CannaVest Corp. is reporting financial results for the quarter ending June 30, 2014.
During the quarter, CannaVest continued investing in its San Diego headquarters and laboratory facilities expansion, and in its sales, marketing, and finance personnel additions; and it completed a major milestone in establishing a domestic industrial hemp cultivation infrastructure, via its involvement in one of the first U.S. pilot cultivations of industrial hemp.
"We continue to expand our infrastructure investment, both internally, and now, in the field," said Michael Mona, president and chief executive officer of CannaVest. "By making investments in key personnel and operating infrastructure, and now, with our historic involvement in the first legal cultivation pilot at Kentucky's Murray State University since the passage of the 2014 Farm Bill, we are positioned to establish industrial hemp as a vital U.S. commodity."
Second quarter 2014 operating results
The Company's net income for the second quarter of 2014 was $8,040,430, or $0.24 per share (basic and diluted), compared to a net loss of $348,134, or $0.04 per share (basic and diluted) for the same period in 2013.
Net income for the second quarter 2014 included $7,899,306 of gain on sale of the Company's equity investment in KannaLife Sciences Inc. The Company sold its 24.97 percent equity investment in KannaLife for 500,000 shares of Company common stock held by PhytoSPHERE Systems LLC, an affiliate of KannaLife. There was no cash exchanged in the transaction. Net income from operations was $131,892 for the quarter ended June 30, 2014, compared to an operating loss of $327,611 for the same period in 2013.
Selling, general and administrative expenses for the second quarter of 2014 were $1,507,423 compared to $419,002 for the same period in 2013. The increase was related to the continued growth of the operations of the Company, technology infrastructure investments, and increased legal and marketing costs.
Research and development costs for the second quarter of 2014 were $156,501. This includes the cost of process development, rental of laboratory space, personnel costs, laboratory supplies, product development and testing.