VANCOUVER, British Columbia, Aug. 30, 2019 (GLOBE NEWSWIRE) -- Isodiol International Inc. (CSE: ISOL) (OTCQB: ISOLF) (FSE: LB6B.F) (the “Company” or “Isodiol”), announces that it has filed its consolidated financial statements and MD&A for the three months ended June 30, 2019.
Highlights of the first quarter of fiscal 2020 include:
- The Company reports first quarter revenues of $4.2M, a significant reduction in operating expenses and near profitable operations with a net loss of $2.8M.
- The Company has reduced its operational expenditures by $3M compared to the three months ended June 30, 2018 and by $13M compared to the most recently completed three months ended March 31, 2019. The reductions in spending have been described in the MD&A for the three months ended June 30, 2019, with highlights below:
| % QOQ | % YOY | ||||||
| Q1 2020 | Q4 2019 | Change | Q1 2019 | Change | |||
| Consulting | 49,178 | 10,460,986 | -99.53 | % | 921,641 | -94.66 | % |
| Wages | 816,238 | 1,663,192 | -50.92 | % | 1,871,219 | -56.38 | % |
| Acquisition and advisory | - | 236,024 | -100.00 | % | 210,000 | -100.00 | % |
| Total operating expenses | 3,362,091.00 | 16,419,559 | -79.52 | % | 6,384,479 | -47.34 | % |
| Net loss | 2,825,092.00 | 95,895,783 | -97.05 | % | 3,824,576 | -26.13 | % |
- Liquidity
- Positive working capital of $4.8M and includes the following current assets:
- Cash balance of $3M;
- Prepaid expenses of $2.7M;
- Inventory of $1M;
- Receivables of $4.7M;
- Investments and loans receivables expected to bring an additional $1.6M of cash before December 2019;
- Not included in working capital is the long-term receivables from the final BSPG payments of USD$2M expected to be received by September 2020;
- Positive working capital of $4.8M and includes the following current assets:
Operational highlights:
- On April 11, 2019, the Company announced the commencement of its Vending Machine Program for Iso-Sport products with the initial launch in 20 Powerhouse Gym locations in the United States;
- On May 1, 2019, the Company continued its fiscal 2020 Trade Show Program at the ECRM Pet EPPs Trade Conference and showcases its all-natural CBD pet supplement line, Pawceuticals;
- On July 18, 2019, the Company announced that the asset purchase agreements among the Company, ISO International LLC, and Carlsbad Naturals LLC (both the New Mexico and Wyoming limited companies) have been terminated as a result of Carlsbad New Mexico and Carlsbad Wyoming’s failure to perform their respective obligations under the agreements. The transactions relating to these asset purchase agreements were announced and described in the Company’s news release dated February 14, 2019. The company has terminated this acquisition and is in the process of cancelling the previously issued shares.
“The Company’s primary objective was to reduce our operating expenses and move towards profitability, of which we came very close in this first quarter of FY2020,” said CEO of Isodiol, Marcos Agramont. “We have reduced our expenses by $13M from fourth quarter 2019 and have now turned our focus on building our brands globally with spending concentrated on marketing and advertising.” Marcos went on to say, “We are currently cash positive and the Company is in a strong position to improve revenues and continue cash reduction strategies heading into the remainder of FY2020.”
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About Isodiol International Inc.
Isodiol International Inc. is focused on the nutritional health benefits that are derived from hemp and is a product development, sales, marketing and distribution company of hemp-based Consumer Packaged Goods (CPG) and solutions. Isodiol has commercialized a 99%+ pure, naturally isolated CBD, including micro-encapsulations, and nano-technology for quality consumable and topical skin care products. Isodiol’s growth strategy includes the development of over-the-counter and pharmaceutical drugs and continued international expansion into Latin America, Asia, and Europe.
ON BEHALF OF THE BOARD
Marcos Agramont, CEO & Director
INVESTOR RELATIONS:
Ir@isodiol.com
604-409-4409
MEDIA CONTACT:
Christopher Hussey
media@isodiol.com
The CSE has not reviewed, approved or disapproved the content of this press release.
Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, proposed arrangement with creditors, products and future the Company’s business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release.