LOS ANGELES / DESERT HOT SPRINGS, CA / ACCESSWIRE / August 12, 2020 / GrapefruitTM USA, Inc., (“GPFT”, “Grapefruit” or the “Company”) (OTCQB:GPFT) a California based cannabis distribution and manufacturing corporation, is announcing today that in its quarterly report on Form 10-Q for the six months ended June 30, 2020 filed with the SEC last evening, the Company reported net revenues of $1,272,211 for the six months ending June 30, 2020, an increase of $942,170 or 284% over revenues of $332,041 for the six months ending June 30, 2019.
For the three-month period ending June 30, 2020, the Company reported net revenues of $880,652, an increase of $487,093 or 124% over the previous quarter ending March 31, 2020.
This marked the second consecutive quarter that the Company reported revenue expansion in excess of 100% or more.
The Company’s gross margin improved from a negative gross margin for the quarter ending March 31, 2020 to approximately 10% for the quarter ending June 30, 2020 due to a reduction in distribution operations discounts associated with the August 2019 restart of distribution operations, one time legal, accounting and consulting costs incurred in connection with the reverse acquisition of Imaging3, Inc. and the filing and processing of the Company’s registration on Form S-1 which was declared effective by the SEC on June 26, 2020. The Company reported a net loss of $2,380,542 for the six months ending June 30, 2020, approximately $1,660,000 of which was attributable to non-cash market driven derivative valuation reductions and non-cash interest charges. The loss from operations for the period ending June 30, 2020 was $712,150 compared to $409,901 for the year ago period, an increase of $302,249 or 74%. This increase was the result of newly restarted distribution operations and non-recurring expenses incurred in connection with the Imaging3, Inc. reverse acquisition and the S-1 registration statement as set forth above. For a full analysis of the Company’s results of operations see the Company’s Form 10-Q at pages 19-22.
With respect to Grapefruit’s 2020 second quarter results, Bradley J. Yourist, GrapefruitTM CEO, stated, “Despite the chaos visited upon us all as a result of the worldwide pandemic throughout the second quarter, we were able to grow our revenues 284% over our previous year, and 124% over our previous quarter despite the fact that we had only recently renewed our distribution operations at that time, and we continued to incur non-recurring reorganization and related accounting, auditing, legal and consulting expenses.
Very significantly, we were also able to prove the efficacy of the time-release mechanism for Grapefruit’s patented, disruptive topical cream ‘patchless-patch’ cannabis delivery system, “Hourglass by GrapefruitTM”, which uniquely breaks the ‘blood brain barrier’, and delivers THC + CBD active ingredients, in a variety of ratios, to the user over a predictable period of time.
These second quarter results clearly demonstrate that GrapefruitTM has not only weathered the disruption caused by the public company reorganization and related audit issues and expenses, the restart of distribution operations, the worldwide pandemic and the uncertainty it engendered, but has thrived and continued its momentum as evidenced by a second consecutive quarter of 100% plus revenue expansion and major advancement of the HourglassTM delivery system.
We remain laser focused on revenue growth in our distribution and extraction lab businesses and the imminent commercialization of our disruptive HourglassTM THC + CBD delivery system which will be released by the end of the third quarter.
We believe, based upon these trends, that despite the many headwinds we have faced, and may continue to encounter, that our third quarter results will be significantly better in terms of both revenues and margins as GrapefruitTM marches inexorably toward its goal of becoming a high-tech driven, leading U.S. based fully integrated cannabis company.”
To learn more about GrapefruitTM, please visit our website at:
To learn more about Grapefruit’s THC + CBD Topical Cream please visit our website at:
Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. GrapefruitTM holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs, California, USA. To obtain further information on GrapefruitTM and its operations, please visit its website at https://grapefruitblvd.com/.
Safe Harbor Statement
GrapefruitTM cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words “anticipate,” “believe,” “estimate,” “may” “intend,” “expect” and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about GrapefruitTM and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K, its Quarterly Report on Form 10-Q for the period ended June 30, 2020 and its Registration Statement on Form S-1/A. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and GrapefruitTM undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Investor Relations Contact:
The Waypoint Refinery, LLC
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SOURCE: Grapefruit USA, Inc.