Denver, CO, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Medicine Man Technologies Inc. (OTCQB: MDCL) ("Medicine Man Technologies" or "Company"), one of the United States' leading cannabis branding and consulting companies today provided financial results for the quarter ended June 30, 2018.

During the three months ending June 30, 2018, the Company generated revenues of $1,417,687, an increase of 535,334 or approximately 61%, compared to revenues of $882,353 in the three months ending June 30, 2017. Total revenues include Cultivation Max revenue of $723,698, consulting and licensing fees of $287,062, product sales net revenue of $232,565, related party product sales net revenue of $148,135, and reimbursements of $20,099. The increase in revenues is primarily attributable to revenue related to Cultivation Max, which began support for several operators during mid to late fiscal 2017.

The Company reported cost of goods and services totaling $380,396 during the three months ended June 30, 2018. This is compared to $272,001 during the same time period in 2017. The increase is primarily due to an increase in selling.

Operating expenses during the three months ended June 30, 2018, dropped 83% to $884,119, compared to $5,172,869 during the same time period in 2017. Operating expenses consisted of salaries expense of $454,165, professional services fees of $250,076, general and administrative expense of $73,846, officers and directors bonuses of $51,053, advertising expense of $28,395 and conference and travel related expenses of $26,584. The change is primarily attributable to a $4,480,318 charge incurred during the three months ended June 30, 2017 related to stock based compensation expenses.

The Company reported net income of $181,692 during the three months ending June 30, 2018, or approximately $0.01 per common share, compared to a net loss of $4,494,435, or approximately -$0.44 per common share, during the same time period in 2017.

“We continue to demonstrate strong revenue growth as we conclude our second consecutive profitable quarter,” Brett Roper, Medicine Man Technologies' co-founder, and CEO stated. “After considerable preparation, we are pleased to be applying to move the Company to QX status on the OTC markets, which we expect to finalize during the third quarter of 2018. This uplisting will, among other benefits, allow us to take full advantage of regulations in Colorado that allow fully reporting public companies to hold ownership of plant touching licenses in the state.”

Joshua Haupt, Medicine Man Technologies’ Chief Operating Officer stated, “We are pleased with the results, including revenue related to the successful deployment of our Cultivation MAX programs. “As we look to the second half of 2018, we expect to continue to generate meaningful revenue growth. Subsequent to the quarter end, the Company entered into a Master License Agreement with Canada House Wellness Group, for deployment of its Success Nutrients line as well as intellectual property in Canada. The initial payments for licensing totaled $4.65M (CAD) and is being paid to the Company in the form of cash ($1.15M) and Stock ($3.5M) in Canada House Wellness. We expect that his new partnership will generate significant revenues, commencing in Q3 2018. Furthermore, we have also entered a binding term sheet for the acquisition of hydroponics store in Denver, which offers a range of cultivation equipment on a competitive price basis.”

About Medicine Man Technologies, Inc.

Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. We continue to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company's highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will "share" the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.

Safe Harbor Statement

This press release may contain forward-looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Medicine Man Technologies may not be able to sustain growth or achieve profitability based on many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in the expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long-term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

To be added to the Medicine Man email distribution list, please email, MDCL@kcsa.com with MDCL in the subject line.

For more information, visit us at www.medicinemantechnologies.com;www.threealight.com



MEDICINE MAN TECHNOLOGIES, INC.
BALANCE SHEET
Expressed in U.S. Dollars

    June 30, 2018     December 31, 2017  
             
Assets            
Current assets                
Cash and cash equivalents   $ 849,223     $ 748,715  
Accounts receivable     1,275,125       461,343  
Accounts receivable - related party     62,160       25,719  
Short-term note receivable, net of allowance     195,988       191,111  
Inventory     67,567       106,091  
Other assets     60,320       42,819  
Total current assets     2,510,383       1,575,798  
                 
Non-current assets                
Fixed assets, net accumulated depreciation of $113,413 and $82,038     102,485       150,047  
Intangible assets, net accumulated amortization of $10,646 and $7,388     84,454       87,712  
Goodwill     9,304,306       9,304,306  
Other non-current assets     22,000       14,500  
Total non-current assets     9,513,245       9,556,565  
                 
Total assets   $ 12,023,628     $ 11,132,363  
                 
Liabilities and Stockholders’ Equity                
                 
Current liabilities                
Accounts payable   $ 19,733     $ 123,251  
Accounts payable - related party           155,177  
Accrued expenses     57,619        
Other liabilities           56,495  
Total current liabilities     77,352       334,923  
                 
Long-term liabilities                
Note payable - related party           58,280  
Total long-term liabilities           58,280  
                 
Total liabilities     77,352       393,203  
                 
Commitments and contingencies, note 13                
Shareholders’ equity                
Common stock $0.001 par value. 90,000,000 authorized, 25,019,981 and 22,991,137 were issued and outstanding June 30, 2018 and December 31, 2017, respectively.     25,141       23,113  
Additional paid-in capital     16,449,299       13,997,441  
Additional paid-in capital - Warrants     2,054,369       3,508,256  
Accumulated other comprehensive (loss)            
Retained earnings     (6,582,533 )     (6,789,650 )
Total shareholders' equity (deficit)     11,946,276       10,739,160  
                 
Total liabilities and stockholders’ equity   $ 12,023,628     $ 11,132,363  

MEDICINE MAN TECHNOLOGIES, INC.
STATEMENT OF COMPREHENSIVE (LOSS) AND INCOME
For the Three and Six Months Ended June 30, 2018 and 2017
Expressed in U.S. Dollars

    Three Months Ended June 30,     Six Months Ended June 30,  
    2018     2017     2018     2017  
                         
Operating revenues                                
Product sales, net   $ 232,565     $ 229,214     $ 558,296     $ 229,214  
Product sales - related party, net     148,135       122,944       281,738       122,944  
Cultivation Max     723,698             916,244        
Licensing fees     96,732       301,313       425,714       501,313  
Consulting fees     190,330       226,582       386,330       565,796  
Reimbursements     20,099             47,408        
Services - related party     4,479             8,958        
Seminars and others     1,649       2,300       4,036       4,222  
Total revenue     1,417,687       882,353       2,628,724       1,423,489  
                                 
Cost of goods and services                                
Cost of goods and services   $ 380,396     $ 245,965     $ 753,914     $ 411,124  
Cost of goods and services - related party           26,036             26,036  
Total cost of goods and services     380,396       272,001       753,914       437,160  
                                 
Gross profit   $ 1,037,291     $ 610,352     $ 1,874,810     $ 986,329  
                                 
Operating expenses                                
General and administrative   $ 73,846     $ 331,425     $ 247,350     $ 435,296  
Professional services     250,076       141,953       480,591       233,483  
Acquisition costs           98,701             98,701  
Stock based compensation expenses           4,480,318             4,480,318  
Officers and directors bonuses     51,053             51,053          
Advertising     28,395       56,025       77,540       89,509  
Conference and travel expenses     26,584             125,857        
Salaries     454,165       64,447       721,220       64,447  
Total operating expenses   $ 884,119     $ 5,172,869     $ 1,703,611     $ 5,401,754  
                                 
Income from operations   $ 153,172     $ (4,562,517 )   $ 171,199     $ (4,415,425 )
                                 
Other income/expense                                
Interest income   $ (32,836 )   $ (7,480 )   $ (40,233 )   $ (14,877 )
Net realized gain on available for sale securities           (82,373 )           (131,382 )
Interest expense related to convertible notes           21,990             44,329  
Loss on management fee contracts                       70,257  
Net gain on derivative                       (262 )
Other (income) expense     4,316       (219 )     4,316       (219 )
Total other expense     (28,520 )     (68,082 )     (35,917 )     (32,154 )
                                 
Net (loss) income   $ 181,692     $ (4,494,435 )   $ 207,116     $ (4,383,271 )
                                 
Earnings per share attributable to common shareholders:                                
Basic and diluted (loss)/earnings per share   $ 0.01     $ (0.44 )   $ 0.01     $ (0.43 )
Weighted average number of shares outstanding - basic and diluted     25,019,981       10,226,086       25,019,981       10,226,086  
                                 
Other comprehensive (loss), net of tax                                
Net unrealized (loss) on available for sale securities           (9,248 )           (10,551 )
Total other comprehensive income (loss), net of tax           (9,248 )           (10,551 )
                                 
Comprehensive (loss) gain   $ 181,692     $ (4,503,683 )   $ 207,116     $ (4,393,822 )
Contact Information:

KCSA Strategic Communications 
MDCL@kcsa.com