In last trading session, the stock price of American Cannabis Company Inc (OTCMKTS:AMMJ) surged more than 3% to close the day at $0.291. The gains came at a share volume of 895,392 compared to average share volume of 463,689.
Last week, American Cannabis Company filed Form 10-K wherein the company reported that for fiscal ended December 2015, the revenue came at $2.79 million compared to $1.25 million in the comparable period. This increase in revenue was primarily due to expansion in client base and growth in volume of operations.
American Cannabis business has matured after the start of business operations in 2013, particularly the establishment of in-house product offerings. Also, third party equipment sales contributed significantly in the annual revenues. For the year closed December 2015, consulting services revenue came at $693,225 against consulting services revenue of $677,633, a year earlier.
The products and equipment revenue stood at $2.106 million and $581,379, respectively. In the reported period, the revenue from the products sale amounted to $25,214 compared to $0 a year earlier, to a Director.
American Cannabis reported that costs of revenue for the fiscal ended December 2015 came at $2 million against $771,476 in FY2014. The increase in costs can be primarily attributed to the jump in operating expenses associated to salaries, overhead and increased sales volume. It was also a result of changes done in product mix, as sales of equipment and products, which showed a lower gross margin against consulting and advisory services.
This resulted in increased revenues and costs of revenues in the reported period. The consulting related costs came at $182,161, contributing 6.5% of total revenues and costs. For the fiscal closed December 2014, consulting related costs came at $322,134, or 25.6% of total revenue. The gross profit in reported period was $799,774.