World News: 10:00 GMT Friday 9th November 2018. [Starco Brands via Globe Newswire via SPi World News]
SANTA MONICA, Calif., Nov. 09, 2018 (GLOBE NEWSWIRE) -- Starco Brands (OTC: STCB), a creator of innovative and disruptive consumer products, reported financial results for the third quarter ended September 30, 2018.
Starco Brands’ revenues are derived from royalties received from its production partner The Starco Group (TSG) on products whose brands are owned by Starco Brands. Starco Brands books the revenue upon receipt of the royalties related to such sales, typically within 60-90 days after the products are shipped to retailers. During the third quarter and first nine months of 2018, the aggregate wholesale shipments of such products were approximately $148,542 and $764,860, respectively, which consisted of The Starco Group’s sales of Breathe, Winona Pure, Kleen-Out and Parent’s Choice. Because this business model was not adopted until the third quarter of 2017, there were no such revenues booked in the first half of 2017, and only $3,027 was booked in the third quarter of 2017.
Operating expenses for the third quarter of 2018 totaled $127,893, down from $141,426 in the second quarter of 2018. The net loss was $93,919, or $0.00 per diluted share. Adjusted EBITDA was negative $91,311. See note below on “Use of Non-GAAP Financial Information.”
While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to the Company’s liquidity, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the implementation of any businesses we acquire, factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and other periodic reports. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.
Globe Newswire: 10:00 GMT Friday 9th November 2018
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