Novus Reports First Quarter 2021 Results
Novus Acquisition and Development Corp. (OTC PINK:NDEV) reported a 7.5% revenue increase to $63,481 for Q1 2021, compared to Q1 2020. The company's net income rose 5.5% to $21,426. The profit margin was reported at 34% during the quarter. Cash and cash equivalents grew to $160,020. CEO Frank Labrozzi highlighted growing partnerships with major health carriers as a key growth driver for its cannabis health plans. However, potential regulatory changes pose risks to the business.
- Revenue increased by 7.5% to $63,481 for Q1 2021.
- Net income rose by 5.5% to $21,426 for Q1 2021.
- 34% profit margin achieved for the period.
- Shareholder equity increased to $1,478,786.
- Potential regulatory changes could significantly impact business operations.
Continued Ramping of Prominent Insurance Distributors Leads to Growth
MIAMI, FL / ACCESSWIRE / May 18, 2021 / Novus Acquisition and Development, Corp. (OTC PINK:NDEV), through its wholly-owned subsidiary WCIG Insurance Services, LLC., is a hybrid health insurance entity and, the nation's first carrier offering cannabis health plans to recreation and medicinal users, today reported, its financial and operational results for the three months ended March 31, 2021.
Novus' CEO, Frank Labrozzi, stated, "As we expand our partner base that includes Third Party Administrators who have distribution contracts with major health carriers, we are seeing more interest to include Novus Cannabis MedPlan as a tool to persuade consumers to specific insurance carriers. Our associates are in varying stages of onboarding, and we are motivated to ramp up with each and bring on additional ones who could assist us as we scale up our distribution network".
First Quarter 2021 Financial Highlights:
- Revenue increased
$4,404 or7.5% to$63,481 for the three months ended March 31, 2021, as compared to the three months ended March 31, 2020 - Demonstrated a
34% profit margin pricing structure in its business model for the three months ended March 31, 2021 - Net income increased
$1,118 or5.5% to$21,426 for the three months ended March 31, 2021, as compared to the three months ended March 31, 2020 - Shareholder equity increased to
$1,478,786 on March 31, 2021, from$1,468,783 at December 31, 2020 - Cash and Cash Equivalents increased to
$160,020 at March 31, 2021, from$156,422 at December 31, 2020
Alignment With Insurance Distribution
- Pram: Focusing on proprietary prescription drug benefits PRAM identifies a unique need for pharmacy cost containment in the marketplace. They have a sizeable client base in the group markets and a distribution base with carriers.
- Unique Insurance Concepts UIC: A consortia of health insurance agents that focus on group policies, Medicare supplements, dental and critical illness with over 5,000 corporate clients.
- Go Enroll / Elevate Wellness: One of the nation's top InsureTech platforms targeted for large groups with over 92,000 clients. This platform allows employees to integrate cannabis with Dental, Vision, GAP, and Medical Plans. The Elevate Wellness Plans cover over 4,500 employers where their employees are allowed to choose alternative treatment options that may not be available through their traditional healthcare providers.
- Oneshare: A medical cost-sharing provider an ACA-exempt path to healthcare. Its health-based sharing membership plan focuses on Catastrophic Plans and Complete Health.
- Essential Benefits: Is Minimal Essential Care (MEC) is a plan that meets the Affordable Care Act requirement for getting health coverage. Some of these programs under MEC include marketplace plans, job-based plans, Medicare, and Medicaid. Mainly focused on covering routine preventative illness plans.
- Wellness 360: This is an employee-based wellness platform that offers plans, program guides, online educational resources, a white label wellness program, and many other customizable options for workplace wellness.
- Back 9 Insurance: Is InsureTech platform that sells annuities, life, long-term care, disability, and annuities. Their platform makes it easy for agents to display side-by-side comparisons with of over 50 carriers and offer Novus' plans in a cross-sell.
- National Life: Contracted through Novus provider Compass Health this is one of the oldest life insurance carriers in the country.
- Medova Healthcare: Novus has executed an agreement with Medova Healthcare that offers Bridgewell Health®, which are six guaranteed issued plans that offer preventive and wellness plans with robust medical benefits designed for employee group health benefits.
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About Novus
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, 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, property & casualty, life, accident, and fixed annuities.
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. Once a push notification is completed the transaction is solely between the state-licensed dispensary and the registered patient.
The state laws are in 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. 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 to Novus Medical Group. 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.
Investor Contact Information
855-228-7355
Email: info@getnovusnow.com
SOURCE: Novus Acquisition and Development Corporation
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