Le Lézard
Classified in: Health, Business
Subjects: ERN, CCA

Kush Bottles Reports First Fiscal Quarter 2018 Results


SANTA ANA, Calif., Jan. 16, 2018 /PRNewswire/ -- Kush Bottles, Inc. (OTCQB: KSHB), a leading provider of packaging, suppliesvaporizersaccessories and branding solutions for the regulated cannabis industry, today reported financial results for its first fiscal quarter of 2018, for the period ended November 30, 2017.

Fiscal First Quarter Financial Summary

Nick Kovacevich, Chairman and CEO of Kush Bottles, commented, "We entered fiscal 2018 with excellent momentum as we saw the impact of the strategic initiatives implemented throughout 2017 start to take hold. Revenues for the first fiscal quarter of 2018 reached approximately $8.85 million, representing a 258% increase compared with fiscal Q1 2017. This strength in the business led to net profits of $94,615 in fiscal Q1 2018.  We also saw our cash balance increase to $5.5 million, which we plan to invest towards inventory purchasing, development of proprietary products, and other strategic initiatives."

Mr. Kovacevich continued, "During the first fiscal quarter of 2018, we saw the release of California's new temporary regulations for medical and adult-use cannabis sales, which took effect on January 1, 2018. California is not only the U.S.'s largest cannabis market, but also our home market where we have already extensively invested in sales, marketing and infrastructure. We consider the legalization of adult-use cannabis sales to be a major opportunity to scale the business throughout 2018 and beyond, and we have made significant headway to establish the Company as a leader in this market. Many of our clients have been granted temporary licenses and we are working with them closely during this hectic transition period as California finalizes its permanent regulations over the next 6 to 12 months."

Earnings Results Conference Call
The company will also host a conference call today, Tuesday, January 16, 2018 at 4:30 PM Eastern Time.

Participant Dial-In Numbers:
Toll-Free:   1-800-281-7973
Toll / International:   1-323-794-2093
*Participants should request the Kush Bottles Earnings Call or provide confirmation code 8151586

Investors are also invited to listen via webcast on the Kush Bottles investor section of the Company website at http://ir.kushbottles.com. Please visit the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the call will be available on the Kush Bottles investor website approximately two hours after the conference call has ended.

For more information on Kush Bottles, Inc., call: 888-920-5874, or visit: www.kushbottles.com

To be added to the distribution list, please email [email protected] with "Kush" in the subject line.

About Kush Bottles, Inc.
Kush Bottles, Inc. is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 100 million units and now regularly services more than 4,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. The company has facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market.

Kush Bottles aims to be the gold standard for responsible and compliant products and services in the cannabis industry. Kush Bottles has no direct involvement with the cannabis plant or any products that contain THC.

The company has been featured in media nationwide, including CNBCLos Angeles TimesTheStreet.comEntrepreneur, and business magazine Inc.

For more information, visit www.kushbottles.com or call (888)-920-5874.  

Forward-Looking Statements:

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: "potential," "look forward," "believe," "dedicated," "building," or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings we make with the United States Securities and Exchange Commission (SEC), available at: www.sec.gov, and on our website, at: www.kushbottles.com.

Investor Contact:
Phil Carlson / Elizabeth Barker
KCSA Strategic Communications
212-896-1233 / 212-896-1203
[email protected]

PR Contact:
Anne Donohoe
KCSA Strategic Communications
212-896-1265
[email protected]

***Tables Follow***

KUSH BOTTLES, INC.
Condensed Consolidated Statements of Operations
(Unaudited)



For the Three Months Ended

November 30,




2017



2016


REVENUE


$

8,847,115



$

2,472,295


COST OF GOODS SOLD



6,162,120




1,637,652


GROSS PROFIT



2,684,995




834,643


OPERATING EXPENSES









Depreciation and amortization



201,814




9,304


Stock compensation expense



381,743




115,244


Selling, general and administrative



1,949,995




847,076


   Total Operating Expenses



2,533,552




971,624


INCOME (LOSS) FROM OPERATIONS



151,443




(136,981)


OTHER INCOME (EXPENSES)









Other expense



?




(23,944)


Interest expense



(2,413)




(1,033)


   Total Other Income (Expenses)



(2,413)




(24,977)


INCOME (LOSS) BEFORE INCOME TAXES



149,030




(161,958)


PROVISION FOR INCOME TAXES



54,415






NET INCOME (LOSS)


$

94,615



$

(161,958)


BASIC INCOME (LOSS) PER SHARE


$

0.00



$

(0.00)


DILUTED INCOME (LOSS) PER SHARE


$

0.00



$

(0.00)


WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC



59,194,323




48,713,496


WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED



65,908,368




50,511,299


See accompanying notes to the unaudited condensed consolidated financial statements

KUSH BOTTLES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)



For the Three Months Ended




November 30,




2017



2016


CASH FLOWS FROM OPERATING ACTIVITIES









Net income (loss)


$

94,615



$

(161,958)


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:









   Depreciation and amortization



201,814




29,735


 Depreciation cost of goods sold



41,776




?


   Stock compensation expense



381,743




115,244


Changes in operating assets and liabilities









   Accounts receivable



(1,069,410)




(66,174)


   Prepaids



(1,545,793)




(366,550)


   Inventory



(96,507)




(94,262)


   Accounts payable



760,577




176,696


   Accrued expenses and other current liabilities



270,868




(111,351)


Net cash used in operating activities



(960,317)




(478,620)


CASH FLOWS FROM INVESTING ACTIVITIES









Acquisition of web domain



(44,321)




?


Purchase of property and equipment



(48,580)




(164,976)


Net cash used in investing activities



(92,901)




(164,976)


CASH FLOWS FROM FINANCING ACTIVITIES









Repayment of car loan



(5,495)




?


Earn out payable



(85,000)




?


Repayment of note payable



(333,395)




(4,967)


Proceeds from line of credit



1,500,000




?


Proceeds from sale of stock



4,609,555




1,621,999


Net cash provided by financing activities



5,685,665




1,617,032


NET INCREASE (DECREASE) IN CASH



4,632,447




973,436


CASH AT BEGINNING OF PERIOD



916,984




1,027,003


CASH AT END OF PERIOD


$

5,549,431



$

2,000,439


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:









CASH PAID FOR:









   Interest


$

2,370



$

1,033


   Income taxes


$

?



$

?


NON-CASH INVESTING AND FINANCING ACTIVITIES









   Services prepaid for in common stock



34,077



$

103,617


See accompanying notes to the condensed consolidated financial statements

 

SOURCE Kush Bottles


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