mCig Inc (OTCMKTS:MCIG) a diversified firm servicing the legal cannabis, CBD and hemp markets reported its preliminary earnings and financial report for 3Q2017. The total revenue from its construction, e-Cig and CBD divisions came at $1.3 million in 3Q2017, bringing its yearly revenue to $2.2 million.
The revenue recorded in 3Q2017 represents a 546% jump from the same period, a year earlier, and a 204% jump from last quarter. Net income for the reported quarter was $898,000, with a $118,000 adjusted net income, bringing mCig total net income year-to-date to $716,000, a 32% net margin. The firm generated $341,000 in cash from businesses and has increased its cash/cash equivalents by 311% this fiscal year to $420,000. MCIG recorded $1.26 million in current assets and $287,000 in current liabilities, taking acid test ratio at 4.3:1. This is the highest rating in firm’s history.
Michael Hawkins, the Chief Financial Officer, said that for the third successive quarter mCig has posted record numbers. With its existing contracts and booked revenue, the firm will continue to record QoQ revenue growth in revenue. He added that during this quarter, they will revamp their segment reporting, changing from wholesale, retail and construction to CBD, e-Cig and construction operations. The company feel reporting on the divisions under these new segments will offer a greater in depth assessment of their operations to investors and shareholders.
mCig uses non-GAAP net income to assess it business operations. The adjusted net income discounts stock-based compensation, impairment of intangible assets, amortization of bought intangible assets, non-cash deferred tax provision, costs from acquisitions, settlement and litigation costs. During this quarter, the firm recognized a setback in stock based compensation and a reimbursement action that reported $727,000 in reportable net income. They adjusted income by eliminating these required adjustments in an attempt to demonstrate operating profits of $118,000.