Business
Item 9 Labs Corp. Reports Second Quarter Fiscal Year 2020 Results
Item 9 Labs Corp. Reports Second Quarter Fiscal Year 2020 Results.
About this update from Item 9 Labs Corp.
[{"type":"text","content":"Revenue Growth of 65% Expanding into Nevada and Global FranchisingPHOENIX, AZ / ACCESSWIRE / May 18, 2020 / Item 9 Labs Corp. (OTC PINK:INLB) ("Item 9 Labs" or the "Company"), a vertically integrated multi-state cannabis operator producing best-in-class products, today announced the Company's operating and financial results for the fiscal second quarter ended March 31, 2020.Key Financial Highlights for Q2 FY 2020Revenue increased 65% to $1.9 millionOperating expenses as a percentage of revenue declined from 125% to 80%Key Business Highlights for Q2 FY 2020Entered into definitive agreement to acquire OCG, Inc. to accelerate the Item 9 Labs global franchise strategy; closing pending completion of conditionsClosed asset acquisition to expand to Nevada; completion subject to regulatory approvalManagement Commentary"We are very pleased with our impressive 65% top-line revenue growth to start 2020," commented, Andrew Bowden, Item 9 Labs's Chief Executive Officer. "While our margins dipped lower in the quarter due to a quicker-than-expected ramp in production in order to meet demand, we have since improved efficiencies and seen a rebound in margins."Bowden, continued, "Our team has been focused and executing on both organic and acquisitive growth opportunities. The expansion of our Arizona facility has and will continue to fuel near-term revenue growth, supporting the expansion of our product line into additional accounts in the Arizona market. We have increased our product offerings, operating capacity and geographical reach, all leading to successfully penetrating 75% of the Arizona market."Bowden concluded, "Our upcoming operations in Nevada will provide additional growth expected toward the end of calendar 2020 and into 2021. Additionally, we are extremely excited about the potential of our agreement to acquire OCG, Inc. and the expansion of our global dispensary franchise strategy. We are enthusiastic and confident with our opportunities for growth and profitability in Arizona, Nevada and soon-to-be Colorado. Our team is poised to execute on this expansion and believes it will add significant value to our shareholders. We look forward to reporting our progress as it unfolds throughout 2020."Nevada Asset PurchaseAcquired all outstanding interest in cultivation, pro...