On Friday, the stock price of Medical Marijuana Inc (OTCMKTS:MJNA) recorded gains of more than 1% to close the trading session at $0.0770. The narrow gains came at a thin volume of 2.06 million shares compared to average share volume of 6.76 million. The volumes have dropped significantly from the daily share volume recorded before the company released its annual report.
Medical Marijuana filed its annual report almost one month late on May 14, 2015. The Press Release issued at the same time tried to put a cushion on dismal numbers stating that Medical Marijuana sales surged more than 280% compared to the previous year. Even the CEO Stuart Titus claimed nearly 3005 increase in annual sales compared to previous year.
However, it was just a way to hide the actual numbers. The increase in revenue was more than 180% and the new figure comprised 280% of FY2013 sales. The difference between the two numbers should be clear to investors.
Medical Marijuana presented the numbers in a different way, but one thing was clear that the sales improved on 2013 sales numbers. The bottom line reported a net loss of multiple millions against net loss of $211,000 reported in FY2013, prior to counting of extraordinary CANV share payments. As per the report, the company posted $678,000 in savings. The annual sales came at $14.5 million while net loss in the year was $4.4 million. The total current liabilities came at $4.0 million.
Medical Marijuana reported that the Brazilian federal government has recently approved its Real Scientific Hemp Oil as prescription medication (import-only). The news boosted the share price, considering how low stock price had declined prior to filing its annual financial report. Medical Marijuana filed an extension of its 1Q filing but it has even expired. The delay in submission of report can further put pressure on company’s stock.