LAS VEGAS, Nov. 26, 2014 /PRNewswire/ -- DigiPath, Inc. (OTCBB andOTCQB: DIGP), an independent cannabis testing, broadcast media, digital pathology, and education firm, today issued its financial report for its fiscal year ended September 30, 2014.
DigiPath, Inc., finished its fiscal year with $5.1 million in cash, contributing to assets totaling $5.7 million with total liabilities of less than $200K. Total revenues for the year were $486K, down $81K from the prior year due to restructuring in the first two quarters.
"Significant expenditures were made to restructure operations, broaden our scope, and launch new business units in order to pave the way to the growth we hope to achieve," said David Williams, DigiPath's CFO.
"Our new business units include cannabis testing, cannabis training and education, and broadcast media. As a result, our G&A and R&D expenses grew to a combined $3 million, which includes $650K non-cash charge for stock-based compensation, resulting in a net loss of $2.8 million for the year," Williams concluded.
$8.2 Million Capital Raise
DigiPath, Inc., raised $8.2 million from accredited investors during its third fiscal quarter 2014. The company allocated $1 million of the gross proceeds to general working capital for its digital pathology unit, DigiPath Corp. It invested another $1 million in content and curriculum development for the company's forthcoming cannabis education and training unit.
During its fiscal year 2014, DigiPath augmented its legacy digital pathology business and created three new business units to serve the cannabis industry: DigiPath Labs, DigiPath U™, and TNMNews.
"Last year was a year of transformation as we built upon our competency in digital pathology and expanded into the cannabis market," said Todd Denkin, DigiPath's CEO. "Both of these industries are growing rapidly—particularly the cannabis industry."
Denkin points to a report in the Marijuana Business Daily, which predicts US retail cannabis sales will rise more than fivefold over the next five years, from an estimated $2.2–$2.6 billion in 2014 to $7.4–8.2 billion in 2018.
"This projected growth is attributable to increased legalization of cannabis across the country and, in turn, will create an explosive need for quality testing labs, education, and unbiased news," said Denkin, who outlined each unit as follows:
DigiPath's legacy business in digital pathology, DigiPath Corp., develops systems to create, store, manage, analyze, and correlate tissue slide data collected through virtual microscopy. During fiscal year 2014, DigiPath Corp. expanded its international presence, providing digital pathology solutions to healthcare providers in Ethiopia and Chile.
On November 3, 2014, DigiPath Labs, Inc. received one of four provisional licenses from the State of Nevada to operate a state-of-the-art cannabis-testing laboratory in Las Vegas. The lab is expected to open in early 2015.
DigiPath's education and training unit is developing a two-day seminar and a modularized six-week instructor-facilitated online course. Expected to launch in mid-2015, the curricula is designed for people who want to learn more about cannabis and enter the cannabis industry.
TNMNews is a balanced and unbiased cannabis news site and talk radio show focusing on the political, economic, medicinal, and cultural dimensions of the rapidly evolving—and profoundly controversial—medicinal and recreational marijuana industry. The shows are located online at www.TNMNews.com.
"As the cannabis industry expands, demand for qualified laboratories, comprehensive education, and reliable news is growing," said Denkin. "We believe we are in the right place at the right time."
About DigiPath, Inc.
DigiPath, Inc., supports the cannabis industry's best practices for reliable testing, education, and training, and brings unbiased cannabis news coverage to the industry. Our four business units are DigiPath Corp., DigiPath Labs, DigiPath U™, and TNMNews.
For more information about DigiPath or review the annual report, go to: www.digipath.com.
Information about Forward-Looking Statements
This press release contains "forward-looking statements" that include information relating to future events, and future financial and operating performance. 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 in-demand for the Company's products, the introduction of new products, 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 information that may be detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission. An example of such forward-looking statements in this press release includes statements regarding the Company expanding into the botanical, nutraceutical, and cannabis industries. 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.
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