Jacksam Corporation dba Convectium Announces Fiscal 2021 Second Quarter Results Highlighted by 162% Y/Y Growth

Rhea-AI Summary

Jacksam Corporation, operating as Convectium (OTCQB: JKSM), reported its Q2 2021 financial results, showcasing significant growth in sales. The Company achieved $1.66M in sales, up 162% year-over-year, despite a 6% quarter-over-quarter decline due to delayed deliveries of its 'PreRoll-ER' machines. Core product sales, particularly filling and capping machines, increased 25% from the previous quarter. Operating expenses were affected by a one-time $219,606 insurance payment. CEO Mark Adams expressed optimism for future growth, especially with the upcoming MJBizCon event.

Positive

• Sales increased 162% year-over-year.
• Core product sales grew 25% from Q1 2021.
• Gross margin improved by 100bps quarter-over-quarter.

Negative

• Sales declined by 6% quarter-over-quarter due to delivery delays.
• Operating expenses included a one-time payment of $219,606 for insurance.

NEWPORT BEACH, Calif., Aug. 12, 2021 /PRNewswire/ -- Jacksam Corporation dba Convectium (OTCQB: JKSM) (the "Company" or Jacksam/Convectium), a workflow automation company focused on developing machinery and equipment solutions for the cannabis and CBD industry, today announced its financial and operational results for the second quarter of fiscal 2021 ended June 30, 2021.

Second Quarter 2021 Highlights:

• Sales of $1.66M increased 162% Y/Y from Q2 of 2020 and declined 6% Q/Q from Q1 2021.
• Despite of strong Y/Y sales growth, the 6% Q/Q decline was primarily due to a delivery delay for one of our "PreRoll-ER" machines, as Covid-19 caused our partner in Canada temporary supply issue. These machines are priced at a manufacturer's suggested retail price (MSRP) of $325,000 each. The delivery of this machine was expected to be postponed into Q3 2021.
• Sales for our "core products", the filling and capping machines, increased both on Y/Y and Q/Q basis. This year's strong momentum continues as sales for our filling and capping machines grew 25% in Q2 2021 vs. Q1 2021.
• Gross margin expanded 100bps Q/Q driven by a shift in product mix.
• Operating expenses were adversely impacted by several one-time expenses during the quarter, including a single $219,606 payment to an insurance underwrite to cover the "Extended Period" of our Directors and Officers Liability Insurance (D&O Insurance), in response to an overall market movement that insurance underwriters increased D&O Insurance premium charged to their cannabis company clients. We expect such payment to be one-time over years and was fully recognized in Q2 2021.

Commenting on the news, Jacksam/Convectium CEO Mark Adams stated: "We continue to see very strong growth in our core products as our market leading filling and capping solutions continue to become the industry standard in the cannabis and CBD industry. We've also contacted several new partners that will help us continue to accelerate the tremendous growth we have been experiencing over the past few quarters. The second half of 2021 looks to be very promising and will be highlighted by our attendance at MJBizCon in Las Vegas from October 20^th- October 22^nd at Booth C 6346. I'm extremely excited."

About Jacksam/Convectium

Jacksam/Convectium designs and markets automated vape, POD and cartridge filling/capping equipment for the cannabis and CBD industry. We also are a distributor of other CBD and Cannabis automation solutions including the "Pre Roll-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 the space, rely on Jacksam/Convectium for automation of their production and back office operations.

View original content:https://www.prnewswire.com/news-releases/jacksam-corporation-dba-convectium-announces-fiscal-2021-second-quarter-results-highlighted-by-162-yy-growth-301353941.html

SOURCE Convectium

FAQ

What are Jacksam's Q2 2021 financial results?

Jacksam reported $1.66M in sales for Q2 2021, a 162% increase year-over-year.

What caused the decline in Jacksam's sales in Q2 2021?

The 6% quarter-over-quarter decline was primarily due to delivery delays of the 'PreRoll-ER' machines.

What improvements did Jacksam see in gross margins?

Jacksam's gross margin expanded by 100bps quarter-over-quarter.

What was the impact of operating expenses in Q2 2021?

Operating expenses were affected by a one-time payment of $219,606 for Directors and Officers Liability Insurance.

What does Jacksam's future outlook look like?

CEO Mark Adams expressed optimism for continued growth, especially with new partners and upcoming events like MJBizCon.