Can B Corp Announces Second Quarter 2020 Results
Diversified Product Line Up Expected to Result in Return to Growth
HICKSVILLE, NY, Aug. 20, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Can B Corp. (OTCQB: CANB) (“Can B” or the “Company”), a diversified health and wellness company, announced today operating and financial results for the second quarter ended June 30, 2020.Management Commentary:“Like most companies, we have been negatively impacted by the global COVID-19 pandemic and the uncertainty brought on by it. We have taken necessary steps to try to stabilize our business and reduce our operating expenses,” commented Marco Alfonsi, Can B’s Chief Executive Officer.Mr. Alfonsi continued, “Our pipeline of opportunities remains strong highlighted by our exclusive license agreement with Lifeguard Licensing Corp. for the use of the well-known LifeGuard brand name and logo for a host of products that will include CBD and non-CBD formulations and our Can B Superfood line. Our team also remains focused on expanding the availability of our Pure Leaf Oil and Canbiola CBD brands, as exemplified by our recent agreement with United Grocery Outlets.”Mr. Alfonsi concluded, “We believe we are well-positioned with a diversified product line up, exclusive partnership with LifeGuard®, multi-channel distribution strategy, our R&D and production facility in Lacey, WA, and our Green Grow Farms, a licensed hemp grow and cultivation in New York. We remain enthusiastic about our business prospects and returning to growth mode. Given our strong gross margins of almost 77%, we feel confident in being able to return to the position we were earlier in 2020 when our revenue growth outpaced our increase in expenses, as we achieved operating efficiencies. We look forward to continuing to share our progress with our shareholders.”LifeGuard™ UpdateIn January, Can B signed an exclusive license agreement with Lifeguard Licensing Corp. for the use of the well-known LifeGuard™ brand name and logo for a host of products that will include CBD and non-CBD formulations. This includes topicals, beverages, and ingestible products as well as a full line of sunscreens, lip balms, replenish supplements, and water. We have completed the 3D Design of the unique packaging of our “Skin Preserver” Sun Block line, as well as our Lip Balm line. The products are planned to launch in a value-add package with the unique and identifiable LifeGuard™ rescue buoy with lanyard rope. The Company is now moving forward to molds and manufacturing, and, with a soon to be contracted manufacturer, we intend to move quickly for the production of our initial SPF30 and SPF50 lines, as well an after-sun moisturizer. We’re currently working to finalize a manufacturer for our lip balm and lifestyle water line. Initial product renderings may be viewed at https://shoplifeguard.com/. We have planned a National Retail launch in 2021.Can B SuperFood – Phase I Completion of Production UpgradesCan B recently installed new state-of-the-art, high-speed, automatic bottling and capping equipment and new bulk processing equipment for the production of the Can B Superfood line, which is now available at https://canbsuperfoods.com. This line allows for full in-house formulation and production for our high-quality Superfoods. We are also pleased to announce that with our new equipment installations, Phase One of upgrading the manufacturing capacity to triple the current capacity is complete. Phase Two is well underway. Phase Two will allow the PHP facility to become GMP compliant and pave the way for an anticipated growth as the country evolves from this COVID-19 pandemic crisis. Phase Two will also encompass the planned vertical integration of PHP as we have just received our second batch of pure isolate from our very own hemp production, Green Grow Farms, which will sustain our production and sales for the months to come.Financial Highlights for the Three Months Ended June 30, 2020, vs. 2019:· Consulting Fees Decreased $220,721 a 52% Decrease· Reimbursable Expenses Decreased $14,800 a 43% Decrease· Other Operating Expenses Decreased $46,774 a 19% Decrease· Net Loss Decreased $249,066- a 17% Decrease· Gross Profit Increased from 53% in 2019 to 77% in 2020 a 24% IncreaseFinancial Results for the Three Months Ended June 30, 2020:Revenue for the three months ended June 30, 2020, was $205,084, a decrease of $428,495, or 68%, compared to $633,579 for the three months ended June 30, 2019. This decrease was due to the impact of the COVID-19 outbreak.Gross profit for the three months ended June 30, 2020, was $157,039, a decrease of $177,336, or 53%, compared to $334,375 for the three months ended June 30, 2019. The resulting gross margin was 76.6% for the three months ended June 30, 2020, compared to 52.8% for the three months ended June 30, 2019.Operating expenses for the three months ended June 30, 2020 were $1,276,512, a decrease of $493,152, or 28%, compared to $1,769,664 for the three months ended June 30, 2019. Operating expenses for the three months ended June 30, 2020, included non-cash expenses resulting from stock-based compensation for employees and consultants of $211,764 and amortization of intangible assets of $147,192, compared to $725,020 and $4,966 for the three months ended June 30, 2019.Operating loss for the three months ended June 30, 2020 was $1,119,473, a decrease of $315,816, or 22%, compared to $1,435,289 for the three months ended June 30, 2019.Adjusted operating loss for the three months ended June 30, 2020, was $760,517, an increase of $55,214, or 8%, compared to $705,303 for the three months ended June 30, 2019. Adjusted operating loss does not include non-cash stock-based compensation and amortization of intangible assets.Net loss for the three months ended June 30, 2020 was $1,188,425, a decrease of $249,066, or 17%, compared to $1,437,491 for the three months ended June 30, 2019. The resulting EPS loss for the three months ended June 30, 2020, was a ($0.32), as compared to an EPS loss of ($0.60) for the three months ended June 30, 2019.Financial Results for the Six Months Ended June 30, 2020:Revenue for the six months ended June 30, 2020 was $774,791, a decrease of $375,948, or 33%, compared to $1,150,739 for the six months ended June 30, 2019. This decrease was due to the impact of the COVID-19 outbreak.Gross profit for the six months ended June 30, 2020, was $605,197, an increase of $16,215, or 3%, compared to $588,982 for the six months ended June 30, 2019. The resulting gross margin was 78.1% for the six months ended June 30, 2020, compared to 51.2% for the six months ended June 30, 2019.Operating expenses for the six months ended June 30, 2020 were $2,836,663, a decrease of $359,676, or 11%, compared to $3,196,339 for the six months ended June 30, 2019. Operating expenses for the six months ended June 30, 2020, included non-cash expenses resulting from stock-based compensation for employees and consultants of $975,787 and amortization of intangible assets of $277,158, compared to $1,788,144 and $7,160 for the six months ended June 30, 2019.Operating loss for the six months ended June 30, 2020 was $2,231,466, a decrease of $375,891, or 14%, compared to $2,607,357 for the six months ended June 30, 2019.Adjusted operating loss for the six months ended June 30, 2020, was $978,521, an increase of $166,468, or 20%, compared to $812,053 for the six months ended June 30, 2019. Adjusted operating loss does not include non-cash stock-based compensation and amortization of intangible assets.Net loss for the six months ended June 30, 2020 was $2,315,032, a decrease of $294,973, or 11%, compared to $2,610,005 for the six months ended June 30, 2019. The resulting EPS loss for the six months ended June 30, 2020, was a ($0.64), as compared to an EPS loss of ($1.00) for the six months ended June 30, 2019.About Can B Corp.Can B Corp. (OTCQB: CANB) is a Health & Wellness company providing the highest quality cannabidiol (CBD) products under the brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. CanB is also an exclusive partner of the LifeGuard® Brand in developing a line of consumer products. The Company is also launching Super Foods, a line of nutritional supplements. Can B Corp. owns and operates an R&D and production facility in Lacey, WA, and Green Grow Farms, a licensed hemp grow and cultivation in New York. To learn more about Can B Corp. and our comprehensive line of high-quality CBD products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook, or visit one of the 1,000+ retail outlets that carry Can B Corp. products.For more information about Can B Corp., please visit: CanBCorp.comTwitter @CanBCorpInstagram @canbcorpFacebook @ Can B CorpForward-Looking StatementsForward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape, or manner of our future financial condition or stock price. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.Investors and Media:
IR@canbiola.com
(646) 397-2309
