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General Cannabis Reports First Quarter 2011 Results
Posts 55% Increase in Year-Over-Year Revenue
NEWPORT BEACH, CA--(Marketwire - May 23, 2011) - General Cannabis, Inc. (PINKSHEETS: CANA), a technology-based Internet marketing services company, today reported financial results for the first quarter ending March 31, 2011.
Total revenue for the first quarter ended March 31, 2011 was $2.7 million, an increase of 55% over revenue of $1.7 million in the first quarter of 2010. The increase in revenue was primarily due to continued strong growth of WeedMaps Media, our industry leading, on-line community and finder site for cannabis, patients, dispensaries and medical clinics.
Total operating expenses were $2.7 million for the first quarter of 2011, as compared to $1.5 million for the first quarter 2010. The increase was due to higher salaries and benefits, marketing expenses, occupancy costs, professional fees, and non-cash amortization expense related to the Company's recent acquisitions. The $2.7 million of operating expenses included approximately $0.4 million of amortization expense and $0.4 million of expenses associated with the Company's relocation into new office space during the quarter.
Net income from continuing operations was $4,000 for the first quarter of 2011, as compared to $239,000, for the first quarter of 2010. Absent the above mentioned amortization expense and office relocation expenses, net income from continuing operations for the first quarter of 2011 would have been approximately $770,000.
"We're pleased with the continued momentum in our business, and particularly at WeedMaps Media," said Jim Pakulis, CEO of General Cannabis. "As the largest dispensary finder site and on-line medical marijuana community in the United States, WeedMaps is committed to providing doctors and dispensaries with the industry's most collaborative on-line community. As such, we will continue to enhance our technology platform by adding to the array of products offered on our dispensary menu and introducing new features such as our recently announced WeedMaps.com/doctors portal and Daily Deals program."
About General Cannabis, Inc.
General Cannabis, Inc. (PINKSHEETS: CANA) headquartered in Newport Beach, California, is a technology-based Internet marketing services company. The Company's business lines include WeedMaps Media, Inc., General Health Solutions, Inc., General Merchant Solutions, Inc. and General Processing Corporation. Each business line plays a vital role in the ongoing success of General Cannabis. General Cannabis explores opportunities of vertical integration through the five core industry sectors identified as probable high growth areas including media, technology, merchant services, medical and management. General Cannabis, Inc. trades on the OTC Pink of OTC Markets Group, Inc. under the symbol "CANA."
Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). General Cannabis, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. General Cannabis, Inc. undertakes no obligation to revise these statements following the date of this news release.