BEND, Ore., May 16, 2018 /PRNewswire/ -- EVIO Inc. (OTCQB: EVIO) ("EVIO" or "the Company") a leading provider of cannabis testing and scientific research for the regulated cannabis industry, announces its financial and operating results for the quarter and six months ended March 31, 2018.
Second Quarter Fiscal 2018 Financial Summary
Second quarter revenue was $732,311, a decrease of $56,415 or 12.1% from second quarter last year.
Second quarter gross loss was $66,077, a decrease of $284,800 or 130.2% from second quarter last year.
Second quarter testing revenue was $689,011, a decrease of $56,415 or 7.6% from second quarter last year.
Second quarter cash position has increased to $3,021,247.
Six Months Ending March 31, 2018 Financial Summary
Six months revenue was $1,679,176, an increase of $177,997 or 11.9% from the first six months of last year.
Six months gross profit was $144,525, a decrease of $152,575 or 51.4% from the first six months of last year.
Six months testing revenue was $1,576,360, an increase of $262,356 or 20.0% from the first six months of last year.
"EVIO's second quarter focused greatly on broadening the Company's portfolio. With our recent private placement of $5.973 million, we expanded the Company's footprint by acquiring additional labs, namely in California, a market that we have identified as having unparalleled potential," said William Waldrop, CEO of EVIO. "We expect the state of California to enforce mandated compliance testing by July 1, 2018. With operational facilities in both Humboldt and Berkeley and the goal of further expansion into the state, we feel like EVIO is well-positioned to meet California's demand for cannabis testing. Another significant milestone was our entrance into the Canadian market and launched EVIO Canada with the acquisition of Keystone Labs ahead of the country's legalization of adult recreational use this summer," said Waldrop.
In the second quarter, the company invested $800,000 in new equipment upgrades at its EVIO Labs Massachusetts facility and its EVIO Labs Colorado licensee. The state-of-the-art upgrades will substantially increase testing volumes, resulting in enhanced operating productivity and revenue growth. Waldrop says, "With investments in the most advanced lab equipment and the best, most qualified personnel, we are confident that this investment will improve the efficiency and speed of our cannabis testing operations within these jurisdictions for our valued customers and improve our financial performance for our valued shareholders. We have also made substantial headway in obtaining ISO 17025 accreditations in our operational facilities."
The decrease in testing revenue for the second quarter ending March 31, 2018 was due to a few factors. In Oregon the cannabis market has experienced softening due to excess cannabis inventory. In California, growers and distributors are taking advantage of the non-mandated testing grace period selling current harvested inventory. July 1st testing deadline will mandate licensed retailers to sell only lab tested product. "We have taken the tactical strategy to have expansion plans to support the demand for analytical testing services required," Waldrop says.
"We have also built out our management team as we embark upon our next stage of rapid growth. As we enter Q3, the Company will continue to build on our already strong foundation," Waldrop stated.
EVIO Inc. is a leading provider of cannabis testing and scientific research for the regulated cannabis industry. The Company's EVIO Labs division operates coast-to-coast providing state-mandated ancillary services to ensure the safety and quality of the nation's cannabis supply. EVIO is on track to have 18 of its state-of-the-art testing facilities by year-end 2018.
Any statements in this press release that are not statements of historical fact may be considered to be forward-looking statements. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, our ability to complete our product testing and launch our product commercially, the acceptance of our product in the marketplace, the uncertainty of the laws and regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission, available at www.sec.gov or www.eviolabs.com.
Company Contact: Cheryl Kramp Director of Marketing EVIO Inc. 888.544.EVIO [email protected]