Cannabis Sativa Reports Revenue Increase of 75% in 2020

Rhea-AI Summary

Cannabis Sativa, Inc. (OTCQB:CBDS) reported a 75% increase in revenue for the fiscal year ending December 31, 2020, reaching $2,035,383, compared to $1,159,737 in 2019. This growth is attributed to its 51% owned subsidiary PrestoCorp, which benefited from the surge in telemedicine demand due to COVID-19. However, its other subsidiary, GK Manufacturing and Packaging, reported lower revenues of $94,552 and a cost of revenues of $152,837. The company has invested $750,000 in GKMP, which is facing delays in operations.

Positive

• Revenue increased by 75% in 2020 to $2,035,383 from $1,159,737 in 2019.
• Telehealth services via PrestoDoctor drove significant revenue growth.
• Emergency regulations expanded telehealth programs, benefiting PrestoDoctor.

Negative

• GK Manufacturing and Packaging reported revenue of only $94,552, with a cost of revenue of $152,837.
• Delays in GKMP operations due to pandemic-related challenges.

MESQUITE, NV / ACCESSWIRE / April 20, 2021 / Cannabis Sativa, Inc. (OTCQB:CBDS) is proud to report Revenue for the fiscal year ended December 31, 2020 of $2,035,383, up by 75% from 2019 revenues of $1,159,737. Cost of revenues for the fiscal years ended December 31, 2020 and 2019 were $893,482and $462,940, respectively. The increases for 2020 were primarily a result of the improved business operations of PrestoCorp, our 51% owned subsidiary doing business as PrestoDoctor.

Telemedicine became a growth area which drove revenues higher in 2020. PrestoDoctor continues to exceed expectations in 2021 as the dynamics of the COVID-19 pandemic have caused increased interest in telehealth, and emergency regulations opened new markets. "We experienced a remarkable surge of interest in PrestoDoctor as people stayed at home, worked from home, and practiced social distancing. Difficulties in getting to a doctor's office and concerns about being away from home encouraged new customers to explore the telehealth option. State and local governments also established emergency rules to permit telehealth across state lines, further expanding the reach of the PrestoDoctor business model. All of these developments have had, and continue to have, a positive impact on revenues," said CEO David Tobias.

In addition, GK Manufacturing and Packaging, Inc. ("GKMP"), our 51% owned subsidiary providing contract manufacturing of CBD infused products to national and regional customers provided 2020 revenues of $94,552, with cost of revenue $152,837. Cannabis Sativa has invested $750,000 into GKMP to fund the start-up operations as additional working capital. The GKMP start-up is behind schedule, primarily due to the impact of the pandemic on customers and their willingness to commit to significant product purchases in the face of uncertainty. We anticipate improving market conditions in the second quarter of 2021 and continuing through the remainder of the year.

About Cannabis Sativa, Inc.
Cannabis Sativa, Inc. ("CBDS") is engaged in telehealth, contract manufacturing CBD infused products, and the licensing of cannabis-related intellectual property, marketing and branding for cannabis-based products and services, operation of cannabis related technology services, and ancillary business activities. CBDS holds a U.S. patent on the Ecuadorian Sativa strain of Cannabis, a U.S. Patent for a marijuana lozenge; a Cannabis-based pharmaceutical composition for the treatment of hypertensive disorders by submucosal delivery and trade secret formulas and processes, and operates subsidiaries including: PrestoDoctor®, GK Manufacturing & Packaging, Wild Earth Naturals®, and iBudtender. The Company licenses the "hi" and "White Rabbit" brands, and is the official licensee for Virgin Mary Jane Brand.

About PrestoDoctor
PrestoDoctor is the #1 patient rated fully online medical cannabis recommendation service, with over 15K five star reviews on TrustSpot.

On PrestoDoctor's platform, potential patients can speak to a compassionate doctor who specializes in medical cannabis, privately and completely online. Our patients pick their physician and appointment times - either on demand or up to a week in advance - and conduct their video evaluation via our customer built HIPAA compliant telemedicine service. PrestoDoctor has helped tens of thousands of patients get medical cannabis cards in California, Nevada, New York, Oklahoma, Missouri, Pennsylvania, Illinois & Iowa.

PrestoDoctor prides itself in providing an easy process, exceptional customer support, and compassionate doctors that focus on education and patient empowerment. Patients only pay if approved and are provided a customized treatment plan post-appointment.

Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Underlying assumptions include without limitation, the ongoing enactment of legislation favorable to the production of and the commercialization of cannabis products and the Company's success in capitalizing on that legislation. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

Contact Information
(702) 762-3123
https://www.cannabissativa.com

SOURCE: Cannabis Sativa, Inc.

View source version on accesswire.com:
https://www.accesswire.com/641254/Cannabis-Sativa-Reports-Revenue-Increase-of-75-in-2020

FAQ

What were Cannabis Sativa's revenues for 2020?

Cannabis Sativa reported revenues of $2,035,383 for the fiscal year 2020, a 75% increase from 2019.

How did telemedicine impact Cannabis Sativa's revenue growth?

Telemedicine significantly boosted revenue for Cannabis Sativa in 2020, mainly through its subsidiary PrestoDoctor.

What challenges did GK Manufacturing and Packaging face?

GK Manufacturing and Packaging experienced delays in operations and reported a loss with a cost of revenue exceeding its sales.

How much has Cannabis Sativa invested in GKMP?

Cannabis Sativa has invested $750,000 into GKMP to support its startup operations.

What is the significance of emergency regulations for Cannabis Sativa?

Emergency regulations allowed for expanded telehealth services, which positively impacted revenue for PrestoDoctor and Cannabis Sativa.