Los Angeles/Desert Hot Springs, CA, May 11, 2020 (GLOBE NEWSWIRE) -- Grapefruit USA, Inc., (“GPFT”, “Grapefruit” or the “Company”) (OTCPink: GPFT) a California based cannabis company, is announcing today that in its quarterly report on Form 10-Q for the three months ended March 31, 2020 filed with the SEC last Friday, the Company reported net revenues of $393,559, an increase of 230% over revenues of $119,155 for the three months ended ended December 31, 2019, and an increase of $64,863 or 20% over revenues for the three months ended March 31, 2019. This significant increase in revenues occurred despite the fact that the Company lost two transaction in March, 2020 which would have resulted in an additional approximately $575,000.00 of revenue for the March 31, 2020 quarter. $550,000 of this amount was caused by the closure of a customer’s extraction lab at the end of March due to the pandemic, thereby preventing the Company from completing the transaction. For the March 31, 2020 three month period, the Company suffered a loss from operations of $363,987 as opposed to a loss from operations of $705,034 for the three months ended December 31, 2019 an approximate 50% decrease attributable much lower general and administrative expenses connected with reduced reorganization expenses, legacy debt and public company expenses. $2,483,040 of the Company’s reported $2,772,723 net loss was attributable to non-recurring changes in the value of derivative instruments and non-cash interest expense. For a full analysis of the Company’s results of operations see the Company’s Form 10-Q at pages 3-6 and 19-21.
With respect to Grapefruit’s 2020 first quarter report, Bradley J. Yourist, Grapefruit CEO, stated, “As we stated in the release of our 10-K for 2019 four weeks ago, 2020 is off to a positive start with a now verified 230% increase in revenue over the previous quarter and a sharply decreased operating loss due the end of reorganization and early stage public company transaction expense. To put it in perspective, revenues for the first quarter of 2020 almost matched revenues for all of 2019. We are disappointed that we lost a sizable distribution transaction in early April due to the pandemic because our customer’s extraction lab had to close temporarily to protect its workers, but that was beyond our control. These first quarter results clearly demonstrate that Grapefruit has moved past the disruption caused by the public company reorganization and related audit issues and expenses, has regained its momentum and is now laser focused on revenue growth in our distribution and extraction lab businesses as well as the introduction of our potentially disruptive THC+ CBD Patchless Patch which is scheduled for release by the end of the second quarter. We believe, based on early trends, that our second quarter results will be significantly better as refocused Grapefruit marches inexorably toward its goal of becoming a leading U.S. based fully integrated cannabis company.”
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About GRAPEFRUIT
Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs. Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision is to become a seed to sale, fully vertically integrated ethical and compliant cannabis product Company. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit’s Sugar Stoned branded line of infused edibles, please visit us at https://sugarstoned.com/.
Safe Harbor Statement
Grapefruit cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q for the period ended March 31, 2020 and its Registration Statement on Form S-1/A. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Investor Relations Contact:
Bradley Yourist
brad@grapefruitblvd.com
18776 Blue Dream Crossing, Unit LL1 53-07
Desert Hot Springs, California 92240
(760) 205-1382
https://grapefruitblvd.com/