During the second quarter, MCIG generated $620,015 in revenue, a 126% increase from the previous quarter. The company reported to be profitable during the quarter and MCIG reported $10,469 in net income, an increase of $675K in its bottom line compared to same period last year. MCIG’s adjusted net income for the period was $102,550, an adjusted net profit margin of 20%.
Michael Hawkins, Chief Financial Officer, stated, “For the second straight quarter MCIG has achieved an adjusted net income. This will be a landmark quarter in the history of MCIG as the company achieves a net profit for the first time in its history.” He went on to say, “Scalable Solutions, MCIG’s construction division grew in net revenue by 200% and achieved profitability, a fiscal quarter ahead of schedule and we expect that Scalable’s profitability trend will continue given the recent recreational legislation passed in Nevada. On top of that our Wholesale division increased sales by 248% and leads all divisions with a 27% net income, with other wholesale products like ‘Rollies’ in production and not accounted for.”
Paul Rosenberg, MCIG’s CEO, reinforced the excitement at MCIG by stating, “With the recent historic election where 8 of 9 states approved measures to legalize marijuana either recreationally or medically will virtually expand the market we are entrenched in overnight. We are pleased to see that our grassroots & fiscally conservative measures have taken hold and that MCIG is seeing tremendous growth rates at a time when a paradigm shift has just taken place in the cannabis, hemp and CBD markets. We are well positioned, well capitalized and eager to fulfill the requirements of this new, expanded market.” He further clarified, “MCIG is not your traditional ‘need a lot of cash to grow’ company. While sustaining this growth with no toxic debt, we have seen our cash position improve by 27% from the previous quarter. It stands to reason that this trend can continue and potentially be improved significantly with our Scalable Solutions division which is positioned at ground zero of the Nevada & California recreational/medical cannabis markets.”
The Company reports all financial information required in accordance with generally accepted accounting principles (GAAP). The Company believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information because it is useful to understand MCIG’s performance that many investors believe may obscure MCIG’s ongoing operational results.
For example, MCIG uses non-GAAP net income (Adjusted Net Income), which excludes stock-based compensation, amortization of acquired intangible assets, impairment of intangible assets, costs from acquisitions, non-cash deferred tax provision and litigation and related settlement costs. In addition to Adjusted Net Income, MCIG uses EBITDA, earnings before interest, taxes, depreciation and amortization, to evaluate its operations.
The company believes that excluding certain costs from non-GAAP net income and EBITDA provides a meaningful indication to investors of the expected on-going operating performance of the company.
Whenever MCIG uses such historical non-GAAP financial measures, it provides a reconciliation of historical non-GAAP financial measures to the most closely applicable GAAP financial measure. The following table reflects the non-GAAP Consolidated Statements of Operations for the three month period and six months ending October 31, 2016 and October 31, 2015, respectively.
|For period ending October 31,||Six Months ending October 31,|
|CONSOLIDATED STATEMENT of OPERATIONS:||2016||2015||2016||2015|
|Net Income (Loss)||$||10,469||$||(663,148||)||$||(142,706||)||$||(1,083,797||)|
|Depreciation and Amortization||13,468||2,070||21,654||4,064|
|Adjustment for Non-Intangible Asset Depreciation||(271||)||–||(910||)||–|
|Stock Based Compensation||102,550||340,501||270,850||686,466|
|Adjusted Net Income||$||124,334||$||(320,577||)||$||145,780||$||(393,267||)|
About mCig, Inc.
Headquartered in Henderson, Nevada, mCig Inc. (OTCQB: MCIG) A diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to industry leading large scale, full service cannabis cultivation construction company with its Scalable Solutions division currently operating in the rapidly expanding Nevada market. The company looks forward to growing its core competencies to service the Ancillary legal Cannabis, Hemp and CBD markets, with broader expansion to take place once federal laws change. For more information visit www.mcig.org.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company’s products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, and future product commercialization; and the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies.
This release contains non-GAAP disclosures, Adjusted Net Income and EBIDTA. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses Adjusted Net Income and EBIDTA as a measure of operating performance. Adjusted Net Income and EBIDTA should not be considered as a substitute for net income.
Attn: Chief Executive Officer