Novus Releases Positive Earnings For 3rd Quarter 2022

Rhea-AI Summary

Novus Acquisition and Development Corp. (OTC:NDEV) reports strong financial performance in its 3rd quarter of 2022. Key highlights include a 12.27% increase in gross revenue to $77,461 and an 8.45% rise in net revenue to $47,044. The profit margin improved to 39.26% from 38.58% year-over-year. Cash equivalents rose 11.9% to $179,661, while shareholder equity increased 4.65%. The company is enhancing its cannabis distribution model through an online pharmacy partnership, reflecting a positive regulatory environment for cannabis in health plans.

Positive

• Gross revenue increased by 12.27% to $77,461.
• Net revenue rose by 8.45% to $47,044.
• Profit margin improved to 39.26%, up from 38.58%.
• Cash and cash equivalents increased to $179,661, up 11.9%.
• Shareholder equity grew by 4.65% to $1,554,250.

Negative

• None.

Regulation Reform Places Employer-Sponsored Health Plans as a Great Cannabis Distribution Model to Consumers

MIAMI, FL / ACCESSWIRE / November 15, 2022 / 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. Announces the release of its 3^rd quarter interim statement.

In Novus' 3Q, 2022 statement demonstrates positive earnings, the integration of an online pharmacy managed by Plitio to provide our cannabis policyholders with online ordering of prescription meds, and the latest state referendums that continue to support cannabis in employee benefit packages.

Financial Highlights:

For the 3rd quarter of Novus' Fiscal Year of 2022, the points below show the financial condition of the Company's business model.

• No Dilution: No common stock was issued in the last six consecutive quarters. All third-party vendors who received stock issued from treasury are subject to a mandatory leak out of securities which is 15% of the average daily trading volume, computed over the last 30 trading days.
• Three-Month Gross Revenue Increase: Gross Revenue increased $9,506 or 12.27% to $77,461 for the three months ended September 30, 2022, as compared to $67,955 for the three months ended September 30, 2021.
• Three Month Net Revenue Increase: Net Revenue, increased from $43,067 to $47,044 an increase of 8.45% or $3,977 on September 30, 2022, as compared to the three months ended September 30, 2021.
• Profit Margin: On September 30, 2022, the company demonstrated a 39.26% profit margin pricing structure in its business model up from 38.58% three months ended September 30, 2021
• Shareholder Equity Increase: An increase of $72,361 or 4.65% which is $1,554,250 on September 30, 2022, from $1,481,889 on September 30, 2021.
• Cash and Cash Equivalents: Increased to $179,661 on September 30, 2022, or 11.9%, an increase from $158,195 for the same period ended September 30, 2021.

Online Pharmacy Adaptation:

It's been six years of building an infrastructure of a Provider Network of cannabis verticals that integrates cannabis in our health plans, and we find ourselves on the precibus of re-scheduling cannabis under federal law.

Management has set its plans for the future in giving cannabis policyholders more healthcare options for their cannabis benefits. Projecting the beginning of 2023, Novus will offer prescription medication through an online pharmacy platform with a Canadian developer known as Plitio.

The deal calls for private labeling of the intellectual property in the name of Novus. The technology backbone of the platform will remit and distribute prescriptions at a discount of as much as 50% on generic meds.

Frank Labrozzi, Novus' CEO, states; "This alliance offers threefold advantages, more revenue to our Provider Network, immense discounts to our policyholders on their prescriptions and/or cannabis meds, all leading to generating more policyholder sales for our shareholders."

Kayhan Moayeri, Plitio CEO, states: "We see that our technology and prescription drug plans offered by Novus, will simultaneously expand each of our company's marketplace presence, benefiting providers and policyholders.

Cannabis Regulation Reform:

California has taken in nearly $4 billion in marijuana tax revenue since 2018, last year, increased 55 percent more from cannabis. Being one of our largest markets in cannabis we determined that many states would follow suit.

Here is the regulatory landscape that increasingly supports cannabis in health plans for the consumer:

• Interstate Commerce: California SB 1326 permits interstate cannabis commerce from California to other legal states.
• Insurance Codes: California AB 2568, Insurance Code, is not a crime under California law solely for providing insurance or related services to persons licensed to engage in commercial cannabis activity pursuant to this division.
• Patient Rights: California B1954, physicians cannot be penalized for administering treatment to a patient who uses medical marijuana in compliance with state law.
• Fair Employment and Housing Act: California B2188: Eliminates employment-based THC testing and prohibits penalizing a person solely because of off-duty cannabis use.

Conclusion Cannabis in the Workplace

As Management continues to negotiate and finalize agreements of embedding our cannabis health plans with regional and national health carriers, we overcame the obstacles concerning conflicts with the Drug-Free Workplace Act and state laws authorizing cannabis use.

Fortunately, The Patient Rights Act and Insurance Codes prompted Human Resource Departments to rewrite their policies concerning cannabis. Aside from employee safety issues, employers are approving the adaptation of policies in accordance with the Responsible and Equitable Regulation of Adult-Use Cannabis (RERACA). What's changed their minds? Since COVID the zero-tolerance employer is confronted with daily struggles in staffing shortages, recruitment, telework demand, and retention issues which top their priorities directly.

Three things investors need to know that Novus' business model,

1. We are not solely dependent on the end of cannabis prohibitions since insurance codes work primarily at the state level.
2. Legislative reform obviously will bring more significant changes, the not so popular, higher taxes on recreational cannabis, driving consumers from being rec users to becoming med users, and,
3. Employers are faced with an ever-changing landscape, as employees want cannabis in their health benefits, provoking HR department to entice and retain staffing deficiencies.
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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

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

SOURCE: Novus Acquisition and Development Corporation

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FAQ

What were Novus Acquisition and Development's earnings for the 3rd quarter of 2022?

In the 3rd quarter of 2022, Novus reported gross revenue of $77,461 and net revenue of $47,044.

How did Novus Acquisition and Development's profit margin change in Q3 2022?

The profit margin for Novus increased to 39.26% in Q3 2022, up from 38.58% in the previous year.

What is the impact of cannabis regulation reform on Novus Acquisition and Development?

Cannabis regulation reform is creating a favorable environment for Novus by allowing integration of cannabis into health plans.

What are the future plans for Novus Acquisition and Development's online pharmacy?

Novus plans to launch an online pharmacy in early 2023, offering significant discounts on prescription medications for policyholders.