Marijuana Company of America Reports Full Year 2020 Financial Results
April 15, 2021 at 09:15 AM EDT
ESCONDIDO, Calif., April 15, 2021 (GLOBE NEWSWIRE) -- MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation announced today the financial results for the year ended December 31, 2020, as reported in its annual report on Form 10-K. Here are some of the notable highlights for the FY2020:
Total revenues of hempSMART products were $280,653, for the year ended December 31, 2020, as compared to $695,076, for the year ended December 31, 2019, representing a decrease of 59.6% year to year.
Gross profit for 2020 decreased to $159,304 on gross sales of $280,653 (43.2% gross margin), compared to a gross profit of $248,556 on gross sales of $695,076 for 2019 (64.2% gross margin). Net operating loss percentage for 2020 was 1730% vs 931.1% for 2019.
For the year ending December 31, 2020, the Company realized the following one-time items: gain on settlement of debt and unrealized gains on trading securities.
Total liabilities decreased by $4,177,204 from $11,745,065 for 2019 to $7,567,861 for 2020. This decrease was due to a 35.6% reduction in debt.
Cash used by operating activities for 2020 was $1,723,950 as compared to $2,816,232, for 2019. Cash provided by investing for 2020 was $118,984, as compared to cash used of $226,169 for 2019. Cash provided by financing activities for 2020 was $1,467,704 as compared to $2,894,639 for 2019.
MCOA’s Chief Executive Officer, Jesus Quintero, said, “Despite the challenges of the COVID-19 pandemic, we continued our efforts towards our transformation into a company offering unique exposure to the global cannabis sector by leveraging our premium brand hemp-based products, combined with investments & collaboration with strategic partners. During 2020, we also put in place an aggressive strategy to clean up the Company’s balance sheet which included significant cost-cutting measures which should serve us well going forward.”
For further information on Form 10-K, please visit www.sec.gov. Further details regarding the year ended 2020, will soon be made available in the investor relations section of the Company’s website at www.marijuanacompanyofamerica.com.
About Marijuana Company of America Inc.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.
This news release contains "forward-looking statements," which are not purely historical and may include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as "anticipate," "seek,” “intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.