CURE Pharmaceutical Reports Third Quarter 2022 Results With Strong Sequential and Year Over Year Revenue Increases and Continued High Margins
New Marketing Programs Showing Encouraging Early Results
SHERMAN OAKS, CA / ACCESSWIRE / November 22, 2022 / CURE Pharmaceutical Holding Corp. (OTCQB:CURR) ("CURE" or the "Company"
, a proprietary broad platform technology and wellness company, today announced results for the quarter ended September 30, 2022.
Key operational highlights included the following:
Revenue in the third quarter surged 32.1% year-over-year and 58.9% sequentially from Q2 2022 to $1.8 million with further increases expected in Q4.
Gross margins for the third quarter improved by 123 basis points to 80.0% in 2022 compared to the same period in 2021 with expectations of continuing high margin sales with our new marketing initiatives.
SG&A expenses (excluding non-cash charges) for the third quarter decreased by $0.1 million in 2022 compared to 2021.
Cost reductions and operating leverage helped narrow operating loss (excluding non-cash charges) by $0.6 million in 2022 versus 2021 despite enhanced marketing investment.
"We are very pleased with our results and accelerating sales in the third quarter which reflect the improving trajectory of the business. The proceeds from the recent asset sale will enable us to invest in the future of the Company. Our margin expansion initiatives continue to deliver results, and we are continuing our efforts to reduce SG&A expenses to maximize operating leverage. We are also very excited about the launches of the advertising and marketing campaigns for our Nutri-Strips and Seratopical Revolution lines, both of which have proprietary delivery system technologies. Lastly, the new technologies that Rob Davidson and his team are developing for the Company look very promising," said Nancy Duitch, Cure Pharmaceutical CEO.
Other operational highlights during the third quarter of 2022 included:
CURE completed the sale of a portion of its platform technology intellectual property portfolio and related assets in July 2022 for $20 million of non-dilutive capital in total consideration. A portion of the cash proceeds was used to pay down certain debt obligations and the balance will be used for working capital and to grow the Company's intellectual property portfolio and its wellness and beauty brands. The Company retained 15 of its patents and will continue to be an incubator for future technologies and patents, which it intends to monetize through the commercialization of the technologies through product development or through the licensing or sale of the technologies.
The Company is focused on becoming the future of wellness with its long-term growth strategy to increase revenue with high margins by using its incubator strategy, product development and marketing and through strategic partnerships and geographic licensing deals. These initiatives, along with the Company's relationships with Nicole Kidman and other major social media influencers, will also help propel its health and beauty brands to become household names and the Company to become a genuine house of recognizable and respected quality brands.
CURE's wholly owned subsidiary, The Sera Labs, also announced that six SKUs of its Seratopical Revolution skincare line with P3P, the proprietary delivery system, are now being sold at 1,372 Walmart Stores as well as on Amazon.com.
Sera Labs also has garnered placement for its revolutionary oral thin film strip, Nutri-Strips™ on shelves at CVS, Amazon.com and Target.com. Nutri-Strips are proprietary to Sera Labs and are the result of years of research.
We have recently enhanced the reach and visibility of our Brand Ambassador, actress Nicole Kidman, as part of the launch of our new transformational Seratopical Revolution and Nutri-Strips marketing campaigns and the unveiling of our revolutionary new delivery system for our plant-based skincare line. Nicole Kidman and our CEO will have more prominence in these multi-faceted marketing programs including recent articles like the ones in Forbes and Impact Wealth. To view the articles, click on the following links:
Forbes Oct 31, 2022 - Nicole Kidman Talks Skincare-And The Beauty Essentials She Always Has In Her Bag
Impact Wealth Oct 31, 2022 - The Powerful Impact of Beauty Market Revealed by CEO Nancy Duitch
Board of Directors and Governance Update
On August 2, 2022, CURE announced the appointment of Gerald Bagg to its Board of Directors. This strategic addition adds depth to CPG and advertising. A 45+ year veteran of the advertising industry, Gerald is best known for pioneering the BRAND RESPONSE advertising approach to campaigns. He is the Chairman and a co-founder of Quigley-Simpson Inc., a more than twenty-year-old full-service advertising agency specializing in strategic planning, marketing, media planning and buying, brand building, creative development, and production. Quigley-Simpson clients include some of the largest consumer goods companies with some of the most well-known brands in the world including over 60 brands from Proctor & Gamble.
On August 16, 2022, the Company announced the appointment of former CURE CEO Rob Davidson as Chairman of its Board of Directors. In addition, the Company announced the appointment of Robert J. Costantino to its Board of Directors and he has also been appointed as Chairman of CURE's Audit Committee. Rob Davidson brings a deep understanding of the CURE pipeline and provides expertise in continued new product development, patent creation, and continuity in non-dilutive ongoing deal transactions as well as years of public company experience. Rob Costantino brings a unique combination of decades of financial expertise, investing experience and shareholder advocacy, operational experience, and many years of negotiating success in closing multi-billion-dollar total company and asset sales to S&P 500 companies.
Shareholder Value and Communication and Investor Events
With increasing shareholder value being a primary focus, the Company is continuing to work on additional initiatives to enhance shareholder value and is committed to increasing visibility and communications with shareholders. During the third quarter, the Company participated in three investor conferences in New York, Florida and California making presentations to investors, meeting with potential business development partners and conducting one-on-one meetings with investors. To view a replay of our CEO's October 25th presentation and Q&A click on the following link:
Link to Oct 25 2022 CEO presentation at LD Micro Main Event Investor Conference
Our CEO also recently presented and held one-on-one meetings with investors at the following investor conference with others to follow:
November 14th - Q4 Investor Summit in New York City
In summary, the recent $20 million asset sale has helped us increase our cash position and strengthen our balance sheet. Since the announcement of that non-dilutive deal and positive management and Board of Director additions, our team has been working diligently on several initiatives aligned with our guiding vision of enhancing shareholder value by utilizing our proprietary technology to differentiate ourselves from our competition and producing quality high-margin products with improved safety, efficacy, and consumer experience. Our new marketing programs are showing early encouraging results, as we continue to focus heavily on accelerating our high margin sales in the U.S. as well increasing our international presence and sales in the coming year, which is supported by our continuing work on new products and patents. We have strengthened our Board of Directors and Corporate Governance with recent Board and finance team additions including a strong Controller who joined us in November following the addition of a strong public company experienced Chief Financial Officer earlier this year. We have bolstered shareholder outreach through investor conferences across the country in the past two months and through other discussions to ensure that our turnaround strategy is universally understood and that we understand shareholders' key concerns. Our strategy is aligned with the interests of our investors and consistent with our overall guiding principle of driving long term shareholder value.
For further details, please visit our website to review our most recent Form 10-Q filed on November 21, 2022 at: www.curepharmaceutical.com/investors/sec-filings/
CURE Pharmaceutical Holding Corp.
CURE Pharmaceutical is a broad platform technology company that develops proprietary nutraceutical and topical delivery systems and currently holds fifteen patents. The technology offers a number of unique immediate- and controlled-release delivery vehicles designed to improve product efficacy, safety, and consumer experience for a wide range of active ingredients. The Company will continue down the path of creating new innovative technology that is part of its incubator strategy.
About The Sera Labs, Inc.
The Sera Labs, Inc. ("Sera Labs"
, a wholly-owned subsidiary of CURE, is a trusted leader in the wellness and beauty sectors utilizing cutting edge technology and high-quality products that use science-backed, proprietary formulations. More than 25 products are sold under the brand names Seratopical™, Seratopical Revolution™, SeraLabs™, and Nutri-Strips™. Sera Labs sells its products at affordable prices, making them easily accessible on a global scale and is strategically positioned to grow its beauty and wellness products into household brands. Sera Labs products are sold Direct to Consumer with a subscribe and save option, as well as in major national drug, grocery and mass retailers. For more information visit: Seratopicalrevolution.com, Seratopical.com, Seralabshealth.com and follow Sera Labs on Instagram at @seratopical, as well as on Twitter and Facebook.
Forward Looking Statement
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the future growth and success of our organization. We have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "could," "estimate," "expected," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions.
Forward-looking statements represent our management's current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
Hanover International Inc.
SOURCE: CURE Pharmaceutical Holding Corp.
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