DigiPath Labs, Inc. is a service oriented, independent testing laboratory and media firm. With their third quarter ending June 30, 2017, DigiPath posted the results of their first fiscal quarter with legal cannabis. DigiPath is known for reliable potency and terpene results within just 48 hours. Their fast turnaround is due to their ultra sensitive Agilent analytical instrumentation. Their third quarter results were impressive, but they didn’t match the growth of the beginning of the year.
Todd Denkin, Digipath’s President & COO, commented, “Our results for the third fiscal quarter of 2017 show continued strong growth on a year-over-year basis, as our cannabis testing operations in Las Vegas continue to increase. Despite a decline in fiscal third quarter revenues, the roll out of recreational cannabis that became effective in Nevada on July 1, 2017 is expected to dramatically increase consumer demand.
Let’s take a look at their third quarter recap:
- Ended quarter debt free with $201,759 of working capital, including $113,963 of cash on hand.
- Nine months sales were $1,296,115, an increase of 155% on a year-over-year basis.
- Third-quarter sales of $389,315 declined by 22% as a leveling off followed record sales in our second fiscal quarter ended June 30, 2017, as customers accelerated testing in order to complete sales prior to a sales tax increase, which caused revenues to cluster in the second fiscal quarter.
- Reduced our net loss by 63% and 77% for the three and nine months, respectively, over the comparative periods in 2016.
- Adjusted EBITDA for the quarter was $(142,146), compared to Adjusted EBITDA of $(58,428) for the previous fiscal quarter.
- Adjusted EBITDA for the nine months ended June 30, 2017 was $(287,211), compared to Adjusted EBITDA of $(785,039) for the comparative nine months ended June 30, 2016, an improvement of approximately 63% on a year-over-year basis.
Denkin continued, “With over 40 million annual visitors to Nevada, increased consumer demand for legal cannabis is expected to drive more growers to meet this demand, resulting in a significant increase in cannabis lab testing services. We expect that our superior customer service and ability to provide a quick 48-hour turnaround time for results will enable us to maintain the market share advantage we’ve enjoyed to date.”
DigiPath Labs takes a three pronged approach to customer service that will likely continue to filter producer/processors through their doors for their suite of testing services. With Dr. Cindy Orsner at their head, DigiPath Labs continues to be one of the best testing labs in Nevada.