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The American Marijuana Company announces its financial and operating results for the third quarter of 2022

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LOS ANGELES, CA / ACCESSWIRE / November 29, 2022 / American Marijuana Company (“MCOA“or the”a company(OTC PINK: MCOA), an innovative cannabis and cannabis company, is pleased to announce today its financial results and other financial achievements for the third quarter and nine months ended September 30, 2022.

Regarding the third quarter results, CEO Jesus Quintero said: “MCOA shareholders should be pleased with the 34% overall decrease in operating expenses and cash expenses so far this year. This is due to our focus on efficiency and reducing overheads. We are also pleased with the increase in our gross margins 59% We expect these positive trends to continue as we focus more on product distribution through our cDistro subsidiary.While other cannabis companies in our sector are struggling, we are actively pursuing mergers and acquisitions as there are numerous opportunities for struggling cannabis companies.We have made We also made significant progress on reducing our debt over the past month as a critical step in restructuring our company.”

Highlights of the financial results for the third quarter

  • Total revenue It was $142,394 for the third quarter ended September 30, 2022 compared to $442,178 for the third quarter ended September 30, 2021. This is despite setbacks in sales due to the effects of Hurricane Ian and the phase-out of Smart cannabis products in the US states. The Company expects increases on an ongoing basis as it recovers from Hurricane Ian and also based on its international expansion of hempSMART in South America.
  • We are happy to report that Gross profit For the third quarter of 2022 it increased to $84,194, generating 59.1% of gross margin, compared to a total profit of $63,687 for the same period ending September 30, 2021, which is 14.4% of gross margin. The increase in gross margin was attributable to sales of CBD and hemp products by our wholly owned subsidiary CDistro inc.
  • We are also happy to report that Operating expenses For the third quarter of 2022, it was down to $976,961 compared to $1,483,351 for the third quarter of 2021, which is a significant 34.1% decrease in operating expenses. This resulted in an overall operating loss of $892,767 for the third quarter of 2022 compared to $1,419,664 for the third quarter of 2021, which is an improvement of 37.1%.

total net loss

It increased to $3,937,541 for the three months ended September 30, 2022 compared to $1,764,591 for the three months ending September 30, 2021, which is an increase of $2,172,950. This is a direct result of losses on various equity investments.

  • Total revenue for the year to date $962,343 for the nine months ending September 30, 2022 compared to $493,988 for the nine months ending September 30, 2021, which is up 94.8% year-over-year.
  • Gross profit For the nine months ended September 30, 2022, it increased to $355,282, generating 37% of gross margin, compared to a total profit of $87,016 for the same period ending September 30, 2021, which is 18% of gross margin. .
  • Operating expenses For the nine months ended September 30, 2022, it was down to $3,007,002 compared to $3,315,719 for the same period in 2021, representing a decrease of 1.0% in operating expenses. This resulted in operating losses improving to $2,651,720 for the nine months ended September 30, 2022 compared to $3,228,703 for the same period in 2021, which is an improvement of 18%.
  • net loss It increased to $10,066,431 for the nine months ended September 30, 2022 compared to a net loss of $7,250,698 for the same period in 2021, an increase of $2,815,733. This increase in net loss is a result of reductions in long-term investments by the company.
  • Total assets It decreased to $3,468,297 as of September 30, 2022 from $7,959,899 as of December 31, 2021.
  • company Total current orders It increased to $8,982,412 as of September 30, 2022 compared to $7,729,010 for the year ended December 31, 2021, representing a 16.2% increase in debt.
  • Net cash used in operating activities decreased significantly from $2,693,632 for the nine months period ended 9/30/21 to $1,757,153 for the period ended September 30, 2022. This decrease represents a decrease of more than 34% % in cash spent operating in 2022.

Please see Form 10Q filed with the Securities and Exchange Commission on November 14, 2022 for additional financial details.

About the American Marijuana Company.
MCOA is a company engaged in: (1) product research and development of legal cannabis-based consumer products under the brand name “hempSMART™”, aimed at general health and well-being; (ii) an affiliate marketing program to promote and sell its legal hemp-based consumer products that contain CBD; (iii) leasing real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis is properly legalized and regulated for medical and recreational use; and, (iv) expanding its business into secondary areas of the cannabis and cannabis industry, as markets and legal opportunities in this sector mature and develop.

About our hempSMART products that contain CBD
The US Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based on claims that it is a safe and effective treatment for any medical condition as medicines or dietary supplements under the authority of the Food and Drug Administration.

Forward-looking statements
This press release contains “forward-looking statements” that are not strictly historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate,” “seek,” intend,” “believe,” “estimate,” “anticipate,” “project may be considered” or “plan.” or similar statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new ventures , the future US and global economy, the impact of competition, and the Company’s reliance on current regulations regarding the use and development of cannabis-based products.These forward-looking statements are as of the date of this press release, and we assume no obligation to update forward-looking statements, or to update reasons why actual results may differ from those projected. In the forward-looking statement ts.Although we believe that any beliefs, plans, expectations and intentions expressed in this press release are reasonable, there can be no guarantee that any such beliefs, plans, expectations or intentions will prove to be accurate . Investors should refer to all information herein and should also refer to the disclosure of risk factors described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit the website www.sec.gov.

Contact:
ir@marijuanacompanyofamerica.com
info@mcoainvestments.com
888-777-4362

source: American Marijuana Company.

View source version on accesswire.com:
https://www.accesswire.com/729161/Marijuana-Company-of-America-Reports-Q3-2022-Financial-Results-and-Operational-Highlights

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