana, Inc. Reports 2019 Fourth Quarter and Year-End Financial and Operational Results: Net Revenue Surpasses $75 Million, Increasing 26% Year-Over-Year and Positive Adjusted EBITDA

SAN DIEGO, April 29, 2020 /PRNewswire/ — Medical Marijuana, Inc. (OTC: MJNA) (the “Company”), the first-ever publicly traded cannabis company in the United States that launched the world’s first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today financial results for the quarter and year ending Dec. 31, 2019, and provided an overview of recent operational highlights.

Year-End 2019 Financial and Operational Highlights

  • Generated $75.6 million in net revenue in 2019, a 26.3% increase year-over-year when compared to 2018;
  • GAAP Net income increased to $84.4 million;
  • Company reported positive adjusted EBITDA of $139 thousand as compared to a loss of $1.2 million in 2018
  • GAAP Gross profit for the year was $57.7 million, an increase 900 basis points over 2018;
  • GAAP General & Administrative expense decreased as a percentage of sales from 24.1% in 2018 to 16.9% in 2019;
  • GAAP Sales & Marketing expense decreased as a percentage of sales from 56.6% in 2018 to 54.6% in 2019;
  • Cash position at the end of 2019 was $5.8 million, an increase of 35.2% over 2018;
  • Pharmaceutical investment company Kannalife, Inc. began trading on the OTC Venture Market under the ticker symbol “KLFE,” adding to the Company’s Other Assets in Investments – Equities Securities
  • Achieved positive results from a one-year milestone in long-term stability testing on its flagship THC-free CBD oil product Real Scientific Hemp Oil-X™ (RSHO-X™)
  • CEO Dr. Stuart Titus was invited to speak at the FDA Hearing on Cannabis and CBD Products in May 2019
  • Subsidiaries HempMeds®, Dixie Botanicals® and Kannaway® received the U.S. Hemp Authority Certification Seal
  • Subsidiaries HempMeds® and Kannaway® became the first companies to have their CBD products listed in the Prescribers’ Digital Reference

“In 2019, Medical Marijuana, Inc. and its subsidiaries continued to execute on our strategic growth and fiscal responsibility action plan that rendered our best results yet and I could not be more excited to share them with shareholders,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “We were able to not only generate increased revenues but focus on our bottom line by making strategic adjustments to expenditures.”

“In addition to our success in the U.S., our international operations have continued to flourish in Europe, Latin America and we are excited for our development in Asia,” said Medical Marijuana, Inc. COO Blake Schroeder. “We hope that these efforts will continue to build shareholder value and help bring our industry-leading products to broader audiences worldwide.”

Operating Results – Year-End 2019 Compared to Year-End 2018
Sales for 2019 exceeded $75.5 million, an increase of 26.3% over 2018. The Company executed on a strategic plan that resulted in gross margins increasing from 67.4% in 2018 to 76.4% in 2019.

Financial Data: Year-End 2019 Compared to Year-End 2018 Numbers
(in thousands)
Gross Revenue:
2019 – $75,560
2018 – $59,825

Cost of Goods Sold:
2019 – $17,829
2018 – $19,485

Gross Margin:
2019 – 76.4%
2018 – 67.4%

Net Ordinary Income/(Loss)
2019 – $3,298
2018 – ($8,018)

In 2019, Medical Marijuana, Inc. had a number of significant accomplishments, including:

Medical Marijuana, Inc. subsidiary Kannaway® was the first direct sales company to offer phyto-cannabinoid botanical products to consumers. Kannaway® encourages its brand ambassadors to create their own successful distribution businesses that will positively benefit the well being of the people around them.

In 2019, Kannaway® had a number of significant accomplishments, including:

Medical Marijuana, Inc.’s wholly-owned subsidiary HempMeds®, which operates in North America in the U.S. as well as in Latin America as HempMeds® Brasil and HempMeds® Mexico offer the portfolio’s predominate consumer brands Real Scientific Hemp Oil™ (RSHO™)  and Dixie Botanicals®.

In 2019, HempMeds® had a number of significant accomplishments, including:

About Medical Marijuana, Inc.
We are a company of firsts®. Medical Marijuana, Inc. (MJNA) is a cannabis company with three distinct business units in the non-psychoactive cannabinoid space: a global portfolio of cannabinoid-based nutraceutical brands led by Kannaway® and HempMeds®; a pioneer in sourcing the highest-quality legal non-psychoactive cannabis products derived from industrial hemp; and a cannabinoid-based clinical research and botanical drug development sector led by its pharmaceutical investment companies and partners including AXIM® Biotechnologies, Inc. and Kannalife, Inc. Medical Marijuana, Inc. was named a top CBD producer by CNBC. Medical Marijuana, Inc. was also the first company to receive historic import permits for CBD products from the governments of Brazil, Mexico, Argentina, and Paraguay and is a leader in the development of international markets. The company’s flagship product Real Scientific Hemp Oil has been used in several successful clinical studies throughout Mexico and Brazil to understand its safety and efficacy.

Medical Marijuana, Inc.’s headquarters is in San Diego, California, and additional information is available at or by visiting To see Medical Marijuana, Inc.’s corporate video, click here.

Shareholders and consumers are also encouraged to buy CBD oil and other products at Medical Marijuana, Inc.’s shop.


This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.


These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.


Medical Marijuana, Inc. does not sell or distribute any products that are in violation of the United States Controlled Substances Act.


Public Relations Contact:
Andrew Hard
Chief Executive Officer
CMW Media
P. 858-264-6600
[email protected]

Investor Relations Contact:
P. (858) 283-4016
[email protected]

Non-GAAP Net Income/(Loss) is defined as net income/(loss) excluding share-based compensation expenses. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results.

Adjusted EBITDA is defined by the company as EBITDA (net income (loss) adjusted for interest income/(expense), income taxes, depreciation and amortization), further adjusted to exclude certain non-cash expenses and other adjustments as set forth below (share-based compensation, litigation expenses, deferred revenues* and gains/(losses) on investments). We use adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.

A reconciliation from our net income / (loss) to adjusted EBITDA, a non-GAAP measure, for the quarter ended December 31, 2019, and 2018 is below:

Three Months Ending June 30



Net Income (loss)


$( 202,630)






  Interest expense






  Stock-based compensation



  Gain (loss) on investments



  Litigation expense



Other Income


Bad Debt


  Inventory adjustments



  Deferred revenue



Adjusted EBITDA