Exactus Inc (OTCMKTS:EXDI), which farms and manufactures hemp-derived cannabidiol (CBD) products, hailed its second-quarter results showing an increase in year-over-year revenue despite the pandemic, lower cash burn, and shrinking debt.
Net revenue for the three months came in at $531,240 compared to $139,683 in the same quarter last year, mainly due to the build-out of sales and marketing, the group said.
The Florida-based company sells its CBD products through its own Exactus brand (Green Goddess) and white label products to third-party resellers. It is also engaged in producing industrial hemp from farms in Oregon and plans to extract and manufacture directly through certified good manufacturing practice (cGMP) facilities.
"We feel that we are coming together as a company and bringing forth the solutions that our clients and shareholders want," said Emiliano Aloi, the interim CEO of Exactus.
"Our year over year sales are up, our burn is down, and our debt is shrinking. Specifically, we are very proud of our new integrated CRM, sales, and E-commerce integration that Mark Alouf and his team have put together, and of Sonya Bain’s leadership in launching our white label division.
"These are the results that we need to strengthen our position in the market and to enable Exactus to engage in its M&A growth strategy."
The company said it will now focus specialty ingredients, and the white label business to expand its customer base and leverage its relationships to drive "more profitable and scalable revenue."
In terms of staff, it said it had continued to attract 'top talent' with the additions Daniel Alberttis as chief operating officer, Mark Alouf as director of sales, and Sonya Bain as sales manager and product specialist to facilitate the growth and manage large scale accounts.
The net loss in the quarter of around $1.5 million, up from a loss of $955,226 in the same period last year, was mainly due to non-cash expenses for stock-based compensation, the group said.
Contact the author at [email protected]