KIRKLAND, Wash., May 02, 2018 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTCQB:PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized indoor cultivation product and service providers, today announced financial results for the quarter ending March 31, 2018, and provided an overview of recent operational highlights. The Company experienced continual growth over last year, showing a 52% increase in revenue over the same quarter last year. In addition, the Company deferred revenue of $103,491 into the June 2018 quarter. Additionally, the Company continued increasing margins with Gross Profit increasing almost $61,000 over Q1 2017. Other highlights include that current liabilities and debt were decreased by approximately $1.3 million, without the reduction in derivative liabilities.
“We are proud to announce our major revenue increase and debt pay down as the Company continues to build momentum and provide increased value to our shareholders,” said GrowLife CEO Marco Hegyi. “In just three short months, we have made significant advancements in our product development and intellectual property division as well as continued to make solid financial improvements to our balance sheet and overall revenue growth. We expanded our sales and marketing programs to further grow our business in future quarters. The resulting success of our efforts allowed us to upgrade our U.S. market to OTCQB.”
Hegyi continued, “We believe 2018 will continue to be the most important and exciting year for our industry with legalized cannabis cultivation increasing across the United States and regulatory changes taking effect in Canada later this year.”
FIRST QUARTER 2018 HIGHLIGHTS
During the first quarter of 2018, GrowLife, Inc. achieved the following milestones and significant events:
Expanded its intellectual property asset portfolio
- The Company filed two provisional patents through its GrowLife Innovations division. GrowLife Innovations is the product research and development arm of the company, which focuses on pioneering new technologies and methodologies for the indoor cultivation and building material industries. These patents include:
- A groundbreaking vertical indoor growing system and methodology intended to maximize the production capabilities of existing and future indoor grow operations by utilizing not just the horizontal surface of a facility but the cubic volume through vertical growing. This system is currently being tested through the GrowLife Commercial division and is expected to be a part of the company’s upcoming GrowLife Rooms initiative where consultants will design and build the world’s most efficient commercial grow operations.
- An eco-friendly process for converting plant waste generated by extraction into recycled building materials that can be used to build new facilities or update existing ones. An estimated 80% of raw plant materials are discarded after extraction takes place, leaving a need for responsible disposal. GrowLife’s patent would allow the company to not only address this industry issue but to refabricate this material into new reusable materials.
Opened a new R&D and production facility in Dallas
- As a part of its GrowLife Innovations division, the company opened a new R&D and manufacturing facility in Dallas designed to meet the increased demand for innovative products and solutions for the indoor cultivation and building material market. The facility will house research and development of new products and methodologies for efficient cannabis cultivation including the company’s proprietary vertical growing method as well as the company’s recently acquired building material manufacturing asset, FreeFit Floors.
Completed acquisition of assets of building materials manufacturing company
- The Company completed the full acquisition of the assets of a building materials manufacturing company, FreeFit Flooring, which specializes in the production of non-toxic, eco-friendly flooring. This acquisition, completed through subsidiary GrowLife Innovations, aligns with the Company’s goal of offering innovative new products to the indoor growing market, including everything needed for cultivation “from the ground up.”
Secured equity financing with longtime investment partner for continued expansion and growth
- GrowLife closed an equity financing deal with longtime institutional investor Chicago Venture Partners (“CVP”) at 15% above the trailing five-day average, signaling strong investor confidence and allowing the company to invest in marketing, sales and product development needed to service the expanding indoor cultivation market.
Uplisted to the OTCQB market
- As a part of GrowLife’s commitment to bring shareholders value through increased compliance and disclosure, the company announced in March that it had been approved for uplisting to the OTCQB market from the OTC Markets Group (previously known as “Pink Sheets.”) OTCQB requires a company to be fully reporting and provides the company with a more stable trading platform, exposure to additional institutional investors and better access to capital markets.
Launched a new line of eco-friendly products
- Company grow experts curated a unique line of indoor cultivation products selected for their decreased impact on the environment, which allow GrowLife’s customers to play a role in providing a greener economic footprint compared to traditional indoor cultivation methods while remaining efficient on output and profitability.
FIRST QUARTER 2018 FINANCIAL RESULTS
Net Revenue: For the period ending March 31, 2018, GrowLife showed net revenue of $708,936, as compared to revenue of $467,565 for the period that ended March 31, 2017, an increase of 52.8%.
Balance Sheet: Total Assets for the company were $1,708,883 as of March 31, 2018, compared to $861,866 as of December 31, 2017.
Gross Profit: For the period ending March 31, 2018, GrowLife showed gross profit of $76,419, as compared to $15,483 for the period that ended March 31, 2017, an increase of 393%.
For more information about GrowLife, please visit the Company’s website. Products can be purchased at ShopGrowLife.com. Additional commentary on the Company and the industry as a whole can be found on the CEO’s blog.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to help make our customers successful. Through a network of local representatives covering the United States and Canada, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media, industry-leading hydroponics and soil, plant nutrients, and thousands more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
For more information, The GrowLife 2017 Stockholder Review presentation can be found on the Company’s homepage at www.GrowLifeInc.com.
Public Relations Contact:
CMW Media
Cassandra Dowell, 858-264-6600
cassandra@cmwmedia.com
www.cmwmedia.com
Investor Relations Contact:
info@growlifinc.com
FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of GrowLife, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words may, would, will, expect, estimate, can, believe, potential and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond GrowLife, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors.