BEVERLY HILLS, CA - (NewMediaWire) - September 14, 2015 - mCig, Inc. (the "Company") (OTCQB: MCIG), a leading distributor of innovative products, technologies, and services for the global medical and legal recreational cannabis industry, reported its quarterly results for the period ended July 31, 2015. The highlights of mCig's impressive quarter are reviewed below:
The Company reported revenue for the three months ended July 31, 2015 of $369,093, which represents a 240% increase compared with revenue of $107,446 over the same period in 2014.
The Company reported Gross Profit Margin of 34.4% for the quarter ended July 31, 2015, maintaining its gross profitability in line with our expectations. This figure does not reflect the recent price increase for all wholesale orders of the popular Just Chill brand, which the Company believes will contribute to an increase in Gross Profit Margin in subsequent quarters.
The Company reported a small increase in accounts payable and total liabilities due to deferred revenue associated with pre-sale of EM-J brand. For the quarter ended July 31, 2015 these stood at only $20,006.
The Company reported other operating expenses, which include cost of revenues and general administration, decreased 38% quarter over quarter.
Due to non-cash, stock-based compensation charges for consultants and employees, the Company will not be reporting an adjusted net profit. The Company did report positive cash flows from operations of $11,436 for the three months ended July 31, 2015.
The Company reported a decrease in Research and Development expenses due to a shift in focus from internal research and process development to distributing ready for sale cannabis related products from different manufactures under Master distributorship arrangements.
"mCig Inc. continues to grow and maintain brand momentum," stated Paul Rosenberg, the company's Chief Executive Officer. "This quarter was an important transitional quarter for us because we completed a full operational reorganization of the Company."
The Company's business model now consists of two distinct focus areas: Grow Services and Distribution. The Company saw:
- Continued progress on expense management by restructuring of compensation and benefits;
- Focus on profitability, resulted in termination of nonperforming and underperforming business relationships;
- Improved Customer Service by implementation a new ticketing system with a new call center to ensure customers and investors get prompt service.
"We have now emerged with a stronger business model, clean balance sheet, and virtually no liabilities or debt. All this was achieved while maintaining our core principle of not taking on toxic debt instruments to finance the Company. We are excited for the many initiatives we have in place by all of the new brands that we are adding to our distribution model, and for the progress with our Grow Division," said Rosenberg.
About mCig, Inc.
mCig, Inc. (OTCQB: MCIG) is committed to being the leading distributor of technology, products, and services for the global medical and legal recreational cannabis industry. The Company's Master Distributor sales approach allows mCig to partner with or acquire best-of-breed companies to serve as exclusive sales representatives, distributing their products through mCig's multiple channels and sub-distributors throughout the United States, Europe, United Kingdom, and Asia. mCig focuses sales efforts on growers, consumers and dispensaries, and provides a complete line of products, technology, and services, including turnkey growing environments; security services; software and information technology; consulting services; financing and more. mCig maintains its roots by offering top selling CBD Vape lines and CBD products. The Company is headquartered in Beverly Hills, California. Follow mCig Inc. on Twitter at @mCigs.
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.