Business
CB2 Insights Reports Second Quarter Fiscal 2019 Financial Results, Sees Positive Impact from New Acquisitions
CB2 Insights Reports Second Quarter Fiscal 2019 Financial Results, Sees Positive Impact from New Acquisitions.
About this update from Skylight Health Group Inc.
[{"type":"text","content":"\n TORONTO, Aug. 28, 2019 (GLOBE NEWSWIRE) -- CB2 Insights (CSE:CBII; OTCQB:CBIIF) (“CB2” or the “Company”), a leading technology company focused on mainstreaming medical cannabis to the healthcare industry through Real World Evidence (“RWE”), today reported its results for the second quarter of 2019.  Additional information concerning the Company, including its unaudited financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended June 30, 2019, can be found at www.sedar.com and on the Company’s website.  All amounts are expressed in Canadian dollars unless otherwise noted. Q2 2019 Financial Highlights Revenue for the quarter was $3.3 million, a 14.3% increase over the previous quarter and did not include revenue from its recent New Jersey Alternative Medicine acquisition, which would have added an estimated $700 thousand for the quarter;;Gross profit of $2.1 million or gross margin of 65.3%. The Company believes that gross margin will increase within the next quarter by way of economies of scale from its recent acquisitions which generally have a 3-6 months period to reflect in the Company’s results;Operating expenses increased quarter over quarter by $671 thousand, due in large part to the newly acquired clinics in Colorado and Arizona; as well as certain legacy expenses related to these clinics which the Company has since centralized and will see reflected in Q3;At quarter-end the Company had cash of $1.3 million on hand;Adjusted EBITDA1 loss of $790 thousand in Q2 2019 versus Adjusted EBITDA1 loss of $712 thousand in Q1 2019*. The Company expects further improvements in EBDITA through continued scalability, new revenue from New Jersey operations, new opportunities related to clinical trials and research activity; and,Net loss improved to $1.9 million versus $2.2 million the prior quarter, a 14% improvement. *Note: Q2 2019 Adjusted EBITDA1 from US clinical operations remains positive. CB2 currently uses this surplus in cash flow to fuel its Research & Insights business, which includes but is not limited to clinical trials and research projects, software development, product development, analytical and commercialization teams. “Our Clinical business continues to grow within our US patient registry,...