Medical Marijuana Inc (OTCMKTS:MJNA) Reverses After Weak Quarterly
Medical Marijuana Inc (OTCMKTS:MJNA) was enjoying a slight revival in both price and volume but just as the ticker managed to push to a close over five cents per share on Monday, the company’s overdue quarterly went public. As a result, MJNA ended yesterday’s session 11.5% in the red, on 8.5 million shares traded.
The report was curiously timed to hit right after MJNA‘s latest upbeat PR that pushed the price up over $0.05 per share. The market’s reaction to the filing is abundantly clear and perhaps quite justified, considering the numbers MJNA has on its books. Here is the brief summary of the report’s balance sheet:
- $246 thousand in checking/savings
- $3.7 million in current liabilities
- $1.8 million in quarterly sales
- $7.3 million in quarterly net loss
The numbers are a pretty sad sight, considering how they stack up against both Q3 2014 and MJNA‘s previous reported quarter. Sales are down 17% on a QoQ basis and a whopping 46% down YoY. Perhaps the most unsettling part of the report is the fact that Kannaway, the entity that MJNA still lists as a $100 MILLION asset, contributed a measly $295 thousand in quarterly sales and generated operating loss of $532 thousand.
HempMeds is the entity that contributed $1.3 of the $1.8 million in quarterly sales and it also logged operating loss of $220 thousand, with the biggest expense associated with its operations being “Payroll and benefits”.
Another 46 millions shares were issued over Q3, primarily for the conversion of notes.
The report paints a picture that is in pretty stark contrast with the ceaseless optimistic chirping that comes from the company’s PR feed. It will be interesting to see how and if the company’s sales change once export and sales to Brazil pick up more speed, but given the current state of things, expectations might best be kept in check.
