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)
Revenue decreased 12% to $1.5 million; due to shipping delays from China
Cartridge revenue increased 132% to $0.3 million
Gross profit decreased 16% to $0.4 million
Operating expenses as a percentage of revenue declined to 34%, from 53%, reflecting continued focus on optimization
Operating loss decreased by 80% to $0.1 million
Adjusted EBITDA on a pro-forma basis was breakeven, if excluding one-time non-cash items
Net loss was $0.0 million, compared to $0.3 million net income
Key Financial Highlights for Six Months Ended June 30, 2022 (Year-over-Year as Compared with the Six Months Ended June 30, 2021)
Revenue decreased 5% to $3.2 million; due to shipping delays from China
Cartridge revenue increased 329% to $1.1 million
Gross profit decreased 17% to $0.8 million
Operating expenses as a percentage of revenue declined to 28%, from 40%, reflecting continued focus on optimization
Operating loss decreased 80% to $0.1 million
Net loss was $0.0 million, compared to $0.3 million net income
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 decreased by $0.2 million, or 12%, to $1.5 million, compared to $1.7 million for the three months ended June 30, 2021. For the three months ended June 30, 2022, the breakdown of sales comprised of $1.2 million of system sales and $0.3 million of cartridge sales, compared to $1.5 million of system sales and $0.1 million of cartridge sales for the three months ended June 30, 2021.
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.
Gross profit for the three months ended June 30, 2022 decreased by $0.1 million, or 16%, to $0.4 million, compared to $0.5 million for the three months ended June 30, 2021. Gross margin decreased to 29% for the three months ended June 30, 2022, as compared to 30% during the three months ended June 30, 2021.
Operating expenses for the three months ended June 30, 2022 decreased by $0.4 million, or 43%, to $0.5 million, compared to $0.9 million for the three months ended June 30, 2021. Operating expenses as a percentage of revenue decreased to 34% from 53% for the three months ended June 30, 2022, reflecting the Company's continued focus on operation optimization and efficiency. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
Operating loss for the three months ended June 30, 2022 decreased by $0.3 million, or 80%, to $0.1 million, compared to $0.4 million for the three months ended June 30, 2021.
Net loss for the three months ended June 30, 2022 was $0.0 million, compared to net income of $0.3 million for the three months ended June 30, 2021. Of note, net income for the three months ended June 30, 2021 included non-cash items totaling $0.7 million, made up of interest expense of $0.2 million, a derivative gain of $0.5 million and a gain on a settlement of a note payable of $0.3 million. The resulting EPS loss for the three months ended June 30, 2022, was ($0.00), as compared to an EPS profit of $0.00 for the three months ended June 30, 2022.
As of June 30, 2022, Jacksam had $0.4 million in cash, compared to $0.3 million on December 31, 2021.
Financial Results for Six Months Ended June 30, 2022
Revenue for the six months ended June 30, 2022 decreased by $0.2 million, or 5%, to $3.2 million, compared to $3.4 million for the six months ended June 30, 2021. For the six months ended June 30, 2022, the breakdown of sales comprised of $2.2 million of system sales and $1.1 million of cartridge sales, compared to $3.2 million of system sales and $0.2 million of cartridge sales for the six months ended June 30, 2021.
Gross profit for the six months ended June 30, 2022 decreased by $0.2 million, or 17%, to $0.8 million, compared to $1.1 million for the six months ended June 30, 2021. Gross margin decreased to 26% for the six months ended June 30, 2022, as compared to 30% during the six months ended June 30, 2021.
Operating expenses for the six months ended June 30, 2022 decreased by $0.5 million, or 34%, to $0.9 million, compared to $1.4 million for the six months ended June 30, 2021. Operating expenses as a percentage of revenue decreased to 28% from 40% for the six months ended June 30, 2022, reflecting the Company's continued focus on operation optimization and efficiency. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
Operating loss for the six months ended June 30, 2022 decreased by $0.1 million, or 80%, to $0.1 million, compared to $0.4 million for the six months ended June 30, 2021.
Net loss for the six months ended June 30, 2022 was $0.0 million, compared to net income of $0.3 million for the six months ended June 30, 2021. Of note, net income for the six months ended June 30, 2021 included non-cash items totaling $0.7 million, made up of interest expense of $0.5 million, a derivative gain of $1.1 million and a gain on a settlement of a note payable of $0.2 million. The resulting EPS loss for the six months ended June 30, 2022, was ($0.00), as compared to an EPS profit of $0.00 for the 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.
All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
Investors Contact: mark@convectium.com
View source version on accesswire.com: https://www.accesswire.com/712276/Jacksam-Corporation-Reports-Return-to-Adjusted-EBITDA-Breakeven-in-the-Second-Quarter-2022
Mizuho analyst Vijay Rakesh just lowered his price target on Nvidia, but if he's right it's a good buy from here.
Yahoo Finance Live anchors discuss stock performance for FedEx.
There was a sell-off in cardboard packaging stocks this morning, with shares of International Paper (NYSE: IP) down 9.4% at 10:30 a.m. ET on Friday, Packaging Corporation of America (NYSE: PKG) shares down 9.7%, and the stock of WestRock (NYSE: WRK) down 9.8%. Shares of FedEx (NYSE: FDX) plunged more than 22% this morning after the company issued an earnings warning predicated on softening global volume. The volume FedEx referred to was the number of packages wrapped in cardboard and shipped to customers.
In this article, we discuss 10 high-yield dividend stocks for stable income. You can skip our detailed analysis of dividend stocks and their performance in the past, go directly and read 5 High-Yield Dividend Stocks for Stable Income. Dividend-paying stocks are gaining traction this year as investors look for cash during difficult times. Blue chip stable […]
Struggling Bed Bath & Beyond Inc. releases a list of dozens of stores it aims to close. Most of the stores on this list will close by the end of the month.
FedEx has blown three tires before the peak holiday shipping season, and chatter on the Street is that mighty Amazon may have played a role.
Looking for high yield stocks in the finance sector? This pair of banks is worth close inspection, while this REIT is best avoided.
Yahoo Finance anchor Seana Smith breaks down after hours movers.
Today's video focuses on KLA (NASDAQ: KLAC), Lam Research (NASDAQ: LRCX), Applied Materials (NASDAQ: AMAT), and recent reports of upcoming regulations affecting these semiconductor companies. The video also discusses Intel's (NASDAQ: INTC) forthcoming data center solution and how it might not be as competitive as investors hoped.
While the latest federal moves on student loan forgiveness have some wrinkles, your journey to college debt clarity can still be smooth.
'He has gotten nowhere,' said West's lawyer about his attempts to work through partnership issues
NCR Corp. (NYSE: NCR) shareholders lost ground to a falling market on Friday. NCR announced late on Thursday that it is separating into an ATM business and a digital commerce business, rather than controlling the two under one enterprise. "NCR has the opportunity to unlock value for our shareholders by separating our digital commerce business and our ATM business," executive chairman Frank Martire said in a press release.
Stéphane Bancel discusses the company’s latest Covid shot and prospects for using mRNA in seasonal flu vaccines and personalized treatments for cancer
Long-time Real Money subscribers have come to learn I like to combine investment approaches. No one investment approach (fundamental, technical, quantitative) is perfect and better results can come from blending or combining different methods. The On-Balance-Volume (OBV) line has also moved sideways suggesting a balance between buyers and sellers.
High-yield savings accounts are paying far higher rates than before, and some come with a cash bonus.
Central banks are like “reformed smokers,” famed investor Stanley Druckenmiller says. “They’ve gone from printing a bunch of money, like driving a Porsche at 200 miles an hour, to not only taking the foot off the gas, but just slamming the brakes on.”
As bad the news was for FedEx, it may be worse news for the U.S. economy --- and an early sign of a recession.
You can't guess the bottom. But a bargain is a bargain.
Pound sinks to lowest since 1985 as retail sales slump Germany seizes control of three Russian-owned Rosneft oil refineries FTSE 100 falls 0.6pc Ben Marlow: Shell must accept it has lost the battle on fossil fuels Sign up here for our daily business briefing newsletter
Intel (INTC) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.