LAS VEGAS, May 13, 2015 /PRNewswire/ — DigiPath, Inc. (OTCBB and OTCQB: DIGP), the independent cannabis testing, media, digital pathology, and education firm, announced the filing of its quarterly report on Form 10-Q for its second fiscal quarter ended March 31, 2015, with the Securities and Exchange Commission.
“DigiPath ended the quarter with $3.9 million of stockholders’ equity,” says David Williams, DigiPath’s CFO. “We completed the purchase and installation of our state-of-the-art cannabis testing equipment, created our testing protocols, and expect to begin generating revenues from our significant investments later this quarter.”
DigiPath’s second quarter performance includes a 170% increase in revenue over last year, rising to $136,000 from $51,000 for the quarters ended March 31, 2015 and 2014, respectively. Year-to-date revenue is up 194%, climbing to $310,000 from $106,000 for the six-month periods ended March 31, 2015 and 2014, respectively.
SG&A and R&D expenses were controlled and came in slightly below last quarter’s expenses, aggregating $748,000 for the three months ended March 31, 2015, compared to $782,000 for the three months ended December 31, 2014, after excluding non-cash stock compensation expenses and costs associated with a separation agreement with a former senior executive.
“During our recent quarter we made significant progress building and equipping our flagship cannabis testing laboratory in Las Vegas and preparing for it’s opening,” says DigiPath CEO Todd Denkin. “We received initial approval from the State of Nevada last November, and expect to receive final certification in a matter of days, which will allow us to begin operating our lab and generating revenues from our testing services.”
Denkin says that he and DigiPath’s Chief Science Officer, Dr. Cindy Orser, have hired key personnel and have been diligently working to open DigiPath Labs. DigiPath is also pursuing additional permits in other states where cannabis use and commerce are now allowed by state law.
The National Marijuana News, DigiPath’s Internet news and radio program, has amassed a following of more than 100,000 monthly listeners since its soft launch in June 2014. Over 170,000 audio streams were launched in April 2015. The program is now broadcast by terrestrial radio stations including WXXM 92.1 AM (The Mic) in Madison, Wisconsin; WNOS 105.9 FM, 1450 AM in New Bern, North Carolina; KHIG 1580 AM in Colorado Springs, Colorado; and two stations in Alaska—KBYR 700 AM in Anchorage and KFAR 660 AM in Fairbanks.
“We are on track to continue our expansion in the cannabis-testing and information spheres,” Denkin states. “We’ve set a solid foundation in our first two quarters, and we expect to build on it through the rest of the fiscal year.”
About DigiPath, Inc.
DigiPath, Inc., supports the cannabis industry’s best practices for reliable testing, education, and training, and brings unbiased cannabis news coverage to the cannabis industry. Our four business units are DigiPath Labs, TNM News Corp., DigiPath Corp., and DigiPath University.
For more information, go to www.digipath.com.
Information about Forward-Looking Statements
This press release contains “forward-looking statements” that include information relating to future events, and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: timing for receipt of state certifications and licenses, the demand for the Company’s products, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, and other risks and uncertainties that may be detailed from time-to-time in the Company’s filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting DigiPath, please refer to the Company’s recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
DigiPath, Inc.
Investor Relations
(888) 552-4440
[email protected]
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Source: PR Newswire Health
