VANCOUVER, July 23, 2018 /PRNewswire/ - Namaste Technologies Inc. ("Namaste" or the "Company") (CSE: N), (FRANKFURT: M5BQ), (OTCMKTS: NXTTF) is pleased to announce the filing of its unaudited quarterly financial statements, management's discussion and analysis and certification of the quarterly filings for the third quarter of fiscal 2018. The statements for the period can be accessed on the Company's SEDAR profile at www.sedar.com.
The Company's net revenues for the three months ended May 31, 2018 were $4.1 million (2017 – $3.1 million), which is an increase of $1.0 million or 32% as compared to the three months ended May 31, 2017. The increase in net revenues during the third quarter of 2018 was primarily due to organic growth in the Company.
The Company's net revenues for the nine months ended May 31, 2018 were $14.6 million (2017 – $7.1 million), which is an increase of $7.5 million or 106% as compared to the nine months ended May 31, 2017 despite having divested the Company's U.S. business in December 2017. The increase in net revenues during the nine months ended May 31, 2018 was primarily due to revenue growth from EDIT domains and Australian Vaporizers. EDIT domains were acquired in October 2016 and Australian Vaporizers was acquired in March 2017.
Revenues by country
For three months ended
For nine months ended
May 31, 2018
May 31, 2017- Restated
May 31, 2018
May 31, 2017- Restated
United States of America
The majority of revenues were generated by several key markets. For the three and nine months ended May 31, 2018, the top five revenue earning countries generated 90% and 84% of revenues, respectively. For the three and nine months ended May 31, 2017, the top five revenue earning countries generated 87% and 87% of revenues, respectively.
The Company's cost of sales for the three months ended May 31, 2018 were $3.2 million (2017 – $2.4 million), which resulted in a gross profit of $0.9 million (2017 – $0.7 million). The gross profit increased by $0.2 million or 31% primarily due to the growth in revenue. The gross profit margin of 21% was comparable to the gross margin of 22% in the same period last year.
Management is focused on the expansion of its globally diversified platform of e-commerce websites to reinforce its position as "Your Everything Cannabis Store™" by selling all cannabis-related products ranging from vaporizers and smoking accessories to CBD products, as well as personal growing and extraction equipment.
The Company is actively engaged with Health Canada in relation to Namaste's wholly owned subsidiary and Access to Cannabis for Medical Purposes Regulations ("ACMPR") Licensed Producer, Cannmart, which awaits its medical cannabis "sales-only" license.
Namaste acquired Findify AB ("Findify" or "Findify.io") during its third quarter. Findify is a leading artificial intelligence ("AI") software company, which uses machine learning algorithms to track users' behavior online in real-time, and provide a more personalized buying experience. Findify's technology works to provide better recommendations to consumers and to optimize search results that are customized to the user's choice patterns. The Company is working with Findify's management team to develop a marketing and roll-out strategy that will introduce the technology across Namaste's e-commerce platform and offer it to other companies in the industry.
Kenneth Ngo, CFO of Namaste comments: "We are pleased to see a 32% increase in quarterly revenue compared to the same period last year, due to organic growth in the Company's vaporizer business. The Q3 results are very encouraging especially considering that Namaste divested its U.S assets and revenue which accounted for 14.4% of the total revenue during Q3 of 2017.
The acquisition of Findify AB in the quarter was the largest acquisition to date in the history of Namaste. This acquisition will bring significant value to Namaste and its shareholders by accelerating the Company's growth in revenue."
Sean Dollinger, President and CEO of Namaste comments: "Our Q3 financial results show continuous growth year-on-year, and this quarter also represented major milestones for the Company including the acquisition of Findify, which we believe will drive significant revenue going forward by increasing customer conversion and retention. We are working on several integrations of Findify's technology in real-world applications of AI within the cannabis industry that will be impactful in understanding patients' needs and in personalizing their online experience. Namaste will continue to focus and developing innovative technology which drives revenue and brings long term value to the company. Our quarterly results are very encouraging and have not factored in any cannabis sales or the sale of CBD products in international markets, which we are highly focused on presently. We're looking forward to seeing impactful results in these new sales channels in the near future."
About Namaste Technologies Inc.
Namaste Technologies is Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste's product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and the company will soon be selling medical cannabis in the Canadian market, subject to approval by Health Canada.
Namaste has developed and acquired innovative technology platforms including NamasteMD.com, Canada's first Health Canada compliant telemedicine application, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer's on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.
On behalf of the Board of Directors
Chief Executive Officer
Further information on the Company and its products can be accessed through the links below:
This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The CSE has neither reviewed nor approved the contents of this press release.