EVIO, Inc. Provides Shareholder Update
HENDERSON, Nev. , October 15, 2021 / PRNewswire / – EVIO, Inc. (OTC: EVIO) is pleased to provide this update to shareholders. This update includes a summary of fiscal year 2020 financial results, notification of a withdrawal of the letter of intent, a discussion of turnaround efforts to date, and the announcement of new initiatives.
At September 23, 2021 the company has published its financial results for its financial year 2020.
EVIO, Inc.’s gross margin improved to $ 148,927 in 2020 from ($ 936,040) in 2019 while revenues decreased by 5% to $ 3.6 million of $ 3.8 million. The improvement in margins is mainly due to the consolidation of laboratories in Oregon, California, and Canadian. Turnover increased in Oregon but was offset by the reduction in license revenue, loss of revenue due to COVID closures, and the cost of relocating the Berkeley laboratory.
The company saw a 23% decrease in test service costs and a 30% reduction in selling, general and administrative costs year over year. The lower cost of testing services is due to the increased scale in fewer labs. The reduction in general and administrative costs is largely due to the reduction in the company’s overhead costs by maintaining fewer locations, reducing the size of its management team and moving to outsourced finance and accounting staff.
“Although revenues declined slightly in 2020, laboratory consolidation and reduction in overheads put the remaining operating laboratories in a stronger financial position,” said Lori Glauser, CEO. âEVIO’s objective for 2021 has been to continue reducing costs, improving its debt and evaluating new business opportunities to diversify its portfolioâ.
Ongoing cost reductions include the reduction of the management team to a single CEO and CSO with outsourced finance and accounting staff; the transition of the management team from its office to Henderson, NV teleworking and the restructuring of compensation plans for certain sales and administrative staff.
Since the end of 2020, the company has repaid significant liabilities, including $ 1.8 millions of debts and rental debts of the Massachusetts, Medford, and Humboldt Locations.
Holders of convertible notes also reduce their debt by converting their shares. Approximately, $ 1.8 million of the exceptional $ 3.6 million in convertible notes were settled.
Withdrawal of Letter of Intent with Leading Edge Pharms
At July 12, 2021, the company announced that it has entered into a letter of intent with Leading Edge Pharms, Inc. (“LEP”), a formulator of CBD products, to amalgamate the two companies.
After further consideration, the two companies mutually agreed to end the letter of intent and to withdraw from the process of a potential merger. The rationale for the withdrawal is regulatory and market uncertainty regarding the combined company’s ability to produce and test CBD products. âAlthough Leading Edge Pharms offers a solid line of CBD products and proprietary formulations, such an acquisition could create a conflict of interest for EVIO as the company would test and sell products. This presents a possible conflict with the two regulators and our labs more and more customers who produce similar products. “
New lab initiatives
Recently, Health Canada authorized access to psychedelics as controlled substances for special cases, exempt persons and clinical trials. In September 2021, Keystone Labs submitted its controlled substances license application. This license would allow Keystone to perform safety testing of psychedelics, including psilocybin, MDMA and ketamine, used for certain new applications, including clinical trials.
Also in November 2020, voters passed Measure 109 of the Oregon ballot, which Oregon the first state to decriminalize psilocybin and legalize it for therapeutic purposes. The program will be administered by the Oregon Health Authority, which expects to receive applications in 2023. EVIO Labs Portland intends to be ready to assist emerging producers and manufacturers in both testing, compliance counseling and research and development.
EVIO Labs Portland also recently expanded its testing services to include new cannabinoids, including THC-O. This further expands the already strong list of cannabinoids tested which includes THCV, CBDV, and Delta 8 THC.
About EVIO, Inc.
EVIO, Inc. is a provider of analytical testing services for cannabis, hemp, and CBD products. EVIO maintains full-service, licensed and accredited laboratory operations in California, Oregon, and Canada. EVIO also provides quality analytical R&D and consulting services to its customers to help them produce the best compliant products. For more information visit www.eviolabs.com.
Safe Harbor Declaration
All statements contained in this press release that are not statements of historical fact may be considered forward-looking statements relating to anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “the goal”, “the objective”, ” seek, “” attempt “or variations of these or similar words identify forward-looking statements. These forward-looking statements, by their nature, are only estimates of future results and involve substantial risks and uncertainties, including, but not limited to, risks associated with the uncertainty of future financial results, requirements additional funding, new product development, the Company’s ability to complete product testing and launch the product commercially, product acceptance in the market, uncertainty of cannabis laws and regulations, impact competitive products or prices, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in company reports available at www.sec.gov Where www.eviolabs.com.
For more information, contact:
Lori Glauser, CEO
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SOURCE EVIO, Inc