Empower Clinics Inc (CSE:CBDT) (OTCMKTS:EPWCF) revealed Wednesday that it posted record revenue in its second quarter driven by salient contributions from its recent acquisition of the Sun Valley Health Clinic US network and higher patient registrations.
For the three months ended June, the company saw its clinic revenue shoot up by 89% to $591,024, compared to $312,485 in revenue in the same period a year earlier.
The company registered 4,299 patient visits in the second quarter, compared to 2,187 patient visits in the same period in the previous year.
READ: Empower Clinics' says Square to facilitate card purchases of CBD, wellness products online and in Sun Valley Health clinics
The company chalked up the bump in revenue to the acquisition of Sun Valley Clinics in May, which allowed for two months of accretive revenue.
"The impact of cost cutting measures and the benefit of the Sun Valley acquisition are now showing up in the financial statements of the company," said Empower Clinics CEO Steven McAuley in a statement.
"Even though we can only book two months of Sun Valley's performance in the second quarter, the significance is notable, and we expect continued benefits going forward, especially with the new retail product strategy in-clinics and with the franchise program," added McAuley.
Improved operating expenses
Direct expenses for running the clinics during the quarter dropped to $82,750, compared to $107,271 in the same period in the previous year.
Due to tighter controls, the company dramatically narrowed its net loss in the quarter to $1,424,070, compared to a net loss of $2,703,891 in the same period in the previous year.
In its statement, the company said: “Operating expense decreased due to a decrease in salaries and benefits as a result of aggressive headcount cuts and facility changes. Additionally, share-based payments decreased due to timing of share-based awards to management.”
Cash as of June 30, totaled $817,168, compared to $157,668 on December 31, 2018 which was primarily driven by equity financing.
The firm is a vertically-integrated CBD company based in Vancouver. Its CBD is manufactured under the brand name Solievo, and the Sun Valley Health Clinics operate at nine locations in the US.
With significant expansion opportunities available through the Sun Valley Health franchise model, Empower anticipates it will grow its total patient list substantially in the years ahead.
“This is expected to provide greater opportunity for treatment analysis using artificial intelligence, through progressive initiatives that include adding the Endocanna DNA test kit to the company product and service offering in clinics and online,” said the company.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive