Digipath, Inc. Announces Revenue Increase of Almost 18% for the Fourth Quarter of Fiscal Year 2022

Rhea-AI Summary

Digipath, Inc. (OTCQB: DIGP) reported strong financial results for Q4 2022, with revenues reaching $712,935, an increase of 18% year-over-year compared to $606,240 in Q4 2021. Gross margins also improved significantly, rising to 43.4% from 34.2% in the prior year, indicating a 26.9% increase. Management attributes this growth to a focus on quality and efficiency amid challenging market conditions. The company continues to build its client base while maintaining existing customer relationships, highlighting a robust strategy moving forward.

Positive

• Q4 2022 revenues increased by 18% to $712,935.
• Gross margins improved by 26.9% to 43.4% in Q4 2022.

Negative

• None.

LAS VEGAS, NV, Dec. 08, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Digipath, Inc. (OTCQB: DIGP) (“DIGP” or the “Company”), a service-oriented independent analytical testing laboratory, data analytics firm focused on the cannabis and hemp markets, today announced that Revenues and Gross Margins increased over the same period last year based on results for the three month period ending September 30, 2022.

Fourth Quarter Fiscal Year 2022 Company Highlights

• Revenues in Q4 2022 were $712,935 versus $606,240 for the year ago quarter, an increase of almost 18%.
• Gross Margins in Q4 2022 were 43.4% versus 34.2% for the year ago quarter, an increase of 26.9%.

Management Comment

“During difficult times, there is a flight to quality and consistency. This has been evident in the increased revenues,” said Stone Douglass, Chairman of Digipath. Todd Denkin, President of Digipath Labs, said, “Our goal over the last fiscal year was to overcome the challenges of a cold, post covid market by increasing efficiencies and sample flow. Our commitment to maintain our ‘gold standard’ customer service has helped us bring on new customers while maintaining our current ones.” “It’s all about the samples…” Denkin added, “more samples equal more revenue, plain and simple.”

About Digipath, Inc. (OTCQB: DIGP)

Digipath, Inc., supports the cannabis industry’s best practices for reliable testing, data acquisition, formulations, and new canna-tech to the cannabis industry.

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.

Investor Relations & Financial Media
Digipath, Inc.
info@digipath.com
(702)209-2429

FAQ

What were Digipath's Q4 2022 revenue figures?

Digipath reported revenues of $712,935 for Q4 2022, an 18% increase from $606,240 in the same quarter last year.

How did Digipath's gross margins perform in Q4 2022?

The gross margins for Q4 2022 were 43.4%, up from 34.2% in Q4 2021, reflecting a 26.9% improvement.

What strategies did Digipath implement to improve its business performance?

Management focused on enhancing efficiencies and sample flow while maintaining high customer service standards to grow their client base and revenue.

What is the stock symbol for Digipath, Inc.?

The stock symbol for Digipath, Inc. is DIGP.