GrowLife revenues for 2013 revenue from sales increased to $4,858,976 from $1,450,745, an increase of $3,408,231 or 235% compared against audited revenues in 2012. For the quarter ended December 31, 2013, Q4, revenue was $1,912,311, an increase of $1,237,691, an 183% increase compared to the $674,620 in revenues recorded for the same period in 2012.
As the Company describes in detail in the full regulatory filing the improved results in 2013 were primarily attributable to GrowLife's (1) strategic acquisitions, (2) product expansion, (3) business alliances, and (4) continually improving market conditions. The Company's reported results reflect costs of certain important initiatives including GIFT transactions, GrowLife reintroduction and expansion of private label products under the Stealth Grow product line as well as other recent initiatives the Company has developed but as yet not derived revenue to date.
The rapid growth of the company in 2013, combined with our focus on market share and expansion has resulted in some margin compression, which the Company believes is temporary. Moreover, the Company's financial results also include substantial non-cash, one time charges related to warrants that were issued by the company in 2013 and expensed by the company in accordance with GAAP requirements. The reported net loss of the Company for 2013, on a non-GAAP basis, exclusive of non-cash one-time charges, was $2,038,907.
"We are extremely pleased with the 2013 financial results, especially the fourth quarter, which reflects the first period of fully amalgamated sales revenue from our store acquisitions earlier in the year," stated GrowLife CEO and Chairman Sterling Scott. "We also made key investments in 2013, to position the company for future expansion and maximize our ability to scale with the market."
Highlights from the period include:
- Acquisition of Rocky Mountain Hydroponics, LLC and Evergreen Garden Centre, LLC, commencing GrowLife Hydroponics retail presence in Colorado, Massachusetts, New Hampshire, and Maine. The Companies were acquired in the 2rd quarter of fiscal 2013. Revenue from these acquisitions is only fully expressed in the Q3 and Q4 totals.
- Opening of our Northern California, Santa Rosa based GrowLife Hydroponics Store in Q4.
- CANX joint venture in Q4 to provide GrowLife with the financial capital to accelerate acquisitions and take advantage of market opportunities.
"With the exception of one-time, non-cash charges in 2013, the important metrics of the Company are sound and improving. Importantly, as the legislative environment continues to shift favourably for legal cannabis, GrowLife is very well positioned to increase our market leading presence in a revenue diversified manner that is profitable to the Company and its shareholders."
Source: PRNewswire
