Medbox Posts 2nd Quarter Results Company posts revenue of about $1.2m
WEST HOLLYWOOD, Calif., Aug. 21, 2013 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), a leader in providing industry specific consulting services and patented systems to the medical and retail industries, has posted its quarterly report on OTC Markets along with financial results for quarter ended June 30, 2013.
Management reports that the company has already surpassed last year's revenue figure and anticipates crossing the $5 million milestone within this year. The company did report about $1.6 million worth of expenses in the quarter which included extra expenses such as preparation of two SEC registration statements, financial statement preparation, review and audit cost, and extraordinary litigation expenses stemming from the suit filed against Arizona Department of Health Services on behalf of the company's clients in order to seek injunctive relief on some aspects of that state's dispensary program. Although successful, the costs of that litigation topped $200,000 over the course of several months.
"It's expensive being a credible public company. We have multiple professionals looking at all aspects of our business during our company's transition to being an SEC filer," stated Vincent Mehdizadeh, Chief Operations Officer of Medbox, Inc. "As for the litigation we initiated on behalf of our clients, while most companies would let them fend for themselves, our approach in helping them navigate rough terrain cements us as the bonafide leader in consulting in this newly emerging industry. Sometimes it's necessary to put people ahead of profits. With a solid business model and so much positive momentum, I have no doubt we will make up the difference in the coming months."
The Company continued to invest in new businesses during the quarter. With the completion of the Vaporfection International, Inc. purchase in April, the company has entered the vaporizer marketplace with an award winning existing product and another innovative handheld device in the development pipeline. The restarting of this company's operations contributed approximately $106,000 to the pretax loss for the quarter. In addition, the company has continued to invest approximately $50,000 during the quarter for Medbox Rx product and business development.
Management was also quick to point out that during the quarter, the company had construction and build out expenses totaling $670k relative to erecting a dozen new dispensaries in Arizona. In addition to legal and accounting fees of $230k, the company is ready for some much needed relief from expenses in the coming months which will leave the door open for a strong EBITDA margin finish by year's end.
The company will post the financials on its OTC Markets page later today. The financials are currently posted in the news section of the company's website at:
About Medbox, Inc:
Medbox is a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medicine and merchandise and through its wholly owned subsidiary (www.vaporfection.com), provides multi-award winning vaporizer products for medical applications Medbox has offices throughout the world, including New York, Arizona, Florida, Connecticut, Massachusetts, Tokyo, London and Toronto, and has its corporate headquarters in Los Angeles.
Medbox offers its patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations Department at (800) 762-1452 or go online to www.medboxinc.com.
Forward-Looking Statements: The statements in this press release constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry, political conditions and economic conditions in the states considering such legislation. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.
SOURCE Medbox, Inc.