$CANB Can B Corp. Announces Full Year 2020 Results
Strong Gross Margin of 84%
Efficiencies and Lower Expenses Lead to a Significant Reduction in Operating Loss
HICKSVILLE, NY / ACCESSWIRE / April 14, 2021 / Can B Corp. (OTCQB:CANB) ("Can B" or the "Company"
, a diversified health and wellness company, announced today operating and financial results for the year ended December 31, 2020.
"As it was for many companies, 2020 was a challenging year for us," commented Marco Alfonsi, Can B's Chief Executive Officer. "We took the time to right-size our expenses, focus our energy on higher margin revenue opportunities and improve our positioning for future growth and profits."
Mr. Alfonsi continued, "As an integrated Health & Wellness company providing the highest quality cannabidiol (CBD) products as well as traditional wellness products our business pipeline remains strong. We are optimistic for growth with a return to more normalcy as more and more restrictions ease from the Covid-19 pandemic. We look forward to leveraging our R&D and production facility in Lacey, WA for both our own products and private label for others."
Key Recent Highlights:
Closed $2.8 million debt financing from an institutional investor, enabling the pay off and elimination of all prior outstanding convertible notes without penalty
Tripled production with the installation of new high-speed equipment to expand production at its Pure Health Products facility in Lacey, Washington
Raised a total of $4.0 million in equity with ongoing Reg A offering
Cash balance of $1.7 million, as of April 2021
Financial Highlights for the Year Ended December 31, 2020 vs. 2019:
Gross Profit Increased from 74% in 2019 to 84% in 2020 a 10% Increase
Operating Expenses Decreased $1.8 million a 24% Decrease
Operating Loss Decreased $1.5 million a 26% Decrease
Cash balance of $0.5 million
Can B offers several lines of branded CBD products that include tinctures, salves, topicals, skin care products. These brands include Canbiola, developed for the medical community; Seven Chakras, a spa and beauty line; NuWellness for independent Pharmacies, Pure Leaf Oil their flagship consumer brand and Super Foods, a line of nutritional supplements. The Company deploys a multi-channel distribution strategy with products sold via doctors, medical facilities, retailers, online, and direct to consumer.
Key Events Subsequent to the End of 2020:
Closed on the acquisition of assets and talent from a hemp derivative development and manufacturing group. A newly formed wholly-owned subsidiary, Botanical Biotech LLC ("BB"
, will be the new home for Florida-based research & development laboratory and extraction facility for the Company. BB will focus on developing and implementing new pharmacokinetics technology and partnering with global and emerging brands to create innovative products and solutions that are positioned for sustainability and wellness and are culturally driven.
Signed a definitive agreement to acquire the assets of Imbibe Health Solutions LLC ("Imbibe"
, a developer and marketer of CBD and related products. Imbibe has developed several CBD health and wellness products including topical salves, bath soaks, massage oils, and energy and dietary supplements. Can B will be putting Imbibe into one of its current inactive wholly-owned subsidiaries and will be renaming that subsidiary to reflect the products and culture that comes with the Imbibe acquisition.
Partnered with Dr. Karl Zarse has launched ImmuneX2, a super immune boosting twice a day AM/PM supplement. The two entities have developed a cooperative medical office affiliate program to share in the revenues of ImmuneX2. Can B will be targeting medical professionals and direct-to-consumer sales channels to proactively optimize immune systems.
Financial Results for the Year Ended December 31, 2020:
Revenue for the year ended December 31, 2020 was $1,709,669, a decrease of $595,834 or 26%, compared to $2,305,503 for the year ended December 31, 2019. The decrease was due to the COVID-19 pandemic. Essentially, nationally elective surgeries were curtailed in favor of emergency use of all operating rooms and facilities, which dramatically curtailed the use of our ultrasound device associated with patient recovery. Additionally, distributor and medical office sales of our main-line CBD products such as tinctures and salves, were diminished due to closing and limited access to medical office facilities, again directly tied to the COVID pandemic.
Gross profit for the year ended December 31, 2020 was $1,431,607, resulting in a gross margin of 83.7%, compared to $1,706,919 and 74.0% for the year ended December 31, 2019. Absolute gross profit decreased due to an oversupply of Hemp and CBD biomass in the market. Gross margin increased due favorable product mix to higher margin products and outreach into additional market segments such as wholesale and private label opportunities.
Operating expenses for the year ended December 31, 2020 were $5.8 million, a decrease of $1.8 million or 24%, compared to $7.6 million for the year ended December 31, 2019. This decrease was mainly attributable due to a decrease of $2.8 million in officer's, director's compensation and consulting fees.
Operating loss for the year ended December 31, 2020 was $4.4 million, a decrease of $1.5 million or 26%, compared to $5.9 million for the year ended December 31, 2019.
Net loss for the year ended December 31, 2020 and 2019, was $5.7 million and $5.9 million, respectively, a decrease of $0.2 million, or 3%. The resulting EPS loss for the year ended December 31, 2020 was a ($1.36), as compared to an EPS loss of ($2.20) for the year ended December 31, 2019.