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Jacksam Corporation Announces 2021 Financial Results Highlighted by 106% Revenue Growth to $6.7 MillionApr 4th, 2022 9:00 EST
NEWPORT BEACH, Calif., April 4, 2022 /PRNewswire/ — Jacksam Corporation dba Convectium (OTCQB: JKSM) (“Jacksam” or “Convectium” or the “Company”), a workflow automation Company OR a leading provider of automated filling and capping solutions to the cannabis and hemp industry, today announced financial and operational results for the year ended December 31, 2021.
Key Financial Highlights for Year Ended December 31, 2021 Compared to Prior Year Period
- Revenue increased 106% to $6.7 million
- Gross profit increased 26% to $1.9 million
- Operating expenses as a percentage of revenue declined to 37%, from 57%, demonstrating scalability of the business
- Operating loss increased 34% to $0.6 million
- Net income decreased to $0.0 million, from $3.1 million
Business Highlights for the Year Ended December 31, 2021
- Expanded into flower and entered the infused pre-roll market
- Launched the Convectium IFX-100, the Company’s first automated pre-roll infusion machine
- Partnered with Emerald Scientific, LLC to expand the distribution for Convectium’s workflow automation machinery and equipment solutions for the cannabis and CBD industry
- Raised $1.0 million in Series B Preferred Stock from two institutional investors
Management CommentaryMark Adams, Jacksam’s Chief Executive Officer, commented, “We concluded a highly successful year with greater than 100% revenue growth, continued scalability of our operating infrastructure and the introduction of new products. We are pleased to have attracted two new institutional shareholders in early 2022 who recognize what we have and share in our vision going forward. Our business pipeline is robust from both existing and new customers, as we evaluate multi-millions in potential new opportunities spanning across 36 states.”
Adams, continued, “Our strategy of generating more predictable recurring revenue has been progressing as expected with follow-on additional orders from our larger customers that have previously purchased our market-leading filling and capping solutions. Listening to our customers’ needs and manufacturing bottlenecks has enabled us to develop world class solutions, such as our new IFX-100 automated pre-roll infusion machine. We plan to continue to both develop new solutions and partner with leading providers to become the premier solution provider in the industry.”
Adams, concluded, “We believe we are still in the early innings of this high-growth emerging industry and are excited about entering our next growth phase of our business. Leading industry drivers are at our back expanding our market opportunity, led by additional states legalizing medical and/or recreational use of cannabis and the FDA certifying certain vape manufacturers via its Premarket Tobacco Product Application (PMTA) process. With these industry accelerators in place, increased attention has been placed on automation solutions to improve efficiencies and support the tremendous growth opportunity industry-wide. Our market leading filling and capping solutions continue to become the industry standard in the cannabis and CBD industry. We are proud of our positive business momentum and look forward to updating the market and our shareholders with our progress on both our business and capital market initiatives over the next few months.”
Financial Results for Year Ended December 31, 2021
- Revenue for the year ended December 31, 2021 increased by $3.5 million, or 106%, to $6.7 million, compared to $3.3 million for the year ended December 31, 2020. For the year ended December 31, 2021, the breakdown of sales comprised of $5.2 million of machine sales and $1.5 million of non-machine sales. Strong demand for legacy and new products contributed to the increase in revenue.
- Gross profit for the year ended December 31, 2021 increased by $0.4 million, or 26%, to $1.9 million, compared to $1.5 million for the year ended December 31, 2020. Gross margin decreased to 28% for the year ended December 31, 2021, as compared to 45% during the year ended December 31, 2020, primarily attributable to a shift of product mix.
- Operating expenses for the year ended December 31, 2021 increased by $0.6 million, or 34%, to $2.5 million, compared to $1.9 million for the year ended December 31, 2020. Operating expenses as a percentage of revenue decreased to 37% from 57% for the year, reflecting the Company’s focus on increasing revenue, reducing expenses, and performing more efficiently. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
- Operating loss for the year ended December 31, 2021 increased by $0.2 million, or 64%, to $0.6 million, compared to $0.4 million for the year ended December 31, 2020.
- Net loss for the year ended December 31, 2021 decreased to $0.0 million, compared to $3.1 million for the year ended December 31, 2020. Of note, the net loss for the year ended December 31, 2021 included non-cash items of interest expense of $0.9 million and a derivative gain of $1.4 million. The resulting EPS loss for the year ended December 31, 2021, was ($0.00), as compared to an EPS loss of ($0.05) for the year ended December 31, 2020.
- As of December 31, 2021, Jacksam had $0.3 million in cash, compared to $0.5 million on December 31, 2020.
About Jacksam Corporation dba ConvectiumJacksam Corporation dba Convectium (OTCQB: JKSM) designs and markets automated vape, POD and cartridge filling/capping equipment for the cannabis and CBD industry. We are also a distributor of other CBD and cannabis automation solutions including the “PreRoll-ER” automated pre roll machine. Our automated equipment is designed and built in the U.S. and carries full UL certification in the U.S. Using Jacksam/Convectium’s automated equipment, our customers increase output by up to 60 times over hand filling. Jacksam/Convectium is focused on helping our customers automate their workflow and quickly get custom branded products onto dispensary shelves. Over 250 companies, including many dominant brands and multi state operators (MSO’s) in this industry, rely on Jacksam/Convectium for automation of their production and back office operations.
For additional information, please visit: https://www.convectium.com.
Safe Harbor Statement This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the Company’s ability to retain the listing of its common stock on the OTCQB Market; the impact of the COVID-19 pandemic on our results of operations and our business. More detailed information about the Company 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 (“SEC”), including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at www.sec.gov.
All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.