Medical Marijuana, Inc. (OTCMKTS:MJNA) Nearly Flat Ahead of Long Weekend
On Friday the share price of Medical Marijuana, Inc. (OTCMKTS:MJNA) barely moved. The company shuffled some 2% up. Share volume dropped significantly to just 3.2 million shares traded, a sizable drop from the daily volumes recorded even before MJNA put up its annual report.
MJNA‘s annual report was a month late but it finally came through on May 14. The bombastic PR accompanying it chose to distort reality a little and claimed that MJNA‘s sales “increased 280+%”, further quoting new CEO Stuart Titus who claimed “nearly a 300% increase” in annual sales over the previous year.
As we stated in previous articles and as many investors were quick to point out, the wording was one way to present things but it was not exactly accurate. The actual increase in revenues was above 180% and the new 2014 figure constituted 280% of 2013’s sales. There really should be no need to explain why an X% increase is not the same as one figure being X% of another.
Despite this intriguing way of presenting results, MJNA still improved significantly on its 2013 figures, at least as far as sales go. The bottom line was actually a net loss of multiple millions, compared to a modest $211 thousand in the black in 2013, before extraordinary CANV share payments were counted. Here is the brief summary of the report’s balance sheet:
- $678 thousand in checkings/savings
- $4.0 million in total current liabilities
- $14.5 million in annual sales
- $4.4 million in annual net loss
The company announced the Brazilian federal government has only recently approved MJNA‘s Real Scientific Hemp Oil as import-only, prescription medication. The news gave the share price another much-needed boost, considering how low MJNA had dropped prior to filing its annual report.
The company’s next report is now overdue too. MJNA filed for an extension of its Q1 filing but the new deadline was last Wednesday. Hopefully, the new overdue report will not take another month to arrive.
