MySkin Inc (OTCBB:CNAB) submitted its annual report on Form 10-K. In the report, it stated that the company was originally created as a California corporation on November 15, 2007. It was into the business of offering management services to a known medical spa in Los Angeles, which provided numerous skin care services until March 31, 2014, when the mentioned operations were sold to the previous President of the Company. In 2014, the company exited the medical spa management segment and shifted the focus to offering services, products and intellectual property to the growing cannabis industry.
MySkin reported that for the fiscal ended December 2014 the revenues came at $186,557 compared to zero revenue in the same period a year ago. It was the time when the company commenced its new business. The cost of revenue was $7,031 compared to $0 in the same period a year ago. The revenues comprises of the company’s recognition of deferred consulting revenue worth $150,000 linked with the investment done in WeedMD’s non-marketable equity securities. It also came from product sales, licensing fees, reimbursable expenses and other consulting fees.
The cost of revenues
The cost of revenues comprised of share-based compensation expense worth $1,000 and costs of $6,031 related to supplies and materials for the products. There were others directs costs linked with license fees and reimbursable expenses. The sales and marketing expenses came at $101,962 compared to $0 in FY2013. The increase in sales and marking expenses can be attributed to the new business of MySkin. It primarily included third party consulting fees and non-cash share-based compensation costs. R&D expenses were $182,606 in FY2014.
In last trading session, the share price of CNAB declined more than 8% to close the trading session at $0.820. The decline came at a share volume of 269,596 compared to average volume of 138,518.