Quanta Announces Second Quarter 2020 Results

Rhea-AI Summary

Quanta, Inc. (OTC PINK:QNTA) reported its Q2 2020 results, revealing total revenues of $318,000, unchanged from Q2 2019, and a gross margin improvement to 77.7% from 68.2% year-over-year. The net loss slightly decreased to $(1.86 million) or $(0.03) per share, compared to $(1.91 million) or $(0.05) per share in the prior year. Cash used in operations rose to $849,000. The company launched its molequle product line and reported an uptick in sales in July and August, anticipating continued growth despite challenges posed by COVID-19.

Positive

• Gross margin improved to 77.7% from 68.2% year-over-year, indicating enhanced production efficiencies.
• Following Q2, Quanta announced new commercial revenues from Quanta Muscle Rub.
• The introduction of new products and partnerships sets a positive growth trajectory for the remainder of 2020.

Negative

• Net loss remains significant at $(1.86 million), although it improved slightly from the previous year.
• Cash used in operations increased to $849,000 compared to $466,000 in the same period last year.

BURBANK, CA / ACCESSWIRE / August 19, 2020 / Quanta, Inc. (OTC PINK:QNTA), an applied sciences company based on a quantum biology platform that significantly boosts the potency and efficiency of any plant-based matter, today announced that it has filed its June 30, 2020 10-Q with the Securities and Exchange Commission with an update on Second Quarter 2020 results.

Financial 2020 Highlights:

• Total reported revenues of $318,000, even with Q2 2019
• Gross Margin of 77.7% compared to 68.2%, nearly 100 basis points of improvement year-over-year due to production efficiencies
• Net loss of $(1.86 million), or $(0.03) loss per share, compared to net loss of $(1.91 million), or $(0.05) loss per share
• Cash used in operations was $849,000 compared to $466,000 in the prior year's period
• $850,000 in net debt as of 6/30/2020

Operating Highlights:

• Launched molequle branded product line for on-line sales
• Subsequent to quarter-end announced first commercial revenues from RST Sanexas for Quanta Muscle Rub
• Subsequent to quarter-end announced new channel to market Quanta Direct to add virtual doctor office visit platform sales with partner

Eric Rice, Chief Executive Officer of Quanta commented, "While COVID-19 continues to create challenges for every business, including ours, we made good progress in executing our growth plans during the second quarter of 2020. We have added key personnel, partnerships, and preparations to re-emerge from this global pandemic as a stronger and better company. While second quarter 2020 sales were negatively impacted by COVID, for the year to date we're still running at a 20% growth rate above last year. We have seen an uptick in sales in July and thus far in August, led by healthy increases in wholesale and direct to consumer accountss, getting back on track to a year of exciting growth for Quanta."

"With the launches of new products, molequle, Quanta Direct, and increased contribution from partnerships that we have and that we anticipate in the future, we have set ourselves up for an exciting close to 2020 and beyond," concluded Mr. Rice.

The June 30, 2020 10-Q filing in full with financial tables is accessible at www.sec.gov.

About Quanta:

Quanta, Inc. ("Quanta") is a cutting-edge technology platform whose patented, proprietary technology harnesses advances in quantum biology to increase the potency of active ingredients. Currently, Quanta supports product formulations in pain management, anti-inflammation, skincare, anti-aging, nutritional supplements, and plant-based consumables. Ultimately, Quanta's mission is to deliver better, more effective ingredients to elevate product efficacy, reduce waste and facilitate healthier, more sustainable consumption.

The established resonance theory behind Quanta's polarization process has many potential applications. From potentiating bio-ingredients to produce more-effective carbon-trapping plants to transformative anti-aging solutions Quanta's technology has the opportunity to upend how commercial products are made and the benefits from them. Already we see multi-trillion-dollar global industries benefiting from Quanta's technology. You can find more about Quanta at https://buyquanta.com/.

Forward-Looking Statements

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This release contains statements that are forward-looking in nature which express the beliefs and expectations of management including statements regarding the Company's expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and future economic performance; and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "we believe," "we intend," "may," "will," "should," "could," and similar expressions. Such statements are based on current plans, estimates and expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. These factors and additional information are discussed in the Company's filings with the Securities and Exchange Commission and statements in this release should be evaluated in light of these important factors. Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contacts:

Darrow Associates, Inc.
Peter Seltzberg, Managing Director, IR
pseltzberg@darrowir.com
(516) 419-9915
www.IR.BuyQuanta.com

SOURCE: Quanta

View source version on accesswire.com:
https://www.accesswire.com/602437/Quanta-Announces-Second-Quarter-2020-Results

FAQ

What were Quanta's total revenues for the second quarter of 2020?

Quanta reported total revenues of $318,000 for Q2 2020.

How much did Quanta lose in Q2 2020?

Quanta reported a net loss of $(1.86 million) or $(0.03) per share in Q2 2020.

What improvements did Quanta make in its gross margin?

Quanta's gross margin improved to 77.7% in Q2 2020, up from 68.2% in Q2 2019.

What new products did Quanta launch recently?

Quanta launched its molequle branded product line for online sales.

How did COVID-19 impact Quanta's sales in Q2 2020?

COVID-19 negatively impacted sales in Q2, but Quanta noted an uptick in sales in July and August.