Isodiol International Inc. Reports Third Quarter 2020 Financial Results

March 3,  2020 –  Vancouver,  BC  – Isodiol  International  Inc. (CSE: ISOL)  (OTCQB:  ISOLF)  (FSE: LB6B.F) (the“Company” or “Isodiol”), announces that it has filed itsconsolidated financial statements and MD&A for the nine months ended December 31, 2019.

 

Highlights of the third quarter of fiscal 2020 include:

• Revenues of $1.3M and gross margins of $489k, the comparative period of the prior fiscal year generated revenues of $7.95M and $4.1M. The decline is primarily a result of changing market trends and a shift in Company focus from international expansion to restructuring our domestic platform with a strategic focus on brand recognition across our entire portfolio.
• Operating expenditures of $1.87M have reduced by $13.4M compared to the prior year of $13.4M. The reductions in spending have been described in the MD&A for the three months ended June 30, 2019, with highlights below:

% QOQ

% YOY

Q3 2020

Q2 2020

Change

Q3 2019

Change

Consulting

90,233

52,185

73%

294,595

(69%)

Wages

406,918

848,034

(86%)

2,884,270

(86%)

Acquisition and advisory

–

–

0%

422,000

(100%)

Total operating expenses

1,867,993

3,061,382

(39%)

9,256,665

(80%)

Net loss

970,022

3,241,110

(70%)

18,160,037

(95%)
• Liquidity
o Positive working capital of $950K and includes the following current assets:
▪ Cash balance of $230K;
▪ Prepaid expenses of $473K;
▪ Inventory of $2.6M;
▪ Receivables of $2.2M;
▪ Investments and loans receivables expected to bring an additional $1.27M of cash;
o 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;

“The Company’s primary objective was to reduce operating expenses and move towards profitability,” said President of Isodiol, Andrew S. Alvis. “We have reduced our expenses by$13M from fourth quarter 2019 and have now shifted our focus on deepening our customer relationships while streamlining our marketing and advertising efforts.” Andrew went on to say, “We are currently cash positive and the Company is in a strong position to increase revenues while continuing to implement expense reduction strategies heading into the remainder of FY2020.”

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About Isodiol International Inc.

Isodiol International Inc. is focused on the nutritional healthbenefits 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’sgrowth strategy includes the development of over-the-counterand pharmaceutical drugs and continued international expansion into Latin America, Asia, and Europe.

ON BEHALF OF THE BOARD

Andrew S. Alvis, President and Director

INVESTOR RELATIONS:

[email protected]

MEDIA CONTACT: 

[email protected]

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, proposed arrangement with creditors, products and future the Company’s business, its product offerings and plans for sales and marketing. 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 and the Company may not be able to carry out its business plans as expected. Except as required by law, theCompany expressly disclaims any obligation and does notintend, to update any forward- looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-lookinginformation 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 newsrelease are made as of the date of this release.

The CSE has not reviewed, approved or disapproved the content of this press release.