Aug 30, 2019 – Vancouver, BC – Isodiol International Inc. (CSE: ISOL) (OTCQB:ISOLF)
(FSE: LB6B.F)(the “Company” or “Isodiol”), announces that it has filed its audited consolidated
financial statements and MD&A for the year ended June 30, 2019.
Highlights of Fiscal Year 2019 include:
-
The Company reports first quarter revenues of $4.2M, a significant reduction in operating
expenses and near profitable operations with a net loss of $2.8M. -
The Company has reduced its operational expenditures by $3M compared to the three
months ended June 30, 2018 and by $13M compared to the most recently completed
three months ended March 31, 2019. The reductions in spending have been described in
the MD&A for the three months ended June 30, 2019, with highlights below:% QOQ
% YOY
Q1 2020
Q4 2019
Change
Q1 2019
Change
Consulting
49,178
10,460,986
-99.53%
921,641
-94.66%
Wages
816,238
1,663,192
-50.92%
1,871,219
-56.38%
Acquisition and advisory
–
236,024
-100.00%
210,000
-100.00%
Total operating expenses
3,362,091.00
16,419,559
-79.52%
6,384,479
-47.34%
Net loss
2,825,092.00
95,895,783
-97.05%
3,824,576
-26.13%
- Liquidity
Positive working capital of $4.8M and includes the following current assets:
-Cash balance of $3M;
–Prepaid expenses of $2.7M;
–Inventory of $1M;
–Receivables of $4.7M;
–Investments and loans receivables expected to bring an additional $1.6M
of cash before December 2019;
Not included in working capital is the long-term receivables from the final BSPG
payments of USD$2M expected to be received by September 2020;
Operational highlights:
- On April 11, 2019 the Company announced the commencement of its Vending Machine
Program for Iso-Sport products with the initial launch in 20 Powerhouse Gym locations
in the United States; - On May 1, 2019, the Company continued its fiscal 2020 Trade Show Program at the ECRM
Pet EPPs Trade Conference and showcases its all-natural CBD pet supplement line, Pawceuticals; - On July 18, 2019 the Company announced that the asset purchase agreements among the
Company, ISO International LLC, and Carlsbad Naturals LLC (both the New Mexico and
Wyoming limited companies) have been terminated as a result of Carlsbad New Mexico
and Carlsbad Wyoming’s failure to perform their respective obligations under the
agreements. The transactions relating to these asset purchase agreements were
announced and described in the Company’s news release dated February 14, 2019. The
company has terminated this acquisition and is in the process of cancelling the previously
issued shares.
“The Company’s primary objective was to reduce our operating expenses and move towards
profitability, of which we came very close in this first quarter of FY2020,” said CEO of Isodiol,
Marcos Agramont. “We have reduced our expenses by $13M from fourth quarter 2019 and have
now turned our focus on building our brands globally with spending concentrated on marketing
and advertising.” Marcos went on to say, “We are currently cash positive and the Company is in
a strong position to improve revenues and continue cash reduction strategies heading into the
remainder of FY2020.”
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About Isodiol International Inc.
Isodiol International Inc. is focused on the nutritional health benefits that are derived from hemp
and is a product development, sales, marketing and distribution company of hemp-based
Consumer Packaged Goods (CPG) and solutions. Isodiol has commercialized a 99%+ pure,
naturally isolated CBD, including micro-encapsulations, and nano-technology for quality
consumable and topical skin care products. Isodiol’s growth strategy includes the development
of over-the-counter and pharmaceutical drugs and continued international expansion into Latin
America, Asia, and Europe.
ON BEHALF OF THE BOARD
Marcos Agramont, CEO & Director
INVESTOR RELATIONS:
Ir@isodiol.com
604-409-4409
MEDIA CONTACT:
Christopher Hussey
media@isodiol.com
The CSE has not reviewed, approved or disapproved the content of this press release.
Forward-Looking Information: This news release contains “forward-looking information” within
the meaning of applicable securities laws relating to statements regarding the Company’s
business, business plans, products and future the Company’s business, its product offerings and
plans for sales and marketing, including with respect to the Company’s expectation that it will
have continued access to the API required for Purodiol, Isodiolex and Isoderm, the Company’s
expectations generally regarding the market for high margin consumer goods, and the Company’s
belief that its operating expenses will continue to remain at a relatively reduced level into the next
financial quarter or beyond. Although the Company believes that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance that such expectations
will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking
information. Such forward-looking statements are subject to risks and uncertainties that may
cause actual results, performance and developments to differ materially from those
contemplated by these statements depending on, among other things, the risks that the
Company’s products and plan will vary from those stated in this news release, that the Company
may not be able to carry out its business plans as expected, including with respect to having
continued access to the API required for Purodiol, Isodiolex and Isoderm, that the Company will
achieve a favourable position within the high margin consumer goods market, and that the
Company’s operating expenses will remain at a relatively reduced level into the next financial
quarter or beyond. Except as required by law, the Company expressly disclaims any obligation and
does not intend, to update any forward-looking statements or forward-looking information in this
news release. Although the Company believes that the expectations reflected in the forwardlooking
information are reasonable, there can be no assurance that such expectations will prove
to be correct and makes no reference to profitability based on sales reported. The statements in
this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release.