LAS VEGAS, Jan. 27, 2015 /PRNewswire/ -- The independent cannabis testing, media, digital pathology, and education firm, DigiPath, Inc. (OTCBB andOTCQB: DIGP), today announced the filing of its periodic report on Form 10-Q with the Securities and Exchange Commission for its fiscal first quarter-ended December 31, 2014.
DigiPath is following its carefully constructed path to diversify from digital pathology to capitalize on the burgeoning American cannabis market. The company is currently focused on medical cannabis testing and media. The 10-Q reflects DigiPath's investments in its soon-to-open cannabis testing lab in Las Vegas, NV and its rapidly growing cannabis news program, TNMNews.
The report indicates that DigiPath finished the period with $4.9 million of stockholders' equity. Company revenues rose 216 percent, rising to $174,000 during the quarter, an increase of $119,000 compared to the same quarter of the prior year. Expenses included non-cash stock compensation expenses of $846,000, leaving net cash used in operating activities of $688,000 for the quarter.
"Our investments help position the company to take advantage of two growing markets," said David Williams, CFO of DigiPath, Inc. He cites published reports that estimate the global digital pathology market will grow 11.8 percent annually between 2013 and 2018, and that the legal cannabis market grew 64 percent between 2013 and 2014.
"During the last several months, we invested nearly $800,000 in new lab equipment from Agilent Technologies, and other leaders in this space, to equip our flagship cannabis testing lab in Las Vegas," said Williams. "Expected to open in the first quarter of calendar year 2015, we expect to expand beyond Clark County, as we secure permits in other states where cannabis production and use are now legal."
DigiPath is targeting Nevada first because of its enormous potential. Last November, the Nevada Department of Health and Human Services awarded 371 business licenses for cannabis-related businesses. They include 182 businesses that want to grow cannabis and 117 production facilities which will make infused products.
"Nevada allows dispensaries to sell marijuana to both local and out-of-state patients as long as they possess a medical cannabis card or doctor's recommendation," said Todd Denkin, CEO and President of DigiPath. "All of the cannabis they buy has to be tested before it's sold—and we'll be ready to handle the business."
The company has also successfully transitioned into the media space. The National Marijuana News (TNMNews.com), DigiPath's news and radio program, has amassed an audience of more than 150,000 listeners per month since its soft launch in June 2014, and its popularity is growing. The program also airs on several terrestrial radio stations, including WXXM 92.1 AM (The Mic) in Madison, Wisconsin, and two stations in Alaska—KBYR 700 AM in Anchorage and KFAR 660 AM in Fairbanks.
"Cannabis is relevant, and the American public is rejecting propaganda and seeking out reliable, unbiased news and information and rational debate," said Denkin. "We make it easy for radio stations to give their audiences what they want by simply adding our program to their lineups."
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 cannabis industry. Our four business units are DigiPath Labs, TNM News Corp., DigiPath Corp., and DigiPath University.
For more information, 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 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. 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.
SOURCE DigiPath, Inc.