Recurring Cartridge Sales Increased 329% to $1.1 Million in the First Half 2022
NEWPORT BEACH, CA / ACCESSWIRE / August 16, 2022 / Jacksam Corporation dba Convectium (OTCQB:JKSM) ("Jacksam" or "Convectium" or the "Company"), a workflow automation Company focused on developing system solutions for the cannabis and CBD industry, today announced financial and operational results for the three and six months ended June 30, 2022.
Key Financial Highlights for Three Months Ended June 30, 2022 (Year-over-Year as Compared with the Three Months Ended June 30, 2021)
Key Financial Highlights for Six Months Ended June 30, 2022 (Year-over-Year as Compared with the Six Months Ended June 30, 2021)
Mark Adams, Jacksam's Chief Executive Officer, commented, "We are pleased with our second quarter and first half 2022 results, given the headwinds in the cannabis industry and the challenges many of the producers are experiencing. Our sales pipeline remains strong and we are confident in our products and believe it's just a matter of when, not if, the industry returns to growth."
Adams, continued, "Our system sales declined primarily due to shipping delays from China and some customers pushing out, but not cancelling, their orders. Our recurring cartridge sales continue to ramp, as that revenue contributor grew 329% year-to-date to $1.1 million. On the cost side of our business, we continued to keep expenses low and operate efficiently, resulting in a further decline of operating expenses as a percentage of revenue to 34% and 28% for the second quarter and first of 2022, respectively. We look forward to returning to growth over the remainder of 2022 and into 2023, with an eye on profitability as we have optimized our operations for efficiency."
Financial Results for Three Months Ended June 30, 2022
Revenue for the three months ended June 30, 2022 was negatively impacted by the lockdown of major cities in China due to Covid-19, which caused shipping issues of systems from China to the U.S. This adversely impacted our ability to fulfill orders of our customers during the quarter. However, lower machine sales were offset by higher cartridge sales driven by our strong execution of strategic partnerships that drive recurring cartridge revenue.
Financial Results for Six Months Ended June 30, 2022
About Jacksam Corporation dba Convectium
Jacksam Corporation dba Convectium (OTCQB: JKSM) designs and markets automated vape, POD and cartridge filling/capping systems for the cannabis and CBD industry. We are also a distributor of other CBD and cannabis automation solutions including the "PreRoll-ER" automated pre roll machine. Our automated equipment is designed and built in the U.S. and carries full UL certification in the U.S. Using Jacksam/Convectium's automated equipment, our customers increase output by up to 60 times over hand filling. Jacksam/Convectium is focused on helping our customers automate their workflow and quickly get custom branded products onto dispensary shelves. Over 250 companies, including many dominant brands and multi state operators (MSO's) in this industry, rely on Jacksam/Convectium for automation of their production and back office operations.
For additional information, please visit: https://www.convectium.com.
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the Company's ability to retain the listing of its common stock on the OTCQB Market; the impact of the COVID-19 pandemic on our results of operations and our business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at www.sec.gov.
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