On November 22, 2019 Medical Marijuana, Inc. ("the Company") (OTC: MJNA), the first-ever publicly traded cannabis company in the United States that launched the world’s first-ever cannabis-derived nutraceutical products, brands and supply chain, reported its financial results for the quarter ended September 30, 2019, and provided an overview of recent operational highlights (Press release, Medical Marijuana Sciences, NOV 22, 2019, View Source [SID1234551626]).

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Third Quarter 2019 Financial and Operating Highlights

Generated $17.7 million in revenue for the third quarter of 2019;
Year to date revenue of $58.6 million, a 30% increase over the same period in 2018;
Generated $271,567 of cash from operations in the quarter ended September 30, 2019, with total cash balance of $5.5 million at quarter-end;
Year to date gross profit of $44.5 million, nearly a 44% increase over the same period in 2018;
Cost of Goods Sold for the first nine months decreased as a percentage of sales from 31.4% in 2018 to 24.1% in 2019;
Subsidiary Kannaway became a member of the European Industrial Hemp Association;
Subsidiary HempMeds launched its new CBD pet product line, Hemp for Pets;
The Company and its subsidiary Kannaway were honored with two Stevie Award International Business Awards;
The Company reached a one-year milestone in its high-level CBD hemp oil stability study;
Subsidiary Kannaway entered a partnership with Endocanna Health to create and sell endocannabinoid DNA testing products;
The Company was listed as a Top 5 Company in the Hemp-Based CBD Market by equity research firm Avise Analytics, Ltd.;
Subsidiary HempMeds Brasil signed an agreement with major online marketplace Dr. Cannabis.
"Medical Marijuana, Inc. and its subsidiaries are excited to continue operating as one of the hemp-based CBD industry pioneers. We are very confident in the continued growth of the global CBD market and encouraged by regulatory developments including the White House’s approval of the U.S. Department of Agriculture’s federal hemp production rules," said Medical Marijuana, Inc. CEO Dr. Stuart Titus. "In the future, we intend to continue scaling our operations to meet the high demands for products across the globe."

Operating Results – Q3 2019 Compared to Q3 2018

Sales for the third quarter of 2019 exceeded $17.7 million, a decrease of 3% over Q3 2018. The Company executed on a strategic profitability plan that resulted in gross margins increasing from 73.8% in Q3 of 2018 to 75.2% in Q3 of 2019.