LAS VEGAS, Feb. 20, 2016 /PRNewswire/ -- DigiPath, Inc. (OTCBB and OTCQB: DIGP), a growth oriented independent testing laboratory and media firm focused on the developing cannabis market, today announced financial and operating results for the three months ended December 31, 2015.
First Fiscal Quarter 2016 Company Highlights
- Ended quarter with $98,363 of net sales through its state-of-the-art Nevada cannabis testing lab, a quarter over quarter growth rate of over 2,000%
- Signed four new customers to exclusive laboratory testing contracts
- Divested its digital pathology business to conserve resources and focus on its core lab testing business
- Engaged Joseph Bianco to serve as Chairman of the Board and spearhead the Company's efforts to expand its lab testing services to new markets
- Decreased its net cash used in operating and investing activities in the aggregate by approximately $989,000, or 68%, from the comparative quarter ended December 31, 2014
- Recorded GAAP net loss for the quarter of $0.12 per share, which includes one-time non-cash charges of approximately $0.09 per share, compared to a net loss of $0.30 for the comparative quarter in the prior year.
The Company needs additional capital to fund its short-term operations and is currently exploring potential financing opportunities and will seek to further reduce its costs. There can be no assurance that the Company will be successful in these efforts.
"Our first fiscal quarter of 2016 was our first real quarter of continuous operations for our cannabis testing lab in Las Vegas. While we are nowhere near full capacity, we are extremely pleased with our increasing revenues and implementation of our plan of operations. We have gained more market share than we had conservatively estimated by this time and are pleased to report that we have performed testing services for 13 of the potential 19 customers that have been granted final certificates of operation from the State of Nevada. We further anticipate that the number of potential customers with State certificates will grow more than three-fold to over 60 by the end of May 2016. We have divested our non-producing assets and believe we are poised to aggressively expand our footprint as we demonstrate the success of our Las Vegas lab," explains DigiPath CEO, Todd Denkin. "We have also partnered with 6 of the 10 dispensaries to provide our DigiPath Patient Handbooks to new customers."
About DigiPath, Inc. (OTCQB: DIGP)
DigiPath, Inc., supports the cannabis industry's best practices for reliable testing, education, and training, and brings unbiased cannabis news coverage to the nation. DigiPath's two business units are DigiPath Labs and TNM News Corp.
Information about Forward-Looking Statements
This press release contains "forward-looking statements" that include information relating to future events. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: the Company's need for additional funding, the demand for the Company's products, governmental regulation of the cannabis industry, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other risks that may be detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting DigiPath, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Media Contact: DigiPath Labs, Inc. firstname.lastname@example.org 702-470-2249
SOURCE DigiPath, Inc.