Economic impact of COVID continuing to subside as Company expands operations in California
LAS VEGAS, NV, Jan. 04, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Digipath, Inc. (OTCQB: DIGP) (“DIGP” or the “Company”), a service-oriented independent analytical testing laboratory, data analytics and technology firm focused on the cannabis and hemp markets, today announced results for the twelve month period ending September 30, 2021. Revenues and Gross Margins were reasonably consistent with the previous fiscal year, but the loss was substantially less at $686,503, a reduction of 70.3% from the loss in the previous year of $2,309,490.
Fiscal Year 2021 Company Highlights
· Company signs LOI to purchase Berkley lab, initiates multi-state operator strategy.
· Annual revenues decreased by $70,599, or 2.7%, on a year-over-year basis.
· Gross margins of 28.36% were down slightly from the prior year.
· EBITDA was ($772,448) compared to ($2,192,382), an improvement of $1,419,934 on a year-over-year basis.
· Net loss decreased to $686,503, compared to $2,309,490 for the twelve months ending September 30, 2021, an improvement of $1,622,987, or 70.3%
· The full year filing can be found on our website: Digipath SEC Filings
Management Comment
“While this was undoubtably a rebuilding year as we managed COVID and its impact on our operations, our clients, and the market, the Company was able to reduce expenses through what we view as a necessary rebuilding phase. This now positions us to accelerate and expand both in our longstanding Las Vegas lab and through strategic acquisitions,” said Todd Denkin, Founder and President at Digipath.
“In fact, we believe the challenges we faced and overcame helped us craft a far more elegant and efficient business model that we can apply to existing laboratories we acquire in lucrative markets, allowing us to expand both the venerable, pioneering Digipath brand and revenue potential simultaneously,” added Denkin.
The table below shows the interim results and key metrics:
| Years Ended September 30, | |||||
| Increase/ | |||||
| 2021 | 2020 | Decrease | |||
| Revenues (Thousands) | $2,503,800 | $2,574,399 | (70,599) | ||
| Cost of Sales | 1,788,635 | 1,778,564 | 10,071 | ||
| Gross Profit Margins (%) | 28.6% | 30.9% | (2.3%) | ||
| Operating Expenses | 1,487,613 | 2,988,217 | 1,500,604 | ||
| Operating Loss | (772,448) | (2,192,382) | 1,419,934 | ||
| Net Loss | (686,503) | (2,309,490) | 1,622,987 | ||
| EPS | ($.01) | ($.04) | $.03 | ||
About Digipath, Inc. (OTCQB: DIGP)
Digipath, Inc., is a service-oriented independent analytical testing and research and development laboratory and data analytics firm focused on the legal cannabis and hemp markets.
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 client’s 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.
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