Marijuana Company of America Inc. (OTCMKTS: MCOA) has announced its Q2 financial results as well as for the six months ending June 30, 2021. The company also offered an update regarding a recent acquisition and other company development that include business strategy shift as the company forays into the Legal Cannabis THC Sector.
Q2 revenue dropped
Total revenue in Q2 was $16,880, a decrease of $66,078 from Q2 2020. The drop in revenue is attributable to the company’s new eCommerce platform and the slowing of overall market demand for CBD goods and services because of the pandemic. In addition, MCOA’s changes include sales strategy change, including the rebranding of hempSMART products. Net loss during the quarter was $1.828 million compared to $186,819 a year ago, representing 10,830% of the company’s total revenue.
CEO Jesus Quintero said, “During the second quarter 2021, we strengthened our capital resources by reducing significant debt and have made further inroads in our mission to grow our vertical portfolio of Cannabis businesses. This is reflected with the June 2021 addition of cDistro (Retail Service / Wholesale Prices) distributer of CBD brands, along with smoke and vape shop related products to wholesalers, c-stores, specialty retailers, and consumers in North America.”
MCOA enhancing corporate growth
Quintero added, “In the second quarter we saw improvement in corporate growth despite the negative impacts of the industry-wide supply chain shortages and other limitations due to the COVID-19 Pandemic. Fortunately, these constraints have lessened considerably in the last month. Despite these near-term challenges, we remain positive on the overall outlook for the Company as we continue to execute on our growth strategy to enable us to generate significantly more revenue by increasing the overall volume of products, we will be able to deliver.”
For 1H 2021, the company had revenue of $51810, a decline for $164,777 a year ago attributed to decreases in hempSMART total revenue. Net loss was $5.486 million representing 10,589% of revenue.