Third Quarter Revenues Increased by 88% Compared to the Same Period Last Year
LAS VEGAS, NV, Aug. 18, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Digipath, Inc. (OTCQB: DIGP) (“DIGP” or the “Company”), a service-oriented independent analytical testing laboratory company focused on the cannabis and hemp markets, announced results for the three and nine month periods ending June 30, 2021.
“We are encouraged by the progress Digipath has experienced and its trajectory even as we continue to battle the lasting economic effects of the Covid-19 pandemic, especially in the Las Vegas area. We have focused our efforts on our laboratory operations and significantly pared our general and administrative expenses to decrease our corporate overhead. This lean operating strategy will help us as we move forward with our goal to become a multi-state operator,” said Todd Denkin, Digipath President.
Third Fiscal Quarter 2021 Company Highlights
- Third quarter revenues increased 88%, compared to the same period in 2020.
- Net loss decreased by 66% for the third fiscal quarter when compared with the same period in 2020
- Gross margins improved to 28% for the three months ended June 30, 2021, compared to 15% for the same period in 2020, which translates to an increase in gross profit of $152,534
- The full quarterly filing can be found on our website: Digipath SEC Filings
Management Comment
Stone Douglass, Digipath’s CFO, commented, “We are proud of our progress during this challenging time and we’re continuing to see month to month revenue gains as we enter the final quarter of this fiscal year. During the most recent quarter we saw our operating loss decrease by $325,794 or 69% while our revenues increased by $356,786 or 88%. This is particularly heartening given that our net loss for the three month period fell to just $177,214 from $520,687 for the same period last year, a 66% improvement.”
Results of Operations for the Three Months Ended June 30, 2021 and 2020:
The following table summarizes selected items from the statement of operations for the three months ended June 30, 2021 and 2020.
| Three Months Ended June 30, | Increase / | |||||||||||
| 2021 | 2020 | (Decrease) | ||||||||||
| Revenues | $ | 764,015 | $ | 407,229 | $ | 356,786 | ||||||
| Cost of sales | 551,976 | 347,724 | 204,252 | |||||||||
| Gross profit | 212,039 | 59,505 | 152,534 | |||||||||
| Operating expenses: | ||||||||||||
| General and administrative | 278,082 | 328,128 | (50,046 | ) | ||||||||
| Professional fees | 91,001 | 177,835 | (86,834 | ) | ||||||||
| Change in allowance for doubtful accounts | (10,960 | ) | 25,420 | (36,380 | ) | |||||||
| Total operating expenses: | 358,123 | 531,383 | (173,260 | ) | ||||||||
| Operating income (loss) | (146,084 | ) | (471,878 | ) | (325,794 | ) | ||||||
| Total other income (expense) | (31,130 | ) | (48,809 | ) | (17,679 | ) | ||||||
| Net loss | $ | (177,214 | ) | $ | (520,687 | ) | $ | (343,473 | ) | |||
Results of Operations for the Nine Months Ended June 30, 2021 and 2020:
The following table summarizes selected items from the statement of operations for the nine months ended June 30, 2021 and 2020.
| Nine Months Ended June 30, | Increase / | |||||||||||
| 2021 | 2020 | (Decrease) | ||||||||||
| Revenues | $ | 1,897,560 | $ | 1,971,141 | $ | (73,581 | ) | |||||
| Cost of sales | 1,389,776 | 1,250,234 | 139,542 | |||||||||
| Gross profit | 507,784 | 720,907 | (213,123 | ) | ||||||||
| Operating expenses: | ||||||||||||
| General and administrative | 715,093 | 1,123,479 | (408,386 | ) | ||||||||
| Professional fees | 313,364 | 688,902 | (375,538 | ) | ||||||||
| Change in allowance for doubtful accounts | (28,945 | ) | 186,540 | (215,485 | ) | |||||||
| Total operating expenses: | 999,512 | 1,998,921 | (999,409 | ) | ||||||||
| Operating loss | (491,728 | ) | (1,278,014 | ) | (786,286 | ) | ||||||
| Total other income (expense) | (57,922 | ) | (72,243 | ) | (14,321 | ) | ||||||
| Net loss | $ | (549,650 | ) | $ | (1,350,257 | ) | $ | (800,607 | ) | |||
About Digipath, Inc. (OTCQB: DIGP)
Digipath, Inc., supports the cannabis industry’s best practices for reliable testing, data acquisition, formulations, and new canna-tech to the cannabis industry.
Digipath Labs provides pharmaceutical-grade analysis and testing to the cannabis industry to ensure producers, consumers and patients know exactly what is in the cannabis they ingest and to help maximize the quality of its clients’ products through analysis, research, development, and standardization.
Information about Forward-Looking Statements
This press release contains “forward-looking statements” that include information relating to future events. 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: the Company's need for additional funding, the demand for the Company's products, governmental regulation of the cannabis industry, 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 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.
702-209.2429
