Exactus Inc (OTCQB:EXDI), a leading supplier of hemp-derived ingredients such as CBD and CBG as well as feminized hemp genetics, reported Wednesday record revenue in the first quarter of 2020.
In a statement, the company said it recorded 1Q revenue of $836,000, versus $15,980 in the prior-year period. The increase was primarily attributable to the build-out of sales and marketing.
Exactus also noted that it has significantly cut its monthly cash burn and has shifted its focus to rapidly generate revenue through bulk specialty ingredient sales.
Moving into the second half of the year, the Florida-based company said it will begin receiving inventory from its processors, which will expand margins considerably.
"2020 marked a new beginning for Exactus. We are honored to have attracted some incredible new additions to our board of directors with significant banking, media, and technology backgrounds that are fully aligned with our M&A and organic growth strategies,” said Interim CEO Emiliano Aloi.
Aloi also praised Exactus president Derek Du Chesne’s “valuable work in restructuring our commercial and supply chain strategies,” which has prompted the higher revenues and lower spending.
“Considering the market conditions surrounding COVID-19, we are pleased to have made significant progress building the infrastructure of our sales and marketing division to scale in this rapidly evolving industry,” said Du Chesne.
“As we continue to stay ahead of this ever-changing landscape, I believe that Exactus is uniquely positioned for longevity and success. It is a pivotal time in this industry and as our business grows, we are looking forward to opportunities in high-value mergers and acquisitions to consolidate processing and brands under the Exactus umbrella.”
Meanwhile, the company reported a 1Q net loss of $2,945,503, versus $1,409,867 million in the prior-year quarter. The loss was due primarily to non-cash expenses for stock-based compensation, Exactus added.
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