An anonymous director reports
FRIDAY NIGHT INC. ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
Friday Night Inc. has released its financial results for the third quarter ended April 30, 2018.
For the three-month period ended April 30, 2018, the company reported $3,317,497 in sales with total revenues for the first nine months of $8,744,683 and gross profits of $4,176,656 on strong and growing sales from its U.S. operations. Total sales increased from $2,962,699 in the second quarter to $3,317,497 in the third quarter, with third quarter gross profits totalling $1,463,550 versus second quarter gross profits of $1,579,127.
Alternative Medicine Association (AMA) reported increased sales from $2,025,036 in Q2 to $2,102,453 in Q3 due to the continuing and strong demand for its high-quality products. Infused MFG sales increased from $937,663 in Q2 to $1,192,051 in Q3 from its Canna Hemp products now selling in Nevada, California and Colorado. Newly acquired Spire Secure Logistics has over $280,000 in signed and executed contracts covering the next several months.
Selected quarterly information
The attached table shows results for the quarter ended April 30, 2018.
Revenue $ 3,317,497
Gross profit $ 1,463,550
Non-current assets $ 24,494,836
Cash at end of period $ 13,098,874
Total liabilities $ 3,646,252
Developments in Q3:
On Feb. 5, 2018, the company announced the appointment of Cameron Watt to its board of directors, replacing Brian Keane. Mr. Watt also serves as the company's vice-president of business development.
On Feb. 7, 2018, the company announced that it had received approval from the Depository Trust Company (DTC), making the company's shares DTC eligible (or electronically tradable).
On Feb. 21, 2018, the company announced that it has terminated its letter of intent dated Dec. 20, 2017, to acquire Body & Mind Inc. in an all-stock transaction.
On Feb. 26, 2018, the company announced the acquisition of Spire, as a wholly owned subsidiary. Spire is a Canadian company specializing in security, intelligence and compliance with international clients, and expertise in both the regulated cannabis industry and other sectors.
On March 2, 2018, the company announced the closing of the Spire acquisition and announced the appointment of Tim Humberstone as chief strategy officer of Spire.
On March 6, 2018, the company announced the closing of the previously announced purchase of an additional 2.78 acres of land, which is contiguous to the current location that will host AMA's new cultivation facility. AMA now owns 4.17 acres of land on a major thoroughfare in Las Vegas, which includes the original plot of 1.39 acres that has already received a special-use permit for cannabis cultivation and a building permit for its future state-of-the-art, 67,000-square-foot cultivation facility.
On March 8, 2018, the company announced the appointment of Andy Richards, chief executive officer of Spire, to the board of directors.
On April 3, 2018, the company announced a one-year licensing agreement and partnership between the company's subsidiary, Infused MFG, and Grizzly Griptape LLC for the launch of Canna Hemp X, a cannabidiol-infused recovery cream targeting the rapidly growing recovery market and new vertical in the action sports world.
On April 12, 2018, the company announced that its subsidiary, Spire, signed a contract to provide strategic advice and expertise to a Canadian provincial government for the design and implementation of security programs and infrastructure for the legal distribution and sale of cannabis. Under the terms of the contract, Spire will be working with the provincial government to implement program system protocols for both retail and on-line sales of cannabis, focusing on the prevention of organized crime infiltration and black market diversion. Spire also announced the appointment of Kevin Meade as chief administration officer and director of international programs.
On April 24, 2018, shareholders approved the continuance of the corporation from the Province of Alberta into the Province of British Columbia and added Brian Farrell to its board of directors.
On May 5, 2015, the company and its subsidiary, AMA, announced that they had entered into a purchase agreement for an existing 12,160-square-foot building adjacent to the future cultivation facility, which will be utilized for cannabis production, processing and extraction purposes. The purchase price was $2.25-million (U.S.). The company also announced that construction was under way in AMA's new cannabis cultivation facility in Las Vegas, Nev. The company was granted approval from the Clark County Zoning Commission in Nevada for its building redesign from a one-storey, 35,000-square-foot facility to a two-storey, 67,750-square-foot facility for cannabis cultivation on 1.4 acres in an M-1 (light manufacturing) (APZ-1) (AE-75) zone. The company further announced the decision to continue the management contract of Harvest Foundation. The company evaluated the potential advantages of expanding the current contract to encompass an acquisition and since decided to postpone acquisition talks.
On May 28, 2018, the company and its subsidiary, Infused MFG, announced a one-year licensing agreement with professional poker player, Scotty Nguyen, for the launch of Canna Hemp CBD-infused products marketed under Scotty Nguyen Focus Baby Disposable Vape Pen and Focus Baby Elixir.
On June 5, 2018, the company and its subsidiary, Infused MFG, announced a one-year licensing agreement with Denver Dab Company (DDC) to produce the company's line of products in the state of Colorado. DDC will manufacture Canna Hemp-branded products, including CBD relief cream, body lotions, lip balms, disposable vape pens, vape cartridges, elixirs and capsules, as well as Canna Hemp Paws pet products.
On June 6, 2018, the company announced the closing of the previously announced purchase agreement dated May 15, 2018, on a production building in Las Vegas, Nev., which will house a separate hemp processing facility (the CBD lab) operated by its subsidiary, Infused MFG.
Management focused and executed on several milestones surrounding its Nevada business expansion plans.
Detailed information on the financials and the management discussion and analysis can be found on SEDAR.
About Friday Night Inc.
Friday Night is a Canadian public company that owns and controls cannabis and hemp-based assets in Las Vegas, Nev., as well as an international cannabis and mining security logistics consulting firm. The company owns 91 per cent of Alternative Medicine Association, a licensed medical and adult-use cannabis cultivation and production facility that produces its own line of unique cannabis-based products and manufactures other third party brands. Infused MFG, also a 91-per-cent-owned subsidiary, produces hemp-based CBD products, thoughtfully crafted of high-quality organic botanical ingredients. The company's wholly owned subsidiary, Spire Secure Logistics, is a leading provider of customized security programs, compliance, information technology, buildout design and due diligence services for the legal cannabis, mining and investment sectors.
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