Growlife Inc (OTCMKTS:PHOT) submitted its 10-Q for the quarter closing September 30, 2017 including operational and financial results. The company has recently concluded a newsworthy October with latest updates around its five pillar plan, shareholder meeting where as many as 88% of shares were casted and majority exhibited support of management and its plans, FINRA validated compliance of its market maker allowing the solicited trade of company shares, and the strategic asset deal of building materials, trademarks and patents that further allow the firm to innovate its offerings to lead market trends.
Marco Hegyi, the CEO of Growlife, expressed that outcome is what matter and their team continues to excel in a unified way where it is firing on distinct cylinders with finance, operations and sales aligned. With the recent additions of top resources, talent and further regulatory nod, he anticipates company to continue to lead and benefit on the demand from the indoor grow industry. The shareholder’s latest votes demonstrate remarkable support in the firm’s future.
Net revenue for the quarter closed September 30, 2017 came at $661,000 versus $200,000 for the quarter closed September 30, 2016. The jump came from increased channels of distribution and sales personnel. Growlife reported that cost of sales for the quarter closed September 30, 2017 came at $476,000 versus $179,000 for the quarter closed September 30, 2016. The jump can be attributed to increased sales, offset by reduced cost of sales related to increased supplier discounts and favorable product mix.
Gross profit came at $185,000 for Q3 2017 as against a gross profit of $21,000 for the quarter closed September 30, 2016. In addition, the gross profit percentage came at 27.9% for the quarter closed September 30, 2017 versus 10.3% for the same period, a year ago. The gross profit jump was due to increased sales, offset by reduced cost of sales linked to increased supplier discounts and favorable product mix.