Novus Releases Its First Quarter Financial Statements For 2023

Novus Maintains Growth Despite the Cannabis Index's Lower Pricing and Trading Volumes

MIAMI, FL / ACCESSWIRE / May 18, 2023 / Novus Acquisition and Development, Corp. (OTC Markets:NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc. Operates as a national supplemental health insurance carrier and, the nation's first health carrier offering cannabis that is included in health plans for recreational and medicinal users. Today announces the release of its 2023 First Quarter Financial Statements.

The drivers that don't affect Novus' business model but negatively affect many cannabis stocks are a) IRS Tax Code 280E and b) Safe Banking Act not passing. Since Novus does not touch the plant, it can deduct business expenses, and price book value is calculated by the Benefit Monetization Ratio. So P/E ratio tends to be higher for insurance carriers that exhibit elevated growth.

What's possibly contributing to our underestimated price book value, is the miscategorization of being a cannabis vertical when Novus operates under the HMO insurance business model. We continue to grow organically, concentrating on expanding the sales agent network, and taking advantage of the attention we are getting from health carriers that want to embed our plans with their benefit packages.

Financial Highlights

Novus' Interim First Quarter of 2023, below shows the financial condition of the Company's business model.

• No Dilution: No common stock was issued since June 15, 2021.
• No Sales of Insider Shares: For more than 2 years
• Gross Revenue Increase: Gross Revenue increased 12.9% compared to the three months ending March 31, 2023, and March 31, 2022, respectively
• Net Revenue Increase: Net Revenue increased by 20.1% for the period ending March 31, 2023, and March 31, 2022, respectively
• Profit Margin: On March 31, 2023, the company demonstrated a 40.4% profit margin pricing structure in its business model up from 37.1% for the period ending March 31, 2023, and March 31, 2022, respectively
• Shareholder Equity Increase: An increase to $1,588,560 or 1.06% from $1,571,612 for the period ending March 31, 2023, and December 31, 2022, respectively
• Cash and Cash Equivalents Increase: Increased to $191,857 on March 31, 2023, or 2.7%, from $186,668 from the period ending December 31, 2022,
• No Convertible Notes: No convertible notes issued or outstanding
• Debt: $150,898 is owed to the CEO Frank Labrozzi, no plans on exercising any call provision at this time
• Leak Out Vendor Shares: All third-party vendors who received stock issued from treasury are subject to a contractually mandated leak out of securities which are 5%- 15% of the average daily tradingvolume, computed over the last 30 trading days.

Further research will demonstrate the following:

• Financial Filings: Click Here
• Quote: Click Here
• Website: Click Here
• Investor's Page: Click Here

About Novus

Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, Services, Inc. provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as health, life, and fixed annuities. As a carrier, Novus relies on two key indicators to measure value and performance. The Benefit Monetization Ratio is defined as the total number of policies, monetized annually, which is offset by the operating cost ratio which is a Balance Sheet line item computed as Net Asset Value.

Novus' medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure, or prevent disease. All information provided on these press releases, or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other health care professional. All cannabis transaction is solely between the state-licensed dispensary and the registered patient.

The state laws conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws, allowing the use and distribution of medical marijuana. Changes in consolidation may affect the provider network. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial changes. While we do not intend to harvest, distribute, or sell cannabis or cannabis-related products, we may be harmed by a change in enforcement by federal or state governments.

Forward-Looking Statements

This release includes forward-looking statements, which are based on certain assumptions and reflect management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. Novus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, this press release that is not statements of historical fact may be considered to be forward-looking statements. Written words, such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future.

Investor Contact Information

Investor Website
855-228-7355
Email: info@getnovusnow.com

SOURCE: Novus Acquisition and Development Corporation

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